T.E.C. would electrify economy
BY CATHY ROBERTSON, BREEZE-COURIER WRITER

MAY 16, 2007 – SPRINGFIELD, ILL. - A study released this morning on the economic impact of the proposed Taylorville Energy Center concluded that the 630 megawatt power generation facility would be a financial boon to the region on multiple fronts.

John Lewis, Ph.D., an economist at Northern Illinois University and lead author of the study, presented his three-fold findings at a press conference at the Illinois State Capitol.

Lewis stated the first wave of economic impact would come during the construction phase which would create 1500 full- and part-time jobs over the four-year building period. These skilled laborers would earn an average of $55,000 each, he said, a figure that doubles the current median salary of county residents.

The effect those workers would have on the area's economy would create an additional 800 jobs in local industries like manufacturing, healthcare, retail and professional services.

The resulting payroll would be about $334 million.

Once the plant is functional, on-going operations would create a separate influence on the local economy, adding more than 600 jobs, both at the plant and throughout the county. Lewis estimates the annual economic activity will be $355.9 million. The figure includes annual employee compensation of $24.3 million, which currently represents 20 percent of the total wages in Christian County.

The study was commissioned by Tenaska, Inc., an independent power producer based in Nebraska. Tenaska and MDL Holding Co., LLC (formerly The ERORA Group LLC) are the project developers.

Lewis also examined the impact the facility would have on the state's coal industry.

The Taylorville Energy Center would use more than 1.5 million tons of coal from Illinois mines each year, creating more than 400 new jobs, related directly or indirectly to mining, with a total compensation of $20.1 million.

"I see a huge rebound in our industry," said Phillip Gonet, president of the Illinois Coal Association (ICA). Gonet stated that in 1990, Illinois mines produced 62 million tons of coal. Within the next dozen years, after the Clean Air Act went into effect, the amount was cut in half.

Illinois has 100 billion minable tons of coal underground, but its high sulfur content made it less marketable than coal mined in the western states. Gonet said methods for removing the sulfur have been perfected, but added that the technology that will be employed at the Taylorville Energy Center is even better.

TEC would be the first clean-coal power plant in Illinois, according to a press release from Tenaska.

Using integrated gasification combined cycle technology, coal is converted into synthetic gas and broken down prior to combustion, allowing pollutants to be separated and removed before the gas is burned.

"This is the most unique project we've ever developed," said Bill Braudt Jr., General Manager of Business Development for Tenaska.

An unusual collection of organizations has come out in support of the venture. In addition to the ICA, environmental groups, trades and labor unions, and the Citizens Utility Board have all given verbal backing.

One looming hurtle is the passage of House Bill 1834 that would allow for utility contracts to be longer than the current three years.

Braudt initially thought the needed legislation would easily pass as a stand-alone bill, but that hasn't been the case in a session where soaring utility costs, rate freezes, and gross receipt taxes have taken a front seat.

Rep. Gary Hannig (D-98, Litchfield) and Sen. Deanna Demuzio (D-49, Carlinville) stated they have both worked diligently and will continue to do so to get the bill to the governor before the current session ends.

If the legislation passes, Tenaska will immediately begin to put financing together, a task Braudt says will take about six months. Construction could begin late this year or in early 2008.

"Coal was once the life-blood of the City of Taylorville," Mayor Frank Mathon told those gathered. "This project presents the opportunity for Taylorville to again prosper and thrive along with all the surrounding communities."


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