Volume 19, Issue 3 - The Indiana Municipal Power Agency

Town of Veedersburg
Municipal Power News
Volume 19, Issue 3
T
IMPA appreciates the communities it serves
he relationship between the Indiana Municipal Power Agency (IMPA) and the 60 communities it serves
with wholesale electric power goes beyond supplying electricity. Being an IMPA-served community means that
the utility has a voice in IMPA’s decision-making process, that IMPA will be there to help the community
achieve its economic development goals, that the utility will have another voice in the legislature, that
electric engineering assistance is just a phone call away and so much more. Just as IMPA’s founding fathers
envisioned when the Agency began operations in 1983, municipal electric utilities are able to achieve more
working together. Many of the goals and desires of IMPA-served communities are becoming a reality through
their partnership with IMPA.
To celebrate the bond that IMPA has formed with the 60 communities it serves, the Agency
hosts regional member appreciation meetings throughout the state. Recently, IMPA held a meeting that
representatives from Veedersburg attended. The meetings give IMPA and the communities the Agency serves
the opportunity to exchange ideas on how IMPA can better serve their needs. Additionally, the meeting
allows IMPA to share information about how the Agency is managing its power supply portfolio, member
services that are available to all of the communities that IMPA serves and IMPA’s history. IMPA would like
to thank all who attended the meeting. We are proud to be your community’s Indiana power provider.
T
Fire department
receives new truck
he Veedersburg
Volunteer Fire
Department recently
purchased a vehicle
that will allow the fire
department to put
out brush fires with
greater ease. The brush
truck combats fires in
fields better than the
department’s other fire
engines because the
truck is lighter so it may drive closer to the fire on the field.
The brush truck appears more like a standard pick-up truck,
except for that it is equipped with a water tank and two water nozzles
at the front of the truck that have the ability of spouting out water
toward a fire 30 feet away. Prior to owning this truck, the fire
- continued on page 8
Grant awards
funds for town
improvements
I
mprovements to the Town
of Veedersburg’s downtown
will soon be underway, due in
large part to a $250,000 grant
awarded to the town as part of
the Indiana Office of Community
and Rural Affair’s Main Street
Revitalization program. The
town will be using the funds to
improve sidewalks, lighting and
drainage in the downtown area.
The improvements will
be made on Main Street from
First Street to Third Street
- continued on page 8
Municipal Power News
IMPA: Your Indiana Power Partner
The Municipal Power News is a
periodic publication of the
Indiana Municipal Power Agency
and the 60 communities it serves.
Editor: Niki Dick
Manager of Marketing Communications
niki@impa.com
Correspondent: Emily Atwood
Communications Specialist
emilya@impa.com
Send submissions and comments to:
11610 N. College Avenue
Carmel, IN 46032
Printed on recycled stock.
The Indiana Municipal Power Agency
(IMPA) is a not-for-profit organization
that provides an economic, reliable
and environmentally-responsible power
supply to its members.
IMPA member utilities purchase their
power requirements through IMPA and
deliver that power to the residents and
companies in their service territories.
IMPA is proud to be your Indiana power
partner.
IMPA COMMUNITIES
Advance
Anderson
Argos
Bainbridge
Bargersville
Blanchester, OH
Bremen
Brooklyn
Brookston
Centerville
Chalmers
Coatesville
Columbia City
Covington
Crawfordsville
Darlington
Dublin
Dunreith
Edinburgh
Etna Green
Flora
Frankfort
Frankton
Gas City
Greendale
Greenfield
Huntingburg
Jamestown
Jasper
Kingsford Heights
Knightstown
Ladoga
Lawrenceburg
Lebanon
Lewisville
Linton
Middletown
Montezuma
New Ross
Paoli
Pendleton
Peru
Pittsboro
Rensselaer
Richmond
Rising Sun
Rockville
Scottsburg
South Whitley
Spiceland
Straughn
Tell City
Thorntown
Tipton
Veedersburg
Walkerton
Washington
Waynetown
Williamsport
Winamac
Page 2
What costs
make up IMPA’s
wholesale electric
power rates?
