City Water, Light & Power (CWLP), the municipal utilities agency of the City of Springfield, Ill., determined that coal-fired generation was its best alternative for providing long-term reliable and economic electricity to the city’s residents. For negotiating an unprecedented agreement with the Sierra Club that allowed the project to move forward, for choosing the latest in coal-fired technology and air quality control systems as the foundation for the city’s comprehensive energy policy, and for assembling a tightly integrated team that completed the project well before the contractual deadline and under budget, CWLP’s Dallman 4 is awarded POWER magazine’s 2009 Plant of the Year award.
Balancing the need for new electricity generation with aggressive environmental goals frequently results in a high price tag, regardless of which way the scale tips. The price is often short-term pain for long-term gain. Municipal utilities are especially shy of going into debt, which is why much constructive criticism was hurled at City Water, Light, & Power (CWLP) — officially the Office of Public Utilities, City of Springfield — when it announced plans to build Dallman 4 (Figure 1). Many disapproved of the Illinois municipality spending half a billion dollars for a new power plant. But Dallman 4, a 200-MW pulverized coal steam power plant, is a bargain that will pay back Springfield’s residents many times over in the coming years — perfectly balancing the city’s environment goals with reliable and economic electricity supplies.
1. First among equals. City Water, Light & Power of the City of Springfield is completing commissioning of its new 200-MW Dallman Unit 4. The new plant fires Illinois coal and promises to provide a reliable and economic source of electricity for many years to come. Courtesy: CWLP. Photo by Terry Farmer Photography
Unlike some municipal utilities, which routinely draw the ire of ratepayers for high rates and mediocre service, Springfield’s muni is proudly referred to as the "jewel of the city." The construction of Dallman 4 writes another chapter in a success story, with CWLP as the hero for securing the state capital’s power supply while improving the region’s environment and keeping electricity rates low.
Springfield’s mayor recognized that Dallman 4 was going to be a good investment that will keep rates low and system reliability high when he said, "I certainly think [Dallman 4] has raised the expectation for power plants across the United States, and it’s great to have one of the nation’s best practices in coal-fired power plants here in Springfield." It’s unique to find a mayor willing to heap such high praise on an electric utility, but the praise is well-deserved.
The $515 million project is the most expensive project ever built by Springfield. What’s more, it was completed with minimal cost increases — an impressive feat, especially in today’s construction market. The plant also is entering commercial service approximately six months ahead of schedule (Table 1) and under budget, saving Springfield even more valuable cash just when other cities are looking for ways to increase revenues. CWLP’s general manager, Todd Renfrow, noted that the community is "very proud to soon be the owner of one of the cleanest and most advanced coal-fired power plants in the nation. The execution of the project with little cost overrun and being so far ahead of schedule has raised the bar in power plant design and construction."
Table 1. Actual project schedule. Source: CWLP
Doug Brown, CWLP’s major projects development director and the Dallman Unit 4 project manager, explained that the project’s primary goals included environmental protection and energy efficiency: "A major part of this goal is to protect our ratepayers from the highly volatile market-based rates." Brown mentioned that a secondary goal of the project is "to enhance the knowledge, experience, and reputations for excellence of all the parties involved in the project."
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