The Muscatine Power and Water (MPW) Board of Trustees on Tuesday approved the Utility’s 2026 operating budget and summary, which includes major infrastructure and renewable energy projects.
Key initiatives in the 2026 budget include several major electric projects. MPW will advance construction of EcoGen 10, a new gas-fired combined heat and power unit to provide efficient electricity and steam for future energy needs. Work will continue on Muscatine Solar 1 (MS1), a utility-scale solar project at the Grandview Avenue wellfield, along with upgrades to the Grandview Substation to connect the new solar site. Environmental compliance efforts for Unit 9 will continue to address ever-evolving federal regulations, and other system upgrades will continue to build on
MPW’s award-winning reliability. MPW will also accelerate installation of advanced metering infrastructure to help customers track energy use and enhance service. Significant maintenance is planned for Unit 9, including a turbine-generator overhaul, something that only occurs approximately every eight years.
The Board was provided additional information on the Electric Utility’s financing plans for these major projects. No board action was requested on the financing at this meeting. The information was provided so the board can more quickly execute financing upon receipt of an outstanding permit for the EcoGen 10.
One significant Water Utility project focus is on a planned replacement of up to 160 lead and galvanized service lines over two years starting in 2026. This project is a first phase of replacements, with continued project structures dependent on partial government grants to help fund this work.
For the Communications Utility, MPW plans to continue expanding its fiber network into surrounding, underserved rural areas through the latest round of broadband funding, NOFA 9. This project is contingent on State of Iowa approvals and will leverage federal grants to offset construction costs.
“2026 will see continued progress on several historic projects for MPW,” said General Manager Gage Huston. “The investments in utility infrastructure ensure the long-term reliability of services and positions Muscatine for future growth.”
The Board reviewed October financial statements for MPW. Net income for MPW was $0.6 million below budget for the month, which was partially driven by some higher-than-planned costs for a Unit 9 three-week maintenance outage that was planned. Other higher expenses for the month also caused the net income difference, including MPW being a net buyer of electric energy from the Midcontinent Independent System Operator (MISO) market due to the scheduled Unit 9
outage. Despite that, reasonable prices for purchased energy and lower fuel costs resulted in positive margins for the month.
The December monthly meeting will be held Thursday, December 18 due to the holidays.
In other business, the Trustees:
- Approved payment of October 2025 expenditures and transactions totaling $12,081,722.72.
- Set a public hearing for 3:58 p.m. on December 18, 2025, regarding the sale of a 5-acre parcel to Muscatine County.
- Approved the revised Project Summary Form for the WHSSP PH6C Water Main, Hydrant, Valve, Service Replacement for $255,900.
- Approved appointment of Trustee Tammi Drawbaugh to the MAGIC Board effective January 1, 2026, for a two-year term.