Prairie State Coal Plant Tracker

BATAVIA, IL — “The Prairie State coal-fired generation plant in which the city invested came online last year. The city is required to purchase a certain amount of electricity from it, but does not currently need all of that. The city is paying more for the electricity than it could otherwise buy it on the market, and it is losing money when it sells the excess power, according to a February memo from public works director Gary Holm.

Fifth Ward Alderman Eldon Frydendall and 4th Ward Alderman Jim Volk stood by their votes in the early 2000s to invest in Prairie State. “Prairie State is a long-term investment for us,” Volk said; it guaranteed stable rates for 30 years.

…His challenger, Steve Vasilion, had said a few minutes earlier that the city should ‘try to find a way to get out of this mess,’ including supporting investigations by the Securities and Exchange Commission and Ohio Congressman Dennis Kucinich in to the project.”

— Susan Sarkauskas, Daily Herald

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BATAVIA, IL – “The city of Batavia is halting the proposed sale of a portion of the power the city receives as part of the Prairie State Energy Campus.

Batavia Public Works Director Gary Holm told aldermen at Tuesday’s Batavia City Council meeting that the bids the city received from private firms ‘were not favorable.’ No public entities had expressed interest in purchasing the power, he said.

Holm said the city is “terminating” the proposed sale for the time being. The city had considered selling off some of its power because it doesn’t need as much power as expected because of the economic slowdown.

The Northern Illinois Municipal Power Agency had been working with Batavia on the proposed sale. Batavia and Geneva belong to NIMPA, which is an energy consortium that is part-owner of the downstate Prairie State project.

In 2007, when Batavia approved buying power from the plant, it was projected that Batavia’s electrical system would experience significant growth. In early 2011, the city retained Pace Global Energy Services to re-examine its overall energy portfolio strategy. Pace recommended the city explore diversification.

Batavia’s share in the Prairie State campus is 55 megawatts. The city looked to sell up to 50 megawatts of power in five-megawatt blocks.

Last August, the Institute for Energy Economics and Financial Analysis issued a report criticizing the Prairie State Energy Campus with charging more for power than promised. Geneva and St. Charles also are invested in the project.”

— Eric Schelkopf, Kane County Chronicle

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Holm had said the report had nothing to do with the city’s decision.

CARLYLE, IL — “Considerable time was also devoted to the discussion of coal ash disposal from the Prairie States generating plant which is located near Marissa. KWA board member Jennifer Malacarne of Addieville noted that the state requires no permit for coal ash disposal so long as the disposal site is on the power plant’s own property.

Kathy Andria of the American Bottoms Conservancy said that the coal company had a strip mine they could have used for the coal ash disposal and that they negotiated with the Washington County board in secret, violating the Open Meeting Act, after telling people there would be no coal ash disposal in Washington County.

The power plant and neighboring coal mine, which is located across the road, was originally started by Peabody Energy; but Peabody only retains 5 percent ownership while the remaining owners are municipalities located in nine states. Among them are Kirkwood, Hannibal and Columbia, Mo., all of whom purchased power from Prairie State.”

— Judith Joy, Sentinel

link to article (pdf)

BATAVIA, IL – “The city of Batavia is seeking to sell a portion of the power the city receives as part of the Prairie State Energy Campus because it doesn’t need as much power as expected as a result of the economic slowdown.

The Northern Illinois Municipal Power Agency on Thursday announced the sale. Batavia and Geneva belong to NIMPA, which is an energy consortium that is part-owner of the downstate Prairie State project.

In 2007, when Batavia approved buying power from the plant, it was projected that Batavia’s electrical system would experience significant growth.”

— Eric Schelkopf, Kane County Chronicle

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CHICAGO, IL — “For NIMPA, that means Batavia picks up nearly 46 percent of the tab, Geneva 29 percent and Rochelle 25 percent. NIMPA borrowed $533 million to buy in; bond repayments began in January and last until 2041. The plant is expected to generate 1,600 megawatts of electricity, and NIMPA is obligated to take or pay for 120 megawatts — whether it needs them or not.

The power agencies are also part-owners of the coal mine that will supply the plant and of the ashfill that will store coal waste. The mine has a 30-year permit, but the report says that due to environmental regulations, the owners might only get coal out of it for 23 years.

Geneva raised its electrical rates last year to accommodate the increased costs, said Buffington, who is also Geneva’s electrical superintendent.”

— Susan Sarkauskas, Chicago Daily Herald

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KANE COUNTY, IL — “Kady McFadden, organizing representative for Sierra Club’s Beyond Coal Campaign and a 2006 St. Charles North High School graduate, also was critical of the Prairie State project.

‘They promised cheap, long-term power, but what [municipalities] are getting is very expensive and very dirty power,’ McFadden said. ‘They are selling it as clean, but that is not the case, and the prices are through the roof.’

McFadden called on the cities’ officials to hold Peabody accountable.

‘Peabody Energy took advantage of my hometown by misleading St. Charles ratepayers into bankrolling an expensive, dirty and dangerous coal plant no matter what the price,’ McFadden said in a statement. ‘Tri-Cities ratepayers need to demand that Peabody be held accountable for the promises they made.’”

— Brenda Schory, Kane County Chronicle

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• PSEC Commitment: 120 MW
• Participant Communities: 3
• Power Purchase Agreement: Take-or-Pay
• Bonds Outstanding: $533 Million

NIMPA is a joint municipal electric power agency and a body politic and corporate, municipal corporation and unit of local government of the State. The 7.6% undivided interest in the Prairie State project entitles NIMPA to 120MW of the capacity and output of the PSEC Project. The project is the only asset that NIMPA currently has under construction. NIMPA has sold all of its rights to capacity and energy from the Project pursuant to take-or-pay power sales agreements (the “Power Sales Agreements”) with the cities of Batavia, Geneva and Rochelle.

Complete list of member communities