Muscatine Power and Water Trustees reviewed proposed 2027 operating budgets for electric, water and communications utilities at their October meeting.
The proposals include major energy projects, water system improvements, and broadband expansion, the Iowa public power utility said.
"Costs to operate and maintain MPW’s electric, water and communications systems are rising. The proposed budgets reflect economic and market conditions, major maintenance work and investments in equipment and infrastructure," it said.
Electric Projects – 2027 Budget – Focused Highlights
- EcoGen 10 – MPW’s natural gas-fired combined heat and power unit is expected to supply approximately 35 megawatts of electricity and 318,000 lb/hr of steam, supporting the future energy needs of the community. This highly efficient energy source is expected to come online at the end of 2027. The $89.7 million project cost falls to $74.4 million after an expected $15.3 million tax credit in 2029.
- Muscatine Solar 1 — $48 million for a utility-scale solar array, with approximately $16.3 million of direct-pay tax credit proceeds expected in 2029. The 24-megawatt facility will add solar power to MPW’s mix of energy sources and support customers’ sustainability goals. It is part of MPW’s Powering the Future initiative and provides renewable energy to customers through the Choose Green Muscatine program.
- Unit 9 environmental compliance — $22.7 million on projects to meet environmental requirements. The work addresses wastewater discharges under the Effluent Limitations Guidelines and cooling water intake requirements under the 316(b) rule.
- Grandview Substation — $600,000 in 2027 as part of a $6.3 million project to upgrade this substation and prepare it for Muscatine Solar 1 to begin operating.
- Unit 9 DCS Upgrade – $800,000 for a Unit 9 distributed control system upgrade.
- Power plant maintenance — $14.5 million for maintenance at Units 7, 9, and EcoGen 10. The work includes boiler and turbine-generator maintenance and replacement of condenser tubes.
Water Projects – 2027 Budget – Focused Highlights
- Lead service line replacements – this initiative is in response to the Environmental Protection Agency’s proposed Lead and Cooper Rule Improvements, which require utilities to identify water service lines containing lead or galvanized steel. The Utility has secured $4 million with the State Revolving Fund financing for 2028-2031. Impacted customers have been contacted, and contractor activities will take place over the coming two years.
- PFAS mitigation — $6.6 million on trials of localized treatment systems, well field piping modifications, and well field automation. The work addresses PFAS, a group of manufactured chemicals. MPW has received about $7.9 million from a class-action settlement and is expected to receive an additional $1.9 million that will be used for PFAS mitigation projects.
- Water Infrastructure – $1.1 million to replace water mains, valves, and hydrants, especially in areas where the City of Muscatine is continuing their sewer separation work.
Communications Projects – 2027 Budget – Focused Highlights
- NOFA 9 Broadband Extension projects – $1.8 million to expand MPW’s communications footprint to underserved areas. $1.2 million reimbursement is expected from the State once the project is completed.
“Customers count on us to keep the lights on, provide safe water and keep them connected,” said MPW General Manager Gage Huston. “Our proposed 2027 operating budget invests in the equipment and infrastructure needed to deliver reliable service today and meet our community’s needs in the years ahead.”
Trustees will vote on the proposed 2027 operating budget at the November board meeting.
In other business, the Trustees approved a project summary form totaling $332,100 for the Unit 9 Bottom Ash Refractory Repair project. This recurring maintenance is necessary to protect boiler tubes at the bottom of the boiler from high temperatures and impacts associated with falling bottom ash.
“Reliable power depends on regular maintenance and close monitoring of our equipment,” Huston said. “These repairs help protect the boiler, support safe operation and keep the plant ready to serve the community.”
September produced strong financial results. Jim Odean, director of finance and administrative services, reported a consolidated net income of approximately $1.9 million for all utilities.
Favorable Electric performance was the primary driver, complemented by above-budget results in Water and Communications and lower-than-budget shared services costs.
The organization maintained a strong cash position of $156.5 million while continuing to fund essential capital improvements.
Trustees also reviewed financial projections for 2027-2036.
