Downstate power plant expected to raise rates

Two sides are near the end of a sometimes-bitter battle over a downstate power plant that, if built, would mean higher electric rates in the suburbs even though it's hundreds of miles away.

Nebraska-based Tenaska, the developers of the coal power plant set for the central Illinois town of Taylorville, needs lawmakers' help before construction can begin. A final vote could come early next month.

It's touted as a plant that will pollute less than a standard coal plant and create jobs downstate.

But the project faces fierce opposition from some in the business community.

Opponents argue that the $3.5 billion price tag on the project will eventually be passed along to Illinois power customers, especially businesses.

Average suburban customers won't see more than about a $2-per-month increase on their home electric bills. Businesses could see more, though.

And Phil O'Connor, a former Illinois utility regulator who's leading the charge against the plant, said businesses could see even bigger bills if the Tenaska project goes over budget.

“There's a genuine risk of cost overruns,” O'Connor said.

Tenaska doesn't dispute that the project would raise rates.

Spokesman Dave Lundy argues the state needs the power as other, dirtier coal plants begin closing. And the project is supported by consumer advocacy groups.

“You're talking about a very small increase,” Lundy said.

The project is touted as a huge economic boost for central Illinois, but it's unclear if Chicago-area lawmakers in the Senate would support the idea and its costs.

The debate over Tenaska's proposed plant could come to a head in the first two weeks of January, when lawmakers return to Springfield to perhaps tackle a number of controversial issues from taxes to the death penalty.