Indianapolis Power & Light Co. has filed a $332 million wastewater compliance plan with the Indiana Utility Regulatory Commission. The utility wants to use natural gas to fire its wastewater plant, instead of coal. October 16, 2014

News Release

INDIANAPOLIS, Ind. — Indianapolis Power & Light Company (IPL), a subsidiary of The AES Corporation (NYSE: AES), today filed its wastewater compliance plans with the Indiana Utility Regulatory Commission (IURC). IPL is seeking approval for a Certificate of Public Convenience and Necessity (CPCN) to install and operate wastewater treatment technologies at the Petersburg Generation Station in southern Indiana and Harding Street Generation Station in Indianapolis. As previously announced, part of IPL's plans to keep costs low for customers and comply with the new wastewater requirements is to repower Unit #7 at the Harding Street plant from coal-fired to natural gas-fired. If approved, IPL will invest $332 million in these projects to ensure compliance with the wastewater treatment requirements in 2017.

“Our strategy to comply with current and future environmental rules includes upgrades to our existing plants, conversion of some units from coal to natural gas, and the replacement of retiring units with natural gas, wind and solar generation,” said Kelly Huntington, IPL President and CEO. “This combination results in a reliable and more diversified generation portfolio at the least cost for our customers.”

If IPL's plans are approved, by 2017, IPL customers will benefit from a more balanced electricity generation portfolio consisting of 45 percent natural gas, 44 percent coal, 10 percent wind and solar and 1 percent oil.

Indiana Water Partners (IWP), a joint venture between Bowen Engineering and Burns & McDonnell, was awarded the Engineering, Procurement and Construction contract for the installation of wastewater treatment technologies. Construction at the Petersburg Generation Station will bring a number of economic benefits to the City of Petersburg including 200 jobs during construction and approximately 10 permanent positions at the plant once construction is complete. Southern Indiana will also benefit from the 200 contractors who will utilize hotels, restaurants, stores and campgrounds.

Compliance with the wastewater treatment requirements and other current and future environmental regulations will continue to increase the cost of electricity for IPL customers. As a result of the new environmental controls, conversions and new generation announced to-date, IPL customers should anticipate an average increase of approximately 3 percent per year in the cost of their electricity over the period from 2013-2018.

IPL currently has the lowest residential rates of the largest 20 cities in the United States. Customers concerned with the impact that complying with EPA standards will have on their future bills can find information about how to reduce their energy usage at IPL continues to offer a wide variety of programs to help customers manage their electric bills by using energy more wisely.

As IPL continues to look at its customers’ long-term needs, the utility will remain focused on cleaner, more efficient and cost-effective generation options. For more information about IPL’s planned generation, go to

Source: Indianapolis Power & Light

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