Protecting Member Value While Preparing for the Future

As we enter the final quarter of 2026, I am proud of the progress CIPCO has made on behalf of our Member owners. This year has been marked by significant milestones that reinforce our commitment to providing safe, reliable, and cost-effective electricity while positioning the cooperative to meet the challenges and opportunities ahead. 

DAEC TRANSACTION 

One of the most consequential accomplishments this year has been the successful completion of the Duane Arnold Energy Center transaction. This represents a strategic restructuring of our involvement in Iowa’s only nuclear generating facility. CIPCO exchanged its capital-intensive ownership interest with limited decisional influence and significant decommissioning obligation for a long-term, fixed-price power purchase agreement. 

For our Member-owners, the financial benefits are substantial. CIPCO has resolved its largest contingent liability while preserving our previously restricted decommissioning funds. The transaction provides immediate financial benefits, improves long-term financial flexibility, and will support competitive and predictable wholesale rates. Equally important, nuclear generation will once again be part of CIPCO’s resource portfolio. Through our long-term power purchase agreement, CIPCO will secure dependable nuclear baseload capacity and energy that operates around the clock. This generation will help ensure reliable service for cooperative members across Iowa for decades to come. 

HICKORY GROVE 

We have also made significant progress developing Hickory Grove Generating Station, a project that will serve as a cornerstone of reliability for our system. So far this year, CIPCO has advanced engineering, procurement, and regulatory activities necessary to move the project forward. 

We were disappointed when county zoning officials voted against CIPCO’s proposed zoning text amendment in February. However, the project continues to advance through the Iowa Utilities Commission review process, and we continue to present and defend our case leading up to the evidentiary hearing scheduled for November. Our Integrated Resource Plan was clear: CIPCO’s Member-owners need additional reliable capacity. If approved, Hickory Grove will provide the dispatchable generation necessary to meet peak demand, strengthen reliability, and ensure dependable power is available when weather conditions limit the output of wind and solar resources. 

LARGE LOADS 

Another important area of focus has been preparing for potential large-load opportunities. Economic development can bring new jobs, investment, and long-term benefits to the communities our Member-owners serve. CIPCO welcomes those opportunities, but we also have a responsibility to ensure growth occurs in a manner that protects existing member-consumers and preserves affordable electric service. 

Our approach is straightforward: existing members should pay their fair share of investments that maintain and improve the electric system that serves them. However, when a new large consumer creates the need for additional generation, transmission, substations, or other infrastructure, that customer should bear the costs associated with serving its load. Fair cost allocation is what makes responsible growth possible. 

By maintaining this discipline, CIPCO can support economic development while ensuring existing Member-owners are not asked to subsidize facilities that are needed solely to serve new large loads. This approach allows us to welcome investment and growth opportunities while protecting our members from unnecessary financial risk and preserving the affordability of electric service. 

Together, these initiatives demonstrate CIPCO’s disciplined approach to planning for the future. Whether securing the benefits of nuclear generation through the Duane Arnold transaction, advancing Hickory Grove Generating Station to meet future reliability needs, or ensuring new large load opportunities pay their fair share of system costs, every decision is guided by the same objective: protecting member value while positioning the cooperative for long-term success. 

THANK YOU 

None of these accomplishments would be possible without the dedication of CIPCO employees, the leadership of our Board of Directors, and the strong partnership of our Member-owners. The cooperative business model continues to demonstrate its strength by enabling us to work together toward shared goals while keeping the interests of our Member-owners at the center of every decision. 

Thank you for your continued trust, support, and partnership.