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Wednesday, October 31, 2012

Ind. Gov't. - "More delays, cost increases at Edwardsport"

John Russell has just posted this entry at the Indianapolis Star's Star Watch blog. Some quotes:

Chalk up more technical problems, delays and another big price increase at Duke Energy’s troubled Edwardsport power plant, already one of the most expensive projects in Indiana history.

The utility said this morning it has uncovered numerous technical problems that will cost another $174 million to fix.

That will push the total price tag to $3.55 billion, including financing costs. Duke said it will swallow the additional construction costs, said it will record a pre-tax charge to earnings of $180 million in the third quarter.

The company also said it has pushed back the in-service date on the plant by about three months to May 29, 2013.

Excluding the financing charges of $400 million, Duke said the new estimated cost of the plant is now $3.154 billion. That’s about double the original estimate of $1.6 billion. * * *

The plant has garnered enormous criticism for numerous cost increases over the past four years. It has also been the center of an ethical storm for Duke Energy. Company officials and regulators were found to be discussing the cost overruns in secret meetings, resulting in several firings and resignations. The former chairman of the IURC, David Lott Hardy, was fired and is now awaiting trial on four felony counts of misusing his office.

Posted by Marcia Oddi on October 31, 2012 10:36 AM
Posted to Indiana Government