City lays out seven 2020 priorities for IPL

A set of seven major initiatives and work plan for IPL are being set out by city staff and garnering support of the City Council and the Public Utilities Advisory Board.

The list is intended to bring some organizational - if not political focus - on the priority projects for the city-owned utility should be over the next several years.

The priorities - laid out in a Jan. 13th memo by Assistant City Manager Adam Norris - represent an ambitious set of initiatives, potential new projects and organizational challenges.

The work plan, in rank order, include:

1) IPL Finances and Budgeting: There will be a new financial reporting, resource allocation and review of IPL financial practices to provide a long-term view.

2) Update IPL Rate Structure: Lower rates were approved by the City Council but some outstanding issues remain. A Jan. 27th presentation at the City Council study session is planned.

3) Selection of an outside management firm: The city manager wants to bring in an outside utility management firm to deal with issues. Three firms made the short list. A selection may not occur until March.

4) Blue Valley Power Plant Closure: The power plant is scheduled to close in June resulting in staff reductions. Affected employees may be offered other positions, early retirement or severance. Separately the city intends to issue a Request for Information (RFI) on potential redevelopment or repurposing of the power plant which began operating in 1958.

5) Over Time and Employee Pay: The city management analyst identified issues including time submission and approval, verification and accuracy of payments including hours worked, pay rates used, tax deductions and withholdings. The report triggered an automatic review of the city's independent external auditor. A report is expected in March.

6) Future IPL Production: IPL operates six combustion turbine units that are nearly the end of their useful life. The turbines help IPL meet peak demand and generative capacity requirements as a member of the Southwest Power Pool. Combined the six turbines represent 93.5 MW capacity - four run on oil and two are natural gas/oil. The oldest on began operation in 1968 and the newest in 1974. Over the next 10 years, this could cost upwards of $45 million. The city has the option of adding another 25 MW under its new Oneta capacity contract.

7) Municipal broadband: There is some interest is exploring the potential to offer municipal broadband services utilizing city-owned dark fiber already installed by IPL. There is City Council support for this, though PUAB voted to drop it in approving the project list.