Kentucky Lawmakers agree to coal plant session

FRANKFORT, Ky. (AP) — Lawmakers have agreed to take part in a special legislative session in mid-August to consider a package of incentives aimed at luring a $3 billion coal gasification plant to Kentucky.

Peabody Energy is looking at locations for the plant in Indiana, Illinois and Kentucky.

“If the legislature creates incentives to encourage development of alternative fuels during the special session, we are prepared to recommend that our equity group focus our project review exclusively in Kentucky,” said Peabody Energy executive Rick Bowen.

Bowen was among a group of Peabody executives from St. Louis who met with Gov. Ernie Fletcher and legislative leaders in downtown Louisville on Wednesday.

The governor said Peabody executives promised to recommend to their investors that they look exclusively at Kentucky if lawmakers approve tax breaks worth some $300 million.

House Speaker Jody Richards and Senate President David Williams said legislative leaders have agreed come to Frankfort on Monday only to adjourn. The lawmakers will then ask Fletcher to issue another call for a special legislative session, possibly as early as Aug. 13, to deal exclusively with the Peabody incentives.

Peabody is considering building the plant near one of its existing mines that has large coal reserves. Feasibility studies are under way to determine the preferred location.