IBJNews

Indiana announces proposed Duke Energy settlement

Back to TopCommentsE-mailPrintBookmark and Share

Duke Energy Corp. has agreed to cap the cost of its troubled coal-gasification plant in southwestern Indiana at $2.6 billion, or about $700 million less than the expected cost of construction, as part of a proposed settlement announced Monday.

Duke Energy and the Indiana agency representing utility ratepayers, the Office of Utility Consumer Counselor, announced they had reached an agreement with the Duke Energy Industrial Group, which consists of six of the utility's large industrial customers, and Nucor Steel. The agreement still must be approved by the Indiana Utility Regulatory Commission.

Under the plan, customers' rates will increase by 14.5 percent, Duke Energy said. Without the deal, rates would have increased by 22 percent.

Kerwin Olson, executive director of the Citizen Action Coalition, said the settlement came as a shock to him. He said the power plant should never have been approved.

"The settlement on the surface appears to give Duke Energy far too much. The terms appear to be completely unacceptable to CAC," he said.

The Office of Utility Consumer Counselor had previously criticized Duke, saying it had concealed vital information from regulators about the plant, which has been beset by nearly $1 billion in cost overruns the company has sought to pass along to its customers. Duke has argued that it has managed the project prudently and should be allowed to pass on the cost overruns.

Critics have said emails obtained by The Indianapolis Star in August show an inappropriately close relationship between Indiana regulators and Duke Energy. The emails showed the Indiana Utility Regulatory Commission chairman recommended that Duke Energy hire his personal choice to lead its operations in the state.

The relationship spurred a criminal investigation. Former regulatory commission chairman David Lott Hardy was indicted in December on charges he allowed the panel's top lawyer to keep overseeing cases involving Duke Energy even though he knew the attorney was trying to land a job at Duke.

Hardy has filed a motion in Marion Superior Court to dismiss an amended indictment against him, claiming he did nothing criminal.

Duke Energy Indiana President Doug Esamann says the agreement meets two objectives, reducing what Indiana customers will pay in rates and resolving uncertainty for Duke Energy shareholders.

"We're now in the home stretch of completing a facility that will modernize our electric system and provide Indiana with cleaner power to meet increasingly strict federal environmental regulations," he said.

The massive coal-gasification plant near the southwestern Indiana town of Edwardsport will convert coal into a synthetic gas processed to remove pollutants such as mercury and sulfur. The gas is then burned in a traditional turbine power plant to produce electricity.

ADVERTISEMENT

  • Bad Deal For Us
    Indiana Utility Regulators Reach Deal With Duke Energy That Is Not Good Enough

    http://www.advanceindiana.com/
  • BANANA REPUBLIC
    Why should ratepayers pay for a publicly traded companys' gross mismanagement, misconduct, misrepresentation and malfeasance!

    If the IURC approves any overruns they have then turned Indiana into a Banana Republic. These clowns went over by $1,000,000,000!!!

    Legalized Extortion!!!!!

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. Here are a few candidates for this new group, "ripped from the headlines." First up, that bizzaro State Senator Brent Waltz; secondly, the unethical Todd Huston, and his contractual arrangements scheme; Finally, but not least of all, the dishonorable Eric Turner. What sayeth you Greg Zoeller?

  2. Good day. I can't hide this great testimony that take place in my life I will love everyone to know it and be partaker that is why I always place it on answer, I am Mrs,Natalie Cuttaia by name, I live in Texas, United State Of America, I want to thank (Mr.Bruce Brandon) for his kindness upon my family life. I never knew that there is still nice lender like this on internet and earth here. Just some Months Back, I was in search for a loan of $100,000,00 as I was running out of money for feeding and rent. I was scammed $6,800 Dollars and I decided not to involve my self in such business again but a Friend of my introduced me to a loan firm due to my appearance and doings. And I told him that I am not interested of any loan deal anymore but he told me that there is still a nice lender who he will recommend me to, and I made a trial and I am most grateful lucky am I today, I was given a loan amount of $100,000.00usd, by this great Company (Bruce Brandon Loan Company) managed by (Mr.Bruce Brandon) If you are in need of a genuine or legit loan or financial assistance and you can be reliable and trusted of capable of paying back at the due time of the funds I will advice you to, contact him via: ( bruce.brandon071@gmail.com ) And you will be free from scams in the internet. All thanks to Mr.Bruce Brandon You are the one who remove me and my family out of poverty. The reason why i am doing this is that, i promise Mr.Bruce Brandon that if i truly got my loan, i will advertize his company and bring customers to his company. Contact him via ( bruce.brandon071@gmail.com )for the Loan you have been looking for..

  3. Hello, We are firm Organization formed to help people in needs of helps,such as financial help. So if you are going through financial difficulty or you are in any financial mess,and you need funds to start up your own business,or you need loan to settle your debt or pay off your bills,start a nice business, or you are finding it hard to obtain capital loan from local banks,contact us today via email mrsroseberrywilkinsfunds.usa@gmail.com So do not let these opportunity pass you by because Jesus is the same yesterday, today and forever more. Please these is for serious minded and God fearing People. Your Name: Loan Amount: Loan Duration: Valid Cell Phone Number: Thanks for your understanding to your contact as we Await Regards Management Email:mrsroseberrywilkinsfunds.usa@gmail.com

  4. The question is, where could they build a new stadium? It seems in the past year, all the prime spots have been spoken for with potential projects. Maybe in the industrial wasteland area a block past Lucas Oil? I think it needs to be close to the core, if a new stadium is built.

  5. Aldi is generally a great shopping experience. Still, I'm sure YOU wouldn't want to shop there, which I consider a positive.

ADVERTISEMENT