Coal-fired plant argument heats up

The council was hearing first reading on a bill that would put a $615 million bond issue on the June 6 ballot to build a 300-megawatt plant at the Southwest Power Station.

Additionally, City Utilities requested an electric rate increase to take effect in October 2010, when the new plant is on line. The rate hike would raise the average residential monthly electric bill by $9.63, according to CU officials.

Fred Marty, chairman of the plans and policies committee for the Board of Public Utilities, said the increase is necessary and urgent.

“In 2004, when the CU board came to you seeking approval for a bond election to build Southwest 2, Springfield was growing at a rate of (more than) 2 percent annually,” Marty said. “That election was defeated, and two years later, the city’s growth has not diminished.”

CU Director of Pricing Ray Ross said that even with an increase of 15 percent to 18 percent in residential rates, local rates will remain competitive.

“In the last 15 years, CU customers have paid about 64 percent of the national average price of electricity,” Ross said. “The average price nationally has hovered around 7 cents per kilowatt-hour since the early ‘90s. With these rates in effect, CU customers will not average 7 cents per kilowatt-hour until 2015.”

He added that if CU were to buy electricity from another source to meet the need, the average residential bill would increase by $17.49 monthly.

Mark Cook, owner of Central States Industrial Equipment, said he favors the plan because of the need for reliable energy – a need he said will best be met through local ownership of energy sources.

But the comments were not all positive; 10 people spoke in opposition to the plan, citing increased pollution from coal, a lack of focus on conservation efforts and the large size of the plant and its costs.

Former Mayor Paul Redfern said a new 300-megawatt plant is not necessary.

“I felt that to build such a large coal-fired power plant will make it difficult for CU to adopt more environmentally benign sources of power that are just over the horizon,” he said. “I don’t want Springfield to be coming in through the front door while everyone else is leaving by the back door.”

The council is expected to vote March 20 on whether to send the issue to public vote.

Click here for the full story from March 13.