This large coal-fired power plant was to be located near Usibelli's Jumbo Dome lease tract. At a proposed $420 million (in 1992 dollars), this plant would have produced more power than all of the existing coal-fired plants in Alaska combined. It was projected to use 1.5 million tons of coal per year. The primary advantage of a power plant located at this site would be reduced transportation costs of the fuel and of waste back to the mine site for burial, but the power would also have to be transported a significant distance to consumers in Fairbanks and Anchorage. The project has met with a mixed and mostly lukewarm response from power companies.

In 1989 the Department of Energy (DOE) chose Healy, Alaska as the site of an experimental plant known as the Healy Clean Coal Plant (HCCP) to burn "waste coal" as part of their "Clean Coal Technology Program". Waste coal typically consists of either leftovers from coal processing or coal that would otherwise be considered refuse. Construction of the HCCP was paid for by the DOE ($117 million), the Alaska Legislature ($25 million), the Industrial Development and Export Authority (AIDEA, $126 million), as well as the Golden Valley Electric Association, serving the Fairbanks area (GVEA, $9 million) and Usibelli Coal Mine Inc. ($3 million).

While this plant met all existing emission regulations in 1999, there have been many technological and regulatory advances since then, and this plant would now be considered no cleaner than a conventional coal-fired plant.

The plant was shut down in 2000 in the wake of a legal dispute between AIDEA and GVEA. In January 2009, GVEA agreed to purchase and takeover operation of the plant and anticipated re-opening the plant by 2010-2011. When this deal was being constructed, the Homer Electric Association (HEA) had agreed in principle to buy 50% of the power produced by the plant starting in 2014. However, in May 2009 the HEA decided to abandon all efforts relating to HCCP , due to price concerns and member opposition. As yet it is unclear what effect this will have on the future of the plant.

In 1989 the Department of Energy (DOE) chose Healy, Alaska as the site of an experimental plant known as the Healy Clean Coal Plant (HCCP) to burn "waste coal" as part of their "Clean Coal Technology Program". Waste coal typically consists of either leftovers from coal processing or coal that would otherwise be considered refuse. Construction of the HCCP was paid for by the DOE ($117 million), the Alaska Legislature ($25 million), the Industrial Development and Export Authority (AIDEA, $126 million), as well as the Golden Valley Electric Association, serving the Fairbanks area (GVEA, $9 million) and Usibelli Coal Mine Inc. ($3 million).

While this plant met all existing emission regulations in 1999, there have been many technological and regulatory advances since then, and this plant would now be considered no cleaner than a conventional coal-fired plant.

The plant was shut down in 2000 in the wake of a legal dispute between AIDEA and GVEA. In January 2009, GVEA agreed to purchase and takeover operation of the plant and anticipated re-opening the plant by 2010-2011. When this deal was being constructed, the Homer Electric Association (HEA) had agreed in principle to buy 50% of the power produced by the plant starting in 2014. However, in May 2009 the HEA decided to abandon all efforts relating to HCCP , due to price concerns and member opposition. As yet it is unclear what effect this will have on the future of the plant.