HomeMy WebLinkAboutA022 - April 28, 2026, Regular Meeting of the Ames City CouncilITEM #:26
DATE:04-28-26
DEPT:ELEC
SUBJECT:AGREEMENT WITH ITC FOR SUBSTATION OWNERSHIP RIGHTS
COUNCIL ACTION FORM
BACKGROUND:
ITC (an independent transmission company) has built a new 161 kV electrical substation in the
Prairie View Industrial Center (PVIC) on the south side of Lincoln Way adjacent to Ames’ 161
kV line. During the substation's development, ITC had requested to interconnect to Ames
Municipal Electric Utility's existing 161 kV line, which extends from Ames Plant Substation to a
substation north of Ankeny and is in the vicinity of ITC's new substation. The purpose of the
PVIC substation is for ITC to provide Alliant Energy with the necessary capacity to service
Alliant’s anticipated new customers in this vicinity and to transfer some of its existing
distribution load to the transformer(s) planned as part of this substation.
The interconnection will involve the extension of the City's 161 kV lines, along with equipment
installed in a portion of the ITC substation. This project was originally identified as a Capital
Improvement Project and approved by Council in the FY 2025-2030 CIP.
Ames’ own reliability for its customers will be enhanced as ITC adds an additional 161 kV line
from its Fernald to Ames substations, and a future line is planned to be built from PVIC to
Ames to add transmission reliability to the municipal utility. Under the Interconnection and
Joint Ownership Agreements, Ames will have joint ownership in needed
transmission/substation facilities. The agreements further codify that MidAmerican Energy
Company will remain as Ames’ Transmission Operator.
ALTERNATIVES:
1. Set May 12, 2026, as the public hearing date to consider three agreements with ITC for
interconnection and ownership rights of Ames at the Prairie View Industrial Park
substation.
2. Do not set a date of public hearing to consider an agreement with ITC and refer this item
back to City staff for additional information.
CITY MANAGER'S RECOMMENDED ACTION:
Alliant Energy was in need of a new substation to serve the Prairie View Industrial Center.
ITC, Alliant's transmission provider, does not have adequate transmission resources in the
area to provide the needed capacity for the substation. With the close proximity of Ames'
existing line that connects the City to MidAmerican's (MEC) Ankeny substation, Ames can
help support the substation. Additionally, these agreements accomplish several things
beneficial to the City.
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First, joint ownership maintains a clear, direct path from Ames to MEC, preserving Ames as
part of the MEC Load Balancing Area. Second, Ames has access to a new transmission
source, further enhancing the electric reliability of Ames' system in the event of needed
maintenance or unplanned outages. Third, utilities that investment into transmission assets
receive revenues from MISO. Therefore, it is the recommendation of the City Manager that the
City Council adopt Alternative No. 1, as noted above.
ATTACHMENT(S):
AMES- SECOND SET - PUBLIC HEARING-APPROVE RES, ENTERING INTO
AGREEMENTS, PRAIRIEVIEW INDUSTRIAL SUBSTATION.pdf
AMES - Notice of Hearing.pdf
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ITEMS TO INCLUDE ON AGENDA FOR MAY 12, 2026
CITY OF AMES, IOWA
● Public hearing on the proposition of entering into a Prairieview Industrial Substation Line
Tap Construction Agreement and a Transmission Facility Joint Ownership Agreement
between ITC Midwest, LLC and the City of Ames, Iowa, and entering into a
Transmission Interconnection Agreement by and among ITC Midwest, LLC, the City of
Ames, Iowa, and Midcontinent Independent System Operator, Inc.
● Resolution finally adopting and approving the forms of Prairieview Industrial Substation
Line Tap Construction Agreement and Transmission Facility Joint Ownership Agreement
between ITC Midwest, LLC and the City of Ames, Iowa, and Transmission
Interconnection Agreement by and among ITC Midwest, LLC, the City of Ames, Iowa,
and Midcontinent Independent System Operator, Inc.
