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Co-op to build clean coal generating plant

Corn Belt Energy Corporation, a locally owned energy cooperative head-quartered in Bloomington, has developed a plan for construction of the first coal-fired generating plant to be built in Illinois in 14 years. The plant will be built on land owned by Turris Coal Company and will use approximately 70,000 tons of coal per year from the company's Elkhart mine in Logan County.

The plans call for a 91-megawatt plant costing $137 million. The plant is moderately sized compared to many Illinois coal-fired power stations. Most coal plants are three to five times the size of the proposed Corn Belt plant. Because the plant will demonstrate new clean coal technology it will be partially financed with grants totaling $51 million from the U.S. Department of Energy's National Energy Technology Laboratory, Illinois Department of Commerce and Community Affairs and the Illinois Clean Coal Board. Corn Belt Energy is taking the lead ownership position in the plant and is expecting several other cooperatives to become joint owners.

"We needed to minimize the cost of power for our members," says Jeff Reeves, president/CEO of Corn Belt Energy. "One of the ways to do that is to own our own generation instead of buying power on the market. Right now electricity has become a very volatile commodity. Wholesale power prices have been as high as $7 per kilowatt-hour during peak demand times when energy supplies are at a premium."

Reeves says the coal-fired plant will be the first large-scale demonstration of a boiler built by the D.B. Riley Company that dramatically reduces nitrogen oxide (NOx) emissions. The basic boiler design has been used for 30 years in Europe, but has been redesigned to use re-engineered burners that will substantially reduce NOx emissions. The Department of Energy has funded the burner improvement through the Low Emission Boiler System program. The new generating plant will also be built with scrubbers to reduce sulfur dioxide emissions. Using this new clean coal technology, the plant will exceed all current environmental requirements.

The coal miners from the Turns coal mine in Logan county, and miners across the state and nation will benefit from new dean coal technology and increased demand for coal.

Plans call for construction to begin in 2001 and be completed by late 2004. During construction, nearly 200 jobs will be created. Operation of the plant will require 24 fulltime employees, according to Reeves. But the economic impact will benefit the entire state and coal industry.

Coal is the state's third largest industry, but it has been in decline since 1990. A future turnaround in the industry will require commercially available clean coal-fueled technology and companies willing to invest in coal-fueled facilities.

Clean coal technology will also mean stable electric rates. Of the nation's 25 power plants with the lowest operating costs, 23 are fueled by coal. The price of coal has declined 40 percent in real terms as natural gas prices have more than doubled recently.

Reeves said, "There is no one answer to our power supply needs and the cost of energy. It will take all of us working together to find answers to our energy requirements, keep our economy growing, build environmentally sound power plants, and provide reasonably priced energy solutions for our cooperative members."

The latest annual air quality trends report from the U.S. Environmental Protection Agency (EPA) shows that total emissions of six principal air pollutants decreased 31 percent since passage of the Clean Air Act in 1970.

The six major pollutants are smog, carbon monoxide, sulfur dioxide, lead, nitrogen oxide and particulate matter. Of the six, only nitrogen oxide showed an increase in the 30 year period. However, NOx emissions were down by 10 percent since 1990 and new EPA rules should make even further reductions in the near future.

In the 1990s alone, concentrations of lead decreased by 60 percent and sulfur dioxide and carbon monoxide went down by 36 percent each. The agency report pointed out that during this same period U.S. population and gross domestic product both increased dramatically.

Copies of the report are available to download at www.epa.gov/airtrends. Source: Illinois Energy Association

6 ILLINOIS COUNTRY LIVING   DECEMBER 2000

Sensors turn lights off automatically

More than 20 percent of all electricity generated in the United States is used for lighting. And half of that energy is wasted.

You could ask everyone in the family to turn off room lights when they aren't needed. But if you have young children, active teenagers or forgetful adults in the house, it's one thing to ask, and another thing to get them to cooperate.

Here's a better idea. Install occupancy sensors. They could help save a few dollars each month on your electric bill.

An occupancy sensor automatically turns lights on when someone enters a room, and then turns them off once the person leaves the area. In the home, they're ideal for basements, garages and hallways.

They're inexpensive devices and can be purchased at home centers and hardware stores. Since they're designed to replace a regular wall switch, they're easy to install and inexpensive.

Occupancy sensors also provide hands-free lighting. They make a home safer and more convenient for older and disabled people.

Source: Leviton Institute, www.leviton.com.

Governor George H. Ryan announced earlier this year that the state would increase the amount of assistance provided this winter to low income Illinois households through the Low Income Energy Assistance Program (LIHEAP).

Illinois will receive an additional $24.7 million in federal funding to help low-income households meet their energy costs.

"Rising natural gas prices will create an extra burden on all low-income households this winter and particularly those on fixed incomes," Ryan said.

Total funding for the LIHEAP program in Illinois this winter is approximately $140 million, with $75 million from the federal Low Income Energy Assistance Block Grant and $65 million from the state's Supplemental Low Income Energy Assistance fund. Last winter, $112 million was available.

"We realize that households that heat with natural gas are facing some steep price increases this winter," said DCCA Director Pam McDonough. "At the governor's direction, we have increased benefit levels by an average of 20 percent. For example, a very low-income family of four will be eligible to receive $587 towards their gas bill this winter, compared to $470 last year."

The energy assistance program is geared to households with incomes up to 125 percent of the federal poverty guidelines. Benefits are provided directly to the household's gas or electric utility or delivered fuel dealer for households that heat with fuel oil or propane.

Benefits include repairs of inoperable residential heating systems, payments to utilities or fuel dealers on behalf of eligible households to help reduce energy bills, and emergency assistance to help disconnected households regain energy services.

