The Board of Water, Electric and Communications Trustees approved a natural gas procurement and hedging policy to support Iowa public power utility Muscatine Power and Water’s long-term energy and the future operation of EcoGen 10.
EcoGen 10 is a natural-gas powered combined heat and power (CHP) generating unit.
The policy establishes a structured approach to purchasing natural gas in advance to help manage price volatility, stabilize costs for customers and ensure a reliable fuel supply ahead of the unit’s anticipated startup around November 2027, MPW said on May 27.
Under the policy, MPW will secure most of its expected natural gas needs over a multi-year period through forward purchases coordinated with energy suppliers. Spreading purchases over time is designed to reduce exposure to market fluctuations, particularly during winter months when natural gas prices are typically more volatile.
MPW General Manager Gage Huston said the policy reflects critical behind-the-scenes work that supports reliable, affordable service for customers.
“This is the kind of work most people never see, but it’s essential to everything we do,” Huston said. “Building EcoGen 10 isn’t just about constructing a power plant – it’s about putting the right policies, contracts and safeguards in place to manage risk and protect our customers for the long term. It’s foundational to delivering on Power the Future and ensuring we continue to provide reliable, cost-effective service to our community.”
Although EcoGen 10 is not expected to begin operations until late 2027, MPW staff continues to build the framework needed for safe, reliable and efficient operations. Leadership said developing policies well in advance will help maximize performance and ensure long-term success.
