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 History
“The darkness, which has o’er cast the city of Pella for the past two months will be broken, and the rays of light from 204 electric globes will dispel the darkness and turn night into day.” – Pella Chronicle, May 25, 1911.

These words heralded in the opening days of Pella’s new municipal power system in 1911. This step to public power began in June of 1909 when a city election was held, approving bonds for both an electric plant and water works. The passage of the bonds was declared “a great day for Pella,” and bon fires and fireworks filled the streets.

Today, the City of Pella is just as excited about its municipal utility, though they will likely refrain from starting any bon fires. They will, however, stress the fact that they have been delivering reliable electrical service to our community for almost ninety years. The electric utility is under the direction of the City Council, which has sole authority to establish rates and charges for electric service. The Electric Department Director supervises the electric utility operations and reports to the City Administrator.

 Service Area
The service area of the City of Pella Municipal Electric Utility includes substantially all of the industrial, commercial, residential loads established within the corporate limits and Vermeer Manufacturing, which is located just outside of the City limits. The Utility Division of the Iowa Department of Commerce regulates electric service area of each utility in Iowa. Competition to provide electric service across defined service areas is not allowed under current Iowa law.

Service Area Map

 Power and Energy Sources and Transmission Facilities
Pella maintains a municipally owned and operated electric utility that provided in 2006 approximately 194,000 MWh to 4672 customers. In FY 2005/2006, the peak demand was 44.53 MW recorded at 3:00 p.m. on 7/25/2005. In FY 2006/07, the peak demand was reached on July 17, 2006 at 3:00 p.m. and recorded as 45.88 MW.Historically, the utility has met approximately half of the energy needs of the community with local generation, and the other half with a combination of both firm and non-firm energy transactions.

To provide a reliable and yet affordable power supply today and in the future, the department began in FY 05-06 to examine the alternatives for a long-term power supply. The chart below illustrates the mix of resources used in 2006 to meet the electrical needs of the community.

Local Generation
Local Coal and Gas Generation

25-megawatts can be produced from coal, and 13-megawatts from gas for a total of 38 megawatts of generating capacity located at 519 Oskaloosa Street, in Pella.

The two turbine generators are connected via a common steam header to Boiler Unit Nos. 6, 7 and 8. Two of the boiler units are coal fired and have mechanical dust collectors that discharge their stark gases through electrostatic precipitators and common stack.

Local Diesel Generation
The Electric Utility has the following diesel generating units at 1875 Washington Street:

Installed in 2003, this facility utilizes fourteen (14) 2-megawatt diesel high-speed engine/generator sets. The units operate at 1800 rpm with a prime rating of 1,825 Kilowatts at 80% power factor. Design allows for the installation of two (2) additional units in the future. These units are adjacent to the Pella West 10th Street Substation; this allows direct access to both City distribution and transmission facilities through a 33 MVA transformer located in the West 10th Street Substation. These units are limited by the DNR to a maximum run time of 475 hours per unit, per year.

Purchased Power
On May 31, 2007, the energy only contract for 10 megawatts with Muscatine Power and Water (MPW) came to an end. The new contract amount, starting June 1, 2007, was reduced to 7 megawatts to coincide with capacity and energy from the City's 1.33% ownership share of Council Bluffs Unit No. 4.

New Council Bluffs Unit 4 (CB-4)
A 10.5 MW investment (1.33% ownership share) in this 790 MW base load facility will provide low cost energy to the City of Pella for many years to come. The in-service date for this unit is June 1, 2007. Funding for CB-4 and the associated transmission is through two bond issues, one issued in 2004 and one in 2005. The total cost of CB-4 is estimated to be $1,262,129,205; Pella’s 1.33% allocated share will total $16,786,318. Debt service on the bonds runs through June 2019.

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Wind Energy
In FY 05/06, the City of Pella completed negotiations with FPL for 3.3 MWs of wind energy. This energy from Hancock Wind farm is currently being sold into the market to avoid transmission scheduling. .

Distribution System and Facilities
The City continues to make extensive improvements to the electric distribution system. Substation upgrades have improved the capacity and reliability of the three 69 KV substations.

1. The East/Vermeer Substation serves the east side of the City and Vermeer Manufacturing Company. A substantial rebuilding of the East/Vermeer Substation was completed in 1997. Additional transformer capacity increased the substation’s load capacity and enhanced service reliability to Vermeer Manufacturing Company.

2. The Power Plant Substation, completed in 2001, serves Pella Corporation and the downtown business area.

3. The West Substation provided capacity for new development, which is occurring on the west and south portions of the City’s service territory.

The City’s electric distribution system has seen significant changes. The conversion of the primary distribution system voltage from 4.16 KV to 12.5 KV had a major impact on the system reliability and losses. Also, the conversion of overhead to underground service has had a major impact on the esthetics in the community.

