Press Releases
Muscatine Power & Water

December 20, 2007
FOR IMMEDIATE RELEASE

MP&W Board of Trustees Approves Recommendation to
Implement a Water Revenue Increase

At Thursday night’s Board of Water, Electric and Communications Trustees meeting, the Board approved a recommendation to implement a price increase for the water utility. Water customers will see an overall price increase of 3.0 percent. The price increase will become effective April 1, 2008 with the adjustment dependent upon each utility customer class based on what it costs to serve them.

According to Don Kerker, Director, Finance and Administrative Services, “The Water Ten-Year Projection, which was presented to the Board at the August meeting, serves as the basis for our revenue adjustment recommendations. The major drivers are labor, electricity, and chemical costs and the necessary capital investments to replace aging infrastructure, provide adequate fire protection, and to serve the growth in the community.”

Kerker went on to say, “In comparing water prices of 15 larger Iowa communities, we rank as the third lowest cost water provider. Our average residential customer uses approximately 8 CCF of water a month at a cost of $13.58/month, and can expect to see a $0.67 increase in their monthly water bill.” The price adjustment will be effective April 1, 2008 and will be reflected in customers' May 2008 bill. The last revenue adjustment was a 3.0 percent increase effective April 1, 2007.

Jay Logel, General Manager, told the Board “By controlling our costs and implementing modest revenue adjustments we can continue to deliver reliable water utility services at the lowest price possible.”



November16, 2007
FOR IMMEDIATE RELEASE

MUSCATINE POWER AND WATER ENERGIZES
SECOND GREEN ENERGY SOURCE PILOT PROJECT

Muscatine Power and Water (MP&W) General Manager Jay Logel activated the electrical switch to allow the Utility’s newest form of alternative energy, a Skystream 3.7 residential wind turbine, to produce electric kilowatt hours.

The wind turbine is rated at 1.8 kW and is capable of generating approximately 400 kilowatt-hours a month. The generator with 6 foot blades is mounted on a 60-foot pole in front of the A/O Center on Cedar Street.

According to Mr. Logel, “This pilot project will serve as a means to educate our customers on the use of a residential wind generator to reduce their energy consumption in their homes. This pilot wind project compliments our photovoltaic array and demonstrates two alternative green sources of electrical energy for our customer/owners.” “On average, a typical residential customer usage is approximately 800 kilowatt-hours a month and one of these two green energy sources could re-duce a customers energy usage by one-third to one-half.” he added.

John Simmons, Electrical Engineer for the installation of the wind turbine stated, “The energy produced by the wind turbine is being used to offset electrical energy requirements at the A/O Center. The electricity is routed via conductor cable into the A/O Center and will be metered and compared to the amount of electricity that is being produced by the photovoltaic array. This data will be available for use by our customers to assist in their alternative energy decisions.”



October 30, 2007
FOR IMMEDIATE RELEASE

UTILITY BOARD RECEIVES 2008 OPERATING BUDGETS

At their October Board of Water, Electric, and Communications Trustees meeting staff presented the Board with the 2008 Water, Electric, and Communications Operating Budgets for their review. Approval will not be requested until the November 27 Board meeting. Major factors impacting this year’s budgets include; native system growth, wholesale sales, programming costs, investment rates, subscriber levels, and purchased coal and power costs.

Don Kerker, Director, Finance and Administrative Services, outlined for the Board the primary drivers impacting the proposed 2008 Operating Budget, “In the Electric Utility, receipts are largely driven by native system sales, wholesale and steam sales while the expenditures are impacted largely by coal and transportation costs and purchased power. The Water Utility is driven by receipts from our native system sales and our contract customers. Major contributors to the expenditure side include pumping power, chemicals, and labor and fringe as well as capital expenditures. CATV and Data/Internet sales drive the receipts for the Communications Utility while our programming costs greatly impact the expenditure side.”

