Southwest 2 Project Faqs
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Future Power Supply for Springfield Frequently Asked Questions |
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| Why does City Utilities need to build a new power plant? | ||||||||||||||||||||||||||||||||||||
Our customers demand it.
Springfield is growing and so is the demand for energy. City Utilities must meet the growing electricity demands of its customers, which is steadily increasing at about 2.4 percent per year. City Utilities adds about 100 residential customers a month. Existing customers are using increasing amounts of energy as well. It is estimated that in either 2007 or 2008 City Utilities customer demand for electricity will exceed our required generation capacity.
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| It has been said there is more than enough power available. Why not buy electricity from other power plants? | ||||||||||||||||||||||||||||||||||||
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Local control means reliability and affordability for customers.
By owning its own power plant, City Utilities maintains energy independence for our community. City Utilities’ customers avoid being at the mercy of the unpredictable wholesale electric marketplace. In the past few years there has been a small surplus of power in the Midwest, mostly from expensive natural gas-powered plants. Due to the high fuel cost, power generated by these facilities is very expensive.
Bringing power from the market for Springfield will subject the community to volatile, high-priced energy from these units. The transmission grid is limited in capacity in our area, resulting in increased cost of delivery of electricity and increased risk of non-delivery. |
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| Why build a coal plant? | ||||||||||||||||||||||||||||||||||||
| Coal for generation fuel is low-cost, abundant and increasingly clean. Coal is a proven performer for City Utilities and has saved customers millions of dollars over the past 50 years. Our existing baseload (power required by the community 24 hours a day, 365 days a year) coal plants range in age from 30 to 50 years. Additional baseload power is needed to meet the growing needs of our customers. A coal-fired plant, utilizing low emission-producing Powder River Basin coal and state-of-the-art emissions control equipment, provides the lowest cost alternative for our customers. | ||||||||||||||||||||||||||||||||||||
| Are there alternatives to a new coal-fired power plant? | ||||||||||||||||||||||||||||||||||||
| Yes, but without exception, each alternative will cost the customers of City Utilities more money. Wind and solar power are not reliable enough for baseload energy needs. Conservation, although it can help ease demand in the long-term, will not meet the anticipated needs of the future for power supply. A nuclear power plant would cost millions more and permitting would be extremely difficult. IGCC, a coal-gasification process, has not yet been perfected and the commercial generation of energy from fuel cells is still in the development stage. Generation from natural gas is, as we all know, very expensive. | ||||||||||||||||||||||||||||||||||||
| Why not build a natural gas plant? | ||||||||||||||||||||||||||||||||||||
| Natural gas for generation is much more expensive. Abundant U.S. coal reserves are 30 times greater than natural gas reserves. The cost of coal has remained relatively flat over the past 10 years. Natural gas prices soared when bitterly cold weather, international political tensions, and other factors increased demand and diminished supplies. Industry experts predict tight supplies and price volatility of natural gas will continue. | ||||||||||||||||||||||||||||||||||||
| If nuclear energy is cheapest, why not build a nuclear plant? | ||||||||||||||||||||||||||||||||||||
| The cost to permit and construct a nuclear plant, plus ongoing operations and maintenance expense, is extremely high. Energy produced by a nuclear plant is the cheapest available, however, a nuclear plant is much more costly to build than coal- or natural gas-fired plants. No new nuclear power plants have been constructed in America during the last 20 years and permitting for one is extremely difficult. Nuclear units are very expensive to construct, historically costing three or four times what a coal plant would cost. | ||||||||||||||||||||||||||||||||||||
| Which plant is more expensive to build, coal or natural gas? | ||||||||||||||||||||||||||||||||||||
| A coal plant initially-but the investment ultimately saves you money. A coal-fired power plant is more expensive to build than a natural gas-fired plant, but coal plants have much lower fuel costs and, therefore, much lower operating costs. And, the use of coal reduces reliance on foreign fuel sources. | ||||||||||||||||||||||||||||||||||||
| What about "green" forms of energy like solar or wind power? | ||||||||||||||||||||||||||||||||||||
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Reliability and affordability will be compromised.
Green - or renewable - energy can play a role in our future power needs, but it is not reliable enough to generate the amount of economical electrical power customers need. City Utilities has constructed a 10 kW wind turbine and two 2 kW photovoltaic arrays to produce power and serve as an educational resource for the community. Historical data on these production methods are available at www.cityutilities.net. City Utilities also offers renewable, wind-generated electricity imported from a Kansas wind farm. WindCurrent is available to customers in blocks of 100 kilowatt-hours for a minimal cost.
