Integrated Resource Plan

Public Information & Involvement Resources

Background

City Water, Light & Power is the supplier of electricity for residents and businesses of Springfield, Illinois. CWLP's Electric Division facilities include the Stevenson Drive generation complex, which consists of the Dallman 31, 32, 33 and the Unit 4 coal-fired power stations. Other generating facilities include two oil-fired gas peaking turbines, a dual fuel natural gas and oil-fired combustion turbine and a 250 kW solar farm. CWLP’s electric resources with transmission and distribution facilities encompass an 80-square-mile service territory.

As a municipal, nonprofit utility, CWLP’s mission is not to create a profit or maximize revenues. CWLP exists to provide its customers, who are its owners, long term value in terms of affordable rates, energy reliability and environmental stewardship. CWLP fulfills that mission by striving to employ a diversified energy approach, which allows flexibility and ensures electricity remains reliable and affordable into the future.

In 2018 the City of Springfield began a process for an Integrated Resource Plan (IRP), which would identify the best resource options for CWLP to provide reliable and reasonably priced electrical power to meet the community’s future energy needs. Evaluating CWLP’s current generation was needed due to customer load decreasing, lower cost options in the market and a number of upcoming significant capital expenditures for environmental compliance and major maintenance needs associated with coal-fired generation.

IRP Objective

The Energy Authority (TEA) has conducted the IRP by compiling and analyzing economic data of CWLP’s existing electric resources along with the economic data of other options such as wind, solar, natural gas combustion turbine, power purchases from the market, demand side management and energy storage. This IRP is viewed as a guide for future resource decisions as the utility seeks to provide its customers value and savings from a diversified, and reliable low-risk energy portfolio.

IRP Public Process

Public Utilities Committee Meeting June 11, 2018

At the June 11th, 2018, City of Springfield Public Utilities Committee meeting a presentation was given on the Integrated Resource Plan (IRP) to the Springfield City Council and the public. Following the presentation time was given for public comment. A formal public comment period was held for written submissions on the IRP inputs and scenarios, which continued to June 28, 2018.

Public Utilities Committee Meeting September 17, 2018

At the September 17, 2018, City of Springfield Public Utilities Committee meeting a presentation was given providing an overview of public comments received on the Integrated Resource Plan (IRP) to the Springfield City Council and the public. Following the presentation time was given for public comment.

Springfield City Council Meeting, December 18, 2018

At the December 18th, 2018 Springfield City Council Meeting The Energy Authority (TEA) presented an update of its process, scope and status of work for the IRP.

Public Utilities Committee Meeting, May 6, 2019

At the May 6th 2019 City of Springfield Public Utilities Committee meeting the results of the IRP were presented to the Springfield City Council. The Energy Authority (TEA) conducted the IRP by compiling and analyzing economic data of CWLP’s existing electric resources along with the economic data of other options such as wind, solar, natural gas combustion turbine, power purchases from the market, demand side management and energy storage. Their presentation showed the results of a number of energy portfolios scenarios, including plant retirements and various generation mixes. A public comment period was opened to go to June 3rd and an Open House was announced for May 20.

IRP Open House, May 20, 2019

An open house for the public to learn more about the results was held on Monday, May 20th at Lincoln Public Library.

May 20, 2019 Open House Q&A Handout

Citizens Club Public Policy Forum, June 28, 2019

On June 28th, City Water, Light and Power presented information on the Integrated Resource Plan, including background on the need, process and overview of results to the Citizens Club of Springfield at its Public Policy event at the Hoogland Center.

Public Utilities Committee Meeting, December 11th, 2019

At the December 11th, 2019 City of Springfield Public Utilities Committee meeting CWLP provided an update on the IRP. A review of the IRP purpose and results, summary of public comments received and additional findings to date were given in the utility presentation. In addition, ScottMadden Inc. provided information to date on its work related to the planning process and considerations for power plant retirements.

Public Forum Dallman 33, January 29, 2020

CWLP gave a presentation on Generation Unit Retirements focusing on Dallman 33 with a review of financial and environmental considerations at a public forum held on January 29, 2020.

CWLP Generation Profile

Location	Fuel Type	Capacity	Year Built
Dallman 31 (Retired 12/31/2020)	Coal	61 MW	1968
Dallman 32 (Retired 12/31/2020)	Coal	61 MW	1972
Dallman 33 (Suspended 2021, Retired March 2024)	Coal	172 MW	1978
Unit 4	Coal	207 MW	2009
Reynolds	Fuel Oil	14 MW	1970
Factory	Fuel Oil	17 MW	1973
Interstate	Fuel Oil & Natural Gas	110 MW	1997

Financial Considerations: Dallman 31, 32 & 33

Operating Costs + Low Market Prices =Dallman 31, 32, & 33 Not Economic vs. Market

31/32 – Approx $10-12M/year loss vs Market*
33 – Approx $13-16M/year loss vs Market*
Lost Savings to CWLP and our customers
Some Costs Shift
As units retire, shared costs are redistributed to remaining units

Reliability, Risk & Other Financial Considerations

Aside from avoiding environmental compliance costs and other major capital expenses for repairs and major maintenance, if Dallman Units 31, 32 & 33 retired, consider:

CWLP customer load is covered with Unit 4 and combustion turbines almost 100% of the time
Transmission upgrades will improve ability to import power when additional capacity needed
CWLP Energy & Capacity Revenue keeps decreasing
Energy Prices need to double in order to make Dallman 31, 32 and 33 viable
Capacity Prices need to triple in order to make Dallman 31, 32 and 33 viable
Units are running 30% less and revenues are $2M less than expected through October FY20
Lowest Cost is the market
CWLP will seek Energy & Capacity Purchases that take advantage of lower cost power thus avoiding market risk.
Demolition of Dallman Units 31, 32 and 33 is a sunk cost ($7.5M-$10M) and not recommended since complex is still used for offices and inventory space