Electric native system kilowatt hour sales are projected to increase less than 1 percent over 2007, accounting for $43.5 million or 54 percent of total receipts for the Electric Utility. Electric wholesale revenues are estimated at $25 million or 31 percent of total revenue and steam sales revenue is projected at just over $8.3 million. Investment earnings and other income are projected at $3 million or 4 percent of total receipts. There is no electric revenue adjustment projected in 2008. Coal costs and purchased power expenses are estimated at $24.8 million or 27 percent of total cash outflow. Labor and fringe and other operation and maintenance expense are estimated at $37.1 million or 41 percent of cash outflow. Debt service is projected at 14 million or 15 percent of cash outflow and capital expenditures are estimated at $14.5 million or 16 percent of total cash outflow. Net cash outflow for the year is a negative $10.6 million. Net income for 2008 is projected at $2.6 million for the Electric Utility.

Water gallon sales are projected to increase 1.4% from 2007, with $2.1 million or 47 percent of total receipts coming from contract customers and a like amount from other native system sales. A 3.0 percent water revenue increase is budgeted for April 1, 2008 . Labor and fringe and other operation and maintenance expenses projected at $3.8 million or 76 percent of total cash outflow. Capital expenditures are projected at $1.2 million or 24 percent of total cash outflow. Water Utility net income for 2008 is expected to be $508,000.

Communications Utility receipts are forecasted to be $6.4 million from CATV revenues and $2.8 million from data/internet revenues. Together they comprise 94 percent of total receipts for the Communications Utility. Total receipts are projected to be up 3.6 percent or $344,000 from 2007. A 4.0 percent CATV price increase is projected for September 1, 2008 . Programming and data/internet costs projected at $3.2 million consume 38% of the total cash outflow for the Utility. Labor and fringe account for 35% while capital expenditures are projected to be $1.1 million or 13 percent of total cash outflows. Labor and fringe and other operating and maintenance costs are projected to be at $4.1 million. The Communications Utility is projecting net income for 2008 of $227,000. The Board also discussed the forgiveness of the annual Electric Utility loan interest payment of $1.2 million. This forgiveness of the interest payment would allow the Communication Utility to prepare for the implementation of the conversion to an all digital cable T.V. signal as mandated by the Federal Communication Commission, FCC. After in-depth discussion, the Board requested staff present other options for financing the mandatory conversion.

General Manager, Jay Logel, noted “While we’re not asking for approval this evening, these budgets reflect a long, careful and thoughtful process of establishing priorities and weighing the benefit to customer value. Delivering safe, reliable, high quality electric, water and communications services to our customers at the lowest possible price is the standard of operation we have established for ourselves. We believe these three budgets present a balanced approach to achieve that goal and we appreciate the Board’s feedback,” concluded Logel.



July 31, 2007
FOR IMMEDIATE RELEASE

MP&W BOARD OF TRUSTEES APPROVE COMMUNICATIONS UTILITY PRICE ADJUSTMENT RECOMMENDATION

At Tuesday night’s Board of Water, Electric and Communications Trustees meeting, Director, Utility Relations, Gary Wieskamp explained to the Board that based upon the Communications Utility Ten-Year Financial Projection it is necessary to adjust the price for cable television and high speed cable modem Internet service effective September 1, 2007.

According to Wieskamp, “The need to increase cable television (CATV) prices is required in order to cover rising costs, debt service requirements and other inflationary factors. Programming costs increase on an average of over 5.0% annually and currently consume almost 50% of CATV revenue or approximately $2.6 million/year.”

MPW Cable’s Basic Service price will remain at $17.50 a month and the Expanded Basic service will increase by $2.90 a month for a monthly price of $32.39. The monthly price for both CATV basic and expanded basic services will be $49.89 a month, effective September 1, 2007.

The monthly price for Machlink Turbo, the high speed cable modem Internet service will increase $0.99 from $39.00 to $39.99. “This price increase is the first adjustment since 2004 when the priced decreased from $40.55 to $39.00 a month,” added Wieskamp.

“We regret the fact that from time-to-time it is necessary to raise the prices for services we offer. However, even after the adjustment we compare favorably with prices for similar services in Muscatine and the surrounding area. It is our responsibility to deliver high quality, reliable service and at the same time protect the investment of our consumers. This accountability makes it necessary for us to recommend these minimal price increases at this time,” added Jay Logel, General Manager.


June 13, 2007
FOR IMMEDIATE RELEASE

MUSCATINE POWER AND WATER TO LAUNCH
BIG TEN NETWORK

Muscatine Power and Water, MP&W announced today that it has reached an agreement to carry the Big Ten Network when the new network launches this August. The Big Ten Network is a national network dedicated exclusively to Big Ten Conference television programming. The announcement was made today by Jay Logel, General Manager of Muscatine Power and Water and Big Ten Network President Mark Silverman.

