March 12, 2014 Read More →

Representative Timothy Schmitz asks Illinois Attorney General Lisa Madigan to investigate Prairie State deal

Batavia – Illinois State Representative Timothy Schmitz (R-Batavia) is urging Illinois Attorney General Lisa Madigan to investigate ‘possible fraud or misrepresentation by Peabody Energy that led to several municipalities in Illinois to invest in the Prairie State Energy Campus (PSEC).’  Schmitz’s district includes several communities that have been hit hard by the rising costs of electricity from Prairie State.

In his February 28 letter to the Attorney General, Schmitz explained that Illinois municipalities and cooperatives signed long-term contracts, and invested in nearly $1 .4 billion in bonds, for the plant, which was ‘marketed to communities and cooperatives as a secure, low cost electricity source.’

Representative Schmitz concludes, ‘Residents in my district and hundreds of thousands of Illinois ratepavers will be saddled with artificially high power prices and yoked with unsustainable debt for decades to come under the constraints of the PSEC deal.  I, respectfully, urge you to launch an investigation into the practices by which Peabody Energy enticed communities, cooperatives and the State of Illinois through the IFA (Illinois Finance Authority) to follow a disastrous path to financial challenge and generation instability.’

By Sandy Buchanan, IEEFA

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