Minor tweaks to an Illinois law making a proposed “clean” coal power plant in Taylorville possible are negotiable, says project developer Tenaska. However, a major change – an additional cap on consumer rate increases – is not an option.
Both Tenaska, the Nebraska-based company that’s pushing for the coal-to-gas Taylorville Energy Center, and its most visible opponent, the STOP Coalition (Stop Tenaska’s Overpriced Power), expect the Illinois General Assembly to consider the project during this fall’s veto session, which starts next week.
The General Assembly in 2008 approved legislation that would require energy suppliers to buy electricity from the proposed plant at above-market prices, while capping rate increases for residential consumers at 2 percent. No such protection for higher bulk customers such as manufacturers and some government entities was included in the law, which was negotiated in part by consumer advocates with the Citizens Utility Board and the Attorney General’s office.
Tenaska and the STOP Coalition each say that “conversations” – but not “negotiations” – over potential legislation changes have taken place with lawmakers, but neither would provide further detail.
A consultant for Tenaska, Dave Lundy, says he wouldn’t be surprised if lawmakers make small changes to the original legislation, but he wouldn’t speculate as to what those changes could include. “As long as power gets purchased and banks and other financing sources can get paid back, there’s a willingness [from Tenaska] to figure out any creative ways to solve concerns,” Lundy says. He adds that capping large business customers’ rates would be a major change and not an option for Tenaska. “We don’t anticipate that lawmakers are going to fundamentally rewrite that law,” he says.
Phil O’Connor, spokesman for the STOP Coalition, says that Tenaska’s refusal to consider a rate cap for large business consumers suggests that the company expects “massive cost overruns” that would be pushed onto such customers. He also references the Illinois Commerce Commission’s September report to lawmakers that calls the 2008 law’s failure to include such a cap as anti-competitive. [See “Report criticizes ‘clean’ coal plant,” Sept. 9, 2010.] “It seems to me that at an absolute minimum, the Commerce Commission’s suggestions should be addressed,” O’Connor says.
A recent poll, only part of which was shared with Illinois Times, conducted for Tenaska by Anzalone Liszt Research shows that, where the state’s energy policy is concerned, Illinois residents are less concerned about preventing rate increases (9 percent) than they are about bringing in new jobs (36 percent). The 800 Illinoisans surveyed across the state were also asked to rank the importance of reducing reliance on foreign energy (32 percent), reducing reliance on fossil fuels including coal (14 percent) and protecting the local environment (7 percent). The poll has a margin of error of 3.5 percent.
Tenaska says its project will bring 155 permanent jobs and 2,500 temporary jobs to the central Illinois area. The STOP Coalition says that, due to increased costs to manufacturers and other large business electricity customers, the state could lose about 15,000 jobs each year.
“During this legislative session when they’re dealing with tax increases and pensions, the last thing they [lawmakers] need to be doing is approving a rate increase to customers,” O’Connor says.
Contact Rachel Wells at rwells@illinoistimes.com.
Both Tenaska, the Nebraska-based company that’s pushing for the coal-to-gas Taylorville Energy Center, and its most visible opponent, the STOP Coalition (Stop Tenaska’s Overpriced Power), expect the Illinois General Assembly to consider the project during this fall’s veto session, which starts next week.
The General Assembly in 2008 approved legislation that would require energy suppliers to buy electricity from the proposed plant at above-market prices, while capping rate increases for residential consumers at 2 percent. No such protection for higher bulk customers such as manufacturers and some government entities was included in the law, which was negotiated in part by consumer advocates with the Citizens Utility Board and the Attorney General’s office.
Tenaska and the STOP Coalition each say that “conversations” – but not “negotiations” – over potential legislation changes have taken place with lawmakers, but neither would provide further detail.
A consultant for Tenaska, Dave Lundy, says he wouldn’t be surprised if lawmakers make small changes to the original legislation, but he wouldn’t speculate as to what those changes could include. “As long as power gets purchased and banks and other financing sources can get paid back, there’s a willingness [from Tenaska] to figure out any creative ways to solve concerns,” Lundy says. He adds that capping large business customers’ rates would be a major change and not an option for Tenaska. “We don’t anticipate that lawmakers are going to fundamentally rewrite that law,” he says.
Phil O’Connor, spokesman for the STOP Coalition, says that Tenaska’s refusal to consider a rate cap for large business consumers suggests that the company expects “massive cost overruns” that would be pushed onto such customers. He also references the Illinois Commerce Commission’s September report to lawmakers that calls the 2008 law’s failure to include such a cap as anti-competitive. [See “Report criticizes ‘clean’ coal plant,” Sept. 9, 2010.] “It seems to me that at an absolute minimum, the Commerce Commission’s suggestions should be addressed,” O’Connor says.
A recent poll, only part of which was shared with Illinois Times, conducted for Tenaska by Anzalone Liszt Research shows that, where the state’s energy policy is concerned, Illinois residents are less concerned about preventing rate increases (9 percent) than they are about bringing in new jobs (36 percent). The 800 Illinoisans surveyed across the state were also asked to rank the importance of reducing reliance on foreign energy (32 percent), reducing reliance on fossil fuels including coal (14 percent) and protecting the local environment (7 percent). The poll has a margin of error of 3.5 percent.
Tenaska says its project will bring 155 permanent jobs and 2,500 temporary jobs to the central Illinois area. The STOP Coalition says that, due to increased costs to manufacturers and other large business electricity customers, the state could lose about 15,000 jobs each year.
“During this legislative session when they’re dealing with tax increases and pensions, the last thing they [lawmakers] need to be doing is approving a rate increase to customers,” O’Connor says.
Contact Rachel Wells at rwells@illinoistimes.com.
The issue of TEC is being pushed up to the Illinois General Assembly, by the Tenaska corporation and a handful of local proponents desperate to shore up their community's economy.
Who could blame them? Who could be against jobs or school improvements. Most are well-intentioned individuals who see themselves upholding, rather than betraying the public trust. Still, the politics are being played out in the smallest of jurisdictions while the potential biological impact looms beyond all city, county and state boundaries.
As a resident of Taylorville, Christian County, Illinois, I am deeply concerned about Tenaska’s proposed Taylorville Energy Center. I do not feel that it is appropriate that Tenaska will be seeking approval of their facility plans during the Fall 2010 veto session.
I feel that it is unacceptable for Tenaska to seek approval from our State Legislators prior to the release of even the first draft of the Department of Energy’s (DOE) Environmental Impact Statement.
We need to be exceptionally sensitive to the environmental concerns surrounding this facility. I understand that this is not a traditional coal burning plant and that most of the chemicals are extracted during the gasification process preventing them from being released through the smoke stack. However, we have not received answers about the disposition of the chemicals separated from the carbon during the gasification process (sulfur and mercury for example). Will these chemicals be land filled on-site, land filled off-site, sold in a raw state, or receive further processing on-site or near-by?
Taylorville contains one superfund site due to an energy company’s inability to contain their toxic waste; we need to take every step to protect our children, community... and the already established businesses struggling to survive in Illinois.