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HomeMy WebLinkAboutA029 - Membership in the Iowa Public Power AgencyITEM #:35 DATE:12-16-25 DEPT:ELEC SUBJECT:MEMBERSHIP IN IOWA PUBLIC POWER AGENCY COUNCIL ACTION FORM BACKGROUND: Ames Electric Services is a member of the Midcontinent Independent System Operator (MISO). MISO is one of several Independent System Operators that are organized under federal law to regulate the electric transmission system in regions across the country and ensure reliable electric generation and transmission. In 2025, MISO approved proceeding with nearly $22 billion in new transmission projects to be built within its territory in the next several years, with over $2.5 billion of those projects being in Iowa. While these projects are critical to ensure access to energy produced across the region, utilities purchasing the energy will experience increased costs associated with transmission in order to pay for the costs to build and operate the transmission infrastructure. Ames Electric Services has been able to offset rising costs of transmission up to this point by sharing its existing transmission with other utilities and being compensated for use of Ames' transmission assets. Moving forward, Ames Electric Services will not need to construct a substantial amount of new transmission for its direct benefit. This limits the opportunities for Ames to receive payments from other utilities to offset Ames' anticipated rising transmission expenses. However, there are opportunities to support regional and statewide projects that could provide benefits to Ames' customers. To support these projects, it is better for Ames to do this as part of a group. The Iowa Public Power Agency (IPPA) is an Iowa 28E entity that was organized in 2002. IPPA was established to facilitate Iowa municipal utilities' investments in electric-related projects, such as transmission and generation. Through IPPA, 15 municipal utilities have previously invested in two jointly owned transmission projects with MidAmerican Energy. Staff believes that becoming a member of IPPA is in the best interest for Ames electric cust om e rs. There is no cost to join, and no dues requirement at this time. As potential transmission and generation projects are brought to the IPPA membership, only those members opting into the project are responsible for project costs. Membership in IPPA offers the opportunity to leverage municipal financing mechanisms in a manner that does not obligate Ames' individual bonding capacity. Working with other electric municipals in the state is a diversified, low-cost method to stay up on market changes and provide the opportunity to participate in projects with little to no downside risk to Ames customers. ALTERNATIVES: 1. Approve Ames Municipal Electric Services application and agreement for membership in the Iowa Public Power Agency. 2. Do not join Iowa Public Power Agency at this time. 1 CITY MANAGER'S RECOMMENDED ACTION: The Iowa Public Power Agency is a non-profit, municipal-centric organization, focused on large electric projects. IPPA was established to facilitate Iowa municipal utilities' investments in electric-related projects, such as transmission and generation. As new high voltage projects are considered for development, Ames must consider partnerships with likeminded municipal electric utilities. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No.1 as stated above. ATTACHMENT(S): IPPA Application and Agreement for Membership Ames.docx Resolution Approving Membership in IPPA.docx Memo on NDA.docx Confidentiality Agreement.pdf 2 TO BE APPROVED BY RESOLUTION OF THE GOVERNING BODY OF THE MEMBER APPLICATION AND AGREEMENT FOR MEMBERSHIP IN THE IOWA PUBLIC POWER AGENCY THIS AGREEMENT, entered into this _______ day of _____________, 2025, by and between the Iowa Public Power Agency (“IPPA”), and _____________________________ (the “Member”), is for the purpose of providing a means by which the Member may jointly and cooperatively proceed under the provisions of Chapters 28E and 28F and Sections 390.9 through 390.25, Code of Iowa, to become a member of and participate in the Iowa Public Power Agency. This Agreement shall be effective upon its execution and filing with the Secretary of State of the State of Iowa as provided in Sections 28E.8, Code of Iowa. Member agrees to be bound by the terms and conditions of the Second Amended and Restated Agreement to Establish the Iowa Public Power Agency, the Articles of Incorporation, and the Bylaws of IPPA, as they may be amended from time to time, which documents are by this reference incorporated into this Agreement and made a part hereof. Member agrees to be bound by such other rules and regulations as may from time to time be adopted by the Board of Directors of IPPA. To the extent that Member, by contract or separate agreement, authorizes the issuance of bonds or obligations on its behalf or otherwise contracts with IPPA, Member shall be obligated to make such payments and repayments as may be required by the contract or separate agreement and shall pledge and dedicate all or part of its revenues for the satisfaction of the