Breaking News Bar
posted: 9/23/2013 5:00 AM

Coal company unfairly passed along costs

hello
Success - Article sent! close
 

Peabody Energy, the nation's largest coal company, promised 217 municipalities -- including St. Charles -- and 17 electric membership cooperatives in the Midwest a source of cheap, stable electricity. The plant in Southern Illinois first began generating power in June 2012. The electricity is neither cheap nor reliable. In fact, the price of power from Prairie State is now at least double the market price of power.

The cost of building Prairie State was more than $1 billion higher than Peabody and other owners represented it would be in 2007. This was predictable and avoidable. Struggling Midwestern communities now must pay the high costs, which are being passed along to residents and small businesses or absorbed by strapped city budgets.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

The federal Securities and Exchange Commission has subpoenaed Peabody Energy and project developers in an investigation of the plant. The state attorneys general in Ohio, Indiana, Illinois, Missouri, Michigan, Virginia and West Virginia should also investigate this deal. They are charged with protecting the interests of the state government, municipalities, ratepayers and taxpayers. Energy professionals, Peabody and investment banks have benefited from massive public subsidies at Prairie State. The citizens, who paid for the subsidies, were supposed to benefit. Sticking local governments with the costs of the solution is unseemly, unfair, and not right.

Tom Sanzillo

Director of finance

David Schlissel

Director of resource planning analysis

Institute for Energy Economics and Financial Analysis

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.