City Utilities utilizes the methane gas collected at the City’s landfill to fuel a 3.2 megawatt (MW) power plant, the Noble Hill Landfill Renewable Energy Center. Keep in mind that the electrical peak load is increasing at a rate of 20 MW to 25 MW per year. It is clear that a larger baseload generating unit is necessary to satisfy that growth. As renewable technology improves, City Utilities will continue to be involved in various clean-energy projects, while monitoring the cost and reliability of those initiatives and including them in the electric generation mix as appropriate. |
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| How will the plant affect ground water resources? | ||||||||||||||||||||||||||||||||||||
| This new plant will have minimal impact on ground water resources. It will use treated municipal wastewater from the Southwest Wastewater Treatment Plant for its cooling needs, thus preserving valuable ground water. | ||||||||||||||||||||||||||||||||||||
| How will the new unit affect air quality in our area? | ||||||||||||||||||||||||||||||||||||
| Construction of Southwest 2 is part of City Utilities’ strategy to help improve local and regional air quality. Southwest 2 will be equipped with air pollution controls that reflect the state-of-the-art in emissions reduction. Advanced computer modeling has demonstrated that the low emissions from the new unit, by itself or in combination with other sources, will not harm air quality within a 200 kilometer (120 mile) radius. Moreover, these models did not even consider the impressive emissions reductions from other sources in the area, nor did it account for future planned reductions from other sources. Air quality will improve if overall emissions are decreased. | ||||||||||||||||||||||||||||||||||||
| What is City Utilities' environmental track record with respect to coal-fired power plants? | ||||||||||||||||||||||||||||||||||||
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Among the best.
According to the U.S. Environmental Protection Agency (EPA) 2001 Emissions Scorecard, both of City Utilities’
coal-fired power stations rank among the nation’s cleanest 25%. Emissions have decreased even further since that ranking was published. City Utilities operates well below the permissible limits established by state and federal laws. Even though the limits have decreased dramatically since 2000, City Utilities has been able to lower our plant emissions and meet the standards by a comfortable margin. City Utilities has taken an active role in the research and development of cost-effective technology to control and monitor power plant emissions. These efforts have provided a benefit for the entire utility industry. 
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| What is City Utilities doing to protect air quality in the Springfield area? | ||||||||||||||||||||||||||||||||||||
City Utilities has steadily decreased emission rates and total emissions over the past twenty-five years.
City Utilities has invested over $20 million since 1990 to reduce local air emissions. Further emission reductions are planned, beginning in 2009, to meet new EPA requirements.
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| Will Southwest Unit 2 include mercury controls? | ||||||||||||||||||||||||||||||||||||
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Yes. Southwest 2 will be among the first coal plants in the nation to include emission controls specifically designed to meet mercury limits.
On March 15, 2005, the EPA issued a set of mercury control requirements called the Clean Air Mercury Rule. The new rule requires new coal-fired power plants to meet a specified emission limit for this element. The air permit for Southwest 2, which was issued before the new rule was published, requires City Utilities to meet the new EPA requirements.
Moreover, the new rule also seeks to reduce mercury emissions nationwide by setting a cap on annual mercury emissions. The cap will require existing coal plants to reduce mercury emissions by 20% in 2010 and by 69% in 2018. Under the rule, emissions from new plants must also fit under the cap. Importantly, this means that overall mercury emissions will continue to decrease, not increase, nationwide. As is the case with SO2 and NOx, the construction of a new, much cleaner plant is part of the City Utilities plan to comply with these new capped emission limits. |
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| When will the new coal-fired power plant be built? | ||||||||||||||||||||||||||||||||||||
| From 2006-2010. A tentative timetable calls for construction to begin in 2006 with operations beginning in the summer of 2010. No rate adjustment to pay for the plant will begin until the plant is generating electricity in 2010. | ||||||||||||||||||||||||||||||||||||
| Why build another unit at the Southwest Station? | ||||||||||||||||||||||||||||||||||||
| Building locally at the existing station saves money. Significant cost savings can be obtained by building an additional generating unit at the Southwest Power Station. The site was designed for a total of three (3) units and much of the infrastructure in place can be shared by another unit. We can take advantage of existing equipment and infrastructure to help keep the overall cost of the project down. | ||||||||||||||||||||||||||||||||||||
| By building Southwest 2, will my electric bill increase? | ||||||||||||||||||||||||||||||||||||
Yes-but electricity prices are expected to increase with or without a new, local power plant.
Whatever option is chosen to meet future needs will require an increase in revenues. For example, in order to pay for the new coal plant it will be necessary to provide for repayment of the bonds issued to finance construction. That cost will be spread over thirty (30) years and electric rates will be increased to make the payments. The rate increase necessary to pay for the new unit will not begin until the plant begins generating electricity in 2010.
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| Is it true Springfield’s electricity price is among the lowest in Missouri? | ||||||||||||||||||||||||||||||||||||
| Yes. If you check similar communities locally, regionally or nationally, Springfield’s electricity prices continue to be among the lowest you will find. | ||||||||||||||||||||||||||||||||||||
| If a new coal-fired power plant is built, will City Utilities remain one of the lowest-cost electricity providers in Missouri? | ||||||||||||||||||||||||||||||||||||
| We believe so. Whether our rates rise more or less than other utilities will depend on the strategies of the other utilities in our region, state, and nation, as well as the energy strategy the Springfield community will support. All utility providers in Missouri, including investor-owned, rural electric cooperatives, and municipals, are facing similar challenges and higher costs. These include, depending on the specific community, growth in customers and demand for electricity and costs for new, more stringent environmental regulations. Also, aging plants like those at the James River Power Station will eventually have to be replaced with new and potentially more expensive power plants. | ||||||||||||||||||||||||||||||||||||
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