updated: 8/5/2013 12:39:13 PM

State Seeking Input on $670 Million Energy Plans

InsideINdianaBusiness.com Report

The Indiana Utility Regulatory Commission is holding public hearings this month regarding two Indianapolis Power and Light Co. proposals totaling nearly $670 million. One plan calls for building a new Morgan County natural gas plant and the other involves converting a pair of coal-fired units at a Marion County facility to natural gas.

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August 2, 2013

News Release

INDIANAPOLIS, Ind. - The Indiana Office of Utility Consumer Counselor (OUCC) is encouraging Indianapolis Power & Light Company (IPL) customers to comment on the utility's request to build a new natural gas-fired generating facility in Morgan County and convert 2 coal-fired units at its Harding Street Station to natural gas. Consumers may comment either in writing or at the case’s upcoming public field hearing.

An Indiana Utility Regulatory Commission (IURC) public field hearing will be held on Thursday, August 15, 2013 at Crispus Attucks Medical Magnet High School (1140 Dr. Martin Luther King, Jr. Street in Indianapolis). The hearing's public comment portion will start at 6:00 p.m.

-Sworn oral and written comments regarding the case will be accepted during the field hearing.

-Oral and written consumer comments carry equal weight and will become part of the case's official evidentiary record.

-Commissioners are not allowed to answer questions during the field hearing. (However, OUCC and IURC staff will be available before, during and after the hearing.)

An OUCC informational session on the regulatory process and public field hearing procedures will begin at 5:30 p.m.

IPL is asking the IURC for approval to build a 550-725 megawatt combined cycle gas turbine (CCGT) facility at its Eagle Valley Generating Station in Morgan County. The new plant will replace an existing 341 megawatt (MW) coal-fired facility. Construction costs would be recovered in a future base rate case, and are currently estimated at about $631 million, not including financing. The utility is also requesting IURC authority to transport natural gas for use at the new CCGT plant.

In addition, IPL is seeking IURC approval to convert Units 5 and 6 at its Harding Street Station in Indianapolis from coal to natural gas, and to recover the costs through periodic rate adjustments. Construction costs for Units 5 and 6 are estimated at $36 million, not including financing.

The utility's estimates show the Harding Street conversion project adding approximately 29 cents to an average residential customer's monthly bill by 2017, with the new Eagle Valley facility adding 61 cents per month starting in 2018.

In its testimony, the utility states that the Harding Street projects are necessary for compliance with federal regulations, specifically the U.S. Environmental Protection Agency's Mercury and Air Toxics (MATS) rule.

This case is separate from IPL's $511 million proposal to install new pollution control equipment at its Petersburg Generating Station and at Harding Street Unit 7, which is pending in IURC Cause No. 44242.

The OUCC - which represents consumer interests in cases before the IURC - is still evaluating this case and is scheduled to file testimony on August 22, 2013. Additional parties that have intervened in this case - including the Citizens Action Coalition of Indiana (CAC), the IPL Industrial Group, and Vectren Energy Delivery – are also scheduled to file testimony on August 22, 2013.

More information on this case is available online at www.in.gov/oucc/2742.htm.

Consumers who wish to submit written comments in this case may do so via the OUCC’s Website at www.in.gov/oucc/2361.htm, or by mail, email or fax:

Source: Indiana Office of Utility Consumer Counselor

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