The St. Louis producer and the Indiana-based generation and transmission cooperative have inked a definitive agreement on the deal for the 1,600-megawatt (MW) plant and associated coal mine, which is located in Washington, St. Clair and Randolph counties in the southwestern region of the state.
The transaction is subject to closing adjustments, but is expected to close sometime in the second quarter.
Peabody first announced in the fourth quarter of last year that it would divest noncore assets via a competitive bidding process.
Since the second quarter of 2015, and including the PSEC transaction, Peabody said it has collected total proceeds of $500 million from its asset sales. That includes the $358 million sale of its El Segundo surface mine in New Mexico and the Twentymile longwall complex in Colorado for $358 million in cash, a deal that is still awaiting final closing details.
It also includes $70 million in “ongoing resource management activities,” it said, tied to sales of reserves and surplus land. Its Wilkie Creek sale in Queensland, Australia, has been delayed due to buyer financing.
“Peabody continues to evaluate its portfolio to target the best market base, with a filter that includes strategic fit, value consideration, growth and cash requirements as the company turns greater focus on its core mining assets in the Powder River Basin, Illinois Basin and Australia,” officials said.
Prairie State is one of the cleanest coal-fueled plants in the nation.