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IPL's $631M power plant to start construction in 2014

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Indianapolis Power & Light Co. plans to build a $631 million, environmentally friendly power plant near Martinsville as it retires six coal-fired units at the area’s Eagle Valley Generating Station.

Construction of the 650-megawatt plant adjacent to the Eagle Valley station about five miles north of Martinsville is slated to begin in 2014 and finish in 2017, IPL announced Wednesday. The project is expected to employ as many as 660 workers during the construction phase, but only 25 once it begins operation.

IBJ first reported the utility’s plans for the plant on Tuesday. IPL has submitted the plans to the Indiana Utility Regulatory Commission for approval.

Morgan County was one of several area sites in competition to land the plant, IPL officials said. In October, the Morgan County Council approved a 10-year, 60-percent tax abatement package to lure IPL.

The company touted the new plant as an example of clean and efficient energy production. It will use a system that combines two natural gas-fired turbines with one steam turbine, lowering environmental emissions by more than 98 percent over coal-powered plants.

“We considered all of our options during a very extensive and competitive evaluation process,” said IPL CEO Ken Zagzebski in a prepared release. “Building a gas-powered plant is the most affordable and reliable solution for our customers.”

The plant will help replace power lost when IPL eliminates some of its existing infrastructure. The utility plans to retire the six existing units at the Eagle Valley Generating Station in March 2016. The station has a production capacity of 341 megawatts.

IPL also expects to retire or convert four units at Harding Street Generating Station on the southwest side of Indianapolis. Plans are under way to convert Harding Street Generating Units 5 and 6, totaling 200 megawatts, from burning coal to utilizing natural gas to create electricity, IPL said. The project is also subject to IURC approval.

As a result of new federal air quality standards and the projects slated to create cleaner energy, IPL expects customers to see their electricity costs rise 2 to 3 percent per year through 2018.

 

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  • Think deeper
    It is obvious by your comment that you don't think much further then your next truck payment. Try reading and studying a bit about economics and stop the pity party!
  • Shiver me Timbers
    Jonathan, Perry K may not be pretty but it will be mighty cold at IUPUI, Lilly and most of the office buildings in the mile square if your "eyesore" comes down. Please see the information here and consider yourself schooled. Bu the way, Covanta can only produce 4500 tons of steam to assist on cold days. http://www.i2sl.org/labs21/conference/2009/evening/planttour.html
  • Tax Abatement????
    Why does a Power Company get tax breaks? They already have a monopoly! Hoosiers are good at asking for another while getting bent over. Dumb!!! U think power will be cheaper? NO! Power CEO gets richer, Pence gets donation
    • Downtown
      When can we get rid of the eyesore of a power plant downtown?

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      1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

      2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

      3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

      4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

      5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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