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Energy developer Tenaska Inc. has worked since 2007 to win legislative backing for a next-generation coal-fueled power plant southeast of Springfield. A key selling point was that the project would give a lift to the downstate coal-mining industry.

But Tenaska has failed to get a bill pushed through the General Assembly in the face of opposition from a coalition of business and environmental interests.

Now, with the clock ticking on another legislative session, the company is taking a new tack: It’s proposing to proposing to ditch coal for natural gas.

The new strategy, which has yet to be formalized, is part concession to political reality and part acknowledgement of the U.S. shale gas revolution that’s upended energy markets.

“We thought about it a long time and made a proposal that meets all of the objections that have been raised,” said Bart Ford, a Tenaska vice president.

As originally envisioned, the project would have transformed Illinois coal into a synthetic gas and burned that gas to produce electricity. The technology would allow much of the carbon dioxide and other pollutants from coal to be stripped out before combustion.

Under the new proposal, hatched during a meeting in Springfield earlier this week, Tenaska would move ahead only with the part of the plant that would burn natural gas for electricity. It could seek to add the coal-gasification unit later if market conditions warrant, Ford said.

Whatever the outcome in Springfield, Tenaska’s strategy shift is the latest evidence of the seismic shift taking place in energy markets.

Horizontal drilling and hydraulic fracturing technologies that opened up more of the country to natural gas drilling and vastly expanded domestic natural gas production has had a huge impact on the price of the fuel, which remains at around $2.50 per thousand cubic feet — the lowest level since 2002.

The drop in gas prices has led utilities to increasingly embrace natural gas at the expense of coal and made projects to convert coal into gas, which were already a tough sell to policy makers and lenders, practically impossible.

With natural gas at $2.50, “coal gasification doesn’t make sense,” said Ed Rubin, a professor in engineering and public policy department at Carnegie Mellon University in Pittsburgh. For the foreseeable future, “gas is going to the fuel of choice”

Tenaska’s proposed modification would shave off about two thirds of the project’s original $3.5 billion price tag. That would limit the impact on average residential utility customers to about 60 cents a month.

The proposal being floated in Springfield would also cap rate increases for commercial utility customers at one-tenth cent per kilowatt-hour. Previously filed legislation to advance Tenaska’s coal-gasification plant offered no such guarantees.

Tenaska says the project would not only create thousands of jobs, it would help offset what are projected to be significant electricity price increases in coming years.

There’s already evidence that electricity prices in northern Illinois will jump considerably beginning in 2014 as older, less efficient coal plants are mothballed because they can’t compete economically in an era of cheap natural gas and tougher environmental regulations.

But despite an outlook for higher power prices, Tenaska says it still needs legislation that would require utilities to buy the plant’s output for the next 30 years. That’s because Wall Street otherwise won’t finance a large new power plant in a deregulated state like Illinois unless it has a long-term agreement to sell the output. And such agreements aren’t possible with Illinois’ power procurement rules.

The Citizens Utility Board, a Chicago-based consumer group, supported previous legislation to advance the coal gasification plant because it capped maximum rate increases for residential customers and small businesses.

Jim Chilsen, a CUB spokesman, said the group is still reviewing Tenaska’s modified proposal, and that its support generally hinges on a cap on any rate increases.

The STOP Coalition — a group that includes power generator Exelon Corp., business and environmental interests that galvanized to fight the Taylorville project legislation — issued a statement indicating it hasn’t yet formed a position on Tenaska’s new proposal.

“When details of the proposal emerge, we will look at it with the goal of ensuring customers aren’t subject to unnecessary rate increases,” the group said.

Ford doesn’t necessarily believe opponents will change their stance. But he said it’s important to show legislators that the company responded to all of the objections in an effort to form consensus.

He also said it’s important for Tenaska to get the legislation approved before the legislative session ends on May 31. The company is close to an agreement needed to interconnect with the power grid and already has an air permit needed to move forward.

“The clock is ticking,” he said.

Only a few years ago, Illinois was positioned for the first wave of coal gasification plants, including Tenaska’s Taylorville Energy Center.

Peabody Energy Corp., the world’s largest private-sector coal producer, announced efforts in 2005 to pursue a coal-gasification project in Illinois with ArcLight Capital Partners in response to what it deemed “scarce U.S. natural gas” supplies.

