Statehouse dawdling delays Taylorville plant
EDITORIAL STAFF, DECATUR HERALD-REVIEW

July 15, 2007 – The Illinois General Assembly's battle over the budget and the long special session has been well documented.

But the political game-playing in Springfield also is holding up an important project that could mean a big boost to the Central Illinois economy.

Tenaska Inc., an energy company based in Omaha, Neb., has proposed building a new electricity generating plant that will use Illinois coal. The plant, called Taylorville Energy Center, will use clean coal technology to convert the coal into power. The investment in the area's economy will be $1.1 billion during construction and will generate $336 million annually once it's in service. The plant construction alone is expected to result in 2,500 jobs.

It's necessary, however, for the General Assembly to pass a piece of legislation to make the plant viable. Currently, utilities are not allowed to enter into long-term energy agreements. To obtain financing for a $1 billion project, however, Tanesca needs to be able to enter into multi-year contracts to supply power to utility companies.

The legislation that's being proposed - House Bill 1834 - would allow up to three facilities similar to the Taylorville Energy Center to be built and obtain long-term power contracts.

Of course, this is not the best of years for utility bills in the state capital. Legislators are still smarting from electric rate increases that occurred in January. Many members of the General Assembly believe, with some justification, that they were misled by Ameren and ComEd.

But the Taylorville project - in addition to providing jobs and a use for Illinois coal - will also help keep utility prices at a reasonable level. Power is purchased on a supply and demand basis, and the Taylorville plant would add significantly to the supply. Adding the plant would mean that utilities would have fewer "peak loads," and that would ultimately keep electric rates from rising at alarming rates. Unfortunately, the Taylorville Energy Center project has been lumped in with other utility bills aimed at solving the rate issue.

The plant, which would be the first of its kind, could put Illinois back in the forefront of the coal mining industry. The state has ample supplies of coal, but much of it cannot be used under current clean air restrictions because of high concentrations of sulfur and other contaminants. The Taylorville plant, however, would clean that coal in an economical way. If the plant would prove successful, it's feasible that the demand for Illinois coal would grow, further boosting the state's economy.

The state needs to address the Taylorville plant issue during this session. The plant will take nearly five years to build once it's approved, and Tenaska officials say they are eager to begin.

Several legislators have supported the legislation, and Gov. Rod Blagojevich also has been supportive.

The General Assembly needs to address the short-term problem of the electric rate increase. But there is also a need to consider the long-term positive benefits of this project, both on the regional economy and on the state's economy as a whole.

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