According to Mr. Logel, “We believe the network, dedicated to showcasing the nation’s premier athletic and academic conference will be an instant hit with Iowa fans in the area. We’re very pleased that our customers will be able to get the Big Ten Network as soon as it is launched in August. Being within minutes of Iowa City, we obviously have a lot of Hawkeye fans in Muscatine and are proud to be able to bring them Hawkeye sports,” he continued.

Network President Mark Silverman said, “In carrying the network, Muscatine Power and Water is in tune with its customers – the passionate Iowa Hawkeye fans of Muscatine. MP&W believes that the network is compelling and attractive to its local sports enthusiasts, who will enjoy unparalleled coverage of Big Ten sports as well as campus programming about what’s happening at their favorite universities,” he added.

The Big Ten Network, scheduled to launch in August 2007 will operate 24 hours a day, 365 days a year and will showcase a wide array of classic-to-current sports, as well as original programming produced by the network and by the conference’s 11 member institutions. This year, the network will offer more than 35 football games, more than 105 regular sea-son men’s basketball games, more than 55 women’s basketball games, Big Ten Champion-ships, more than 170 Olympic sporting events, coaches’ shows, a nightly studio show and more than 600 hours of campus programming showcasing activities and accomplishments of some of the nation’s finest universities.

The Big Ten Network will be on the Expanded Basic tier on Channel 40 and will be seen in High Definition to MPW Cable High Definition subscribers on Channel 729.

For more information regarding the Big Ten Network, visit www.BigTenNetwork.com.



December 21, 2006
FOR IMMEDIATE RELEASE

MP&W BOARD OF TRUSTEES APPROVES RECOMMENDATION TO IMPLEMENT A WATER REVENUE INCREASE

At Thursday night’s Board of Water, Electric and Communications Trustees meeting, the Board approved a recommendation to implement a price increase for the water utility. Water customers will see an overall price increase of 3.0 percent. The price increase will become effective April 1, 2007 with the adjustment dependent upon each utility customer class based on what it costs to serve them.

According to Don Kerker, Director, Finance and Administrative Services, “The Water Ten-Year Projection, which was presented to the Board at the July meeting, serves as the basis for our revenue adjustment recommendations. The water revenue increase is necessary due to increasing operation and maintenance costs, capital expenditures projected over the next ten years and to ensure adequate bonding capacity for future debt requirements.”

Kerker went on to say, “In comparing water prices of 16 larger Iowa communities, we rank as the third lowest cost water provider. Our average residential customer uses approximately 8 CCF of water a month and can expect to see a $0.63 increase in their monthly water bill.” The price adjustment will be effective April 1, 2007 and will be reflected in customers May 2007 bill. The last revenue adjustment was a 4.0 percent increase effective April 1, 2006.

Jay Logel, General Manager, told the Board “By controlling our costs and implementing modest revenue adjustments we can defer the need for external financing while continuing to deliver reliable water utility services at the lowest cost possible.”

In Other Action:
The Board approved a System Reliability Study, Phase I, in the amount of $154,100 to identify options to ensure MP&W is able to purchase replacement energy during planned and unplanned outages and to sell wholesale energy into the market.

The Board received a report on a concept to construct a coal fired, base load electric generation plant at the existing site owned by Muscatine Power and Water. The project would be a joint project with interested municipal utilities and joint action agencies in Iowa, Nebraska, and Minnesota. An initial engineering study will update a previous study completed in 2001 to determine if the MP&W site is suitable and to consider alternative boiler designs.

October 26, 2006
FOR IMMEDIATE RELEASE

Utility Board Receives 2007 Operating Budgets

At their October Board of Water, Electric, and Communications Trustees meeting staff presented the Board with the 2007 Water, Electric, and Communications Operating Budgets for their review. Approval will not be requested until the November 28 Board meeting. Major factors impacting this year’s budgets include; native system growth, wholesale sales, programming costs, investment rates, subscriber levels, and purchased coal and power costs.

