Chicago Clean Energy Project Offers Strong Consumer Benefits

Project will protect Illinois consumers from volatile gas prices, saving at least $100 million

CHICAGO, July 31, 2012 /PRNewswire-USNewswire/ --?Chicago Clean Energy, a $3 billion state-of-the-art gasification project proposed for the Chicago's southeast side, will offer unmatched protections to Illinois consumers, including a guaranteed $100 million in savings over the life of the project for ratepayers and an innovative revenue sharing system that will provide rebates to consumers.

"Working with Governor Quinn, the Citizens Utility Board and others, we were able to include a number of protections in the project's authorizing legislation when it was approved in 2011," said Hoyt Hudson, project manager for Chicago Clean Energy. "The project's success is tied directly to producing savings for consumers."

In addition to the $100 million in required savings, state law also includes a 2 percent annual rate cap to protect against rate increase ? the same structure that governs wind and solar projects in the state ? and a $1.5?billion consumer protection reserve account that were both added as a result of feedback from Governor Quinn and consumer advocates.

"Under 48 different natural gas price projections issued by the U.S. Energy Information Administration, Chicago Clean Energy was shown to save consumers money," noted Hudson. "The potential cost to consumers in a given month was shown to be limited to 33 cents, with no limit to potential savings."

The Illinois Power Agency oversaw a $10 million state-sponsored study that demonstrated that the Chicago Clean Energy project is likely to save consumers over $1.2 billion. The pricing structure established by the existing law includes a number of built-in consumer protections that are especially effective in lowering the impact of damaging price spikes in the natural gas market.

"In addition to helping launch a cutting-edge technology in Illinois, this project is required to share all profits from natural gas sales and ancillary product sales with Illinois consumers through rebates," said Hudson.

The Chicago Clean Energy project has been thoroughly vetted by the Illinois General Assembly over a five-year process, passing four pieces of legislation, each of which passed both chambers of the Illinois General Assembly by wide margins with strong statewide support from both political parties. Senate Bill 3766, a pending bill that clarifies final contracting details for the plant, is awaiting Governor Quinn's signature.

"Governor Quinn has been an avid supporter of consumer rights and protections and supported this legislation in July 2011," said Hudson. "We are hopeful he will sign the bill and take a significant step forward for consumer savings, clean energy, jobs, and economic development in Illinois."

"The Chicago Clean Energy project is a win-win for our community," said Sandra Patterson, president of the Cottage Grove Heights Community Coalition. "This major investment will clean up a contaminated area, create jobs and bring a cutting-edge energy technology right to our backyard. I fully support the Chicago Clean Energy project and hope Governor Quinn will too."

About Chicago Clean Energy

Chicago Clean Energy is an initiative of Leucadia National Corporation (NYSE: LUK) that supports the $3?billion investment in green technology on the Southeast side of Chicago. The gasification facility to be located at 115^th Street and Burley Avenue will produce substitute natural gas through the cleanest method of utilizing Illinois coal anywhere in the world. For more information, please visit www.chicagocleanenergy.com.

SOURCE Chicago Clean Energy

Source: http://news.yahoo.com/chicago-clean-energy-project-offers-strong-consumer-benefits-210100240.html

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