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Chicago-based Midwest Generation, a subsidiary of Edison Mission Group (EMG), has reached a long-term agreement with Gov. Rod Blagojevich (D-Ill.) to reduce the amount of carbon dioxide and other harmful emissions being released into the atmosphere.

As part of the agreement, EMG and the state have committed to develop up to 400 MW of new wind power projects - provided the company can obtain commercially reasonable terms for building and selling the output from the projects. According to EMG, the company is the fifth-largest owner of wind energy projects in the U.S.

In addition, the plan calls to cut hazardous emissions at each of Midwest Generation's six plants in Illinois. This includes installing mercury controls at each facility by 2009.

"This agreement provides long-term certainty for both the state and our company, helps the state and city of Chicago achieve their clean air goals, and allows us to plan and manage significant capital investments and projects in a reasonable time frame," says Ted Craver, EMG's chief executive officer.

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