The Prairie State Energy Campus (PSEC) was built in 2012 at a cost of $5 billion, despite concerns about its environmental and economic performance. Since then, the cost of gas and renewable energy has fallen dramatically, resulting in a 33% decrease in US coal production from 2010 to 2019. PSEC's operation is barely profitable compared with the market now and is unlikely to save money compared with the market in the future. Given recent and projected declines in the cost of renewable energy and battery storage, PSEC's go-forward costs will likely be significantly more expensive than alternatives prior to 2030, meaning that customers will save money when PSEC stops operations. Refinancing the debt with a ratepayer-backed security could allow plant owners to reinvest in clean energy solutions while saving Illinois ratepayers more than $300 million or the equivalent of more than 0.3¢/kWh ($3/MWh). Being proactive and planning for early retirement of PSEC is key to leveraging the opportunities that exist for all stakeholders—plant owners, ratepayers, and the local community—to maximize the upside of plant closure.
