March 29, 2024

Electric transmission system is on its way

Council approves first reading of a 25-year franchise with ITC Midwest, LLC

One year after the city renewed its electric franchise agreement with Alliant Energy, staff proposed on Monday the city also enter into a nonexclusive, 25-year franchise agreement with an electric transmission provider and make changes to its ordinance to reflect that.

According to city documents, ITC Midwest, LLC — a wholly owned subsidiary of ITC Holdings Corporation, requested the city enact an ordinance allowing the company to “acquire, construct, erect, maintain and operate an electric transmission system” in Newton.

Transmission lines in the United States and Iowa “were designed to reliability deliver power to major electric load centers (cities) and to interconnect with neighboring utilities,” according to a 2008 presentation by the Iowa Utilities Board. ITC Midwest’s lines would connect and bring electricity to Newton.

If second and third readings are approved by the city council, electricity from ITC Midwest would transfer to Alliant Energy’s distribution network before being sold to the consumer. Per the 25-year agreement, the city has limited rights of cancellation added on the sixth, twelfth and eighteenth years.

Newton News previously reported that Alliant Energy is expected to replace the old, overhead structures and wires located in alleyways throughout downtown Newton with new facilities within the next five years. The replacement of these facilities is expected to finish by Dec. 31, 2024.

In other action Monday, the city council:

• Approved the designating of the name “Stan Clement Drive” for existing roadway in Newton. City documents said the 2500 to 2700 blocks of Lincoln Street — between Rusty Wallace Drive and Iowa Speedway Drive — will be named after the late Stan Clement, the former CEO and president of the Iowa Speedway who died on May 7.

• Approved an agreement for environmental insurance cost recovery work with Eisenstein Malanchuk LLP, of Washington, D.C. The company approached staff and said it “could possibly help the city recover environmental clean-up costs at the former manufactured gas plant site which may be covered by old insurance policies the city my have had.”

• Approved the Walnut Creek Subdivision in Jasper County. According to the council agenda, the city reviews county subdivisions located within two miles of the city limits line. Walnut Creek Subdivision, a two-lot subdivision, is located west of Newton’s city limits. As part of the agreement, permanent access easement for Lot 2 is to be established.

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com