Staff: Middleton streetlight conversion will cut energy use but MG&E billing change limits immediate dollar savings

City sustainability staff told the Middleton Sustainability Committee that equipment for the 2025 streetlight program has arrived and installation will begin under contract with Hooper, with additional 2026 grant funding available if a contract is signed.

Kelly, the city sustainability lead, said the 2026 grant would be roughly $124,000 with a $31,000 city match already set aside. She said specialized streetlights in Middleton Hills and Northlake will be more expensive to replace but that city-owned lights along University Avenue can be updated as contracts are finalized.

Committee members pressed on whether converting to LEDs will produce bill savings for the city. Guy, representing the utility perspective, explained that MG&E shifted streetlight billing from per-kWh charges to a flat fee, a change enacted through the public-service commission. “Instead of charging per kWh consumed by the street light, it is just a flat fee for the street light,” Guy said, adding that the utility will replace fixtures with LEDs as lights go out but that the fee structure reduces direct cost savings even though energy use will fall.

Kelly said the city expects a large reduction in energy use from the conversions but cautioned the change in MG&E’s rate structure may limit near-term dollar savings. She noted the city has additional capital funds reserved and will proceed with contract negotiations, public bid documents and a second round of replacements in 2026 focused on neighborhoods with specialized fixtures.

The committee also discussed other staff projects: ongoing work on a battery-storage installation at the police station (staff said technical code issues and budget constraints may require substantial additional funds), Lakeview Village multifamily decarbonization lessons (solar and batteries nearly complete; heating arrangements largely individualized after code/utility constraints), and the need to include operating-and-maintenance funding for solar and EV charging in the operating budget.

Next steps: staff will complete contracting with Hooper for installations on city-owned lights, finalize the 2026 grant contract, and prepare operating-and-maintenance requests to cover inverter replacements and charging infrastructure upkeep.