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Algona Receives Energy Independence Report

9/24/2014

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On September 11, 2014, the Iowa Association of Municipal Utilities (IAMU) presented to the Board of Directors of Algona Municipal Utilities (AMU) the results of a study IAMU conducted as part of an Energy Independent Community Grant funded in part by from the Iowa Economic Development Authority (IEDA). The study reviewed the technical and financial feasibility of of reducing AMU’s usage of conventional electric generation resources through deep energy efficiency and development of local renewable energy generation sources. 
The study reviewed the technical and financial feasibility of reducing AMU’s usage of conventional electric generation resources through deep energy efficiency and development of local renewable energy generation sources. The study found that that AMU’s implementation of, and its customers adoption of deep energy efficiency programs combined with investment in local wind and solar generation may lower AMU’s costs and reduce utility customer bills.   The study evaluated AMU’s costs and customer bills in five scenarios (business-as-usual and four alternative scenarios).  Under the business as usual case the AMU would continue to procure the vast majority of its energy needs from conventional electric generation sources.  The second scenario examined the impact of AMU making significant investments in, and customers participating in, customer based energy efficiency programs.  The remaining scenarios combined the deep energy efficiency scenario with low, medium, and high levels of investment in local wind and solar generation.

The study found that AMU’s implementation of and customer adoption of deep energy efficiency programs may save utility customers $11.3 million over 15 years, costing AMU $4.4 million.  The study found that implementation and adoption of energy efficiency would be AMU’s lowest cost resource, costing 66% less than AMU’s conventional electric generation resources. The study further found that combining the deep energy efficiency programs with varying levels of public and private investment in local wind and solar resources may lower AMU’s costs and customer bills. This could ultimately meet up to 50% of AMU’s energy needs through energy efficiency and renewable energy.  

The report provides timely information to the AMU Board of Trustees and management as they evaluate responses to major changes taking place in the electricity industry, including reductions in carbon emissions being proposed by the U.S. Environmental Protection Agency.

The study was conducted by the Iowa Association of Municipal Utilities (IAMU) and utility consultant Tom Wind.  A summary of the study is available from Algona Municipal Utilities and on the IAMU website at www.iamu.org.

For additional information contact:

Iowa Association of Municipal Utilities
Curtis Dean
515-289-1999
cdean@iamu.org

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