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May 12, 2026
The City Council of the City of Ames, Iowa, met in __________ session, in the Council
Chambers, City Hall, 515 Clark Avenue, Ames, Iowa, at __________ _____.M., on the above
date. There were present Mayor ________________________, in the chair, and the following
named Council Members:
__________________________________________________
__________________________________________________
Absent: ___________________________________________
Vacant: ___________________________________________
* * * * * * *
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The Mayor announced that this was the time and place for the meeting and public hearing
on the matter of entering into a Prairieview Industrial Substation Line Tap Construction
Agreement and a Transmission Facility Joint Ownership Agreement between ITC Midwest, LLC
and the City of Ames, Iowa, and entering into a Transmission Interconnection Agreement by and
among ITC Midwest, LLC, the City of Ames, Iowa, and Midcontinent Independent System
Operator, Inc.
The Mayor then asked the Clerk whether any written objections had been filed by any
person to the proposed action or to the forms of the Construction Agreement, Joint Ownership
Agreement, and the Interconnection Agreement. The Clerk advised the Mayor and the Council
that _____ written objections had been filed. The Mayor then called for oral objections to the
proposed action or to the forms of the Construction Agreement, Joint Ownership Agreement, and
the Interconnection Agreement and _____ were made. Whereupon, the Mayor declared the time
for receiving oral and written objections to be closed.
(Attach here a summary of objections received or made, if any)
Whereupon, the Mayor declared the hearing on the matter of entering into a Construction
Agreement, Joint Ownership Agreement, and the Interconnection Agreement to be closed.
The Council then considered the proposed action and the extent of objections thereto.
Council Member _______________________ introduced the following Resolution
entitled "RESOLUTION FINALLY ADOPTING A PRAIRIEVIEW INDUSTRIAL
SUBSTATION LINE TAP CONSTURCTION AGREEMENT AND A TRANSMISSION
FACILITY JOINT OWNERSHIP AGREEMENT BETWEEN ITC MIDWEST, LLC AND THE
CITY OF AMES, IOWA, AND A TRANSMISSION INTERCONNECTION AGREEMENT
BY AND AMONG ITC MIDWEST, LLC, THE CITY OF AMES, IOWA, AND
MIDCONTINENT INDEPENDENT SYSTEM OPERATOR, INC." and moved that the same be
adopted. Council Member ____________________ seconded the motion to adopt. The roll was
called and the vote was,
AYES: _______________________________________________
________________________________________________
NAYS: ________________________________________________
Whereupon, the Mayor declared the resolution duly adopted as follows:
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RESOLUTION FINALLY ADOPTING A PRAIRIEVIEW INDUSTRIAL
SUBSTATION LINE TAP CONSTURCTION AGREEMENT AND A
TRANSMISSION FACILITY JOINT OWNERSHIP AGREEMENT BETWEEN ITC
MIDWEST, LLC AND THE CITY OF AMES, IOWA, AND A TRANSMISSION
INTERCONNECTION AGREEMENT BY AND AMONG ITC MIDWEST, LLC, THE
CITY OF AMES, IOWA, AND MIDCONTINENT INDEPENDENT SYSTEM
OPERATOR, INC.
WHEREAS, on the 28th day of April, 2026, proposed forms of the Construction
Agreement, Joint Ownership Agreement, and Interconnection Agreement were filed with the
City Clerk and were preliminarily approved by resolution subject to final hearing and approval
upon public notice as required by law; and
WHEREAS, the proposed Construction Agreement, Joint Ownership Agreement, and
Interconnection Agreement are found to be in proper form and to serve the best interest of the
City and its residents; and
WHEREAS, notice of hearing on the proposed Construction Agreement, Joint Ownership
Agreement, and Interconnection Agreement was published as required by the provisions of
Chapter 390 of the Code of Iowa, 2025, as amended.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE AMES,
STATE OF IOWA;
Section 1. The proposed Prairieview Industrial Substation Line Tap Construction
Agreement and Transmission Facility Joint Ownership Agreement between ITC Midwest, LLC
and the City of Ames, Iowa, and the Transmission Interconnection Agreement by and among
ITC Midwest, LLC, the City of Ames, Iowa, and Midcontinent Independent System Operator,
Inc. and the forms thereof be and the same are hereby approved and adopted to be executed and
performed by the City.