The Department of Energy-sponsored FutureGen project was proposed by President George W. Bush.

But “none of them have come to fruition,” said Phil Gonet, head of the Illinois Coal Association.

Gonet said Tenaska’s plan to move ahead with only part of the Taylorville project “reflects the reality” that cheap natural gas is hurting the coal industry. But he’d rather see part of the Taylorville plant built — and perhaps converted later to run on Illinois coal — than for the plant to not get built at all.

“Is it a setback for coal? yeah. But I wouldn’t call it a major setback,” Gonet said.

St. Louis-based Peabody said it still sees coal-to-gas technology as viable longer term in the U.S., but wouldn’t move any such projects to the “front burner” until natural gas move higher. The company is also optimistic about the potential to convert its coal reserves into transportation fuels, spokesman Vic Svec said.

Rubin said it remains to be seen whether the energy industry’s bet on cheap natural gas is a smart one. The country leaned heavily on natural gas a decade ago, and the plan backfired.

Meanwhile, development of technology to convert coal to gas is still advancing in other parts of the world. 

“China is where the action is,” he said.

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JP Morgan Chase CEO Jamie Dimon was overwhelmingly optimistic Monday — but was quick to say things would be even better were it not for government policies.

His reasons for optimism: the world’s strongest military, best businesses, most entrepreneurial workforce and deepest capital markets. "We have the royal straight flush," Dimon told Fortune.

So what’s the problem? Dimon cited three examples of where the government went wrong: The debt ceiling crisis, the failure to adopt Simpson-Bowles and what he calls the "constant attack on business."

When asked why, at a time of record profits, Corporate America isn’t hiring more, Dimon said American businesses had added 4 million jobs in the past two years no fax needed payday loans. "I don’t think government policy had anything to do with it," Dimon said. "It should have been 8 million.

More video on Jamie Dimon and the economy:

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Post-Dispatch Editor Arnie Robbins announced Friday that he will step down this month. Editorial Page Editor Gilbert Bailon will take over, becoming the paper’s eighth editor in its 134-year history.

Robbins, 59, has led the Post-Dispatch since 2005, after seven years as managing editor.

The last seven years have been a tumultuous time for the newspaper industry, including the Post-Dispatch. The paper has endured falling print circulation and several rounds of newsroom layoffs and buyouts. But it also has seen website visitors nearly double since 2007 and has been named a finalist for the industry’s top honor, the Pulitzer Prize, three times in the last four years.

Despite the economic challenges, Robbins made his mark on the paper and the St. Louis region, said publisher Kevin Mowbray.

“Arnie has done a fabulous job managing this newsroom through change, with honor and grace,” Mowbray said. “I’m really sad to see him go.”

In a speech to the newsroom Friday afternoon, Robbins stressed that he alone decided to step down, wanting “balance in my life.” He started considering it seriously on a hiking trip earlier this year.

That decision, Robbins said, comes with mixed emotions.

“I’ll miss walking around the newsroom. I won’t miss waking up at 3 a.m. and worrying about the newsroom,” he said. “We’ve been through a lot together. I’m happy, but I’m sad.”

Robbins said he has no immediate plans, that he might explore university or foundation work, and that he and his wife hope to stay in St. Louis.

Stepping into his shoes will be Bailon, 53, who has been the newspaper’s editorial page editor since late 2007. He previously spent 21 years at the Dallas Morning News, where he rose through the ranks from nightside general assignment reporter to the post of executive editor and then editor and publisher of Al Día, the paper’s Spanish-language subsidiary.

Bailon said he understands the challenges facing big metro newspapers but called their mission as vital as ever.

“We’re not going anywhere,” he said. “People want information. They want to pick up something and know they can trust it. We can provide that.”

If anything, Bailon said, the proliferation of news platforms — from print to smartphones to tablets — provides more opportunity for an organization such as the Post-Dispatch.

“I see a good future for us,” he said.

Having a top editor who thinks creatively about technology and the economics of journalism has never been more important, said Jill Geisler, who teaches newsroom leadership at the Poynter Institute, a journalism think tank in Florida.

