MPW Board Approves Natural Gas Hedging Policy to Support EcoGen 10

The Board of Water, Electric and Communications Trustees on Tuesday approved a natural gas procurement and hedging policy to support Muscatine Power and Water’s (MPW) long-term energy and the future operation of EcoGen 10. 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.

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.

The Board of Water, Electric and Communications Trustees on Tuesday approved a natural gas procurement and hedging policy to support Muscatine Power and Water’s (MPW) long-term energy and the future operation of EcoGen 10. 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.

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.

Trustees reviewed updated service rules for MPW’s water, electric and communications utilities. The revised rules reflect recent updates and provide clear guidance for service delivery to customers. The rules are available to the public and mpw.org.

Mr. Huston also reported on the results of the Midcontinent Independent System Operator (MISO) annual capacity auction for the MISO year from June 2026 through May 2027. MISO continues to send a stronger market signal for the value of generation capacity, an important continuation after the correction that was offered after last year’s auction.

Huston commented, “The latest auction results are better than expected for Muscatine, and they reflect the significant value of MPW’s local generating capacity and the staff that work hard to keep our plants viable.

April financials were stronger than anticipated in MPW’s budget. April net loss was $16,000, which was $1.1m better than the expected loss. Wholesale margins were better than expected as wholesale prices were higher than expected for April and the shift of the Unit 9 spring outage from April to March. Mark Roberts, director of finance and administrative services, also reported that the average overall electric rate for the month was 7.2¢/kWh v. 7.8¢/kWh last year, a 7.5% reduction. For the year through April, overall electric rates are 4.7% below last year.

In other Board business, the Trustees:

• Ratified payment of April expenditures and transactions of $15,366,269.17.
• MPW donated a surplus 2012 pickup truck to Muscatine Community College (MCC) for its automotive technology program. This vehicle will be used by students for hands-on training, inspection, and maintenance instruction.