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City of Hermann sues power commissions over coal plant costs

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HERMANN, Mo. (AP) – The city of Hermann is suing state utility groups over the costs of electricity from a southern Illinois coal plant.

Mayor Tom Shabel says the costs are much higher than promised when the Prairie State Energy Campus was marketed to smaller towns across the Midwest. He says the city lost close to $1 million last year, causing economic damage to the town of 2,500.

The St. Louis Post-Dispatch reports the city this month sued the Missouri Joint Municipal Electric Utility Commission and the Missouri Public Energy Pool, which buy power for municipalities around the state.

Shabel says the goal of the lawsuit is to get Herman out of its long-term contract with Prairie State.

The Missouri Public Utility Alliance said in a statement that Hermann’s filing contains several inaccuracies.