City Beat: Springfield Building Development Services may add staff

by Eric Olson

SBJ Reporter

eolson@sbj.net

At Springfield City Council's March 30 luncheon, council members were briefed on City Utilities' plans for a new generating unit at the Southwest Power Station to meet electric needs expected to exceed current capacity by 2008. CU and its Board of Public Utilities is asking City Council to place a $515-million bond issue on the Aug. 3 ballot to finance the new generating unit. Citizen approval of the bond issue and plant construction would bring about a 16 percent electric rate hike phased in over four years.

CU's decision to build its own electric power supply comes after lengthy studies and research, including a near partnership with Empire District Electric Co. of Joplin and Omaha-Neb.-based Tenaska Inc., a power-plant developer. Empire District ended talks in December. During research, CU officials learned the biggest obstacles were rate increases and environmental worries with a coal-fired plant.

In light of those concerns, CU General Manager John Twitty and board member Geoffrey Butler told council members during a Power Point presentation titled, "Securing Springfield's Energy Future," the proposal for CU's own 275-megawatt power plant is the best option available.

"We're all confident this is the way we need to go," Butler said, adding that alternative sources have returned disappointing results.

CU operates solar panels and a wind turbine to test the availability of such power locally.

"You can't push a button and have the wind blow 25 miles per hour or have the sun shine," Twitty said.

Twitty also said the volatile natural gas market makes a gas-fired plant less economically sensible.

The proposed project, called Southwest Power Plant II, would cost $578.5 million, including construction and financing. The proposed $515 million in 30-year, tax-exempt revenue bonds would net $502 million, Twitty said.

Several council members stressed the importance of public education in this campaign. "Sometimes people make the wrong decisions because they don't have the right tools," Councilman Denny Whayne said. "It's important that we control our own destiny."

CU already has held four public forums in March, including tours of the Southwest Power Station. Nearly 200 people attended, according to CU officials.

"We're going to do our darnedest to make sure the public understands the issue," Twitty said. "We feel confident leaving it in their hands."

Twitty also addressed current electric rates, which he said are below the monthly average bills in Missouri and nationwide. CU customers pay $49.24 on average per month. Twitty added that prior to October's 3 percent electric rate hike, 1991 was the last time CU electric rates rose.

"Nobody likes a 16 percent increase, but we have the room to do it," Twitty told council members.

City Council is scheduled to consider the bill April 12, with a possible vote April 26. Should council approve the plans, the public would vote on the $515 million bond issue Aug. 3.