I
n order for the Indiana Municipal Power Agency (IMPA) to provide
power to the 60 municipal electric utilities (Members) it serves, IMPA
incurs expenses related to generating and transmitting electricity, in
addition to IMPA’s operating expenses. IMPA recovers these expenses
through a wholesale rate that its Members pay. Since IMPA is a not-forprofit utility like its Members, the wholesale rates only recover IMPA’s
actual costs. IMPA is owned by its Members; therefore no profits are
collected for the benefit of stockholders.IMPA uses its revenues to pay
for its long term debt obligations, fuel and operating costs, purchased
power, transmission, regulatory compliance costs, communication costs
and to provide various Member services.Additionally, funds are spent
to maintain IMPA’s valuable generating assets in order to continue
providing a reliable power supply.
Three separate processes are involved in providing electricity to
IMPA’s Members’ electric customers – generation, transmission and
distribution.As the wholesale power provider, IMPA is responsible
for generating and transmitting the electric power to its Members.
Distribution to the end user is the responsibility of IMPA’s Members.
IMPA is called a wholesale power provider because IMPA’s Members
purchase all of the power necessary to provide electricity to the utility’s
local customers from IMPA.By grouping together as a large collective,
IMPA’s Members can obtain assets or contract for power more cost
effectively than if each Member generated or contracted for its own
power supply.The cost of wholesale power depends on several different
factors.IMPA strives to stabilize these factors so that its Members,
and ultimately the electric consumers, do not endure frequent price
fluctuations.
Like most commodities, the price of electricity will increase
over time. By properly managing the major driving forces of wholesale
power costs, IMPA can continue providing reliable, environmentally
responsible power at a low cost. Illustrated on the next page are some of
the major costs of providing electricity that are paid for through IMPA’s
rates.The illustration divides the costs into various components involved
with generating and transmitting electricity.
IMPA: Your Indiana Power Partner
Municipal Power News
Page 3
EQUIPMENT AND
MAINTENANCE
Whether electricity comes from wind, solar, fossil fuels,
water, nuclear or biomass, there is a cost associated with the
initial investment of the equipment necessary to produce the
power. To pay for these large scale projects, IMPA issues
tax exempt long term municipal bonds. These bonds are
recovered by IMPA’s wholesale rates over a long period,
usually 30 years. Once constructed, these facilities must
also be maintained over their useful lives. The operational
complexities involved with these types of facilities require
continual maintenance and highly trained personnel to
ensure that the facility continues operating economically and
WIND
SOLAR COAL-FIRED GENERATING STATION reliably into the future.
In order to maintain IMPA’s stable, low cost
wholesale rates, IMPA plans far in advance before investing in any type of new generation resource.Planning
helps to ensure that the new generation resource is necessary to continue providing cost effective and reliable
power to the Members. Additionally, IMPA has to be confident in its financial ability to continue maintaining
these facilities once built.
FUEL COSTS
NATURAL GAS
COAL
OIL
TRANSMISSION
Electricity is produced from a source of fuel, whether that is from fossil
fuels or renewable sources.Costs associated with obtaining fossil fuels are
readily identifiable since they must be purchased or extracted.In some
forms of renewable energy such as wind or solar, the costs are not in the
“fuel” itself, but rather in the equipment investment and maintenance
required to capture the source.Other forms of renewable energy such as
biomass or landfill gas may have a specific fuel procurement cost attached.
Securing low-cost fuel is essential to keeping IMPA’s wholesale
rates low and stable. If fuel for a power plant must be purchased, the fuel
prices are dependent on the supply and demand of the market for that
particular fuel. By maintaining a diverse generation portfolio utilizing
different fuel types, IMPA’s exposure to cost fluctuations due to fuel price
spikes is lessened.
To deliver power to IMPA’s Members, the electricity is moved
on transmission lines. Transmission lines act like the highway
systems of electricity, serving as the connection between
generating facilities and distribution systems. A distribution
system is the network of power lines that locally deliver the
power received from IMPA to individual electric customers.
IMPA is a part owner in Indiana’s Joint Transmission System,
which covers approximately two thirds of the state. As an
owner, IMPA shares the costs of owning and maintaining these
lines. To provide power to IMPA’s Members outside the Joint
Transmission System, the Agency pays transmission charges to
other entities that own and operate transmission systems. IMPA
does not directly pay for the maintenance of the lines, but
rather pays a fee for using the transmission lines owned by these
other companies. IMPA costs involved in the transmission process include the investment in and maintenance
of transmission towers, lines, substations and transformers and the fees for transmitting electricity along lines
not owned by IMPA.
Municipal Power News
IMPA: Your Indiana Power Partner
Page 4
IMPA’s third decade and looking forward
T
he most recent decade in the Indiana Municipal
Power Agency’s (IMPA) legacy builds upon a
strong foundation set by the Agency’s first 20 years.