Don Kerker, Director, Finance and Administrative Services, outlined for the Board the primary drivers impacting the proposed 2007 Operating Budget, “In the Electric Utility, revenue is largely driven by native system sales, wholesale and steam sales while the expenses are impacted largely by coal and transportation costs and purchased power. The Water Utility is driven by revenue from our native system sales and our contract customers. Major contributors to the expense side include pumping power, chemicals, and labor and fringe as well as capital expenditures. CATV and Data/Internet sales drive the revenues for the Communications Utility while our programming costs greatly impact the expense side.”

Electric native system kilowatt hour sales are projected to increase 2.1 percent over 2006, accounting for $43.4 million or 55 percent of total revenue for the Electric Utility. Electric wholesale revenues are estimated at $23.1 million or 29 percent of total revenue and steam sales revenue is projected at just over $8.0 million. There is no electric revenue adjustment projected in 2007. Coal costs and purchased power expenses are estimated at $23.0 million or 28 percent of total cash outflow. Operation and maintenance expense are estimated at $32.9 million or 41 percent of cash outflow. Debt service is projected at 15.8 million and capital expenditures are estimated at $9.4 million or 12 percent of total cash outflow. Net income for 2007 is projected at $8.4 million for the Electric Utility.

Water gallon sales are projected to decrease 1.7% from 2006, with $2.0 million or 48 percent of total revenue coming from contract customers and 50 percent from other native system sales. A 3.0 percent water revenue increase is budgeted for April 1, 2007. Labor and fringe expenses are projected to be $1.9 million with other operation and maintenance expenses projected at $1.6. Capital expenditures are projected at $1.6 million or 32 percent of total cash outflow. Water Utility net income for 2007 is expected to be $234,000.

Communications Utility revenue is forecasted to be $6.3 million from CATV revenues and $2.6 million form data/internet revenues. Together they comprise 95 percent of total revenue for the Communications Utility. Total revenues are projected to be up 4.8 percent or $432,000 from 2006. A 5.5 percent CATV price increase is projected for September 1, 2007. Programming and data/internet costs projected at $3.1 million consume 32% of the total cash outflow for the Utility. Labor and fringe account for 29% while capital expenditures are projected to be $1.3 million or 13 percent of total cash outflows. Other operating and maintenance costs are projected to be at $1.1 million. The Communications Utility is projecting a net loss for 2007 of $1.1 million.

Capital expenditures for the three Utilities are projected to total approximately $12.3 million. The larger utility capital expenditures in 2007 include items such as generation site coal dust suppression projects and environmental compliance projects, Communications Utility customer installation costs, and new water main reinforcement projects.

General Manager, Jay Logel, noted “While we’re not asking for approval this evening, these budgets reflect a long, careful and thoughtful process of establishing priorities and weighing the benefit to customer value. Delivering safe, reliable, high quality electric, water and communications services to our customers at the lowest possible price is the standard of operation we have established for ourselves. We believe these three budgets present a balanced approach to achieve that goal and we appreciate the Board’s feedback,” concluded Logel.



July 25, 2006
FOR IMMEDIATE RELEASE

MP&W Board of Trustees Receive 2006 Strategic Plan, Ten Year Financial Projections and Approve Communications Utility Price Adjustment Recommendation

At Tuesday night’s Board of Water, Electric and Communications Trustees meeting, General Manager, Jay Logel outlined and reviewed the recent review of the Utility’s Strategic Plan. Critical issues were presented that will assist staff to ensure excellent service to MP&W’s customer/owners. Strategies and indices are being developed for each critical issue in order to measure the progress of each issue.

Short and long term financial projections were incorporated into the Strategic Plan review and presented to the Board. These projections were prepared and reviewed with key financial drivers and sensitivity analyses developed from the financial projections.

In order to meet the on-going demand for infrastructure improvements in the Water Utility the financial projections indicate a need for water increases in the future. Logel told the Board, “Our challenge is to meet the projected capital requirements while keeping rate increases small and acceptable.”

“Our Electric Utility financial projections are very positive depending on wholesale market conditions, fuel and fuel transportation costs and unknown regulatory actions,” according to Don Kerker, Director, Finance and Administrative Services. He further reviewed for the Board the major financial drivers and indicated that there is not a need for an electric rate adjustment in the near term based upon the current financial data.

