... and construction cost overruns have subjected the Prairie State Energy Campus (PSEC or the project), a 1,600-MW coal-fired generating plant, to heightened public scrutiny. In particular, many ultimate end-users of PSEC power are openly expressing concern over commitments to buy long-term power at a cost that is now substantially higher than wholesale market prices. In some instances, an increasingly politically charged environment may be driving some participating utility systems to adopt less supportive rate-setting practices, which is a significant concern for Fitch Ratings. Above Market Cost of Power: PSEC's cost of power is well in excess of both original budget expectations and current market prices, largely as a result of higher than anticipated capital costs and subpar operating performance. PSEC delivered power to its participants during the initial 2013¡2014 operating period at a plant-level cost of $72/MWh¡$73/MWh, more than double...
