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Tuesday, November 20, 2007

Environment - "Indiana Utility Regulatory Commission Gives Duke Energy Indiana Approval to Build Integrated Gasification Combined Cycle Plant"

The IURC has today issued a 63-page order approving Duke Energy's application to build a coal gasification plant in Edwardsport. Here is the IURC release:

Today in Cause No. 43114, the Indiana Utility Regulatory Commission (Commission, IURC) issued a Certificate of Public Convenience and Necessity and Clean Coal Technology to Duke Energy Indiana (DEI) for its $1.985 billion, 630 M W Integrated Gasification Combined Cycle (IGCC) baseload project in Edwardsport, Indiana. This is the first basetoad capacity to be built to supply Duke Energy Indiana since 1982, and will be the cleanest baseload plant in operation in the State.

The Commissioners found the company appropriately documented the need for additional generation capacity and met the statutory requirements necessary for approval. The C:omrnission allowed the incentive of timely recovery of costs but denied the incentive of an enhanced return on equity, finding the cost recovery incentive adequate to compensate the company. The Commission established a mechanism for continuing oversight of project costs. Cost recovery will be phased in throughout construction by the use of semi-annual reviews by the Commission. Evidence presented by Duke Energy Indiana estimates that rate payers will see an overalt increase in rates of approximately 16%.

In addition, DEI will have to justify and seek approval in ,a separate proceeding to recover any costs above the approved $1.985 billion.

DEI is also directed to move forward with its plans to develop carbon capture and storage studies and to file a proceeding with the Commission to establish that process in six months.

Govenor Daniels also issued a statement this afternoon:
“I’m delighted with this outcome. Edwardsport will be the state’s first new baseload plant in almost 20 years and the first plant on this scale to be built in America using this new clean coal technology. It will bring jobs to Southwest Indiana and badly needed homegrown power to catch us up with the needs of a growing economy.”
Here is the 64-page IURC order.

Posted by Marcia Oddi on November 20, 2007 04:57 PM
Posted to Environment | Indiana economic development