The Communications Utility financial projections indicate the need to balance expenses with pressures to increase prices, along with the need to develop cost effective new services in order to maintain market share. Major expenses include programming costs, debt related expenses and other general inflationary factors.

Discussing the Communications Utility operation and financial projection Jay Logel explained to the Board that the initial goals for the Utility are being accomplished and customer product and service demands are being met while maintaining very competitive prices. “We are experiencing a high Internet penetration, and a CATV penetration that surpasses both the State of Iowa and national averages. We continue to provide local programming and a local 24/7 help desk function to assist our customers with their communications needs. In order to provide this high level of product and service we have a need for a cable television price adjustment to take effect September 1, 2006. As reviewed in the Communications Utility Strategic Review Report of 2005 and recent financial projection, the need to increase cable television (CATV) prices is required in order to cover rising costs, primarily programming costs increasing on an average of 5.5% annually. Programming costs currently consume almost 50% of CATV revenue or approximately $2.6 million/year.”

MPW Cable’s Basic Service price will be increased by $3.00 a month for a monthly price of $17.50. The monthly price for both CATV basic and expanded basic services will be $46.99/month, effective September 1, 2006. There are no price adjustments required for MachLink Internet services.

“We regret the fact that from time-to-time it is necessary to raise the prices for services we offer. However, even after the adjustment we compare favorably with prices for similar services in Muscatine and the surrounding area. It is our responsibility to deliver high quality, reliable service and at the same time protect the investment of our consumers. This accountability makes it necessary for us to recommend this slight CATV price increase at this time,” concluded Logel.



February 25, 2006
FOR IMMEDIATE RELEASE

MP&W Board of Trustees Receive Power Supply and Environmental Compliance Study Results and Approve Steam Sales Amendment with Grain Processing Corporation

At Tuesday night’s Board of Water, Electric and Communications Trustees meeting, Sal LoBianco, Director of Generation and Telecommunications, presented the results of an extensive Power Supply and Environmental Compliance Study. The Study completed by Black and Veatch Corporation in conjunction with Muscatine Power and Water staff was performed to determine the least cost and most reliable power supply plan to meet MP&W’s system capacity and energy requirements through 2025. Also taken into consideration were the effects of the recently promulgated environmental rules and the changes to electric transmission access and availability.

LoBianco told the Board, “Over sixty compliance scenarios were considered before arriving at a plan that will allow for low capital investment in air quality control technology while at the same time provide an opportunity for us to extend our steam sales contract with Grain Processing Corporation (GPC). Because of the amendment to the Steam Sales Contract we are able to recommend an environmental compliance plan for our generating units that requires a low capital investment, while continuing to optimize the utilization of our generation assets.”

Environmental rules that MP&W are required to comply with are designed to re-duce Nitrogen Oxide, Sulfur Dioxide, and Mercury emissions. A recent amendment to the Clean Water Act also requires MP&W to develop a compliance plan that minimizes environmental impacts related to withdrawing water from the Mississippi River. Minimum capital costs in order to be in compliance with all of the new environmental rules are estimated to be approximately $8,250,000.

The Amendment of the Steam Sales Contract extends the existing contract, set to expire in 2010, through 2020, allows for major capital and extraordinary expenditures to be shared between GPC and MP&W, and allows time for MP&W to understand future generation, energy, emission and capital markets.

Jay Logel, General Manager, concluded, “This is a win-win situation for both GPC and MP&W. It provides us with a great deal of flexibility, is a low investment solution, it reduces our emissions, and provides for an appropriate margin for all of our customer/owners.”

December 20, 2006
FOR IMMEDIATE RELEASE

MP&W Board of Trustees Approves Recommendation to Implement a Water Revenue Increase

At Tuesday night’s Board of Water, Electric and Communications Trustees meeting, the Board approved a recommendation to implement a price increase for the water utility. Water customers will see an overall price increase of 4.0 percent. The price increase will become effective April 1, 2006 with the adjustment dependent upon each utility customer class based on what it costs to serve them.

According to Don Kerker, Director, Finance and Administrative Services, “The Water Ten-Year Projections, which were presented to the Board at the July meeting, serve as the basis for our revenue adjustment recommendations. The water revenue increase is necessary due to increasing operation and maintenance costs, capital expenditures projected over the next ten years and to ensure adequate bonding capacity for future debt requirements.”