IMPA entered its third decade of operations with a
strong reputation of being a low-cost, reliable and
environmentally responsible wholesale power provider
– a reputation that did not go unnoticed.
From 2003 to 2013, the Agency’s membership
nearly doubled in the number of communities it
provides with power. Now the wholesale power
provider of 60 communities, IMPA began serving 27
of those municipalities during the past 10 years. With
this growth, the Agency had to plan for how it would
provide power to the end consumer, which IMPA
accomplished by further diversifying its power supply
portfolio.
Starting in 2003, IMPA began its third decade
in business with the expansion of the Anderson station
by adding a third combustion turbine unit, which
provides 85 megawatts (MW) of power. This unit was
completed in 2004, which is the year the Agency also
purchased two 85 MW combustion turbine units in
Indianapolis, known as the Georgetown units. IMPA
continued to build its power supply portfolio when,
in 2006, the Agency contracted with the Indiana
Michigan Power Company to obtain power from its
power supply portfolio, which includes the Cook
Nuclear Power Plant. Two years later, IMPA entered
into a long-term contract to purchase 50 MW of wind
energy from the Crystal Lake Wind Energy Center.
In the midst of diversifying its power supply portfolio,
the Agency also started planning for the second unit at
Trimble County Station, a 750 MW, highly efficient
coal-fired unit, and the Prairie State Energy Campus,
a 1600 MW mine-mouth, coal-fired generating
facility. Trimble County Unit 2 was placed into service
in 2011 while Prairie State was placed into service in
2012.
During this most recent decade, the Agency
has also furthered its environmental stewardship efforts
by installing environmental control technology on
its generating units and by offering energy efficiency
opportunities to the communities that IMPA serves.
In 2010, the Agency was awarded a $5 million
Federal Energy Efficiency and Conservation Block
Grant on behalf of a group of its served communities
to implement local street lighting retrofit programs.
In 2011, the Agency also launched the IMPA Energy
Efficiency Program designed to help commercial and
industrial customers in IMPA-served communities
save money through incentives for implementing
energy-saving measures. A year later, the Agency
- continued on page 5
HIGHLIGHTS FROM
2003 TO 2013
2008
2004
2003
ndiana Municipal P
The Indiana
Power
d of
Agency (IMPA) B
Board
Commissioners approved a master
plan to expand IMPA’s generation
resources. Additionally, IMPA
installed air emission control
equipment on Trimble County
Unit 1, a generation unit in
Kentucky.
pleted the expansio
IMPA completed
expansion of its
Anderson Combustion Turbin
Turbine facility
with the addition of a third combustion
turbine unit (85 megawatts).
A entered
entered
d iinto
nto a lo
IMPA
long-term
ract to purchase 50 MW of
contract
wind energy from Crystal Lake
Wind Energy Center, adding
wind as a resource to IMPA’s
power supply portfolio.
IMPA also purchased two 85
MW combustion turbine units
in Indianapolis, known as the
Georgetown units.
Municipal Power News
IMPA: Your Indiana Power Partner
MEMBER GAINS
COMMUNITY
Argos
Blanchester
Bremen
Brooklyn
Brookston
Chalmers
Coatesville
Dublin
Dunreith
Etna Green
Gas City
Huntingburg
Jasper
Kingsford Heights
Knightstown
Lewsiville
Montezuma
New Ross
Rockville
South Whitley
Spiceland
Straughn
Thorntown
Veedersburg
Walkerton
Williamsport
Winamac
YEAR JOINED
2008
2006
2003
2006
2003
2003
2012
2006
2006
2003
2006
2006
2007
2003
2006
2006
2013
2012
2006
2012
2006
2010
2006
2012
2003
2012
2003
2013
&
BEYOND
ENERGY
EFFICIENCY
EFFORTS
In the past decade,IMPA has
had the great fortune of adding
27 municipal electric utility
communities to the Agency’s
Membership.IMPA supplies
its member communities with
wholesale electric power.
Page 5
To prolong the need for
more generation resources,
IMPA has seen the value
in implementing certain,
economical energy efficiency
programs that are both
effective at reducing
ratepayers’ consumption
and therefore utility costs,
as well as stabilizing electric
rates in the long-term.
In 2012, IMPA joined the
statewide energy efficiency
effort known as Energizing
Indiana.This program benefits
both residential and business
ratepayers through five different
programs.
