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Peabody Clears Hurdle for Prairie State Energy Campus

8/11/2005

LCG, August 11, 2005--Peabody Energy announced yesterday that the Illinois Department of Natural Resources issued the final mining permit necessary for the Lively Grove Coal Mine, which is located adjacent to the proposed Prairie State Energy Campus in Washington County, Illinois. The new coal mine would supply low-cost coal directly to the 1,500-MW, electric generating station.

The proposed Prairie State Energy Campus is estimated to cost $2 billion, including approximately $500 million for emission control equipment to allow for the use of local, high-sulfur coal. Peabody has received an air pollution permit from the Illinois Environmental Protection Agency. A coalition of environmental and public health groups has objected to the decision, which is now under review. The project is one of two, similar coal projects that Peabody Energy is currently developing in the Midwest.

Peabody is developing the project together with the Prairie State Interest Group, which owns nearly half of the project. The Prairie State Interest Group includes Soyland Power Cooperative in Illinois; Northern Illinois Municipal Power Agency; Missouri Joint Municipal Electric Utility Commission; Kentucky Municipal Power Authority; Indiana Municipal Power Agency; and Wolverine Power Supply Cooperative in Michigan.