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New Coal Supply Contract Secures 4 Years of Fuel For Dallman 4

November 7, 2024

On Tuesday, in a 9-1 vote the Springfield City Council approved a new coal supply contract to serve Dallman 4. The contract with Foresight Coal Sales LLC is projected to save an estimated $30 million in fuel costs for CWLP customers over the four years by not staying with the current coal supplier Knight Hawk Coal, which owns the Viper Mine located in Elkhart, Illinois. This savings estimate includes estimated delivery costs to Unit 4 for 500,000 to 650,000 tons of coal per year. Fuel costs are part of the fuel adjustment line on CWLP customer bills.

Foresight’s coal price of $40 per ton from its Deer Run Mine in Hillsboro, Illinois delivered to the plant is estimated to be 36 cents lower per ton than the last contracted price delivered from the current supplier Knight Hawk. Knight Hawk issued a proposal to increase its price from $47.38 to $65 per ton.

The new contract will be for a four-year term and begins in 2025 and 2026 at $40.00 per ton, then in 2027 goes to $44.50 per ton and in 2028, $46.75 per ton.
Compared to CWLP’s current coal price, the Foresight contract will allow for an estimated monthly fuel cost savings of 12-16 cents per month on a residential electric bill based on average household energy usage. Staying with the current supplier Knight Hawk would result in an estimated fuel cost increase to CWLP customers that based on typical household usage for a residential bill would be around $6 to $8 more per month.

About Dallman 4
Dallman 4, a 200-MW pulverized coal power plant, is one of the cleanest coal-fired generating units in the nation. Employing a Foster Wheeler pulverized coal boiler, Dallman 4 has a maximum capacity of 210 MW.

Construction began on the plant in late 2006. The plant became operational on May 11, 2009, when—under power of natural gas—it produced 13 MW of electricity as the unit was synchronized to the grid. As testing continued, the plant began operating using coal on June 1 of that year. Systems-testing was completed on November 19, at which time the general contractor, handed over operating control of the plant to CWLP. In addition to being completed months ahead of its contract completion date, Dallman 4 came in under its projected $454.6 million budget, a feat virtually unheard of in the power industry.

KBV Springfield Power Partners served as general contractor for the construction project; Black & Veatch designed the plant, while Kiewit provided the construction; and Burns & McDonnell served as owner's engineer on behalf of CWLP.

Dallman 4 employs a number of environmental control technologies, including:
  • For NOx removal, low-NOx burners for the boiler; and a selective catalytic reduction (SCR) system
  • For removal of fine particulates, a fabric filter bag house to remove fine particulate
  • For removal of sulfur dioxide (SO2), a wet flue gas desulfurization unit (scrubber) uses limestone to trap SO2 in the flue gas before it can be emitted into the atmosphere, allowing CWLP to meet and exceed federal Clean Air Act requirements while continuing to use high-sulfur Illinois coal. The byproduct from this process, synthetic gypsum, can be used as a soil amendment.
  • For removal of acid mist and ultra-fine particulate from the flue gas, a wet electrostatic precipitator
This equipment assists CWLP in its goal of becoming one of the most environmentally friendly primarily coal-fired electric utilities in the nation. Air emission controls aren't the only way Dallman 4 complements the utility's efforts to protect and preserve the environment. By utilizing state-of-the-art cooling towers, CWLP is able to avoid discharging high-temperature cooling water from the plant into Lake Springfield.