Ames proposes $175 million electric CIP: local thermal generation, more wind and a stake in Prairie View substation

Ames electric utility leaders on Jan. 15 told the City Council they are proposing a $175 million, five‑year capital improvement plan that focuses on new local generation to replace aging units, a major expansion of wind and solar capacity and payments to participate in a new Prairie View substation to shore up transmission deliverability.

The proposal, presented to the council during the city’s capital plan workshop by the electric utility team, lays out three main goals for the utility: reliability, affordability and sustainability. “We’re looking at an overall capital improvement plan over the next 5 years, of $175,000,000,” the presenter said, adding the utility is planning to use savings from discontinuing its waste‑to‑energy operations to help cover bond payments tied to the work.

Why it matters: the city’s Ames Plant currently supplies a large share of local capacity but staff expect to retire older units and to need 50–60 megawatts of new local thermal generation to meet capacity obligations and peak growth while keeping service reliable during outages. Councilors pressed staff about cost, timing and whether the plan would raise residential rates.

Details and direction

• New thermal generation: Staff said the plan favors multiple reciprocating internal combustion engine (RICE) generator units in the 10–20 MW range rather than a single large turbine or combined cycle plant. Those units can be fast‑started, configured in smaller increments and are easier to site locally.…