"Indeck was asking for a lot," says Duane Laska, Libertville's mayor. "The code did not allow for power plant use and the board felt Indeck did not make an adequate case for the proposed changes that were necessary."

Power plant development is booming in Illinois and across the country as companies scramble to meet demand. While Laska downplayed the role of politics in Libertyville's decision, opposition to the development was strong. Ameren Corp. recently proposed a peaker plant for Elgin, IL, where opposition is also mounting.

"They need to put these projects in less populated areas," says Laska. "The power grid traverses 10 to 12 states, there's plenty of room to put these new plants where there are less people."