Kerker went on to say, “In comparing water prices of 16 larger Iowa communities, we rank as the third lowest cost water provider. Our average residential customer uses approximately 8 CCF of water a month and can expect to see a $0.80 increase in their monthly water bill.” The price adjustment will be effective April 1, 2006 and will be reflected in customers' May 2006 bill. The last revenue adjustment was a 5.0 percent increase effective January 1, 2005.

Jay Logel, General Manager, told the Board “By controlling our costs and implementing modest revenue adjustments we can defer the need for external financing while continuing to deliver reliable water utility services at the lowest cost possible.”

In Other Action
The Board approved the agreement between Muscatine Power and Water and IBEW Local No. 55. The agreement which covers 127 bargaining unit employees is a two-year contract which includes modifications to the health care insurance and provides for a 3.5% general wage increase effective December 11, 2005 and a 3.5% general wage increase effective December 10, 2006.



October 25 , 2005
FOR IMMEDIATE RELEASE

Utility Board Approves 2006 Operating Budget

At the October Board of Water, Electric, and Communications Trustees meeting staff presented the Board with the 2006 Water, Electric, and Communications Operating Budgets for their review. Approval will not be requested until the November 29th Board meeting. Major factors impacting this year’s budgets include: native system growth, wholesale sales, programming costs, investment rates, subscriber levels, and purchased coal and power costs.

Don Kerker, Director, Finance and Administrative Services, outlined for the Board the primary drivers impacting the proposed 2006 Operating Budget, “In the Electric Utility, revenue is largely driven by native system sales, wholesale and steam sales while the expenses are impacted largely by coal and transportation costs and purchased power. The Water Utility is driven by revenue from our native system sales and our contract customers. Major contributors to the expense side include labor and fringe as well as capital expenditures. CATV and Data/Internet sales drive the revenues for the Communications Utility while our programming costs greatly impact the expense side.”

Electric native system kilowatt-hour sales are projected to increase 1.7 percent over 2005, accounting for $42.1 million or 59 percent of total revenue for the Electric Utility. Electric wholesale revenues are estimated at $18.8 million or 26 percent of total revenue and steam sales revenue is projected at just under $7.4 million. There is no electric revenue adjustment projected in 2006. Coal costs and purchased power expenses are estimated at $18.4 million or 24 percent of total cash outflow. Labor and fringe expenses projected at full employment account for 25 percent or $18.7 million. Debt service is projected at $15.8 million and capital expenditures are estimated at $9.2 million or 12 percent of total cash outflow. Net income for 2006 is projected at $4.8 million for the Electric Utility.

Water gallon sales are projected to increase 2.1 percent over 2005, with $2.0 million or 50 percent of total revenue coming from contract customers and 49 percent from other native system sales. A four (4.0) percent water revenue increase is budgeted for April 1, 2006. Labor and fringe expenses are projected to be $1.9 million with operation and maintenance expenses projected at $626,000. Capital expenditures are projected at $1.3 million or 27 percent of total cash outflow. Water Utility net income for 2006 is expected to be $74,000.

Communications Utility revenue is forecasted to be $6.1 million from CATV revenues and $2.5 million form data/Internet revenues. Together they comprise 95 percent of total revenue for the Communications Utility. Total revenues are projected to be up 7.8 percent or $648,000 from 2005. A seven (7.0) percent CATV price in-crease is scheduled for September 1, 2006. Programming costs projected at $2.6 million consume 29 percent of the total cash outflow for the Utility. Labor and fringe account for 28 percent while capital expenditures are projected to be $1.3 million or 14 percent of total cash outflows. Operating and maintenance costs are projected to be at $1.1 million. The Communications Utility is projecting a net loss for 2006 of $1.7 million.

Capital expenditures for the three Utilities are projected to total approximately $11.8 million. The larger utility capital expenditures in 2006 include items such as generation site coal dust suppression projects, Communications Utility customer installation costs, and new water main reinforcement projects.

General Manager, Jay Logel, noted “While we’re not asking for approval this evening, these budgets reflect a long, careful and tedious process of establishing priorities and weighing the benefit to customer value. Delivering safe, reliable, high