Business
7:27 am
Thu August 30, 2012

Prairie State electricity rates higher than expected

A new report says the country’s newest coal-burning power plant is far more expensive for ratepayers than expected.  The report was released by the non-profit Institute for Energy Economics and Financial Analysis, and says that the Prairie State power plant in Illinois isn’t living up to its promises of cheap rates.  The Kentucky Municipal Power Agency, or KMPA, owns about eight percent of the Prairie State plant, and provides power to the municipalities of Paducah and Princeton.  KMPA issued nearly five hundred million dollars in bonds to buy its share of the generation, and General Manager Dave Clark says the company is happy so far with the investment.  But the report estimates that the cost for Prairie State’s electricity will rise, because the plant has been plagued by problems and market factors may not allow it to operate at full capacity.