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 well field, 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 was 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.
