Major Power Project Receives Key Approval

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A more than half-billion dollar proposal to modernize two coal power plants has secured Indiana Utility Regulatory Commission approval. Indianapolis Power & Light Co. says the upgrades will reduce harmful emissions at facilities in Pike and Marion counties. IPL expects the initiative to create up to 400 construction jobs at its peak. A spokeswoman with the utility says the company estimates customers could see electricity rates jump an average of 2-to-3 percent per year through 2018.

August 15, 2013

News Release

INDIANAPOLIS, Ind. - Indianapolis Power & Light Company (IPL) announced today the Indiana Utility Regulatory Commission (IURC) has approved its plans to invest $511 million in new environmental controls that will reduce mercury emissions by approximately 80 percent at its Petersburg and Harding Street coal-fired power generating plants. The expenditure is part of IPL's plans to comply with new Utility Mercury and Air Toxic Standards (MATS) set by the EPA.

"IPL is focused on continuing to provide safe, reliable and affordable energy by retiring older, less efficient units and investing in cleaner generation," said IPL President Kelly Huntington.

"As we prepare to meet the future needs of our customers we are reducing emissions dramatically in our coal-fired units and working towards a balanced electricity generation portfolio that also includes natural gas, solar and wind."

Major construction is set to begin this fall at the Petersburg Generation Station. IPL previously selected Indiana Environmental Partners (IEP) for engineering, procurement and construction of the new controls. In addition to reducing emissions, the project will have a major economic impact on the town of Petersburg and Pike County. The project will create an estimated 350 to 400 jobs during the peak construction period.

This spring, IPL filed a request with the IURC to invest $631 million into a new combined-cycle gas turbine (CCGT) power station near Martinsville. If approved, the new natural gas plant will generate about 650 megawatts of electricity more efficiently and with fewer environmental emissions. Additionally, the project could add 660 construction jobs and 25 permanent positions at the new plant. The project will bring more than $1.6 million per year into Morgan County through local tax revenue. The overall economic benefit to the state during construction is more than $857 million and another $48 million per year during operation.

As IPL prepares to power the future, the utility is working towards a balanced electricity generation portfolio. In fact, in 2007, IPL's generation resources included 86 percent coming from coal and oil. Current plans, subject to IURC approval, will include 55 percent coal, 33 percent natural gas, 10 percent wind and solar, and 2 percent oil by 2017.

About Indianapolis Power & Light Company (IPL):

Indianapolis Power & Light Company provides retail electric service to more than 470,000 residential, commercial and industrial customers in Indianapolis, as well as portions of other Central Indiana communities surrounding Marion County. During its long history, IPL has supplied its customers with some of the lowest-cost, most reliable power in the country. IPL has received the "Highest Customer Satisfaction With Business Electric Service in the Midwestern U.S. among Midsize Utilities," according to J.D. Power and Associates' 2013 Electric Utility Business Customer Satisfaction Study. For more information about the company, please visit www.IPLpower.com.

Indianapolis Power & Light received the highest numerical score among midsize utilities in the Midwestern region in the proprietary J.D. Power and Associates 2013 Electric Utility Business Customer Satisfaction StudySM. Study based on 25,794 total online interviews ranking 12 providers in the Midwest (IA, IL, IN, KS, KY, MN, MO, NE, ND, OH, SD, WI). Proprietary study results are based on experiences and perceptions of business users surveyed April-June and September-December 2012. Your experiences may vary. Visit jdpower.com.

Source: Indianapolis Power & Light Co.