The Illinois Senate rejected rate subsidies that Tenaska Inc. is seeking for its $3.5 billion, 602 MW clean-coal technology Taylorville power plant. Senators rejected the state support in a 29-25 vote.

The project needed state approval since Tenaska was seeking to recover costs for building and operating the plant from power ratepayers. Illinois, though, deregulated its electricity market in 1997 meaning the cost is the responsibility of the generation owners, and not the ratepayers.

More than 40 companies opposed the Taylorville proposal.

Barton Ford, vice president for development at Omaha, was quoted as saying that the company would walk away if the Senate turned down the project or failed to act during the current session.

It is not yet clear what Tenaska plans to do next with the Taylorville project.

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