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This more than $2 billion project is estimated to inject nearly $100
million annually into the Illinois economy, create approximately
2,500 jobs at peak construction and 450 skilled, permanent Illinois
jobs. The Prairie State Energy Campus is the largest private capital
project ever planned for southern Illinois. It represents a major
victory for the Illinois coal industry and continues to usher in a
new era of clean-coal technology that will reduce U.S. reliance on
imported energy. "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," Blagojevich said. "This is going to take advantage of
one of our greatest natural resources in an environmentally
responsible way, reduce our dependence on foreign oil, and put
thousands and thousands of people to work."
The Prairie State Energy Campus could be supported by significant
state financing, which would help obtain lower interest rates. The
Illinois Finance Authority currently has available up to $2.7
billion in bonds for Illinois coal and energy projects. 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. These
financing tools were critical to attracting Peabody Energy to
Illinois because of the significant financial savings they may
provide for the company. Additionally, it could be eligible for
grants from the Illinois Department of Commerce and Economic
Opportunity's Office of Coal Development.
"This decision affirms that Prairie State is designed with-next
generation technology and will achieve state and federal standards
to protect the environment," said Rick Bowen, Peabody president of
generation and Btu conversion. "It's a major milestone for the
project and great news for the vast majority of southern Illinois
residents who support Prairie State and want to see us break
ground."
The planned 1,500-megawatt 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 up to 1.5 million 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.
The governor and state officials have worked closely with the
Prairie State initiative to bring the project along. The Illinois
Environmental Protection Agency issued the air permit for the
project in June 2005.
"U.S. EPA's decision confirms that the permit we issued to
Prairie State meets stringent air-quality standards and will ensure
that the environment is protected and that clean-coal plants have a
place in our nation's energy mix," said Doug Scott, director of the
Illinois EPA.
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 "This project is a great example of state government and the
private sector working together to create economic as well as
environmental progress," said Jill Rendleman, interim executive
director of the Illinois Finance Authority. "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."
A study prepared by Southern Illinois University Carbondale
reveals that Peabody Energy's planned Prairie State Energy Campus
would inject about $2.8 billion into the Illinois economy in new
spending, job creation and induced economic activity over three
decades of operation. Prairie State's emissions will be dramatically
better than the U.S. coal plant average, the Illinois coal plant
average and even proposed emission limits well into the future.
"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," said Jack Lavin, director of the
Department of Commerce and Economic Opportunity. "By providing this
support for the Prairie State Energy Campus, Governor Blagojevich is
investing in a new future for Illinois coal and giving it the
optimal chance to realize its full economic potential."
The Prairie State Interest Group currently owns 47 percent of the
project and an equal amount of output and includes a consortium of
Midwest utilities, including the Indiana Municipal Power Agency,
Kentucky Municipal Power Agency, Missouri Joint Municipal Electric
Utility Commission, Northern Illinois Municipal Power Agency,
Soyland Power Cooperative Inc. in Illinois and Wolverine Power
Supply Cooperative Inc. in Michigan.
The definitive ruling by the EPA's Environmental Appeal Board on
the appeal of the air permit issued by the Illinois EPA paves the
way for project participants to move forward quickly to finalize
development and construction plans.
Peabody Energy (NYSE: BTU) is the world's largest private-sector
coal company, with 2005 sales of 240 million tons of coal and $4.6
billion in revenues. Its coal products fuel approximately 10 percent
of all U.S. electricity generation and 3 percent of worldwide
electricity.
[News release]
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