Taylorville coal plant action urged
Developers impatient for legislative approval
BY MIKE RIOPELL, DECATUR HERALD-REVIEW

November 28, 2007 – SPRINGFIELD - In an attempt to jump-start plans that have stalled for months, developers of a proposed Central Illinois power plant tried Tuesday to detail causes of the delays. The Taylorville Energy Center’s developer, Tenaska, wants to build a $2.5 billion, 630-megawatt plant that uses coal gasification technology that burns more cleanly than typical coal plants.

The company has secured contracts to use water from the plant and is in the middle of securing an air permit from the federal Environmental Protection Agency.

But Tenaska officials say they need state lawmakers to approve new rules to let them enter into long-term contracts with utility companies to assure the plant would be financially viable.

Officials met with reporters Tuesday to push the legislation, touting the jobs the plant would create and possible stabilizing effects it would have on the market price of electricity.

They say they need at least 12-year contracts before they can get financing to build the plant. Now, they can only get three-year deals.

"You can’t pay for a $2.5 billion plant on a three-year contract, I’m sorry." said Bill Braudt, general manager of business development for Tenaska.

Legislation was approved by the Senate earlier this year, but hasn’t been called for a vote in the House.

Braudt said House Speaker Michael Madigan’s office wants Tenaska to get support from Attorney General Lisa Madigan’s office before a vote is allowed.

But Braudt says he’s had a tough time getting a meeting in the attorney general’s office and singled out Senior Assistant Attorney General Susan Hedman as someone who opposes the project.

A spokeswoman for the office declined to address Hedman specifically and refuted some of Tenaska’s claims.

"We support clean coal projects, but as advocates for consumers, we need to be sure that the funding mechanism for the project doesn’t unfairly shift all of the costs onto consumers," spokeswoman Robyn Ziegler said. "We’ve had productive conversations with Tenaska and plan to keep those discussions going."

A spokesman for House Speaker Michael Madigan said that issues with the attorney general’s office likely would have to be settled before there would be a vote.

"We’re not inclined, generally speaking, to pass legislation that a constitutional officer has a problem with," spokesman Steve Brown said.

Earlier this year, Tenaska officials had said that if things didn’t work out in Illinois, they’d use money for the Taylorville project to build a similar plant in a different state.

But Tenaska could be motivated to stick around because the company already has invested millions into the Illinois project and is close to finalizing an EPA permit for the Taylorville site.

Braudt said the company is negotiating with three states and has bought property in one of them. He wouldn’t say at what point the company would head elsewhere, saying only that it could be "soon."


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