The REPORTER & WISH-TV
Duke Energy Indiana and Reliable Energy Inc., which represents several of Indiana’s major coal producers, have reached a settlement in Duke Energy Indiana’s request pending before the Indiana Utility Regulatory Commission for a proposed new natural gas plant at its Cayuga Generating Station in Vermillion County.
According to The Reporter’s newsgathering partner WISH-TV, the proposed new plant would include two natural gas-fired combined cycle generating units with a total capacity winter rating of 1,476 megawatts. The new units would be placed in service by September 2029 and May 2030. They would replace two coal-fired units that have been in use since the 1970s, with a total capacity winter rating of 1,005 megawatts.
If state utility regulators approve the gas plant proposal as well as the settlement, Duke Energy Indiana has agreed to perform an engineering study to evaluate the technical feasibility of continued operation of the site’s current coal units by third parties that may be interested in purchasing them. Duke Energy would then issue a request for proposal to solicit interest in the coal units, which could be available for sale after the two proposed gas units are placed in service in 2029 and 2030.
Pinegar
“The settlement is aligned with Indiana Governor Mike Braun’s recent executive orders aimed at making sure there’s a careful evaluation before retiring coal units and encouraging additions to the state’s power supplies,” Duke Energy Indiana President Stan Pinegar said. “The new natural gas units we’ve proposed add additional, highly efficient power capacity to Indiana’s electric grid. This agreement commits to studying the feasibility of a third party continuing to operate Cayuga’s existing coal units once the Cayuga gas units are operational.”
A condition of the settlement is that this process will not affect the construction schedule, estimated cost or future operation of the new gas units.
Kerstiens
“This agreement represents a meaningful step toward preserving reliable, in-state power generation for Hoosiers,” said Reliable Energy President Savannah Kerstiens. “It wouldn’t have been possible without the leadership of Governor Braun and Secretary Jaworowski, whose continued commitment to Indiana’s energy resilience made this outcome achievable. As the state works to attract new investment and grow the economy, ensuring affordable electricity for working families means keeping every option on the table to maintain generation capacity.”
Duke Energy estimates the project will cost about $3.33 billion. The electricity utility serves about 900,000 customers in 69 Indiana counties.