OPINION|
by Gary Gibson
As CEO of City Utilities (CU), I want to discuss with you an issue of critical importance to every Springfield resident: the future of our electric service.
Our commitment at CU has always been to provide reliable, affordable and sustainable electricity to our community. However, as the energy landscape evolves, we face significant challenges that require both immediate attention and long-term planning. It is important that our community understands these challenges so that we can work together toward a stable and sustainable energy future for Springfield.
One of the biggest challenges we face is the ever-increasing demand for electricity. Our lives are more connected to technology than ever before, from the smartphones in our pockets to the electric vehicles on our roads.
As Springfield grows, so does the demand for electricity. Meeting this demand is not as simple as producing more electricity; it requires a comprehensive approach that includes expanding our infrastructure, finding ways to reduce demand, and investing in new technologies. Without these efforts, we risk overloading our power grid, especially during peak periods.
Environmental regulations and the desire for more clean energy are other important factors shaping our energy future. Clean energy is essential to reducing emissions and protecting our environment, but it also presents a challenge for utilities like CU. We are proud to be a leader in renewable energy in Missouri. Currently, approximately 35% to 40% of our energy portfolio comes from clean sources like wind and solar.
While these renewable resources are important for meeting regulations and reducing our carbon footprint, they also bring challenges due to their intermittent availability. Solar and wind energy are not always available when demand is high, which can lead to issues balancing supply and demand. However, we believe a commitment to sustainability is non-negotiable, and we are firmly committed to meeting new expectations and regulations while maintaining reliable service.
There are other challenges facing utilities across the country. In recent years, extreme weather has become an increasingly common threat to power reliability. Events such as winter storms Uri, Elliott and Gerri put strain on our regional power grid, resulting in increased demand and, in some cases, power outages.
In response to these events, the Southwest Power Pool (SPP), our regional transmission organization, has implemented new requirements to ensure grid reliability. By 2026, CU must maintain a 36% Planning Reserve Margin (PRM) during the winter months, a significant increase from the current 15%. This means we must have 36% more generating capacity than is needed to supply Springfield’s electrical load to protect against unforeseen disruptions. Meeting this requirement will require significant investment, but is essential to ensuring Springfield remains resilient in the face of future weather extremes.
Another challenge we face is the aging infrastructure of our power generation fleet. Many of our power generation assets have been in use for decades, with some dating back to the 1970s and 1980s. While these assets have provided reliable power for many years, they are nearing the end of their operational life. Planning for their eventual retirement and replacement is a critical task that requires significant investment in new technology and infrastructure. We must address this challenge to ensure that Springfield’s power supply remains robust and reliable for years to come.
For our customers, these challenges mean that CU is working harder than ever to ensure the continued reliability and affordability of our electricity. To address these challenges head-on, we have established a Power Supply Taskforce dedicated to studying the issues and developing practical, innovative solutions. The Taskforce is comprised of City Utilities experts who will thoroughly analyze our community’s energy infrastructure issues and develop innovative solutions to meet our growing electricity needs while maintaining the highest standards of service.
Whether it is investing in new generation capacity, introducing voluntary programs to help customers reduce their demand or further integrating renewable energy into our portfolio, we are committed to maintaining the high standards of service our customers expect.
We will continue to keep our community informed and engaged. We face significant challenges, but with the support of our customers and community, we are confident we can provide reliable, affordable and sustainable energy to Springfield.
Gary Gibson is president and CEO of City Utilities in Springfield.
