Governor Blagojevich celebrates beginning of construction for the
Prairie State Energy campus
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[OCT. 26, 2006]
LIVELY GROVE – Governor Rod R.
Blagojevich celebrated the beginning of construction today for the
Prairie State Energy Campus, a 1,500-plus megawatt generating plant
and coal mine that will provide clean, low-cost electricity using
state-of-the-art technologies. This more than $2 billion project is
estimated to inject nearly $100 million annually into the Illinois
economy, create approximately 1,700 jobs at peak construction and
more than 450 skilled, permanent Illinois jobs. The Prairie State
Energy Campus is the largest private capital project ever planned
for Southern Illinois.
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“For coal to be king again in Southern Illinois it has to be clean,
and that is what the Prairie State Energy Campus is all about. We
are very excited to be celebrating the progress of this project
because this is going to take advantage of one of our greatest
natural resources in an environmentally responsible way, reduce our
dependence on foreign oil, put thousands and thousands of people to
work and provide affordable energy to consumers in Illinois and
throughout the region,” Gov. Blagojevich said.
A significant portion of Prairie State will be marketed to
wholesale electric suppliers via the nation’s electricity grid,
providing additional competition to hold future power costs in
check. To facilitate power transmission, Gov. Blagojevich announced
today a $422,500 grant from the Illinois Department of Commerce and
Economic Opportunity's (DCEO) Coal Competitiveness program for a
share of the capital costs associated with connecting to the power
grid at the nearby Baldwin Substation. The substation upgrades are
a part of a $68.5 million interconnect project for Prairie State.
The Governor previously invested $422,500 for Phase 1 of the
interconnect work.
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“Prairie State will bring tremendous benefits to Illinois families
by providing clean electricity through key participants, including
the Soyland Cooperative in Jacksonville and the Northern Illinois
Municipal Agency, representing the cities of Geneva, Batavia and
Rochelle,” Prairie State President Colin Kelly said. “Prairie State
has earned strong local and bipartisan support thanks to its ability
to generate low-cost electricity, protect the environment and create
economic opportunities through hundreds of permanent jobs and
hundreds of millions in direct economic contributions.”
The Prairie State Energy Campus could also be supported by
significant state financing, which would help it obtain lower
interest rates. The Illinois Finance Authority (IFA) currently has
available up to $2.7 billion in bonds for Illinois coal and energy
projects. Gov. Blagojevich also signed landmark coal legislation
that permits up to $300 million of this bonding authority to help
launch many different clean coal development projects such as
Prairie State. Additionally, it could be eligible for additional
grants from DCEO’s Office of Coal Development.
Furthermore, Prairie State will receive state and local tax
exemptions and other abatements since it is located in the
Nashville-Washington County Enterprise Zone. The developers have
negotiated short-term property tax abatement agreements with taxing
bodies in the area of the plant site.
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The Prairie State partners have the ability to purchase 53 percent
of the project equity and output. In addition to the Soyland
Cooperative and Northern Illinois Municipal Agency, project partners
include the Missouri Joint Municipal Electric Utility Commission;
Indiana Municipal Power Agency; Kentucky Municipal Power Agency; and
Wolverine Power Supply Cooperative, Inc. in Michigan.
The major mine-mouth electric generation facility in Washington
County will be fueled by more than 6 million tons of coal produced
each year from an adjacent underground mine. The campus is designed
to provide electricity for more than 1.5 million Midwest families.
The 450 jobs created by the project will pay wages that are
estimated to be more than 40 percent higher than the state average.
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"This group has a commitment to bring clean and affordable energy to
their consumers, and that's what Prairie State does,” Prairie State
President Colin Kelly said.
The development of the project has achieved a number of significant
milestones with the signing of Michigan-based CMS Energy as
operating partner. CMS and Peabody Energy will each own 15 percent
of Prairie State indirectly through a joint venture. Additionally,
Prairie State signed a letter of intent with Maryland-based Bechtel
Power Corporation to perform engineering and procurement services.
The Governor and state officials have worked closely with the
Prairie State initiative to bring the project to its current
development phase. The Illinois Environmental Protection Agency (IEPA)
issued the air permit for the project in April 2005. The United
States Environmental Protection Agency recently upheld IEPA’s
technical and legal bases to issue a permit to construct a new
coal-fueled energy plant, thus reaffirming that Prairie State is
designed with next generation technology and will achieve state and
federal standards to protect the environment.
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“The permit application has undergone a rigorous review process by
the IEPA, meeting stringent air-quality standards, and I am
confident that this facility will operate cleaner and more
efficiently than existing plants,” said Illinois EPA Director Doug
Scott. “This modern facility is a major step forward and is proof
that companies can be environmentally responsible by operating clean
coal power plants, while providing economic benefits to the
community in which they are built.”
A study prepared by Southern Illinois University Carbondale (SIUC)
reveals that the planned Prairie State Energy Campus would inject
nearly $100 million annually into the region in new spending, job
creation and induced economic activity each year. Emissions would
be one-fifth the average of existing U.S. coal plants.
“New technology is allowing coal to become a dynamic natural
resource with the capacity to act as a tremendous source of job
creation and economic growth. By providing this support for the
Prairie State Energy Campus, Gov. Blagojevich is investing in a new
future for Illinois coal and giving it the optimal chance to realize
its full economic potential,” DCEO Director Jack Lavin said.
“This project is a great example of state government and the private
sector working together to create economic as well as environmental
progress,” Illinois Finance Authority Interim Executive Director
Jill Rendleman said. “Prairie State Energy Campus is the front
runner among an exciting group of clean coal technology projects
that can be supported with Clean Coal Development financing. The
Illinois Finance Authority is committed to helping Peabody Energy
and its partners become one of the first to receive the significant
benefit that these coal bonds can provide, with the level of support
that is required to ensure success of the project.”
[News release] |