* Plant to cut emissions, had been seen online in 2015
* Taylorville selected for federal loan guarantee
(Adds Tenaska comment) -
NEW YORK, Jan 12 The Illinois Senate on
Wednesday rejected Tenaska's proposed $3.5 billion Taylorville
coal-to-gas-fired power plant, a spokesman for Tenaska told
Tenaska said the lack of legislative support would stall
development of the 602-megawatt gasification plant which had
been selected for a $2.6 billion federal loan guarantee and a
tax credits exceeding $400 million. The plant had been seen in
operation in mid-2015.
"We are evaluating our next course of action," said Bart
Ford, Tenaska vice president.
The Taylorville project required state approval because
Tenaska of Omaha, Nebraska, was seeking to recover costs for
building and operating the plant from power ratepayers.
But since Illinois restructured its power market in the
late 1990s, the cost of building and operating power plants is
the responsibility of the generation owners, not ratepayers.
Ford said the vote was "disappointing" given a favorable
vote in November from the Illinois House of Representatives and
support from other elected officials and organized labor.
"Throughout the legislative process, we challenged opponents
of the legislation to explain how a cutting-edge baseload
project like (Taylorville) could be built without legislation,"
Ford said in a statement. "We renew that challenge now."
Since Illinois restructured its power market, generation
owners have built mostly natural gas-fired power plants. No
baseload coal or nuclear plants have entered service since the
late 1990s when what is now Exelon Corp (EXC.N) completed some
(Reporting by Scott DiSavino and Eileen O'Grady in
Houston; Editing by David Gregorio)