Opinion: Reliable power is an economic driver

Gary Gibson

When we think of the key drivers of economic growth, factors like housing availability, public safety, employment rates and labor costs often come to mind. However, one crucial element that underpins all these aspects is often overlooked: reliable power. Without a dependable electricity supply, businesses cannot operate efficiently, new developments cannot be sustained and economic growth stalls. Reliable power is essential for economic development and at City Utilities, our goal has always been to ensure that every business, from small startups to major industries, has the energy resources it needs to grow and succeed. However, the energy landscape is rapidly evolving, presenting both challenges and opportunities that we must navigate together to secure Springfield’s economic future.

One of the key challenges we face is the increasing demand for electricity across the nation and here in Springfield. The growing population and increased reliance on technology are driving this demand, which is expected to continue to rise in the coming years. To support this growth, CU is focusing on expanding our generation capacity, adopting programs to help reduce peak demand and exploring innovative energy solutions.

In addition to rising demand, we are also navigating an increasingly complex regulatory environment and the growing demand for more renewable energy. New environmental regulations aimed at reducing emissions are essential for sustainability but also require significant changes in how we generate and deliver power. CU is already a leader in renewable energy, with approximately 35% to 40% of our energy portfolio coming from clean sources like wind and solar. While clean energy is a key component of our strategy for reducing emissions and fostering sustainability, integrating these sources into our grid presents challenges due to their intermittent nature. To address this and to prepare for more environmental regulations, we are exploring many options including energy storage solutions that will allow us to balance supply and demand more effectively. These investments not only support our environmental goals but also ensure that businesses can count on a reliable power supply, even as we transition to cleaner energy sources.

Another challenge is the impact of extreme weather events. Recent storms like winter storms Uri, Elliott and Gerri have highlighted the vulnerability of our power grid during severe weather. In response to these events, the Southwest Power Pool has increased the Planning Reserve Margin requirement for utilities, including CU, to 36% during the winter months by 2026. This means that CU must maintain 36% more generation capacity than what is needed to serve Springfield’s electric load to ensure reliability during extreme conditions. Meeting this requirement is crucial for preventing power outages that could disrupt business operations and economic activity. A critical aspect of supporting Springfield’s economic development is planning for the renewal and modernization of our aging power generation infrastructure. Many of CU’s generation assets have been in service for decades and are approaching the end of their operational lives. Replacing these assets with newer, more efficient technologies is essential for maintaining the reliability of our power supply and supporting future economic growth. These investments are not only necessary for meeting today’s energy demands but also for ensuring that Springfield remains an attractive location for businesses in the years to come.

For Springfield’s business community, these efforts mean that CU is more committed than ever to providing reliable, affordable and sustainable electricity that supports economic growth. The challenges we face are significant, but by making strategic investments and planning for the future, we are confident that we can continue to provide the high-quality service that businesses in Springfield depend on.

As we move forward, CU will continue to engage with the business community to ensure that our energy solutions align with your needs and support the economic prosperity of our city. Together, we can build a resilient energy future that powers Springfield’s continued growth and success.

Gary Gibson is president and CEO of City Utilities of Springfield. He can be reached at gary.gibson@cityutilities.net.