IBJNews

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

Back to TopCommentsE-mailPrintBookmark and Share

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.

 

ADVERTISEMENT

  • 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?

      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. By Mr. Lee's own admission, he basically ran pro-bono ads on the billboard. Paying advertisers didn't want ads on a controversial, ugly billboard that turned off customers. At least one of Mr. Lee's free advertisers dropped out early because they found that Mr. Lee's advertising was having negative impact. So Mr. Lee is disingenous to say the city now owes him for lost revenue. Mr. Lee quickly realized his monstrosity had a dim future and is trying to get the city to bail him out. And that's why the billboard came down so quickly.

      2. Merchants Square is back. The small strip center to the south of 116th is 100% leased, McAlister’s is doing well in the outlot building. The former O’Charleys is leased but is going through permitting with the State and the town of Carmel. Mac Grill is closing all of their Indy locations (not just Merchants) and this will allow for a new restaurant concept to backfill both of their locations. As for the north side of 116th a new dinner movie theater and brewery is under construction to fill most of the vacancy left by Hobby Lobby and Old Navy.

      3. Yes it does have an ethics commission which enforce the law which prohibits 12 specific items. google it

      4. Thanks for reading and replying. If you want to see the differentiation for research, speaking and consulting, check out the spreadsheet I linked to at the bottom of the post; it is broken out exactly that way. I can only include so much detail in a blog post before it becomes something other than a blog post.

      5. 1. There is no allegation of corruption, Marty, to imply otherwise if false. 2. Is the "State Rule" a law? I suspect not. 3. Is Mr. Woodruff obligated via an employment agreement (contractual obligation) to not work with the engineering firm? 4. In many states a right to earn a living will trump non-competes and other contractual obligations, does Mr. Woodruff's personal right to earn a living trump any contractual obligations that might or might not be out there. 5. Lawyers in state government routinely go work for law firms they were formally working with in their regulatory actions. You can see a steady stream to firms like B&D from state government. It would be interesting for IBJ to do a review of current lawyers and find out how their past decisions affected the law firms clients. Since there is a buffer between regulated company and the regulator working for a law firm technically is not in violation of ethics but you have to wonder if decisions were made in favor of certain firms and quid pro quo jobs resulted. Start with the DOI in this review. Very interesting.

      ADVERTISEMENT