Time to move on Taylorville plant
EDITORIAL STAFF, DECATUR HERALD-REVIEW

February 13, 2008 – Central Illinois has another shot at a "clean coal" plant, if the Illinois House can move soon on legislation.

Tenaska Inc. has proposed a $2.5 billion coal-fueled power plant a mile northeast of Taylorville. The company in the last several months has secured an option to buy the land for the plant, completed its pre-engineering work and obtained a state air permit.

But the plant can't proceed unless there is a change in legislation that was approved as part of electricity deregulation in 1997.

That legislation prohibits utility companies from entering into long-term contracts with power suppliers, such as the Taylorville plant.

The problem is this. The only way to achieve financing for a huge project such as the Taylorville plant is to have long-term contracts.

The time has come to get this legislation approved, especially with the apparent demise of the FutureGen project in Mattoon.

Bart Ford, Tenaska's vice president of business development, said the company has gone about as far as it can. "We're to the point where we need the legislation."

The Taylorville plant is important for a variety of reasons.

First, it would create an ongoing use for Illinois coal, which would create jobs throughout the state. The fact that the plant has technology that will eliminate many of the environmental problems associated with Illinois coal is significant.

In addition, the plant could eventually either lower electrical rates or at least slow down the increases.

Electrical rates are figured on peak periods of usage, when expensive power generating plants have to be used to create electricity. The plant would increase the amount of power available, thus reducing the demand for the expensive peak demand power plants. An economic consultant hired by Tenaska estimates that the plant would reduce the market price of power in Illinois by $190 million each year of the first eight years it operates.

Legislation allowing the sale of long-term contracts was approved last year by the Illinois Senate on a 48-0 vote. The legislation hit a snag in the House, when Illinois Attorney General Lisa Madigan's office raised concerns about the plant.

In recent weeks, however, Tenaska, legislators and the attorney general have been meeting to work on compromises that would allow the plant to move forward.

That's encouraging, and we urge all parties to move forward quickly. A coal-fired plant in Taylorville would be good for the economy, the coal industry and electrical consumers.

Tenaska officials have been incredibly patient with the political process. Now is the time to approve the necessary legislation and move this project forward.

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