Quinn Vetos Coal-to-Gas Plants

By Kevin Robinson in News on Mar 15, 2011 1:30PM

Gov. Pat Quinn vetoed a pair of bills that would have established two synthetic natural gas plants in Illinois, and forced utility ratepayers to pick up the tab through their heating bills. In his veto message, Quinn said “Inadequate consumer protections and high energy costs will not create jobs in Illinois. Until I am satisfied that consumers are protected, burdens are shared and jobs are created, I will not affix my signature to this bill.” The plants, which were proposed to have been built in downstate Jefferson County and on Chicago's Southeast side, would have manufactured synthetic natural gas from Illinois coal.

The Chicago plant, which was to be owned and operated by New York-based Leucadia National Corp. would have made synthetic gas from a combination of refinery waste and Illinois coal. The legislation required Illinois utilities to enter into 30-year contracts to purchase equal amounts of the gas. The legislation didn't force state utilities to enter into a contract with Leucadia to purchase gas, but they could have been forced to lower their delivery rates if they weren't buying enough synthetic gas. because utilities don't profit from the direct sale of natural gas to consumers, passing the cost directly onto consumers, they make all of their income from delivery rate charges. A lowered delivery rate would have cut their margins

Both proposed plants were controversial, pitting interests that traditionally make up Gov. Quinn's base against each other - labor interests that saw the plants and the processes involved as job creation vehicles for the state, and consumer and environmental groups that were concerned about the cost to consumers and the environmental impact on the communities where they were proposed. The South side plant, in particular, was the focus of protests in the neighborhood, and was an issue in the recent 10th Ward aldermanic race, with challenger Richard Martinez opposed to the plant. Martinez won over 30 percent of the vote in February.