At Tuesday night’s Board of Water, Electric, and Communications Trustees meeting, the Board approved Muscatine Power and Water’s (MPW) 2025 Operating Budget and the associated budget summary. The budget includes significant investments in new power generation and refurbishment of existing utility infrastructure supporting the Utility’s mission to provide reliable utility services to the Muscatine community.
Highlights from the approved budget include the Electric Utility’s Powering the Future initiative with construction of MPW’s new combined heat and power (CHP) generating unit that is planned to go online in 2028 and development of utility-scale local solar energy, refurbishment of the Water Utility’s East Hill Reservoir, and the Communication’s Utility work expanding rural access to MPW’s all-fiber network.
“A period of progress is underway in Muscatine,” shared Gage Huston, MPW’s general manager. “MPW’s investments in critical infrastructure ensure the long-term reliability of utility services while positioning Muscatine for future growth.”
The budget process includes a thorough review of anticipated operational costs and revenue streams to ensure financial sustainability. Huston continued, “Reliable utility services are the foundation of a thriving community. MPW remains dedicated to delivering exceptional value while preparing for the future.”
The Trustees approved a new five-year agreement with the International Brotherhood of Electrical Workers (IBEW) Local No. 55.10. The long-term agreement provides stability for both the Utility and MPW’s hourly, skilled workforce – employees who are essential for keeping utility services flowing to customers and responding in those rare outage situations and restoring services to customers.
With the holiday season beginning, key positions at MPW remain staffed 24/7 to make sure services continue uninterrupted and customers have access to help in case of utility emergencies. Huston and the Trustees acknowledged the importance of these operational roles. “We recognize and deeply appreciate those employees who will be working while others are at home with their families. Their dedication and commitment do not go unnoticed,” noted Trustee Kevin Fields.
October financial results reflected a loss. The primary reason was a planned maintenance outage for Unit 9, MPW’s largest generating unit that resulted in significant expenses. The impact of the Electric Utility’s net income was less than budgeted, which resulted in the $1.3M
loss being $0.7M better than budget. Mark Roberts, director of finance, stated, “Expenditures for the CHP unit increased in October with a $2.1M partial payment for the combustion turbine and generator, the largest cost component of the project.”
In other business, the Trustees:
- Approved payment of October 2024 expenditures and transactions totaling $13,930,180.
- Ratified Contract Change Order No. 1 for a final contract price of $160,279 for the West Hill Pump Station Exterior Improvements Project.
- Approved a revised PSF for the Substation Communication System Replacement Project with a total cost, including contingency, of $580,000.