IBJNews

IPL settles $190M dispute, resumes wind farm project

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis Power & Light and wind farm developer enXco have settled a contract dispute that mothballed construction of a facility in southwestern Minnesota.

France-based EDF Energies Nouvelles, parent of enXco, said Monday that an agreement has been reached with IPL to resume work on the Lakefield, Minn., wind farm, from which IPL plans to buy 201 megawatts of power over 20 years. The project was announced last year.

But last March, IPL terminated the contract with enXco, saying the approval granted in January by the Indiana Utility Regulatory Commission contained “certain limitations, restrictions and/or conditions which IPL did not find acceptable.”

The EDF subsidiary in return sought $190 million in damages from IPL, according to a filing IPL parent IPALCO filed with the Securities and Exchange Commission this month after enXco initiated arbitration proceedings.

Neither side disclosed the nature of IPL’s concerns.

EDF said Monday that enXco expects the Lakefield Wind Project will begin providing electricity in the second half of 2011.

IPL and enXco previously partnered on the Hoosier Wind Project, a 106-megawatt wind firm in Benton County that has 53 wind turbines. It provides up to 2 percent of IPL’s total power needs.

When Lakefield comes online, wind will comprise about 7 percent of IPL’s total power sales.

Like many utilities, IPL is trying to diversify beyond coal-fired generation as the Obama administration presses Congress to pass cap-and-trade legislation that would effectively tax utilities for emitting carbon dioxide.

The Indianapolis utility serving 470,000 customers is proceeding with improvements to its grid to promote energy efficiency, including advanced meters that will provide customers with detailed information about their energy usage to encourage them to conserve power.

IPL received a $20 million grant from the Department of Energy that it plans to use, along with with $29 million of its own capital, to update its power grid.

That includes up to 200 electric vehicle charging stations as part of a pilot program with Project Plug-IN, a program of the Indiana Energy Systems Network.

ADVERTISEMENT

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:
 
Subscribe to IBJ
  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

  4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

  5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

ADVERTISEMENT