 Future Challenges
To provide a reliable and affordable power supply today and in the future, the department began in FY 05-06 to examine the alternatives for long-term power supply. The key components of this work included:

•An impact study on environmental regulations, which was completed in FY 06-07. The purpose of this study was to establish a baseline based on historic emissions data; look at 2000-2004 operations, emissions, and emissions allowances; and finally to come up with the best solution to reduce sulfur dioxide and nitrogen oxide emissions levels below mandatory levels established by the EPA.
•An assessment of plant condition and life extension, which was completed in FY 06-07. The assessment evaluated the major equipment in the plant. The recommended upgrades are intended to extend the life of the plant and to allow continued operations.
•An evaluation of transmission adequacy. In FY 06-07, the Electric Department initiated transmission studies for long-term delivery, renewed transmission rights on the MISO system for delivery of Muscatine energy, and completed arrangements for delivery of 11 MW of CB-4.

In this fiscal year (FY 07-08), our most important undertaking will be to continue in defining our long-term power supply by selecting the best alternatives designed to minimize cost and to maintain our current level of reliability.

• Our goal is to focus on additional transmission adequacy studies, both locally and regionally.

• Discussion with a future power supplier will take place. These discussions will result in a draft power supply proposal to be presented to the City of Pella by the second quarter of 2008.

Capital Improvement Projects
Based on our goals for FY 07/08, the Municipal Electric Department identified these Capital Improvement Projects.

PRODUCTION

• Council Bluffs Unit 4
Pella has 1.33% ownership share of Council Bluffs Unit 4, which will finish its completion in 2007.
(More details on main page)

•Energy Supply
This is a multi year project with on-going cost associated with transmission facilities and service, necessary to provide continuity of service and reduction of cost

• Mercury CEMS (Control Emission Monitoring System)
Stack testing - to identify any improvements in the way emissions are sampled in the stack; low mass emitter testing ; and Hg CEMS equipment - needed based on results of the testing.

• Life Extension Boiler 6
Work to be completed on as needed basis.

• GE Collector Ring Assembly
Early in 2007, the collector ring on large generator was turned down. This is the last time it can be serviced; the next time the ring will need to be replaced..

• G.E. Turbine Inspection
Turbine and generator inspection is required by an insurance carrier.

DISTRIBUTION

• 240th Circuit
This will involve developing a new feeder from the Vermeer Substation, generally running along 240th Place and attaching to the switch installed in the WalMart extension projectnear Pella Christian School.

• Cable Replacement Project
Convert existing 2.4 kV underground circuits to 7.2 kV operation. This project improves system reliability and aesthetics, and establishes additional 7.2 kV circuit ties. Area: east of hospital.

• Aerial Truck
This is a replacement purchase for a truck used daily for street lights, traffic signals, and overhead lines. Ordered in FY 06-07, delivery is scheduled for end of 2007.

• Electric Rate Study
Update cost of service and rates. As a result of the increased cost of fuel, purchased power, and transmission, the energy cost adjustment (ECA) has increased significantly. These increases along with CB-4 start-up compel the need for reallocation of cost.

• New Electric Meters
Replace Pella Corp and Vermeer meters.

• New Pella Corp Service Line
This project is a 3-phase extension originating at the Power Plant Substation and terminating at new Pella Corporation switchgear. This extension is necessary because of insufficient capacity to handle the load when one of the two feeders fail or is taken out of service.

• Roosevelt Area Feeder
Field changes re-routed the WalMart CIrcuit Extension project to Roosevelt Road. The remaining work includes installation of three-phase main-line between HyVee and PPI switches. This will serve to develop more of the Roosevelt feeder to serve loads in that area.

• Distribution Building Windows
Replace Windows at Distribution Warehouse.

Planned projects for future years:

• New WalMart Store Service Line
Once load around WalMart develops, a new feeder from the substation may be required.

• Cable Replacement Project
Convert existing 2.4 kV underground circuits to 7.2 kV operation. Service at 7.2 kV avoids losses associated with transformation, reduces line loading, and ultimately improves service. Area: Brook Circle.

• New Vermeer Service Line
3-phase extension originating at the Vermeer Substation and terminating at Vermeer switchgear.

• Roosevelt Area Feeder (3)
The fianl segment of hte feeder - from American Wood Fiber to East 9th.

• Sub D Extension
The extension of the Sub D Feeder, east along Oskaloosa to a point on 240th Place, where it would tie to the 240th Feeder. This would provide a citcuit on which to place load coverted from 4160 volts currently fed from Sub D and give feeder capacity to any loads that develop in this area.

• Hospital Area Feeder
This feeder would provide relief to the hospital area by splitting up the load in the northeast part of the system, in turn allowing existing feeders to provide adequate backup for the loss of the Sub B Feeder serving the hospital.

• Overhead to Underground Conversion –D
This project to convert existing 4.16 kV overhead circuits to 12.5 kV circuits underground is related to Electric Facility Inspection and Maintenance Plan (IUB). The project improves system reliability, aesthetics, and establishes additional circuit ties.
Area: south of University and east of E 8th

• Overhead to Underground Conversion –E
This project converts existing 4.16 kV overhead circuits to 12.5 kV circuits underground. Service at 12.5 kV avoids losses associated with transformation, reduces line loading, and ultimately improves service. Area: west of Central College and West Market Park.

• Oostport/Washington Conversion
This project to convert existing 4.16 kV overhead circuits to 12.5 kV circuits underground is related to Electric Facility Inspection and Maintenance Plan (IUB), Washington Street Corridor Study, and Plans for restoration of Oostport area.