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HomeMy WebLinkAbout~Master - Resolution approving M2 Milestone Payment for Generation Interconnection Agreement with MISO for the Ames Municipal Energy CenterRESOLUTION NO. 26-551 RESOLUTION APPROVING M2 MILESTONE PAYMENT FOR GENERATION INTERCONNECTION AGREEMENT WITH MISO FOR THE AMES MUNICIPAL ENERGY CENTER FOR THE CITY OF AMES, IOWA WHEREAS, Electric Services is undertaking a project to design and construct a new electric generating facility, referred to as the Ames Municipal Energy Center (AMEC). The City has retained Sargent & Lundy to provide the standard design services, along with support in obtaining all permits and regulatory permissions required to construct the facility; and, WHEREAS, one of the permissions needed is a Generation Interconnection Agreement (GIA) from the Mid-Continent Independent System Operator (MISO); and, WHEREAS, the operator studies the impact of new generation on the electric grid and determines whether the proposed new generating assets will require system upgrades to support generation-to-load requirements. These studies include a steady state, short circuit analysis, and stability studies. The completed studies will identify overloads or limitations on the electric grid which must be corrected before the new generation can be connected; and, WHEREAS, payment of the non-refundable application fee and the study deposits were previously approved by the City Council on May 12, 2026; and, WHEREAS, the initial study has been performed and the City has received preliminary approval from MISO to proceed. A milestone (M2) payment is now required. This payment is intended to disincentivize a developer from submitting a possible new generation project and subsequently failing to build the project after receiving an approved Generator Interconnection Agreement. Based on the size of Ames' proposed generation, the M2 milestone amount is $435,200; and, WHEREAS, the M2 payment is held by MISO while it determines whether Ames must pay for a share of system upgrades as a result of bringing the AMEC online. The cost to Ames of such upgrades could vary depending on whether other planned projects proceed or withdraw from interconnection. It is possible that the AMEC project necessitates additional payments for upgrades in excess of the M2 payment amount. If no system upgrades are required, or if Ames' cost share for system upgrades is less than the M2 payment amount, then Ames may receive a refund of the unused M2 amount once AMEC enters into commercial operation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the cash M2 payment to Mid-Continent Independent System Operator (MISO) in the amount of $435,200 for a Generation Interconnection Agreement application is hereby approved. ADOPTED THIS 28th day of August, 2026. _______________________________ _________________________________ Renee Hall, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Beatty-Hansen Voting aye: Beatty-Hansen, Betcher, Junck, Gartin, Rollins Voting nay: None Absent: Corrieri Resolution declared adopted and signed by the Mayor this 28th day of August, 2026.