Skip Navigation Links

What's Next In Planning For CWLP's Energy Future?

December 23, 2024

Doug Brown, Chief Utility Engineer


CWLP’s mission, is that our utility provides reliable and affordable services to Springfield with a sustainable mix of diverse resources. This includes our existing reliable baseload coal and natural gas generation, while increasing the use of renewable sources as we transition to cleaner energy sources by 2045.

As we presented in our last update to the City Council in September, a 4.7 GW shortfall of energy is projected in the regional grid operator, MISO’s, territory in 2028 if current expected generator retirements occur despite the planned addition of 12 GW of new resources. Energy regulators, NERC and FERC, continue to point out that rapid retirement of existing baseload generation with an increased reliance on renewable energy sources, particularly wind and solar, while beneficial to sustainability goals, presents challenges to grid reliability.

To address these reliability and resource challenges, CWLP is working closely with MISO and other regional partners to enhance our local generation capacity and be prepared in the event of energy shortfalls. We are also focusing on energy efficiency initiatives and demand-response programs with pursuit of advanced electric smart metering infrastructure, AMI meters, that will allow us to better manage peak load periods.

Additionally, we are soon bringing another renewable energy investment for City Council consideration for 25 MW of solar, to further diversify CWLP’s power mix, while also meeting our obligations to provide reliable service to our community. We also continue to explore battery storage resources.

How Will CWLP Plan For the Future?
Integrated Resource Plans (IRPs) are utilized as planning tools for utilities to select the best energy sources given the market conditions, rules and regulations, and new technologies that are available. Small utilities like CWLP with generation in a single market and limited generation resources, don’t benefit from a specific schedule in repeating an IRP for a utility our size. An IRP should be conducted when decisions need to be made to replace or add large amounts of generation due to market conditions, regulations or compliance costs, or with changes in demand for electricity. Large investor-owned utilities, often operating across multiple states, have a regular timeframe for conducting IRPs because of the complexity with the volume of generation plants that they own with varying retirement considerations and dates or varying power purchase agreement end dates and other factors.

CWLP’s last IRP included a broad look at energy resource options. The inputs for 9 different generation portfolio scenarios were analyzed for viability and risk, and showed the projected cost of each among: Coal Plant Retirements versus retaining existing generation; new Natural Gas Combustion Turbines; Solar (owned and purchased power agreements); Energy Storage; Demand Side Management (Peak, Base); and Energy & Capacity Market Purchases.

Importantly, this plan was developed through a transparent and rigorous public input process, involving extensive community engagement and City Council discussions. CWLP has actively followed recommendations from the IRP, including:
• Retiring Dallman 31, 32 and 33
• Keeping Dallman Unit 4
• Upgrading transmission import capabilities
• Entering into Power Purchase Agreements (PPAs), adding wind power capacity
• Pursuing Renewable Energy-Power Purchase Agreements (PPAs), developer-partner projects and issuing two requests for proposals (RFPs) for utility scale solar

While our last IRP recommended adding just 2 MW of solar, CWLP issued a Request For Proposals (RFP) for all renewable resources in 2020 seeking up to100 MW of solar as the right size for our load (energy use) profile and better than buying from the market. However, we lost this project as we faced delays and a number of challenges, including supply chain disruptions and solar tariffs. This fall, and as I presented to the City Council in September, CWLP issued another RFP for utility scale solar and/or battery storage, seeking 25-100 MW to diversify our generation capacity and hedge against future market price volatility. From that RFP, we plan to present a 25 MW solar proposal to the Springfield City Council for consideration in early 2025. If this purchase is approved, in a few more months, we would consider issuing another RFP in the near future for additional solar to further build out our renewable energy portfolio.

In CWLP’s upcoming FY26 Budget, we plan to include funding to start a new IRP process given the changes with environmental regulations including the USEPA Greenhouse Gas rule, which may or may not impact Dallman 4 and our other gas generators, and to plan for the future with regard to reliability, affordability, and sustainability of CWLP's electric resources.

Factors For Completing Another IRP:
• Reliability of the Regional Grid: As more baseload generators retire in MISO and in neighboring grid PJM, the need for secure, reliable resources increases.
• Cost Control: Given the escalating prices in the MISO and PJM Capacity Market, it is vital to secure affordable capacity and shield from higher prices.
• Future Demand: We must plan for the anticipated growth in energy demand driven by electrification, data center needs and economic growth.
• Technology: Improvements in battery technology adds a new resource to consider
• Regulatory Compliance: Plan for regulations, including the USEPA's proposed Greenhouse Gas rule
• Local Grid Resilience: Ensuring that Springfield’s local grid retains blackstart capability to power our City and shield from MISO reliability risks.
• Sustainability: Seek diversity in energy resource options and plan for and support a transition to cleaner sources.

I believe the next IRP should again function as an independent process to gain updated expert analysis of energy options to help identify what type and mix of generation will be best to serve our city for the next 20 years given current conditions, and to do that reliably and at a reasonable cost. An IRP is a process to undertake in order to achieve a true and valid market analysis to deliver clear and concise options for reliable and affordable energy resources to serve the needs of our entire community. As a recent survey of CWLP customers has shown, our customers are most concerned about affordability and reliability, which shall be the top priority of the IRP process.

The goal is to ensure that the IRP helps our City Leaders to make decisions to reflect the best interests of CWLP customers while providing a reliable, affordable, and sustainable energy future for all of Springfield.