As IMPA
PA wraps up 2013 aand
orward, the Agency is only
looks forward,
optimistic about its future. In
this past year, IMPA has started
down the path of providing
power with solar energy, added
another Member (Montezuma)
and expanded the services of
its subsidiary, ISC, to include
power line services, amongst
other successes.In years to
come, IMPA will continue
providing low-cost, reliable
and environmentally responsible
power through a diversified power
supply portfolio that best suits
the needs of the municipal
electric utility communities
that it serves.
2012
2011
2010
IMPA is awarded a $5 million
Federal Energy Eff
Efficiency
and Conservation Block
Grant on behalf of its
members to implement
local energy efficient street
lighting retrofitting programs.
Trim
Trimble County Unit 2
placed into service. IMPA
place
owns a 100 MW share in the
own
supercritical pulverized coalsupe
fired unit utilizing stateof-the-art emissions
control technology.
IMPA history
Prairie State Energy Campus
Prairie
placed into service. IMPA owns
a 200 m
megawatt share of the
plant. The onsite mine owned
by Prairie State includes coal
reserves to fuel the generating
station for approximately 30
years.
Go to www.impa.com to learn more!
- continued from page 4
joined Energizing Indiana, the first statewide energy efficiency program, to reduce energy consumption through
programs that touch every type of customer.
Throughout IMPA’s first 30 years of operations, the Agency has prioritized providing its Members with a
low-cost, reliable and environmentally responsible power supply. IMPA will continue to harness this objective as
the Agency enters future decades of operations.
Municipal Power News
IMPA: Your Indiana Power Partner
Page 6
GUEST COLUMN
Administration policies hurting energy customers
By: US Senator Dan Coats (R-IN)
T
he American energy industry is on the forefront of a remarkable period of growth and
innovation.
A boom in shale development is revolutionizing the natural gas market and spurring
production of both oil and gas on private lands. The Nuclear Regulatory Committee recently
approved a domestic nuclear license for the first time in several decades.
Advancements in automotive manufacturing are allowing Americans to travel
more efficiently than ever before. Renewable and alternative energy technologies are unlocking
new sources of power.
Despite all of these positive developments, uncertainty surrounds the future of U.S. energy policy and
our domestic energy portfolio. Unfortunately, this uncertainty is self-inflicted by our own federal government.
Washington’s perpetual tidal wave of regulations is threatening our economy and strangling job creation.
Major rules from the Environmental Protection Agency (EPA), such as the Mercury and Air Toxins
Standard (MATS) rule, have come with extraordinary price tags never before seen by utilities. According
to some estimates, the MATS rule may cost upwards of $100 billion, while creating a myriad of problems for
existing facilities.
The most concerning rule to date is the EPA’s Source Performance Standards for new power plants,
which will make construction of new coal-fired plants nearly impossible. While this rule will allow President
Obama to check off another box on his environmental agenda, he will do so on the backs of hard-working
Hoosiers. By requiring a standard with commercially unviable technology, this rule will increase electricity costs
for Hoosier consumers, hurt Indiana’s manufacturing sector and put jobs at risk.
Coal accounts for 88 percent of electricity generation in Indiana and has always been the primary source
of our electricity. Nationally, coal provided over 42 percent of the power generated in 2011 and 39 percent
of electricity this year. Indiana ranks seventh in coal production nationwide, and the Indiana coal industry
provides over 2,500 jobs and contributes more than $750 million to the Hoosier economy.
It is disingenuous for the administration to promote an all-of-the-above energy plan when it has no
intention of making coal part of our nation’s energy portfolio. I will work with my Senate colleagues to overturn
this harmful regulation and seek instead a truly level playing field ensuring the most efficient and cost-effective
solutions are brought to market.
America should have a comprehensive energy policy that encourages investment in all sources and
technologies to bring us the most efficient, affordable options. In precarious fiscal times, asking American
families to foot the bill for costly new environmental regulations is irresponsible. Instead, we should pursue
a reasonable regulatory policy that protects the environment without blocking access to our domestic energy
sources.
T
Attention readers!
he Indiana Municipal Power Agency (IMPA)is investigating the possibility of distributing the
Municipal Power News electronically.If you would be interested in receiving this newsletter via e-mail
instead of in the mail, please send us your name, community in which you live and an e-mail address
to emilya@impa.com.We will add you to the list of those interested in receiving the newsletter
electronically.
Municipal Power News
IMPA: Your Indiana Power Partner
Test your energy
efficiency IQ!