contract or separate agreement or the payment of the principal of and interest on bonds or obligations issued on its behalf. There are specific provisions relating to membership in and withdrawal from IPPA contained in the Second Amended and Restated Agreement to Establish the Iowa Public Power Agency and in the Articles of Incorporation and Bylaws. Member acknowledges receipt and approval of each of those documents and agrees to make payment of all amounts due IPPA on or before its withdrawal, and further agrees that all contracts, separate agreements and obligations of Member shall survive its withdrawal from IPPA. Member represents and warrants that it is a political subdivision of the State of Iowa, with full legal power and authority to enter into this Agreement, to become a member of IPPA, and to perform its obligations hereunder. 3 IN WITNESS WHEREOF, the parties hereto do execute this Application and Agreement for Membership in the Iowa Public Power Agency by resolution of the respective governing bodies as of the day and year first above written. IOWA PUBLIC POWER AGENCY By: _____________________________ President, Board of Directors ATTEST: ____________________________ Secretary, Board of Directors STATE OF IOWA ) ) SS: COUNTY OF __________) On this ______ day of _______________, 2025, before me, a Notary Public in and for said County, in said State, personally appeared Greg Fritz and John Bilsten, to me personally known and to me known to be the President and Secretary, respectively, of the Iowa Public Power Agency, the corporation described in and which executed the foregoing instrument to which this acknowledgement is attached; and that said instrument was executed and signed on behalf of said corporation by authority of its Board of Directors; and that Greg Fritz and John Bilsten, as such officers acknowledge the execution of said instrument to be the voluntary act and deed of said corporation voluntarily executed. ________________________________ Notary Public 4 CITY OF AMES, IOWA MUNICIPAL ELECTRIC UTILITY By: _____________________________ Mayor ATTEST: __________________________ City Clerk STATE OF IOWA ) ) SS: COUNTY OF STORY ) On this ______ day of December, 2025, before me, a Notary Public in and for said County, in said State, personally appeared ____________________ and __________________, to me personally known and to me known to be the Mayor and City Clerk, respectively, of the City of Ames the said city described in and which executed the within and foregoing instrument to which this is attached; and that said instrument was executed and signed on behalf of the city by authority of its City Council; and that the said _________________ and _________________, as such officers acknowledge the execution of said instrument to be the voluntary act and deed of the city voluntarily executed. _ _______________________________ Notary Public 4913-0356-7977-1\10948-020 5 (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: ___________________________________, State of Iowa. Date of Meeting: ________________, 2025. Time of Meeting: _________ o'clock __.M. Place of Meeting: ______________________________, State of Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time, and place above set out. The tentative agenda for said meeting is as follows:  Resolution approving Application and Agreement for Membership in the Iowa Public Power Agency Such additional matters as are set forth on the additional ____________ page(s) attached hereto. (number) This notice is given at the direction of _____________ pursuant to Chapter 21, Code of Iowa, and the local rules of said governmental body. ____________________________________ City Clerk of _______________________, State of Iowa 6 _____________________________, 2025 The City Council of ____________________________ met in __________ session at _____________________________________, Iowa at _______ o’clock __.m. on the above date. There were present Mayor ________________________, in the chair, and the following named Council Members: ________________________________________________________ _________________________________________________________ Absent: ____________________________________________________ * * * * * * * 7 Council Member ________________________ introduced the following Resolution entitled “RESOLUTION APPROVING APPLICATION AND AGREEMENT FOR MEMBERSHIP IN THE IOWA PUBLIC POWER AGENCY” and moved its adoption. Council Member __________________________ seconded the motion to adopt. The roll was called and the vote was: AYES: _______________________________________ _______________________________________ NAYS: _______________________________________ Whereupon the Mayor declared the following Resolution duly adopted: RESOLUTION APPROVING APPLICATION AND AGREEMENT FOR MEMBERSHIP IN THE IOWA PUBLIC POWER AGENCY WHEREAS, the Iowa Public Power Agency (IPPA) has been formed to effect joint development of projects for the benefit of member city utilities, electric power agencies, and electric joint action agencies and to exercise all powers conferred by Chapters 28E, 28F and Sections 390.9 through 390.25 of the Code of Iowa, 2025; and