11 October 2006 -- Reuters reported that the Illinois Finance Authority gave preliminary approval to $500 million of bonds that would be the first under the state's $3 billion clean coal and energy program.
Under the deal, $150 million of the bonds for a $1.5 billion coal-fired power generation facility in Taylorville, Ill., would be taxable and carry Illinois' "moral obligation" pledge. If given final approval by the authority and the governor's office, that would mark the largest amount of bonds for a private project to carry the state's pledge, finance authority officials were quoted as saying.
The "moral obligation" pledge would require the governor to seek funds from the General Assembly if revenue from the project was insufficient to make debt service payments. The deal for Christian County Generation, LCC also calls for $350 million of tax-exempt, solid-waste disposal facilities bonds that are subject to volume cap.
The facility would be owned by Tenaska Energy, Inc. and ERORA Group, LLC. Tenaska reportedly expects to seek final approval for the bonds next year and begin construction in late 2007.
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