T
est your knowledge of
energy efficiency and you
could win a prize! Send
your answer to the question
below to IMPA, and we
will randomly select winners
from all of the correct
entries to receive an energy
efficiency prize pack. Please
send your name and address
with your answer, along
with your mailing address
and e-mail address to:
niki@impa.com
OR
MPN Energy Efficiency Quiz,
11610 N. College Ave.,
Carmel, IN 46032
Question A compact
Question:
fluorescent light bulb (CFL):
A.Uses half the energy of
a comparable incandescent
light bulb and lasts up to
four times longer.
Have a favorite recipe you would like to
share with other readers?
Send it to:
Cooking
Corner
Emily Atwood
11610 N. College Ave.
Carmel, IN 46032
or email to emilya@impa.com
Veggie Crunch Salad
Recipe by: Millie Julian, Scottsburg, IN
Salad
- 4 cups broccoli florets, cut into bite size
- 4 cups cauliflower, cut into bite size
- 1 small red onion, cut into small pieces
- 2 cups cherry tomatoes, leave whole or
cut in half
Dressing
- 1 cup mayonnaise
- 1/2 cup sour cream
- 1 tablespoon vinegar
- salt and pepper to taste
C. Uses more energy than
a comparable incandescent
light bulb, but gives off less
heat.
D.Uses the same amount
of energy as a comparable
incandescent light bulb.
Clean vegetables, place in a
bag and refridgerate to make
vegetables crisp. Whisk
dressing ingredients together
until smooth. Once vegetables
are crisp, pour dressing over
them in a large bowl and toss
to coat. Cover and chill salad
mixture for at least two hours.
Serve cold.
YIELDS: 16-18
Pecan Pie (two ways)
Recipe by: Stella David, Richmond, IN
B. Uses about one-third
the energy of a comparable
incandescent light bulb and
lasts up to 10 times longer.
Page 7
Ingredients
- 3 eggs beaten
- 2/3 cups of sugar
- 1 tablespoon flour
- 1/3 teaspoon salt
- 1/3 cup melted butter
- 1 cup white corn syrup
- 11/2 cups pecans, chopped
Preheat oven to 375 degrees. Mix
all ingredients together and pour
into an unbaked pie shell. Bake for
50 to 60 minute and then top with
whip cream when cool.
Recipe by: Suane Leaf, Tell City, IN
Ingredients
- 3 eggs beaten
- 1 cup sugar free honey
- 1/2 cup and 4 teaspoons sugar free
brown sugar
- 1/2 cup melted butter
- 1 teaspoon vanilla
- 1 cup pecans
- 11/2 cups pecans, chopped
Preheat oven to 350 degrees.
Mix all ingredients together and
pour into an unbaked pie shell.
Bake for 50 minutes.
Municipal Power News
IMPA: Your Indiana Power Partner
Veedersburg • Page 8
New fire department truck
- continued from page 1
department could not drive its other vehicles in the fields because they would become stuck.
The truck was purchased in part by Van Buren Township funds, tax-increment financing dollars
and town money. The collaborative purchasing effort is expected to help prevent serious field fires since the
department is now capable of getting closer to the fire in order to extinguish it.
Grant for town improvements
- continued from page 1
and on Second Street from one half block west of Main Street to Railroad Street. In addition to the
sidewalk replacements and the decorative lighting improvements, the town will also conduct work on the
wastewater lines that are within this area. The town’s plan is to replace the laterals, which connect some
businesses to the main wastewater lines. In situations where a business’s lateral and plumbing must be
replaced, the town will obtain easements from the businesses to conduct this work, which will be at no
cost to the companies.
In addition to the town’s grant money, the project will be funded through tax increment financing
(TIF) dollars, which is a public financing method used as a subsidy for redevelopment of utilities and other
community-improvement projects.
Separate from the grant project, the town will also be using TIF funds to replace the damaged
sidewalk outside of the Veedersburg Town Hall, as well as the town hall’s patio, which has a weakened
foundation. As part of the work on the town hall patio, the sidewalk and concrete stairs leading up to the
town hall from Main Street will also be replaced.
Page 6 – The value of public power
prioritizing energy efficiency
Pages 4-5 – Companies rewarded for
IMPA Commissioner: Ken Smith
The Municipal Power News is published by
the Indiana Municipal Power Agency and the
Town of Veedersburg.
Pages 2-3 – A look back at IMPA
Inside
Indiana Municipal Power Agency
11610 N. College Ave.
Carmel, IN 46032
Municipal Power News
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