“Being a superb journalist, that’s the starting point now,” she said. “There has to be a much deeper understanding of audience, a deeper understanding of the business side.”

Bailon brings that understanding, Mowbray said.

“I’m confident that Gilbert will continue the outstanding and exceptional work that is produced by our newsroom each and every day,” he said.

In an unrelated move, Sports Editor Reid Laymance left the Post-Dispatch on Friday. Steve Parker, deputy managing editor for news, will replace him on an interim basis while retaining oversight of Page 1. No replacement has been named for Bailon on the editorial page.

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Oil prices fell Wednesday on concerns about a weakening European economy and disappointing job growth in the U.S.

Benchmark West Texas Intermediate crude gave up 94 cents to end the day at $105.22 per barrel in New York. Brent crude, which helps set the price of oil imported into the U.S., lost $1.46 to finish at $118.20 per barrel in London.

Prices dropped after a survey showed that Europe’s manufacturing industry is slowing down. Also, the unemployment rate in the 17 countries that use the euro rose to 10.9 percent in March. A separate report says U.S. businesses added 119,000 jobs in April, far lower than the 201,000 added in March.

Oil and natural gas demand has been declining this year in the U.S. and Europe, and it could fall further if their economies struggle. The U.S. is the world’s largest oil consumer. Europe uses nearly a fifth of the world’s oil.

Wednesday’s reports out of Europe and the U.S. show “the economic picture remains uncertain,” said Gene McGillian, a broker and oil analyst at Tradition Energy. “The European debt crisis is still ongoing, and while the U.S. appears to be improving, it’s really just muddling forward,” he said.

The Energy Department’s Energy Information Administration also reported on Wednesday that U No teletrak payday loan.S. oil supplies grew slightly more than expected last week, while demand fell nearly 2 percent. The nation’s crude inventories increased by 2.8 million barrels from the previous week, to 375.9 million barrels in storage. At the same time, gasoline supplies dropped by 2 million barrels.

The EIA report said wholesale demand for gasoline was down almost 5 percent from a year ago, as many drivers continue to be careful about how much they drive.

Retail U.S. gasoline prices fell by less than a penny on Wednesday to a national average of $3.80 per gallon, according to AAA, Wright Express and Oil Price Information service. That’s about 12 cents lower than a month ago, but the average is still above $4 a gallon in seven states and the District of Columbia.

In other energy futures trading, natural gas fell nearly 5 percent after jumping on Tuesday to the highest level in two months. Futures fell 11.8 cents to finish at $2.253 per 1,000 cubic feet.

Heating oil fell by 3.46 cents to end at $3.1425 per gallon and gasoline fell by 2.14 cents to end at $3.0757 a gallon.

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Oil prices dropped slightly on Wednesday after the government reported an increase in U.S. supplies.

Benchmark West Texas Intermediate crude lost 22 cents to $103.33 per barrel in New York. Brent crude, which sets the price of oil imported into the U.S., lost 28 cents to $117.88 per barrel in London.

Prices dipped after the Energy Information Administration reported that U.S. oil supplies increased by 4 million barrels last week. The increase was a surprise following an industry trade group’s prediction late Tuesday that supplies had declined last week. The price of oil tends to fall as more supply becomes available to refineries.

Crude supplies climbed close to a record high in Cushing, Okla., where benchmark crude is delivered. High oil supplies in Cushing have pushed the benchmark price lower than other oil varieties. Those supplies are expected to begin falling in May when the Seaway Pipeline begins carrying crude oil from Cushing to the Gulf Coast.

Supplies also rose last week on the East Coast, Gulf Coast, Midwest and Rocky Mountains.

Petroleum demand fell by 3.2 percent when compared with the same time last year.

At the pump, gasoline prices fell for a ninth day to an average $3.84 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. The price of gasoline has declined by an average of 9.6 cents per gallon since it hit $3.936 per gallon on April 6.

In other energy trading, heating oil was flat at $3.1314 per gallon and gasoline futures gave up 3.05 cents to $3.1288 per gallon. Natural gas added 2.9 cents to $2.004 per 1,000 cubic feet.

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The parent of American Airlines, which went into bankruptcy last year, announced a quarterly net loss of $1.7 billion on Thursday, slammed by reorganization costs and rising fuel prices.

