Tenaska is betting that the public and reporters won't read the sourcing tariff for the TEC (Taylorville Energy Center). The document with all appendixes is over 90 pages long so I won't be uploading it on my blog. Luckily, the company gave a presentation at the Gasification Technologies Conference that's online and easier to understand. It includes a lot of juicy info about rates and taxpayer subsidies that you aren't likely to hear at a large public hearing or press conference.
Two provisions relate most directly to rates. The first, to quote Tenaska's own presentation,
"Requires electric utilities and other electric retail suppliers in Illinois to purchase 100% of the electric output from clean coal facilities under 30 year Sourcing Agreements. Contracting with these electricity providers provides a built-in customer base for the plant."
That's important because Illinois is already producing more power than it uses. They also pushed to have clean coal included in the state renewable energy portfolio. Apparently, utilities would have to buy energy from the TEC first even when cleaner power is available from wind and solar.
The second relevant provision allows Tenaska to base rates on their capital investment and cost of generating power, regardless of market prices.
"Legislation allows TEC to pass through all operating costs on a monthly basis."
What happens to consumers if the cost of carbon capture turns out to be astronomically more expensive than expected? After all, that's why DOE and private investors pulled out of FutureGen.
Consumers will be forced to buy all power produced by this plant for 30 years, no matter how much it costs, and no matter how many cleaner, cheaper alternatives become available. What a scam!
What's being done to Illinois citizens was stated plainly at a 2006 conference on coal gasification.
That included a call for utilities and their ratepayers to be willing to accept more risk than they are accustomed to assuming. Regulators should be willing to provide greater assurances for recovering both development and operating costs. That means added risk for customers, who must also be willing to tolerate potential additional costs. Taxpayers should continue to vigorously subsidize IGCC plants and fund R&D for various gasification, carbon capture and sequestration technologies, attendees were told.
Higher rates for consumers and massive public subsidies is their real agenda, no matter how nice of a public face they put on it in Taylorville.
Last year, Ameren and ComEd objected because they believe TEC won't produce energy at competitive rates. The Illinois General Assembly punted by forming a task force to examine whether it would create rate increases. It's pretty sad that it takes two utility giants who recently hiked their own rates to make legislators take notice of rate increases on consumers. How bad does it have to be before Ameren starts to care how much we're paying?
The Taylorville Energy Center is seeking an air permit from the Illinois EPA, and a guaranteed loan from the US Department of Energy. Both agencies are taking public comments, so let them know what you think.
If you want to comment on the air permit, which doesn't actually require them to capture any carbon or limit CO2, contact the Illinois EPA by November 20th. If you want to comment on the Environmental Impact Statement being conducted for the federal loan to finance this boondoggle, contact the US Department of Energy by email TEC-EIS@hq.doe.gov.