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Energy Efficiency Pays Big Again1996 During this past year, Waverly Light and Power distributed 110 million kilowatt-hours of electricity. We are frequently asked where the electricity comes from and how it's produced. In Waverly, we receive our electricity from a variety of sources. This variety enables our customers to enjoy the benefits of stable, low cost energy and also allows us to do our part to help the environment. Last year, 42% of our electricity came from our ownership in a coal plant, the Louisa Generation Station. Contractual purchases accounted for another 56% of our energy while the remaining 2% was generated locally from wind, hydro, and diesel generators. In the early 1990's, WLP became the first municipal utility in the Midwest to own and operate wind generation. The goal was to determine the feasibility of wind generation and provide experience in operating the system. The turbine has exceeded engineering estimates in production and has proven to be reliable. Our findings show producing electricity from wind will be a viable long term option for utilities in the Midwest. 
The Board of Trustees voted to
install two additional 750 kW turbines in NW Iowa. Customer surveys reveal strong support for wind technology and other environmentally friendly power sources. With this positive customer support, the utility set out to find others to jointly locate wind turbines to improve the economies of scale. In April of 1996, a wind farm feasibility study was completed. It showed the best solution would be to construct a wind farm in northwest Iowa. In northwest Iowa "the Saudi Arabia of wind energy" the turbines will operate more productively and produce less expensive power than in Waverly. With the help of various grants and the Department of Energy's Renewable Energy Production Incentive (REPI), the wind farm is expected to produce electricity at a very reasonable long term cost. | Benefits to the City of Waverly: | | | Cash transfers | $ 312,249 | | Taxes on Louisa Gen. Station | $ 31,028 | | Streetlighting service | $ 126,479 | | Interest free loan savings | $ 8,576 | | Benefits to other areas of the community: | | | Waverly Municipal Hospital | $ 5,000 | | Community services performed | $ 5,782 | | Bremer County taxes | $ 11,421 | | WSR School District taxes | $ 29,353 | | Waverly Economic Development Co. | $ 30,000 | | MidCom, Inc. | $ 19,327 | | Total benefits to the community | $ 579,215 |
WLP's net income serves four major purposes: transfers to the City of Waverly, capital improvements, repayment of bonds, saving for the future and emergencies.
| | 1995 | 1996 | change | | Operating Revenues | $ 7,054,283 | $ 7,036,201 | .26% | | Operating Expenses | 5,585,042 | 5,609,972 | -.45% | | Operating Income | $ 1,469,241 | $ 1,426,229 | 2.93% | | Non-Operating Income | 47,134 | -6,909 | | | Net Income | $ 1,516,375 | $ 1,419,320 | 6.40% |
1996 Highlights During 1996, our primary goal was improving system reliability and providing value for our customers, the City of Waverly, and the community as a whole. The following major accomplishments were made while pursuing these goals: Implemented a rate decrease for commercial and industrial customers. Computerized mapping of distribution system. Upgraded electricity distribution on Highway 3 East, southwest Waverly, Fairgrounds, the south load center, the east plant, rural farms lines, Cuna Mutual, and subdivisions for Emerald Oaks and Centennial Oaks. A commercial/industrial customer meeting was held to cover issues such as system improvements, power outages, power quality, energy savings, and what the future holds for the industries. Received an exemption from the Iowa Utilities Board for energy efficiency filings due to excellence in prior program findings. Sponsored an "Energy Savings Techniques in Home Construction" seminar featuring Doug Rye. Negotiations continued to secure wholesale power (our single largest expense) at a lower cost. Financials remained very stable with net income increasing over 1995 Energy efficiency programs continued with 90% of new homes being built to comply with Good Cents standards. Support of Waverly Trees Forever continued. The WSR science club sold over 650 trees in 1996 with help from this support. Overhauled engine # 8 with existing crew. Continued to explore options to improve service.
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