The loss was more than quadruple the carrier’s loss from a year earlier, when AMR Corp. reported a net loss of $405 million in the first quarter of 2011.

AMR said the part of the loss stemmed from $1.4 billion in reorganization costs in the latest quarter. The company said the costs were related to its bankruptcy filing from last Nov. 29.

The largest chunk of those costs — some $1 billion - is related to the rejection of eight aircraft leases and eight aircraft engine leases, and the modification of 158 aircraft leases, the airline said.

Merger hangover continues to pain United

American was also hit by rising fuel prices poor credit personal loans. The company said that it paid $3.24 per gallon of jet fuel in the first quarter of 2012, a 17% increase from $2.76 in the year-earlier quarter. The airline said this equated to an increase in costs of $325 million.

While American Airlines didn’t specifically mention job cuts in its quarterly report, the carrier said in February that it was cutting 13,000 positions from its overall staff of 88,000. Layoffs, especially when they happen en masse, typically cost a lot of money for the company that’s handing out the severance packages.

American is one of the largest U.S. carriers, competing with Delta Air Lines (, Fortune 500) and United Continental Holdings (, Fortune 500). 

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Federal Reserve Chairman Ben Bernanke said on Monday banks need to have more capital at hand in order to ensure the financial system is stable.

Bernanke said regulators were taking steps to force financial institutions to hold higher capital buffers, even if they allow for a long period of implementation to prevent any market disruptions.

“We need to have higher capital, and that’s what Basel III does,” he said in response to questions at an Atlanta Fed conference, referring to the latest international effort to tighten bank oversight. “That’s essential for a stable financial system.”

Bernanke made the comments the same day that an international bank lobby group, the Institute of International Finance, urged policymakers to pause in regulating the industry.

Toughened capital standards, new liquidity requirements and rules that limit activities all restrict banks’ ability to provide businesses and households with the credit needed to lift economic growth, the IIF said in a letter to central bankers and finance ministers.

Whether big banks have sufficient levels of capital to protect against possible losses has been an ongoing source of contention. A call by the head of the International Monetary Fund, Christine Lagarde, last year for European banks to raise up to 200 billion euros in new capital was quickly rejected by European politicians.

In his prepared remarks on Monday, Bernanke said the U.S. economy has yet to fully recover from the effects of the financial crisis, and regulators must continue to find new ways to strengthen the banking system.

“The heavy human and economic costs of the crisis underscore the importance of taking all necessary steps to avoid a repeat of the events of the past few years,” Bernanke said.

In a speech that did not touch directly on the outlook for economic growth or monetary policy, Bernanke focused on the lingering blind spots for financial authorities trying to prevent a repeat of the 2008-2009 meltdown.

He said financial stability matters had historically played second fiddle to monetary policy issues in the list of central bank priorities, but the crisis changed that.

“Financial stability policy has taken on greater prominence and is now generally considered to stand on an equal footing with monetary policy as a critical responsibility of central banks,” he said.

Bernanke said recent bank stress tests will become a regular feature of the supervisory landscape, and for that reason the latest round of tests is being reviewed to identify possible areas of improvement in “execution and communication.”

He reiterated a worry that he and other top policymakers have expressed about the continued vulnerability of money market funds.

“Additional steps to increase the resiliency of money market funds are important for the overall stability of our financial system and warrant serious consideration,” Bernanke said.

“The risk of runs … remains a concern, particularly since some of the tools that policymakers employed to stem the runs during the crisis are no longer available,” he said.

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A Senate committee has approved President Barack Obama’s two nominations to fill vacancies on the Federal Reserve’s board. But prospects for a quick confirmation in the full Senate are uncertain.

The Senate Banking Committee approved by voice vote the nominations of Jeremy Stein, a Harvard economics professor, and Jerome Powell, an investment banker who served in the George H.W. Bush administration.

Obama nominated Stein, a Democrat, and Powell, a Republican, in hopes that pairing nominees from both parties could overcome Republican objections paperless payday loans. The Fed board hasn’t operated with a full seven members since 2006.

But one Republican senator, David Vitter, a critic of the Fed’s policies, has expressed opposition. That won’t necessarily block the nominees’ confirmation. But it means the Senate won’t vote before its two-week break starts this weekend.

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