The Board of Water, Electric and Communications Utility Trustees approved several key agenda items at their meeting on Tuesday, March 25. These approvals included Muscatine Power and Water’s (MPW) internet package restructuring plan and rate adjustments for electric, water and TV services.
Erika Cox, director of customer and technology experience, discussed the next phase of MP’’s internet package restructuring plan. “As customer internet usage and preferences evolve, the number of devices connected to home networks continues to increase, straining individual connections,” Cox said. “We’re in a unique position of having system capacity and available external bandwidth to make this service enhancement for our customers. It keeps MPW’s internet packages in a competitive leading position.”
Beginning in May, customers on the 100 Mbps and 250 Mbps plans will be upgraded to 150 Mpbs and 500 Mbps, respectively, at no extra cost. Additionally, the price of multi-gig internet – 2 Gig and 5 Gig – will be reduced, and WiFi@Home managed router service will be lowered to $4 per month. With MPW’s all-fiber network, customers benefit from symmetrical upload and download speeds, something not possible with legacy telephone operator systems or wireless infrastructure, including 5G home internet offerings.
The current high-speed internet federal benchmark is 100/20 Mpbs. Continuing to evolve internet packages beyond this benchmark ensures MPW customers have access to above- standard service offerings at competitive prices, with no fear of being “left behind” in the digital world.
The Trustees also approved rate adjustments for electric, water and TV services to ensure the long-term financial stability of the utilities and support ongoing infrastructure investments.
- Electric—an overall 6% base rate adjustment, offset by re-basing the Energy Adjustment Clause (EAC) effective July 1, 2025; followed by a 5.1% increase effective July 1, 2026. Increases are driven by inflation and higher capital expenditures, including increasing costs of compliance with various federal regulations.
Re-basing the EAC will offset much of the base adjustment. For example, an average home using 850 kWh per month is expected to see just a 2.8% overall increase, or approximately a $3.15 increase to the monthly bill this year. - Water—an overall 4% rate adjustment effective July 1, 2025, and another 4% July 1, 2026. The Water Utility has been affected by significant inflation of water treatment chemicals, continued capital expenditures to maintain infrastructure, and flat sales. An average home using 5 Ccf per month will see an approximate 60¢ increase to the monthly bill this year.
- TV—an overall 5.2% rate adjustment effective May 1, 2025, coupled with a reduction in pricing for DVR service and cable box rentals. The principal reason for video rate adjustments is the continuing escalation in costs to acquire programming content. A Basic and Select subscriber will see a $2.82 and $6.57 package rate increase, offset by $3.99 savings off DVR service and $0.99 – $3.99 savings per cable box in the home. Many customer’ bills will go slightly down with the combination of the changes.
“We recognize the recommended price adjustments impact our customers, said General Manager, Gage Huston. “Even with the rate adjustments, MPW’s electric and water rates remain competitive and below state and national averages. Our TV offering continues to stay in line with direct satellite competition, as well as benchmarks.”
“We understand families are trying to stretch dollars and MPW is doing the same,” Huston added. “We will continue to work diligently to keep costs as low as possible while providing quality service to the community.”
“We understand families are trying to stretch dollars and MPW is doing the same,” Huston added. “We will continue to work diligently to keep costs as low as possible while providing quality service to the community.”
The Trustees were presented with MPW’s 2024 Annual Report, a written accompaniment to the Power Breakfast, now available on MPW’s website. An unaudited financial summary is included, with audited results to be posted on the website once reviewed.
MPW’s net income in February was $736,000, with $416,000 from Electric Utility, $91,000 from Water Utility and $230,000 from Communications Utility. The results, in total, were $101,000 below what was budgeted. Mark Roberts, director of finance and administrative services, noted there was a significant cold spell in February, but the start and end of the month were mild. In addition, Roberts stated natural gas prices remained elevated in February, which influenced higher wholesale electric energy purchase and sale prices. With two of MPW’s three coal-fired generation operating for almost all or parts of the month, the net result was positive margins.
In other action, the Trustees:
- Approved payment for February 2025 expenditures and transactions for a total of $5,554,694.57.
- Set Tuesday, April 29, 2025, at 3:58 p.m. for a public hearing regarding the sale of a 5- acre parcel to Muscatine County.
- Received and placed on file Muscatine Power and Water’s 2024 Annual Report.
- Approved the recommendation requesting the Mayor and Muscatine City Council designate May 4-10, 2025, as Drinking Water Week.