At a special Board of Water, Electric and Communications Trustees meeting, held January 16, the Trustees approved a resolution authorizing and ratifying the sale of electric revenue bonds not to exceed $168 million dollars in one or more series. While the Board granted authority up to $168 million, the initial issuance is expected to be $100 million (par value).
The proposed structure of the financing includes a split between tax-exempt and taxable bonds of varying maturity lengths, structured in a way that maintains levelized annual debt service costs over a 30-year term.
The financing will support, in part, the construction of EcoGen 10, a natural-gas powered combined heat and power (CHP) generating unit. EcoGen 10 is part of MPW’s Powering the Future initiative, which addresses the community’s long-term electric power needs. CHP technology simultaneously produces electricity and thermal energy, making it highly efficient
and effective in reducing operational costs and emissions.
The project’s estimated cost is about $81.9 million, including engineering, equipment and related expenses. The remainder of the $100 million revenue bond issue will be used for other major power generation environmental projects and part of planned utility-scale solar projects.
To enhance credit strength and reduce borrowing costs, the Utility intends to secure bond insurance from Assur
ed Guaranty, rated by S&P Global, two notches above MPW’s current Moody’s rating of A1. The combined insurance cost is approximately $750,000. Bond pricing will depend on market conditions.
Since November 2025, MPW senior leadership has been working with financing partners to issue bonds that would occur subsequent to receipt of a final order from the Iowa Utilities Commission (IUC) providing a permit for the installation of a new natural gas pipeline serving EcoGen 10. A conditional approval order was received by the IUC on January 9 and a full
approval order is expected soon.
“EcoGen 10 is a key step in ensuring reliable, affordable, flexible and sustainable energy for our community,” said General Manager, Gage Huston. “This financing plan gives us the flexibility to move forward while keeping costs in check for customers.”
Specific benefits of the EcoGen 10 project include:
Reliable
- EcoGen 10 will supply another local source of energy for the Muscatine community.
- EcoGen 10 provides reliable capacity, which helps supportrenewable energy sources and power purchase agreements.
- EcoGen 10 will provide MPW with the capability to supply reliable electricity around the clock and the flexibility to accommodate future technologies.
Affordable
- The Federal government’s stringent environmental regulations for coal power plants will require additional investment to sustain these important resources. This efficient, gasfired resource will further diversity MPW’s generation portfolio.
- EcoGen 10 maintains MPW’s diversified supply of electricity, by both generating electricity at its power plants and buying electricity via the open market during periods of low market pricing.
Flexible
- The small generating capacity of the EcoGen 10 keeps options for other types of generation to be added to MPW’s portfolio as some coal capacity is retired.
- EcoGen 10 supports MPW’s Solar 1 project, to use renewable energy alongside cleaner energy from a natural gas generated baseload.
Sustainable
- Natural gas power plants like this one produce lower emissions and greenhouse gases than coal-fired units, thus allowing MPW to achieve its sustainability goals while maintaining system reliability.
- EcoGen 10 will include the latest safety technologies and meet all the latest emission standards.
- MPW achieved early its 65% carbon reduction goal and this unit will help ensure system reliability while keeping carbon emissions in check.