The Illinois Commerce Commission has approved development of nearly 38 miles of transmission lines that will connect the planned Prairie State Generating Station in Southern Illinois to the transmission grid in the region.

The approval paves the way for one of the largest high-voltage transmission line projects in the state's recent history and marks another significant milestone in Prairie State's development. Prairie State is a 1600-MW supercritical electricity generating station and coal mine that will be located near Lively Grove, Illinois.

"We are pleased the state has approved development of transmission corridors that are key to Prairie State's ability to deliver reliable, low-cost electricity to Illinois and the Midwest," said Peabody Energy President of Generation and Btu Conversion Rick Bowen. "We appreciate the support from the state and the support from the Midwest ISO, which has enabled the interconnection to be made in the most efficient and cost-effective way."

Under terms of an agreement with St. Louis-based Ameren Corp., Ameren's transmission subsidiary, Ameren Illinois Transmission Co., and AmerenIP will construct and retain ownership of the transmission lines that will run from the Dynegy Energy Complex in Baldwin, Illinois, to AmerenUE's Rush Island power station across the Mississippi River, as well as those connecting Prairie State to the grid. The primary transmission line provides a much needed "bridge" between Missouri and Illinois and is important for the flow of electricity between states.

Prairie State will generate low-cost electricity for more than 1.7 million Midwest families, create more than 450 permanent jobs and inject nearly $100 million in economic benefits into the regional economy each year, according to a study by Southern Illinois University at Carbondale.

Prairie State has signed a $2.9 billion engineering procurement, construction and management agreement with Bechtel Power Corp. and is advancing to groundbreaking this fall.

The Prairie State equity partner group includes American Municipal Power-Ohio (AMP-Ohio) Illinois Municipal Electric Agency (IMEA), Indiana Municipal Power Agency (IMPA), Kentucky Municipal Power Agency (KMPA), Missouri Joint Municipal Electric Utility Commission (MJMEUC), Northern Illinois Municipal Agency (NIMPA) and Prairie Power Inc.