Christian County Generation's Taylorville Energy Center IGCC Project Expected to Have Little Rate Impact

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Researched by Industrial Info Resources (Sugar Land, Texas)--Christian County Generation LLC was formed as a joint venture between Tenaska Incorporated (Omaha, Nebraska) and MDL Holdings Company (Louisville, Kentucky) to own and operate the Taylor Energy Center (TEC) coal-integrated gasification combined-cycle power plant in Illinois.

The company has submitted a facility cost report to the Illinois Commerce Commission (ICC) stating that the project will reflect a minimal rate increase. The report reflects the following for construction, operations and environmental impacts:

• Nearly 10 million labor hours needed to build TEC, resulting in almost 2,500 construction jobs.
• Total projected capital cost, including contingency, escalation, financing, insurance and other expenses, is $3.5 billion.
• No cost to ratepayers before 2015, when TEC is brought online.
• Hundreds of permanent plant and mining jobs will be required.
• More than 1.5 million tons of Illinois coal per year will be used.
• Projected residential rate impact over 30 years averages approximately 1.8% more than 2009 rates, or an increase of less than $0.06 per day in 2010 dollars.
• The $2.58 billion U.S. Department of Energy Loan Guarantee, for which the Taylorville Project has been selected for term sheet negotiations, will provide approximately $60 million per year in interest cost savings that will be passed through to electric customers.
• By providing 602 megawatts (MW) in essential "base load" power, TEC will push down market prices, resulting in "market savings" of approximately $1.2 billion in first 10 years.
• By replacing higher polluting plants with lower polluting, or more efficient, TEC power, the project will cut net CO2 emissions by approximately 1.9 million tons per year.
• Conventional pollutants, including mercury, sulfur dioxide, nitrogen oxides and particulate matter, will be dramatically reduced to a fraction of conventional coal plant levels.
• Carbon emissions will be comparable to clean-burning natural gas plants, capturing and storing more than 50% of the carbon dioxide from coal.
• Dry cooling design will reduce water usage by 70% and produce no liquid discharge.

The $3.5 billion project, which is in Christian County, consists of two integrated gasification combined-cycle CT/HRSGs and one steam turbine. The gasification process will convert coal into gas, achieving a much lower emission level. The engineering firm, Burns & McDonnell Engineering Company Incorporated (Kansas City, Missouri) will perform plant design and cost estimates, while WorleyParsons Limited (ASX:WOR) (Sydney, Australia) will act as engineer. Construction is scheduled for early 2011, with completion expected in 2013-14.

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