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University of Iowa News Release

April 10, 2003

UI, MidAmerican Energy Reach Electric Power Agreement

The University of Iowa and MidAmerican Energy have signed an agreement that will help meet the university's electricity needs through 2008.

Doug True, UI vice president for finance and university services, says that a major benefit will be price stability for purchased electricity through the term of the agreement. Currently, the university cogenerates 30 percent of its electric power needs in a combined heat and power plant and purchases the remainder. Under the new agreement, the university annually will purchase 200 million kilowatt hours of electricity, enough to supply 20,000 average residential customers for a year.

Reliable services, delivered at an economical price, are top priorities for the university utility system, True says. The system supplies steam, electric power, potable water, chilled water for air conditioning, and sewer services to the entire central campus, including University of Iowa Hospitals and Clinics (with a 772-bed hospital), residence halls housing about 5,700 students, and computers and other equipment supporting the UI's research activities.

True says that the purchased power agreement is based on a strong partnership the University of Iowa and MidAmerican Energy have developed in recent years, and, in addition to the university benefiting from price stability, MidAmerican benefits from gaining access to accredited steam turbine generating capacity the university owns and operates.

"The contract is structured such that the university is encouraged to manage its energy resources effectively," says Ferman Milster, UI Facilities Services Group associate director of utilities who directs UI power plant operations. "For example, the central plant operators monitor real-time prices for various electric power options that may be available. University operators then make decisions about whether to produce or purchase power based on the most economical mode of operation. Such decisions are based on fuel availability, time of day, and season of the year."

STORY SOURCE: University of Iowa News Services, 300 Plaza Centre One, Suite 371, Iowa City, Iowa 52242-2500.

CONTACTS: Media: Gary Galluzzo, University of Iowa News Services 319-384-0012, Ferman Milster, UI Facilities Services Group associate director of utilities, 319-335-5132,