City Utilities of Springfield, Mo., has been authorized by its Board of Public Utilities to move forward with an intent to finance capital expenditures for the construction of power generation and battery storage projects.
Projects include 150 megawatts of additional electric generation and 36 MW of battery storage to ensure reliable and sustainable long-term power resources.
Initial funding for these projects is available through operating capital funds with reimbursement provided through various financing alternatives. The total amount of these projects is not to exceed $280 million.
The gas turbine project is estimated to cost $210 million and the battery project $75 million. CU is also eligible for cost share provisions through the Inflation Reduction Act, which will reduce the overall cost of the battery project.
The projects consist of three 50 MW gas turbines to be installed at McCartney Generating Station and 36 MW of battery storage to be installed within City Utilities system. Once online, the gas turbines will be CU’s most efficient generators and will run on natural gas with a fuel oil backup for emergency events. The estimated in-service date is February of 2027.
The batteries are based on domestically sourced zinc technology. They are non-flammable and fully recyclable. The batteries are expected to be put in service by October 2026.
Increasing electric demand, aging power generation units, and extreme weather events have led to increases in the amount of CU’s required power generation capacity, known as a Planning Reserve Margin (PRM), the public power utility noted.
By 2026, CU will be required to maintain a PRM of 36% during winter months, a significant increase from the current 15%. This means CU must have 36% more power generation capacity than what is required to serve Springfield’s electric load to safeguard against unforeseen disruptions.
City Utilities is governed by an 11-member Board of Public Utilities appointed by the Springfield City Council to serve three-year terms.
