Understanding the financial and environmental burden of Prairie State.
The cost of power from Prairie State is significantly higher than originally projected and nearly double current prices on the open market. Municipalities locked into long-term purchase contracts have no ability to access cheaper alternatives, forcing ratepayers to subsidize an uncompetitive plant.
Billions in municipal bonds were issued to finance ownership stakes. These debt obligations continue regardless of whether the power is needed or competitively priced, creating a financial anchor that limits communities' ability to invest in other priorities.
Stringent take-or-pay contracts require participating utilities to purchase power from Prairie State regardless of market conditions. These contracts, which afford investors strong protections, were designed for a different energy market and now trap communities in unfavorable arrangements.
As one of the newest and largest coal-fired plants in the country, Prairie State represents a massive long-term commitment to fossil fuel generation at a time when renewables and natural gas offer cleaner, cheaper alternatives.