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Friday, December 31, 2010

Ind. Gov't. - "E-mails reveal Duke's rising worries: Critics compare saga of cost overruns, setbacks to 1980s nuclear plant fiasco"

Another John Russell story today in the Indianapolis Star relating to "Duke Energy Corp.'s massive power plant in Edwardsport." (Here is a list of earlier ILB entries citing Russell stories.) Lengthy and fascinating.

Equally fascinating is this teaser for the Sunday Star about a story much-covered in southern Indiana, particularly Evansville, but not, up to now, here:

2 coal-gasification plants in the works for Indiana

The coal gasification plant under construction in Edwardsport by Duke Energy Corp. is one of two under development in Indiana.

Coming Sunday, The Indianapolis Star will examine a controversial plan to develop a second coal gasification plant in Rockport in southwestern Indiana. The Rockport plant is being developed by Leucadia National Corp., a New York investment company.

The Edwardsport plant will convert coal into natural gas and then into electricity; the Rockport plant will generate natural gas.

For background, see, for instance, this March 29, 2010 ILB entry. More recently, see this Dec. 16, 2010 WIBC story by Eric Berman. And this Dec. 17, 2010 story from Keith Benman of the NWI Times - some quotes:
INDIANAPOLIS | The state has reached a 30-year deal to buy synthetic natural gas from a $2.6 billion coal-gasification plant planned for southern Indiana in a move that will affect NIPSCO customers' bills.

The Indiana Finance Authority on Thursday voted 5-0 to buy synthetic natural gas from Indiana Gasification LLC for the next 30 years and have that gas distributed to customers of existing Indiana utilities. The company is a subsidiary of Leucadia National Corp.

Gov. Mitch Daniels touted the vote Thursday, saying it will "protect ratepayers against the likelihood of higher long-term gas prices."

"We're out to pay Hoosiers instead of people elsewhere for the energy we need," Daniels said.

Consumer groups decried the deal, saying Indiana utility customers will be held hostage to a nonregulated, private company and paying sharply higher prices for natural gas.

"Regardless of the price of gas on the market, ratepayers will be forced to buy this gas," said Kerwin Olson, a utility campaign organizer for the Citizens Action Coalition.

Posted by Marcia Oddi on December 31, 2010 10:58 AM
Posted to Indiana Government