Illinois Senate seeks speedy ruling on coal plant

Washington (Platts)--11Nov2005

Wading into unfamiliar waters, the Illinois Senate this week passed a
resolution urging a federal court to expeditiously rule on a Sierra Club
appeal of EnviroPower LLC's state air permit for a proposed 534-MW coal-fired
power plant in southern Illinois.

Sen. Gary Forby, D, a strong supporter of the Franklin County Power baseload
plant and the resolution's author, told Platts Coal Trader Thursday that he's
worried that a drawn-out litigation process could doom the $900 million
project. EnviroPower has begun site preparation for the plant to be located
near Benton in Franklin County.

The Sierra Club contends an air permit issued by the Illinois Environmental
Protection Agency for the project in 2001 has expired. Houston-based
EnviroPower disagrees. The Sierra Club suit is pending in U.S. District Court
for the Southern District of Illinois.

Forby acknowledged the resolution aimed at the court is an unusual action for
a political body to take. But he defended it, saying, "we need employment so
bad" in southern Illinois. EnviroPower "could face big problems if it stays in
the court too long. ... They could lose their air permit."

According to Forby, EnviroPower has agreed to purchase coal for the plant from
a new underground mine Steelhead Energy is developing near Johnston County,
less than 20 miles from the plant site. EnviroPower and Steelhead officials
could not be reached for comment.

Earlier this year, 11 electric cooperatives in Illinois signed 30-year
agreements to purchase about half of Franklin County Power's output.

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http://www.coaltrader.platts.com.

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