$2 Billion Power Project Cruising Ahead in Illinois

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Peabody Energy Company (NYSE: BTU) (Saint Louis, Missouri) has narrowed down the short list of turn-key contractors to two, Fluor Corporation (NYSE: FLR) (Aliso Viejo, California) and Bechtel Power Group (Frederick, Maryland) a division of privately held Bechtel Group Incorporated (San Francisco, California) for the 1,500 megawatt (MW) Prairie State Energy Campus (Plant 1057046 & PEC 09002860) in Washington County, Illinois near Marissa and Lively Grove. Peabody has signed up 60% of the investors needed to start the construction and about 30% of the electrical output is accounted for.

The investors consist of state agencies, commissions, cooperatives and municipalities. Currently the predominant ones are Indiana Municipal Power Agency (IMPA) (Carmel, Indiana), Missouri Joint Municipal Electric Utility Commission (MJMEUC) (Columbia, Missouri) and Wolverine Power Supply Cooperative (WPSC) (Cadillac, Michigan). Peabody has set a goal that they need investors for 50% of the construction cost and 80%-90% of the anticipated electrical output sold. Peabody plans to make the turn-key company selection in June or early July.

Prairie State Energy Campus has air permits and will be a "mouth of mine" plant which means there will be no cost of transportation for the coal because it will be at mine site. The plant will consist of two pulverized coal-fired boilers burning up to 6 million tons per year to supply steam to two 750MW steam turbine/generator sets. Prairie State will have all the best air quality equipment including low NOx burners, selective catalytic reduction (SCR) units, wet and dry electrostatic precipitators (ESP), wet flue gas desulfuriztion (FGD) limestone scrubbers plus dust suppression technology.

Peabody hopes to start construction in 2005 and start up is planned after a 48 month construction period.

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