IMPA evaluates its generation portfolio on a regular basis to ensure member needs are being met. IMPA and its members own 811 MW of generation and reached a peak demand of 1135 MW in 2006. The Agency is currently participating in the development and construction of an additional 300 MW of coal-fired generation through two major projects: Trimble County Station Unit #2 and the Prairie State Energy Campus.

Trimble County Unit 2

Trimble County Unit 2 (TC2) is a 750 MW coal-fired unit under construction in northern Kentucky at the site of the current Trimble County Station, which is jointly owned by IMPA, Louisville Gas & Electric and Illinois Municipal Power Agency. Bechtel is the EPC contractor for this state-of-the-art, supercritical pulverized coal-fired unit. The new unit will have lower permitted levels of sulfur dioxide and nitrogen oxides than any other existing or planned conventional coal unit in Kentucky. The new unit is expected to cost $1.1 billion and has a projected in-service date of mid 2010. The planned expansion will increase IMPA’s baseload capacity by approximately 100 MW.

The joint owners of TC2 are taking a unique approach to environmental protection in the permitting and construction of this unit. After careful analysis, it was determined that TC2 could be constructed and operated without increasing the sulfur dioxide and nitrogen oxide emissions previously permitted from Unit 1 alone. This is the result of environmental retrofits that have already reduced air emissions from Trimble County Unit 1, along with some additional environmental controls that will be installed on Unit 1 and state-of-the-art pollution control equipment that will be installed for Unit 2.

This new unit is an attractive resource option to IMPA and its members for many reasons. As a baseload unit, TC2 will help to meet the every day needs of member communities and reduce the Agency’s dependence on purchased power. Common plant facilities already exist for the unit, reducing the amount of investment obligations that IMPA would be required to make. Ownership in the unit provides the Agency with the flexibility needed to supply a low-cost energy supply to its members and their customers.

Construction began in July, 2006, and is progressing according to schedule. Additional information about Trimble County Unit 2 is available at www.lgeenergy.com/TC2.

Prairie State Energy Campus

IMPA has joined with several other Midwest joint action agencies and rural electric cooperatives to acquire a majority ownership in the Prairie State Energy Campus, being developed by Prairie State Generating Company, a subsidiary of Peabody Energy. The site will include two 790 MW supercritical coal-fired generating units in Washington County, Illinois. In addition, the project includes on-site coal reserves and coal mines that will provide fuel to the generating units. The first unit is expected to be completed by August 2011 and the second by May 2012. Prairie State will provide approximately 200 MW of low-cost electricity to IMPA’s members.

Prairie State’s use of state-of-the-art emission control technologies will make it among the cleanest major coal plants east of the Mississippi River. Its emissions will be dramatically better than the averages for U.S. coal plants and even proposed emission limits into the future. In fact, Prairie State’s advanced technology will reduce sulfur dioxide emissions to less than one-fifth of the national average emissions for existing coal-fired plants.

Using an innovative application of technologies including nitrogen oxide controls, selective catalytic reduction systems, dry electrostatic precipitators, sulfur dioxide scrubbers and wet electrostatic precipitators, Prairie State is among a new generation of coal-fired power plants designed to provide low-cost energy while achieving the nation’s environmental goals.

An official groundbreaking ceremony was held on October 1, 2007 at the site and construction has begun on the plant. For additional information about the Prairie State Energy Campus, visit www.PrairieStateEnergyCampus.com.

Trimble County Unit 2 and Prairie State represent secure and reliable electricity sources for IMPA members. While reserves of low-cost baseload electricity generation are shrinking in the region, these projects offer peace of mind very near the Agency’s loads. The addition of these plants also promotes IMPA’s philosophy of a diverse portfolio of resources, reducing the Agency’s exposure to unplanned outages, catastrophic equipment failures, strikes and unexpected increases in fuel costs. Both undertakings will provide low-cost electricity in an environmentally-responsible manner for decades to come.