Thorough research, proactive planning lead to SW2
In 2002, Burns & McDonnell conducted an evaluation of the best solution for future power needs and included consideration of various technologies, various locations, partnering on a project(s), and purchasing of power from others.
The technologies considered for power generation (by Burns & McDonnell, and separately by City Utilities) have included:
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- Natural Gas-fired Units
- Coal-fired Units
- IGCC Units
- Hydro Power
- Nuclear
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- Wind Power
- Solar Power
- Biomass
(Poultry litter, landfill gas)
- Hydrogen (Fuel cell)
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For a self-build option, natural gas or coal fueled plants were considered, sized from 250 MW to 500 MW. Approximately 35 locations were considered as possible sites for both natural gas and coal-fired options.
Transmission system constraints were considered in all cases.
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In 2003, an unsolicited proposal was received from Tenaska/Empire for a joint build plant. Black & Veatch was hired to evaluate the proposal.
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In August 2004, voters narrowly rejected the revenue bond proposal to finance construction of the SW2 project.
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In early 2005, a "Request for Information" (RFI) was issued to interested parties seeking input regarding potential future energy supplies. About 40 RFIs were sent out and 17 responses were received and considered. These ranged from purchase power agreements, ownership in present or future natural gas fueled generating stations, and future coal-fired generating stations.
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In February 2005, the Power Supply Community Task Force was appointed and assigned the task to "study power supply issues and recommend a solution and potential alternatives that provide reliable, cost-effective, and environmentally sensitive electricity that will be supported by the community." During the five-month evaluation period that the Task Force conducted its study, some 20 energy experts were invited to discuss various options or technologies. Some of those power supply topics included:
- Conservation and Efficiency
- Coal
- Nuclear
- Integrated Gasification Combined Cycle (IGCC)
- Natural Gas
- Fuel Cells, Hydrogen
- Wind, Solar and Renewables
- Purchased Power
- Transmission System
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The Task Force recommendations to the Board of Public Utilities were:
- Construct, locally, a coal-fired power plant
- Develop an aggressive community conservation program
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In April 2005, Black & Veatch prepared for City Utilities the "Regional Transmission Analysis Report" which evaluated potential transmission risks and costs from various locations in the midwest. The analysis determined that significant costs would be encountered to upgrade transmission infrastructure in order to import a reliable supply of energy to Springfield. Additionally, Black & Veatch opined that the use of the transmission systems to deliver remote generation to City Utilities would involve the increased risk of non-delivery.
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In August 2005, a "Request for Proposal" (RFP) was issued and advertised for long term baseload power supplies for City Utilities. RFPs were sent to 31 companies, and seven companies responded with eight different proposals. Black & Veatch was retained to evaluate these proposals and to compare the most viable proposal with SW2.
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The eight proposals included:
- 1 - Wind Energy Purchase Power Agreement (PPA)
- 1 - System Energy PPA
- 2 - Natural Gas Combined Cycle - Ownership
- 1 - Coal-fired PPA
- 3 - Coal-fired - Ownership
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The most viable of these, the coal-fired ownership proposal from Tenaska/GRDA was evaluated with the SW2 project. Black & Veatch recommended constructing SW2.
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An industry review of various baseload power supply projects currently being planned, under development, or under construction, identified over one hundred (100) coal-fired projects in the United States. These projects vary in size from 64 MW to about 1500 MW, with published capacities totaling over 50,000 MW. No new nuclear units are currently planned, although there is much discussion that may lead to new nuclear capacity in the future. Natural gas units are being constructed, in very limited numbers, to meet very specific needs where coal may not be feasible. Ultimately, coal generation has currently been determined to be the most economic generation option available in the United States.
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Based on all of the information, the conclusion reached by City Utilities’ staff, by the staff of Burns & McDonnell Engineering Company, by the Power Supply Community Task Force, and by the staff of Black & Veatch Engineering, was the same:
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| Build the coal-fired SW2 Project - |
the lowest cost and best solution for Springfield’s growing energy needs. |
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On June 6, 2006, Springfield voters agreed by a 59% to 41% margin, authorizing the utility to issue bonds to finance construction of the project.
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