by Allen Albers, ECI REC's representative on the CIPCO Board of Directors

If 2018 was a groundbreaking year for Central Iowa Power Cooperative (CIPCO), then 2019 was a year of executing strategy. The opportunities afforded by change led to strategies to sustain connections within our broad electric cooperative network, as well as connections to CIPCO’s proud past and future vision. The organization rolled up its sleeves and got to work implementing new strategic priorities and new generation projects designed to partially replace output from one of CIPCO’s primary sources of energy, the Duane Arnold Energy Center (DAEC), which set to close in October 2020.  

These new generation projects fall right in line with CIPCO’s goal of providing a diverse, 24/7 energy portfolio. In particular, progress continued on Wapello Solar, a 100 MW facility on 850 acres in Louisa County. Developed by Clēnera, LLC, Wapello Solar is Iowa’s largest solar project, and CIPCO will purchase 100% of its output. In 2019, we completed a transmission system impact study for the time Wapello Solar is placed into service. We worked with the developer as they obtained zoning approvals and a generating certificate from the Iowa Utilities Board. We expect Wapello Solar to come online in late 2020.

In addition, an $85 million repowering project is taking place at the existing Summit Lake Generating Station in Creston. The modernization project for the 70-year-old plant will retire the old steam engines and add 55 MW of efficient, natural-gas-fired reciprocating engines to CIPCO’s portfolio. Significant work took place throughout the year, with Creston transmission crews rerouting substantial lines in preparation for the Summit Lake North substation deconstruction and rebuild. Demolition work is complete on the substation, the office building, the transmission garage, and the diesel plant. The new engines are expected to be in place and operational in late 2020.

East-Central Iowa REC and CIPCO strive to provide safe, affordable, and reliable power to our member-consumers across the system. When it comes to safety, we’re proud of CIPCO’s achievement of 2 million hours worked over 10 years without a lost-time injury. In addition, over 845 miles of rebuilt line have been implemented due to the Low Voltage New-to-Replace-Old (NTRO) program of 1986 and its expansion in 1995. NTRO, along with sound operating and maintenance programs, helps ensure our power supply system attains the high degree of reliability our member-consumers expect and deserve. CIPCO’s system-wide 2019 outage rate was 0.44 hours per consumer. This is the eighth consecutive year in which outage totals were less than the target of one hour per consumer. CIPCO’s average outage total for 2019 for ECI REC was 0.10 hours per customer.

Financial strength is integral to our success and has led to strong credit ratings, stable rates that are now the lowest among G&Ts in the Midwest, and access to borrowing capital to cost-effectively complete system upgrades and enhancements. Fitch Ratings recently completed its annual review and affirmed CIPCO’s “A” Issuer Default Rating and its Rating Outlook as Stable. The unexpected early closure of DAEC underscores the important actions taken over many years to manage risk and position CIPCO to withstand the loss of a vital generation resource. As a result, CIPCO has managed through this period of change by adjusting its future resource strategy and maintaining stable or declining rates as new cost-effective resources are secured. CIPCO’s 2019 average system rate was the lowest in more than 10 years.

Returning patronage capital is a fundamental component of the cooperative business model. CIPCO remains dedicated to sound financial practices that allow margins to be returned to members in the form of patronage. In 2019, CIPCO returned patronage totaling $746,412 to East-Central Iowa REC.

In today’s energy-conscious world, CIPCO and ECI REC are committed to ensuring member-consumers use energy wisely and utilize available options to reduce excess energy consumption. As a result of these efforts, CIPCO and its member systems issued energy efficiency rebates saving approximately 13,233,348 kWh. In comparison, the average house uses nearly 11,000 kWh a year, according to the U.S. Energy Information Administration. That includes 1,219,889 kWh savings for ECI REC members.

I’m proud of the actions taken in 2019 to sustain our connections within the rural electric industry. Our actions have strengthened CIPCO’s mission to provide member-consumers with wholesale power and services in a safe, reliable, and cost-effective manner. Thank you for the opportunity to serve as your representative on both the local Board of Directors and the CIPCO Board of Directors. I am proud to say, as a result of decisions made in 2019, ECI REC’s members and the entire CIPCO system will be well-served now and into the future.