Peabody is Coming to KY

Peabody considering 5 counties for natural gas plant LOUISVILLE -- Peabody Energy Corp. has narrowed its search for a place to put a potential $3 billion coal-to-natural gas plant to five Western Kentucky counties, Gov. Ernie Fletcher said today at a news conference on the University of Louisville campus.

Counties still being considered by Peabody include: Henderson, Union, Ohio, Webster and Muhlenberg. The St. Louis-based company said it was previously considering sites in Kentucky, Illinois and Indiana.

Rick Bowen, a Peabody executive, said the company will not know for sure where the plant will be built, or even if it will be built, until an expensive and lengthy feasibility study is completed.

He said the plant won't likely be operational until 2012. The project is expected to create about 550 permanent jobs, including 375 coal mining-related jobs.

Asked if the timing of the announcement was designed to help his re-election chances next Tuesday, Fletcher said the announcement would have come earlier if the Democratic controlled state House had not walked out of a special session the governor called in July.

The legislature eventually approved a new incentive program in August that was used last week to provide Peabody with preliminary approval for $250 million in tax incentives for the project.