"The Coal Plant an Illinois Town Couldn't Give Away"

"How much is an old coal power plant worth? With natural gas production booming and environmental rules looming, in Illinois the answer is clear: It can be hard to even give one away."

"For evidence, look to the E.D. Edwards power plant, built in 1960 close to the coal mines south of Peoria. While it pumped out electricity for once-booming steel mills and distilleries, the plant cruised along and avoided spending the millions of dollars to install a scrubber on its smokestack.

And so Edwards, confronting a need to meet state and federal rules to clean up and mounting competition from cheaper natural gas, was part of an unusual transaction last year. Owner Ameren Corp. paid Dynegy Inc. to take Edwards and four other Illinois coal plants off its hands, a transaction that perplexed some analysts."

Mark Drajem reports for Bloomberg February 20, 2014.

Source: Bloomberg, 02/21/2014