WHEREAS, IPPA will promote the interests of its members through the development and implementation of projects on a joint basis; and WHEREAS, it is deemed necessary, advisable, and in the best interest of this city utility and its rate payers that the city utility become a member of IPPA; and WHEREAS, the Second Amended and Restated Agreement to Establish the Iowa Public Power Agency, along with the Articles of Incorporation and Bylaws of IPPA, are now before this governing body; and WHEREAS, the form of Application and Agreement for Membership in IPPA is now before this governing body and is deemed to be appropriate for approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ___________________________________: Section 1. The Application and Agreement for Membership in the Iowa Public Power Agency is hereby approved substantially in the form now before the Council with such changes as may be approved by the Mayor and City Clerk. 8 Section 2. The Mayor and City Clerk are hereby authorized and directed to execute and deliver the Application and Agreement for Membership in the Iowa Public Power Agency, with their signatures thereon being conclusive proof of their approval of the final form thereof. Section 3. The Mayor and City Clerk are hereby authorized and directed to take all steps necessary to complete the application process with IPPA and to establish this city utility as a member of IPPA. PASSED AND APPROVED this __________ day of ____________________, 2025. ______________________________________ Mayor ATTEST: ________________________________ City Clerk CERTIFICATE 9 STATE OF IOWA COUNTY OF __________________ ) ) SS ) I, the undersigned City Clerk of the City of __________________, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this __________ day of _______________, 2025. (SEAL) City Clerk, City of __________________, State of Iowa 10 CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF _______________ ) I, the undersigned Secretary of the Board of Trustees of the Municipal Electric Utility, City of _______________, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Board of Trustees showing proceedings of the Board, and the same is a true and complete copy of the action taken by said Board with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Board and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Board (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by said law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective offices as indicated therein, that no board vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand (and the seal of said Board) hereto affixed this _______ day of ________________, 2025. ______________________________________ Secretary of the Board of Trustees of the Municipal Electric Utility, City of _______________, State of Iowa (SEAL) 4914-0299-3513-1\10948-020 11 Caring People  Quality Programs  Exceptional Service 515.239.5170 main 515.239.5308 fax 502 Carroll Avenue Ames, IA 50010 www.CityofAmes.org Electric Administration MEMO To: Ames City Council From: Donald E. Kom, Electric Services Director Date: 12 December 2025 Subject: Request for Open-Session Vote on Entering into a Confidentiality Agreement Purpose The purpose of this memorandum is to request that the Ames City Council place on its upcoming agenda an open-session vote to authorize the City to enter into a confidentiality agreement with the Iowa Public Power Agency (IPPA) related to the exchange of confidential information regarding participation in transmission and generation projects. Background The City is currently engaged in discussions with IPPA, which has requested that certain information exchanged during the exploratory and negotiation phases of transmission projects remain confidential. Entering into a confidentiality agreement would allow staff and Council to receive and evaluate sensitive information that is necessary to determine whether the potential opportunity aligns with City goals, legal requirements, and the public interest. Rationale for Council Action Because signing a confidentiality agreement constitutes a formal commitment by the City, authorization from the City Council is required. Conducting this vote in open session ensures transparency regarding the decision to enter such an agreement while still preserving the confidentiality of the specific information that may later be provided under the agreement. Approval of the confidentiality agreement would:  Enable the City to obtain and review detailed information relevant to negotiations;  Protect proprietary or sensitive data shared with the City;  Preserve the City’s ability to evaluate potential benefits and risks before making any further commitments;  Comply with Iowa Open Meetings and Open Records laws regarding the scope of what may legitimately remain confidential. 12 Requested Action Staff requests that the City Council: 1. Take an open-session vote to approve an execution of the attached confidentiality agreement. Attachments  Confidentiality Agreement Please let me know if you would like additional information or revisions prior to the agenda posting. 13 14 15 16 17 18 19 20 21 22