[Press Release] : Board recommends Prairie State power to City Council

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PRESS RELEASE
March 31, 2006

Contact: Dan Dasho
Columbia Water and Light Director
or
Connie Kacprowicz
Communications Specialist
(573) 874-7325

Board recommends Prairie State power project to City Council
 						
	(COLUMBIA, MO) - The Water and Light Advisory Board has
forwarded a recommendation to the Columbia City Council to proceed with
a contract for a 50-megawatt (MW) portion of a new coal-fired power
plant in Illinois from the Peabody Prairie State project. The city of
Columbia has been researching how to meet the community's power needs
from 2008 to 2028. A consulting firm requested proposals and submitted a
report to the city. The Peabody Prairie State project met the screening
criteria for reliability, cost, environmental impact and the ability to
transmit the power to Columbia.
	The Peabody Prairie State project is in the final stages of
securing commitments from interested parties and needs a decision from
Columbia by the end of April 2006. If the Council decides to proceed
with the project at the April 17 meeting, the city of Columbia would
enter into a power purchase agreement for 50 (MW) through the Missouri
Joint Municipal Electric Utility Commission (MJMEUC). This agreement
would be for the life of the plant. It is similar to the arrangement
Columbia already has with the Sikeston plant, the Board of Public
Utilities and the Iatan II project. 
	The Peabody Prairie State power purchase agreement for 50 MW
would only be a portion of the electricity needed for future base load
requirements. Columbia Water and Light has an existing contract with
Ameren Energy Services that is ending in January of 2008. Additional
load growth in the city and the retirement of Columbia's existing coal
units means a shortfall of 96 MW of energy in 2011 and 208 MW by 2027. 
In addition to the power purchased from Peabody, Columbia will need to
either enter into a contract with Ameren Energy Services for power from
their Illinois plants or add generating units at the Columbia power
plant. The Water and Light Advisory Board has asked city staff to
conduct further negotiations and research on these options. Once more
detailed information is available, the Columbia City Council will make
the final decision on the source for the remaining balance of power
needed.
	Columbia Water and Light is continuing to work on conservation
and efficiency projects to lower Columbia's growing need for power.
Historically, long-standing conservation and demand management programs
have lowered electric supply costs for Columbia. The Power Supply
Options Study shows millions of dollars of savings associated with
lowering Columbia's electric usage and demand. Due to the cost savings
and environmental benefit of reducing electric consumption, Columbia
Water and Light will be building on programs already in place and
planning additional projects.
	For those interested in reviewing the Water and Light staff memo
to the City Council regarding participation in the Peabody Prairie State
project, please see the city's Web site, www.GoColumbiaMo.com. The
final Future Power Supply Options study from the consulting firm is also
available on the Web. For people without Internet access, printed copies
of the reports can be requested by calling Columbia Water and Light
Administration at 874-7325.


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