The annexation by the Elwood Village Board of almost 600 acres where a new electricity generating plant will be located not only added to the tiny Will County community’s size, but also to its future tax revenues and control over development.
The village of 1,100 residents will be home to Elwood Energy, a cooperative effort between Peoples Energy Corp. of Chicago and Dominion Energy of Richmond, Va.
Chicago-based Peoples Energy, parent of the utilities Peoples Gas and North Shore Gas, announced plans for the power plant in May. The plant is expected to produce 300 megawatts of electricity by June and up to 600 megawatts by the end of summer.
The two companies joined forces because of Dominion’s expertise in running a power plant, while Peoples Energy has a gas plant at the site that will be used to power the facility.
James Bassett, village administrative consultant, said the power generated by the new plant likely will be sold to Commonwealth Edison to assist in the prevention of rolling blackouts during peak demand periods.
Bassett said the Peoples Gas plant on the annexed property will be refurbished into a more productive facility after diminishing production over recent years.
Although only a few jobs will be created immediately after the Elwood Energy electricity plant construction is finished, Bassett said the two plants may employ up to 400 people within five years.
Bassett said the annexation should help boost Elwood’s industrial and commercial development, which will provide residential property tax relief. Elwood currently has little industrial or economic development.
In addition to the tax revenues, it was in Elwood’s best interest to annex the unincorporated property for control over future property zoning and commercial, industrial and residential development, Bassett noted.
The village will prosper immediately with a $50,000 impact fee from the Elwood Energy plant and $20,000 in impact fees from Peoples Energy within about six months.
An additional $1 million and accrued interest will be collected over 10 years starting in 2003 from the two entities for repair of Brandon and Noel Roads and improvements near the construction site. The plants are also expected to generate more than $150,000 annually in property taxes, Bassett said.
A little more than 100 acres of the annexed land will remain agricultural, while Elwood Energy will occupy about 190 acres and People’s Energy about 280 acres of the remaining property.
“This is a very big deal for the village,” said Bassett.
School Supt. Ron Kanzulak agreed that the expanded industrial base in the village would help transfer tax burdens from residential property owners to business.
“As they begin their planning, we will approach the power plant people in terms of how can they do something for our schools,” Kanzulak said.
The plant on the property, roughly bounded by Manhattan, Noel and Brandon Roads and Cedar Creek, will be in partial production by June 1, according to Bassett.
He said power output will take place in four progressive operational phases until the plant is at full capacity.
“The risk of rolling blackouts from ComEd will be diminished greatly because this is designed to provide the peak energy for those days,” Bassett said. “I think it will have an effect on the entire Chicago metropolitan area.”
