At Muscatine Power and Water’s (MPW) October meeting, the Utility’s 2026 Operating Budgets and 10-Year Financial Projections (2026-2035) was presented to the Board of Trustees. The budget and projections highlight the Utility’s continued investments in essential infrastructure for
enhanced safety, customer service, reliability and sustainability.
The 2026 budget focuses on investments in infrastructure and technology. By prioritizing these projects, MPW aims to ensure dependable service while embracing long-term resilience and environmental responsibility to meet evolving community and customer needs. Projects include:
Electric Projects – 2026 Budget-Focused Highlights
• EcoGen 10 Power Project – $40 million is planned to be spent in 2026 as part of a $81million (net of direct pay tax credits) project to build a new gas-fired combined heat and power unit as MPW prepares to retire Unit 8. This new, highly efficient energy source will help meet future power supply and steam customer needs.
• Muscatine Solar 1 (MS1) – $10 million is planned in 2026 as part of a $36 million (net of direct pay tax credits) project to build a utility-scale solar at MPW Grandview Ave Wellfield. This project is expected to be in service in late 2027 and will help reduce carbon emissions.
• Grandview Substation and MS1 Interconnection – $4.3 million will be used to upgrade the Grandview substation and connect it to the new solar site.
• Unit 9 Environmental Compliance – $2.7 million is planned for 2026 as part of a larger effort to meet new environmental regulations, including the Effluent Limit Guidelines and 316(b) water intake rule. Most of the work will happen in subsequent years, with additional planned capital expenditures totaling $26 million during the years 2027 through 2030.
• Transmission Line Upgrades – $1.2 million toward Line 104, a power line segment jointly owned with and maintained by MidAmerican Energy that needs refurbishment.
• Advanced Metering Infrastructure – MPW will continue installing smart meters but on a more defined and quicker schedule. These meters help customers and MPW better track energy use, and they improve service. The total cost over seven years is $2 million.
• Power Plant Maintenance – Significant turbine-generator work is planned for Unit 9 in 2026. Unit 9 work includes a turbine-generator inspection and overhaul at a cost of $2.9 million. Similar work on Unit 7 is planned for 2027 along with boiler work to prepare the unit to operate solely on natural gas in the years ahead.
Water Projects – 2026 Budget-Focused Highlights
• Lead Service Line Replacements – Working with its customers, MPW has identified approximately 560 homes or businesses with lead or galvanized water service lines that are required to be replaced to comply with new federal regulations. This work is planned to occur in phases over the next five years. MPW has applied for funding to significantly reduce the financial impact. Affected customers will be receiving communications as the
project unfolds.
• Water Main Replacements – $0.9 million will be spent to replace older water infrastructure, especially in areas where the City of Muscatine is conducting sewer separation work.
Communications Projects – 2026 Budget-Focused Highlight
• NOFA 9 Broadband Projects – Nearly $1.5 million for fiber expansion into underserved rural Muscatine areas is planned but is contingent on State approvals. Construction costs will be reimbursed up to 75% through federal broadband grants.
“Our 2026 budget reflects our commitment to keeping the lights on, the water safe and our community connected,” said General Manager Gage Huston. “We’re investing in reliable infrastructure and responsible planning to make sure our customers have the service they need
today – and for years to come.”
MPW’s 2026 budget reflects a strong commitment to keeping services reliable and affordable. The Board reviewed the full 2026-2035 projection, and the Trustees will vote on the 2026 budget at November Board meeting.
In other business, the Board reviewed investment plans for the $4.4 million of perfluoroalkyl and polyfluoroalkyl substances (PFAS) class action lawsuit settlement funds MPW received in September and October. MPW will set aside these funds, and additional expected payments, while they continue to analyze what the costs of PFAS remediation may be. The Board approved flexibility for MPW to invest the funds in longer-term investment given MPW will hold the funds for a longer period.
Net income for September was $6.6 million higher than budgeted due to $7.6 million of nonoperating income for PFAS settlement funds received. Mark Roberts, director of finance and administrative services, stated, “additional PFAS settlement funds above these levels are expected.” The Energy Adjustment Clause (EAC) was calculated as a negative amount for the third month in a row, with the November EAC set to be a credit to customers of 0.35¢/kWh.
In other business, the Board:
• Approved payment of September 2025 expenditures and transactions totaling$10,984,006.58.
• Approved Lead Service Line Replacement Cost Recovery Structure for Phase 1.
• Received and placed on file the Electric, Water and Communications Utilities 10-YearFinancial Projections.
• Set a public meeting for Tuesday, November 25, 2025, at 3:58 p.m. to receive comments on the 2026 Utilities Operating Budgets.
• Authorized the General Manager to execute a Joint Development Agreement with theIowa Public Power Agency.
• Received an update from MPW staff about third quarter progress implementing the Utility’s 2024-2026 Strategic Plan and Key Performance Indicators for that period.
Submitted by Nick Mussehl.