Section 2. The Mayor is directed to execute and the clerk is directed to deliver the
Construction Agreement, Joint Ownership Agreement, and Interconnection Agreement in
substantially the form approved.
PASSED AND APPROVED this __________ day of _________________, 2026.
______________________________
Mayor
ATTEST:
_____________________________
City Clerk
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CERTIFICATE
I, the undersigned City Clerk of the City of Ames, State of Iowa, do hereby certify that
attached is a true and complete copy of the portion of the records of the City showing proceedings
of the 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 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 Council hereto affixed this __________ day of
_______________, 2026.
(SEAL)
City Clerk, City of Ames, State of Iowa
4925-2446-7874-2\17407-018
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NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF AMES, IOWA, AND A
PUBLIC HEARING ON THE MATTER OF THE PROPOSITION OF ENTERING INTO A
PRAIRIEVIEW INDUSTRIAL SUBSTATION LINE TAP CONSTURCTION AGREEMENT
AND A TRANSMISSION FACILITY JOINT OWNERSHIP AGREEMENT BETWEEN ITC
MIDWEST, LLC AND THE CITY OF AMES, IOWA, AND ENTERING INTO A
TRANSMISSION INTERCONNECTION AGREEMENT BY AND AMONG ITC MIDWEST,
LLC, THE CITY OF AMES, IOWA, AND MIDCONTINENT INDEPENDENT SYSTEM
OPERATOR, INC.
PUBLIC NOTICE is hereby given that the City Council of the City of Ames, Iowa, will hold a
public hearing on the 12th day of May, 2026, at __________ _____M. in the Council Chambers, City
Hall, 515 Clark Avenue, Ames, Iowa, at which meeting the Council proposes to take final action on the
matter of entering into the Prairieview Industrial Substation Line Tap Construction Agreement (the
“Construction Agreement”) and Transmission Facility Joint Ownership Agreement (the “Joint Ownership
Agreement”) between ITC Midwest, LLC and the City of Ames, Iowa, and entering into a Transmission
Interconnection Agreement (the “Interconnection Agreement”) by and among ITC Midwest, LLC, the
City of Ames, Iowa, and Midcontinent Independent System Operator, Inc.
The Construction Agreement provides for the construction of an electric substation known as the
Prairieview Industrial Substation (the “Substation”) By ITC Midwest, LLC.
The Joint Ownership Agreement provides for the ownership, management, and allocation of costs
for the Prairieview Industrial Substation Project, consisting of a Joint Facility, including portions of a
Substation and other facilities constructed and operated at the Facility Site.
The Interconnection Agreement provides for the ownership and operation of facilities at the
Points of Interconnection.
Proposed forms of the Construction Agreement, Joint Ownership Agreement, and Interconnection
Agreement are on file with the City Clerk for public inspection.
At the above mentioned meeting, the City Council proposes to take final action on the matter of
adopting the Construction Agreement, Joint Ownership Agreement, and Interconnection Agreement.
At the above hearing, the Council shall receive oral or written objections from any person to the
above action as provided by Section 390.3 and Section 73A.3, Code of Iowa 2025. Interested objectors
may appeal from the decision as provided in Section 73A.4, Code of Iowa, 2025.
This notice is given by order of the City Council of the City of Ames, Iowa, as provided by
Chapter 73A as referenced in Chapter 390, Code of Iowa, 2025, as amended.
Dated this ______ day of _______________, 2026.
________________________________
City Clerk, City of Ames, State of Iowa
4935-4598-9540-2\17407-018
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