Municipal-power-agencies

, Bond Buyer – CHICAGO – “Underwriters and investors in billions of debt sold to finance the Prairie State coal-fired energy plant should come together to discuss relief for local municipalities burdened by the plant’s higher energy costs.

That’s the position struck by an environmental group that promotes renewable sources of energy and is among the toughest critics of the nearly $5 billion Illinois-based coal plant. Nine joint power agencies and energy cooperatives purchased an ownership stake in the plant by issuing billions in debt…. Overview of Bond Issuances | Prairie State Coal Plant Tracker As the project’s costs increased, so did the costs passed along to local governments and utilities. The cost of power is significantly higher than originally expected and nearly double current prices on the open market, according to Fitch Ratings. Local utilities are on the hook due to stringent take or pay contracts to purchase power signed with their participating JPA’s, which afford investors strong protections.

‘Prairie State was, and is, a crippling deal for the municipalities that signed on. Those who have gained from it—all those Wall Street bankers, high-priced lawyers, well-paid accountants, and insatiable investors—should be compelled to join the public dialogue on finding a solution,’ according to a four-part report from the Institute for Energy Economics and Financial Analysis.”