The planned Prairie State Energy Campus is the largest capital project in Southern Illinois' history. It comprises of a major coal-fueled electric generating station and coal mine in Washington County. Peabody claims Prairie State will be among the cleanest coal plants in America.

The station will generate low-cost electricity for the Midwest, create more than 450 permanent jobs and inject nearly $100 million into the state economy each year

"We share a goal with our partners to provide a reliable source of clean, low-cost electricity for families and businesses that will fuel long-term economic growth," Peabody Coporate Development executive vice president Roger Walcott Jr.

"Prairie State will use 21st century technologies to protect the environment while creating hundreds of permanent jobs and billions of dollars in economic benefits."

The agreement calls for the group to own a pro rata share of the project coal reserves, generating plant and about 735 megawatts of output. Peabody is meanwhile continuing discussions with other potential partners and wholesale customers. Following completion of permitting, partner selection, financing and marketing activities the project will move forward.

"Being a participant in Prairie State will provide our members with a low-cost and environmentally friendly supply of electricity for the coming decades, which is especially important given the rising prices for competing fuels," said Indiana Municipal Power Agency chief Raj Rao. "We have peace of mind knowing our energy supply is secure for the coming decades."

The Prairie State ownership group includes:

Indiana Municipal Power Agency (IMPA);

Kentucky Municipal Power Agency;

Missouri Joint Municipal Electric Utility Commission (MJMEUC);

Northern Illinois Municipal Power Agency (NIMPA);

Soyland Power Cooperative, Inc., in Illinois; and

Wolverine Power Supply Cooperative, Inc., (WPSC) in Michigan.