CU begins Southwest 2 work after voters' nod

Voters approved the plan yesterday by a 59 percent to 41 percent margin. Voters narrowly rejected a similar proposal – 51.8 percent to 48.2 percent – in August 2004.

During a June 7 news conference at the southwest facility, CU General Manager John Twitty spelled out what happens next for the new coal-fired power plant.

Big plans

First on the schedule: finalizing designs for construction. That work, Twitty said, began “in earnest” today.

The utility will begin sending out for several bids for construction of different parts of the $697 million facility in the next few weeks. Twitty said that initial construction work would begin before the end of the calendar year, with major construction starting next year.

As many as 1,000 workers could be building during peak construction periods; the plant should be complete by October 2010, when an already-approved rate increase will take effect.

Beginning construction this year is crucial, Twitty added.

The plant’s air permit from the Missouri Department of Natural Resources requires that the utility commence construction before Dec. 15.

He said the permit is being appealed in Greene County Circuit Court by Missouri Sierra Club; a hearing on that case is scheduled for July 5.

“The permit is valid until Dec. 15, and in order to exercise our options under the permit, we must commence construction by that date,” Twitty said.

“We intend to do that so we preserve this permit, while following whatever appeal process is in place. We are proceeding today with a valid permit, and meetings with various construction parties have already commenced.”

When completed, Twitty said the new plant will employ about 25 additional workers.

Other projects

While the utility celebrates its victory at the polls, it also is planning how to use the money from a separate 3 percent rate increase that will take effect this October.

The increase – $2.07 per month for the average residential customer, according to CU – is slated to pay the debt service for environmental upgrades at the existing facilities, as well as a $1 million incremental increase for new conservation programs.

“The question will be which programs we get running the quickest,” Twitty said. “Those decisions are not made yet, but by fall you can expect to see some of those programs being announced.”[[In-content Ad]]