LIHEAP is operated throughout the state by a network of local agencies that work with utilities, determine eligibility and provide benefits to households. Anyone wishing to apply should contact the local agency in the county where they live. Additional assistance is available by calling the toll-free LIHEAP information line at 1-800-252-8643.

Barriers to building more power plants

Electricity consumers across the nation are blaming public officials and private competitors for failing to foresee today's problems and bring new plants on-line sooner.

A major factor behind today's lack of generation capacity in many parts of the country is overbuilding in the 70s and 80s. With so much excess capacity sitting around, few saw generation as a wise investment.

As a consequence, between 1988 and 1998, utility generation capacity grew only 0.1 percent annually, to 686,692 megawatts - though utilities compensated to some extent by getting more out of the capacity they already had; averaging an annual 1.9 percent output increase. Demand, however, grew far faster.

More than 95 percent of the new, proposed generation involves gas-fired generation using high-efficiency technologies that promise far more output than existing power-plant averages. And gas-fired facilities generally take only about 18 months to site and build.

One problem with this is that natural gas prices have doubled since last year, when most current plans were proposed and cost-justified. A power plant that is profitable when gas is $2 per thousand cubic feet (mcf) might not be at current $4 prices.

Other problems in meeting the demand for electricity include air quality requirements that can keep new facilities out of high-growth areas. Even operating current plants may be difficult. That's a major factor behind a decade long drop in generation capacity in California despite growing population and demand.

The other major problem with building both is the "not in my back yard" issue. No one wants a power generator, or transmission built in their area. For example, peaker plants in the Chicago area are being opposed by local communities.

Source: Charlotte LeGates, Energy.com correspondent

DECEMBER 2000  ILLINOIS COUNTRY LIVING 7

Algebra and chemistry are hard enough without trying to learn them (or teach them) in a room that's too cold, or so hot and humid that concentration is impossible. An increasing number of school districts are finding that the most economical and energy-efficient option for school heating and cooling is a geothermal heat pump (GHP) system. They consume very little electricity because they tap into the natural thermal energy stored in the earth. They also improve comfort, reduce maintenance costs and increase indoor air quality and safety.

Geothermal heat pumps have been installed at older schools and brand-new facilities, in single buildings and on sprawling campuses. Even though they can cost more to install than other technologies, geothermal systems offer 12-19 percent life-cycle cost savings over 20 years. Annual heating and cooling bills are slashed by 30-60 percent. The temperature in individual classrooms can be independently controlled.

The earth absorbs 47 percent of the sun's energy-about 500 times more energy than the human race consumes. And the earth is an efficient storage medium. As a result, the temperatures a few feet below the earth's surface remain fairly constant. Using loops of pipe buried underground, GHPs capture this thermal energy and move it inside buildings to provide heating in the winter. In the summer, they reverse the process, transferring heat out of buildings and returning it to the earth.

According to the Environmental Protection Agency, geothermal heat pumps are the most energy-efficient, environmentally clean, and cost-effective space conditioning systems available. EPA found that GHPs are about 48 percent more efficient than the best gas furnaces.

Carterville Community Unit School in Carterville is one of the first Illinois schools to use geothermal heating and cooling. The idea came from Superintendent Tim Bleyer, who three years ago researched and then purchased a geothermal heat pump for his home.

For more information about geothermal heat pumps, contact your local heat pump dealer or electric cooperative.
Sources: Energy.com, and the Geothermal Heat Pump Consortium www.geoexchange.org.

Electrical Fires At Home

When you hear of a tragedy striking someone, do you think, "It can't happen to me?" Well, we all do, and we're all wrong!

The U.S. Consumer Product Safety Commission (CPSC) reports that 40,000 residential fires caused by problems with electrical wiring systems occur every year. These fires claim more than 350 lives, cause thousands of injuries through shocks and burns, and result in more than $2 billion in personal property damage.

About 7,100 fires resulting in 120 deaths are caused by electric cords and plugs every year. Lamps and light fixtures account for about 8,900 fires and 60 deaths; switches and outlets are involved in 4,700 fires and deaths. Another 3,600 people are treated for injuries associated with extension cords.

Electricity has improved our lives in countless ways. It's a force for good— but it is a powerful force that must be used with respect and caution. So enjoy all the benefits that electricity brings you, but don't take it for granted, and don't use it carelessly.
Source: National Electrical Safety Foundation (www.nesf.org); U.S. Consumer Product Safety Commission (www.uscpsc.gov/indexmain)

Natural gas demand and price rising

With wholesale natural gas prices at record highs, energy experts are concerned that consumers will see substantially higher heating bills. At the heart of the problem is basic supply and demand economics, according to the Illinois Commerce Commission's Gas Policy Committee.

The steady increase in demand for natural gas reflects the popularity of that fuel in a booming national economy. Two major factors in that situation are increased use of gas in the electricity generation industry and higher prices for oil and oil products.

New power plants are also a part of the increased demand. Ed Kelly of Cambridge Energy Research Associates estimated that 96 percent of proposed new electricity generating capacity is gas-fired. However, ICC staff pointed out that demand for natural gas by the electricity generation industry is up only 6 percent over last year.

On the other side of the equation, supply has failed to keep up with the increased demand for natural gas. Much of the blame for this situation was put on lower than normal prices for natural gas in the past few years. This lack of profitability discouraged new production and according to Kelly "the chickens are now coming home to roost" in the form of higher energy prices.

ICC staff estimated with normal winter weather from October of this year to March, 2001, customers could see a $200 to $300 increase in their home heating bills over 1999. They cautioned, however, that last year was warmer than normal and featured lower than average natural gas prices.

8 ILLINOIS COUNTRY LIVING   DECEMBER 2000