YOUR BUSINESS AUTHORITY
Springfield, MO
City Utilities of Springfield this morning broke ground on a gas turbine expansion project brought on by electric demand.
The $230 million project would add three natural gas turbines at the CU-owned McCartney Generating Station near Strafford, according to a news release. The project that would expand locally generated power by 150 megawatts is slated for completion in 2027.
“Today is about more than breaking ground. It’s about building a stronger community,” said Dwayne Fulk, CU president and CEO, in the release. "The new turbines will strengthen our ability to provide reliable, locally generated power now and for the future."
The Board of Public Utilities, which governs CU, in September 2024 authorized power supply projects comprising the new gas turbines and the addition of 36 MW of battery storage within the CU system. Officials with CU have cited required increases, as dictated by the Southwest Power Pool, in its planning reserve margin brought about by increasing electric demand, aging power generation units and extreme weather events. CU will be required to maintain a PRM of 36% during winter months, up from 15%.
Jamie Presley, CU manager of communications, said via email this morning that the $230 million price tag for the McCartney turbine project is up from a previous estimate of $210 million. She cited "cost pressures due to tariffs and significant demand for added generation across the United States."
The battery initiative is estimated to cost $75 million as previously projected, Presley said.
Springfield City Council has approved two electric rate adjustments – a 3% increase to take effect in April 2027 and 3.6% hike in April 2028 – to support the projects, according to the release. Additionally, the Board of Public Utilities in January approved a lease-purchase financing arrangement for the expansions, according to past reporting.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
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The tariffs, which are totally unnecessary and a tax burden on all of us, have added nearly 10 percent to the cost of this project. Every one of these additional tax-burden tariffs is inflationary. Also, CU residential customers who live outside the city limits should ask why they pay up to 10 percent more for their utility services than their in-town counterparts.