Mary Hansen
The State Journal-Register
A proposed $1 billion natural gas power plant near Pawnee could mean $19.7 million in lost revenue for City Water, Light and Power over the next 20 years, a study commissioned by the city of Springfield and released this week shows. City officials say the findings could be used as a bargaining chip in negotiations over tax incentives with Houston-based EmberClear Corp., the company proposing the 1,100-megawatt plant.
The proposed plant could depress energy prices while congesting electricity transmission lines in the area, which drives up costs. That would lead to lower profits for the city-owned utility, CWLP’s chief utility engineer, Doug Brown, explained.
Springfield is one of a handful of entities that must sign off on tax breaks EmberClear says it needs to begin construction. The Sangamon County Board has already given its OK.
The proposed natural gas facility would be air-cooled, which uses less water than a water-cooled operation such as CWLP. Still, the proposed plant would use about 700,000 gallons a day at peak production, according to EmberClear. The city uses on average 22 million gallons per day, including an average of 3 million gallons daily for its coal-fired power plants.
City and Emberclear officials are in ongoing negotiations over a potential agreement. If one is reached, it could come before the Springfield City Council for a vote in August, Langfelder said.
Ward 7 Ald. Joe McMenamin said he’s glad the city released the study. Officials declined to release the draft version, but said Tuesday that since the study has been finalized, it could be released to the public.
“I don’t think we should subsidize a major competitor right next door,” said McMenamin, warning that entering into an agreement with another power producer could be risky.
Complicating the matter is that EmberClear also is considering locating in Taylorville. Kinnamon on Friday declined to say whether the company is still in talks with the city southeast of Springfield.
If true, McMenamin said Springfield’s negotiations with EmberClear could create a bidding war between the two cities, possibly resulting in a better deal for the company on construction and increasing the likelihood the power plant would be built.
“Our best result for the CWLP power plant is if it never gets built,” McMenamin said.
The company has estimated that construction of the plant would create 500 to 800 jobs, as well as 30 to 40 permanent jobs once it’s completed.
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Joe McMenamin for Ward 7 