CU consultant backs Southwest Two

Black & Veatch Corp., commissioned by CU to sort through analyses from eight Midwest power choices, issued its conclusion Thursday afternoon at a special meeting of the Board of Public Utilities.

The firm concluded in the report that building the Southwest Two power plant “is the least cost(ly) option in the greatest number of scenarios” and “is the most economic baseload alternative for the CU.”

The firm determined that CU's second least costly option was partnering with Nebraska-based Tenaska Energy Inc. to build a coal-fired plant in Oklahoma, said CU Marketing Director Mark Viguet. Southwest Two would be built in Springfield at a cost of about $350 million, plus financing.

The decision was based on the amount of each proposal's electricity generation in relation to its cost, as well as risks associated with each choice, Viguet said.

“In the scenarios that you can project out into the future for Springfield, the local energy project would be the lowest cost option and the most reliable solution,” he said.

CU and Black & Veatch began sorting through power generation proposals in late 2004, and, in December, CU narrowed its choices to two: construct its own coal-fired plant, Southwest Two, or partner with Tenaska to build the Oklahoma plant.

The firm's final package will be refined, and a formal recommendation to the board is expected to be made Feb. 8, according to a CU news release. The board could make a decision Feb. 23, and voters would have the final say in June.