Peabody sold investors on the Prairie State Energy Campus with the lure of coal as a cheap energy source. Reality hit when the plant's construction costs more than doubled and investors were asked to shoulder the burden.
That resulted in price hikes for customers of utilities who invested in Prairie State. One of the biggest is the Illinois Municipal Electric Agency (IMEA) based in Springfield. The cost of expensive coal will be passed on to IMEA customers like the cities of Naperville, Chatham and the Rural Electric Convenience Cooperative based in Auburn.
These rate hikes offer an occasion for suppliers like IMEA to reevaluate their investment in coal. The cost of operating coal plants will only go up as EPA moves forward on new clean air and water rules. That will happen even if Congress doesn't put an additional price on carbon, which would make coal even less attractive. Coal based utilities will be forced to internalize the cost of their pollution instead of forcing everyone else to pay for their mess. The promise of cheap coal is a relic of the past.
Unfortunately, IMEA and it's partners like the American Public Power Association have chosen to act as puppets of the coal industry's legislative agenda. They work hand in hand with industry polluters to fight against regulations that protect public health and the environment. Customers should be aware that if your town or co-op is as member of IMEA or APPA then you're supporting the coal industry's campaign to demonize the EPA.
I'm sure the coal industry appreciates the loyalty of public utilities but procrastinating the transition to clean energy will only hurt their customers in the long run. It's time for providers like IMEA to reconsider whether marrying their fate to coal is really in their best interests.