CIPCOCentral Iowa
Power Cooperative
Iowa Industrial Energy GroupApril 9, 2013
CIPCO At A Glance
Founded: 1946
Locations: Cedar Rapids, Creston, Des Moines, Montpelier and Wilton
Employees: 129
Members: 13 rural electric cooperatives and associations
Territory: Stretches 300 miles diagonally across Iowa serving 58 of Iowa's 99 counties
CIPCO At A Glance
Energy Sales: 2.8 million MWh
Operating Revenue: $187 million
Net Margin: $23.9 million
Total Assets: $659 million
Peak Demand: 610 MW (2012)
Transmission Lines: 1,869 miles
How Iowa Utilities Differ
Investor-Owned Utility (IOU)
Electric Cooperative (REC)
Municipal Utility(Muni)
Number of Electric Utilities in Iowa 2 45 136
Ownership Public Corporation Membership Local Government
Tax Status For-profit Not-for-profit Not-for-profit
Governed By Board of Directors Local Board of Directors City Council or Board
Percent of Customers Served in Iowa 72% 14% 14%
Average Number of Customers per Mile of Line 27 3 55
Percent of Residential Customers 85% 88% 83%
Percent of Commercial & Industrial Customers 15% 12% 17%
IUB Regulatory Authority Rates, Service Service, Rates (optional) Service
CIPCO Member Systems• Member-owned, not-for-profit governed by board of directors
• 13 rural electric cooperatives and associations
• Serve 320,000 residents and 12,000 commercial/industrial accounts
• Service territory adjoins 12 of Iowa’s 17 largest cities
• 449 distribution employees
• Smallest member = 2,832 consumers – Largest member = 25,606
• Density: 2.3 members per mile line – 11.7 members per mile line
CIPCO Member Systems Service Areas
Wholesale Power Supply(2013 Annual Estimate)
Owned & Co-owned Power PlantsDAEC NuclearWalter Scott #3
CoalWalter Scott #4
CoalLouisa CoalFair Station CoalSummit Lake/Peaking Gas/Diesel
Contract PurchasesWAPA Hydroelectric (13 MW)Hancock County Wind Farm (2 MW)Story County Wind Farm (42 MW)Elk Wind Farm (41 MW)Hawkeye Wind Farm (36 MW)Rippey Wind Farm (50 MW)Pioneer Grove Wind Farm (6 MW)
DAEC30%
Walter Scott #3
19%Walter Scott
#4 17%
Louisa7%
Fair Station4%
Wind/Hydro 23%
8
Transmission SystemMiles of Transmission Line = 1,869
Transmission Substations = 29
Transmission Technology
Balanced & Diverse Portfolio
• More than 95% generated in Iowa• Over 50% carbon-free and emissions-free• Limited market exposure with over 95% from
owned units and long-term contracts• Growth in energy efficiency and renewable
resources
Ownership and resource diversity lead to price stability
Power Supply Fuel Mix
Wind, Etc.
Hydro
Nuclear
N-Gas
Coal1%
48%
26%4%
70%
CIPCOCommitments
7-State Region
51%
Emissions- & Carbon-Free
2013 2010Years
Business Partnerships
CIPCO Subsidiaries:
• Iowa Area Development Group
• Capital Management Associates (CMA)
• CMA Ventures
• Myriad Developers
Business Partnerships
CIPCO Business Partners
• Electric utility industry
• Iowa Association of Business & Industry
• Coalition of Comm. Bankers & Comm. Colleges
• Active in communities we serve
Major Industry Challenges
Aging Infrastructure:
• Generation assets
• Transmission grid
• Workforce challenges– Shortage– Skills gap
Major Industry Challenges
Changing regulatory climate:
• Short-term cycles vs. long-term business model
• Planning vs. reacting
• Regulatory progression– Environmental– Financial– Health care
Major Industry Challenges
Evolving energy markets:
• Transition to market models vs. monopoly
• FERC, MISO, NERC oversight
• Absence of national energy policy
CIPCO’s Strategic Goals
• Asset ownership• Diversity of generation resources• Stewardship of our system• Financial strength and flexibility• Facilitate a platform of growth• Leverage with our business partners
Thank you!