Independence superintendent cautions plan to boost energy supply could cost schools
Independence School District Superintendent Dale Herl has cautioned city leaders against using rolling blackouts from February’s energy crisis as leverage to pursue significant investments in its city-owned electric utility to produce more energy.
Herl said that would be expensive and could make the district’s already-high utility bills even higher.
The district is charged on average 30% more in electricity rates by the city-owned Independence Power & Light than other school districts in Missouri served by other utilities, he said.
“Based upon these numbers, our electric bill is approximately $1.1 million higher than it would be if the district was served by another electrical provider,” Herl said in an email last week to Independence Mayor Eileen Weir and the city council.
Herl acknowledged that an historic winter freeze in mid-February led to temporary power outages in Independence, including to some of the district’s schools, but added “to use this as leverage to move forward with additional electrical generation does not seem prudent.”
Herl’s email came the same day The Star reported that some members of the Independence City Council had advocated during a council meeting held in the midst of the rolling blackouts that IPL make a significant investment in natural gas-powered electric generation. The idea comes as many utilities are shifting their investments for generating electricity toward renewable sources, like wind and solar, instead of fossil fuels like natural gas and coal.
Council member Mike Huff, a former IPL employee, said the city utility needed to invest in a new “base load” electricity generating facility, which means it would generate a continuous supply of electricity to ratepayers.
Huff said he had identified a vendor from Finland that could furnish the city with new gas-powered combustion turbines that could both produce energy to meet peak demand as well as provide a regular, reliable stream of electricity. Huff said new gas generation would cost $180 million to produce 250 megawatts of energy, more than enough to meet Independence’s electricity demand.
Independence City Manager Zach Walker told The Star that Independence would have to issue new debt to pay for the project, which would mean raising rates to pay off the debt.
Herl said IPL already carries a significant debt obligation.
“While the city is considering replacing turbines to help with high demand events, this does not warrant building a new power plant thus putting the community into further debt and potentially raising electrical rates,” Herl wrote to the council.
Mike Steinmeyer, another Independence council member, said at the February council meeting that IPL could sell excess electricity to help pay for the costs of a new plant.
Experts contacted by The Star said selling excess energy with the expectation of lucrative returns was no sure thing, a position echoed by Herl.
“To do this with the hopes that IPL can sell excess energy to the Southwest Power Pool, of which there are no guarantees, is also not prudent,” Herl wrote.
He concluded his email by lauding IPL’s handling of the deep winter freeze.
“Please don’t let a one-time weather occurrence, which I feel was handled exceptionally well by IPL, lead to a decision that will have financial implications for 30+ years,” Herl wrote.
Herl, through a spokesperson, declined to discuss the issue further.
Huff and Steinmeyer did not immediately respond to a request for comment.
Weir replied to Herl’s email by noting that the city was exploring options for future electric generation.
“I will continue to work with our professional staff, the entire City Council, industry experts, and the ratepayer in considering future options,” Weir wrote.
“I’m very happy to hear that you plan on engaging rate payers as the ISD is the largest customer that IPL serves,” Herl replied. “This item is one the school district has a vested interest in and will monitor the decisions being made impacting our financial well being. “
