08/08/2025
Algona Municipal Utilities has received a $2 million Grid Resilience Grant from the Iowa Economic Development Authority (IEDA) for an Electric Grid Resiliency Project.
The total project cost is estimated at $3.4 million, with $2 million provided by the U.S. Department of Energy through the IEDA, and AMU covering the remaining $1.4 million.
According to AMU General Manager John Bilsten, converting to an underground electric distribution system has significantly reduced outage rates, making AMU one of the most reliable electric utilities in the country.
Recent Department of Energy data supports this claim: the national average for the System Average Interruption Duration Index (SAIDI) in 2023 was 376.90 minutes, while AMU achieved a SAIDI of just 28.3 minutes.
The project will:
• Convert overhead electric lines to underground
• Increase the capacity of two distribution feeders
• Automate the system with smart switches providing remote operation and two-way communication
• Install SCADA-capable, motor-operated switches and self-healing technology
• Replace pole-mount transformers with new pad-mount transformers
To address flood risks, pad-mount switches and transformers will be installed above a floodplain, and all underground cables will be waterproof and encased in conduit. New infrastructure will also be relocated away from flood-prone areas.
Rod Vitzthum, AMU Electric Distribution Manager, stated, “This grant enables us to proceed with essential infrastructure enhancements aimed at bolstering reliability and resiliency, while effectively utilizing federal funds to mitigate costs for AMU consumer owners.”
The engineering phase of the project will begin shortly, followed by the start of material procurement. Construction is scheduled to commence in early 2026 and is expected to be completed by spring 2028, subject to material availability.
The IEDA will administer the grant as part of the Iowa Grid Resilience Fund, which aims to strengthen and modernize the power grid against severe weather and other hazards.
AMU will also collaborate with the North Iowa Area Council of Governments (NIACOG) to administer the grant on its behalf.
