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Duke Energy's electric generating plant in Edwardsport, Ind. has recently started commercial operations. The company received Indiana Utility Regulatory Commission (IURC) permission to build the plant in 2007 and has since sought cost recovery for capital and various operating costs of the project through rates, as allowed by state law, in proceedings before the IURC.
On December 27, 2012, the IURC approved a settlement agreement among the OUCC, a group of Duke Energy's large industrial customers, Nucor Steel and Duke Energy. The approved agreement permanently caps the project's costs and shields ratepayers from nearly $900 million in cost overruns. For a summary, please see the OUCC's April 30, 2012 and December 27, 2012 news releases.
The IURC's December 27 order is 134 pages in length.
In ongoing proceedings, the OUCC continues to closely monitor the Edwardsport project's costs in light of the 2012 order. This includes close scrutiny of Duke Energy's various rate tracking filings to ensure that the utility only receives appropriate cost recovery, and receives it through the appropriate tracker mechanism.
In the pending IGCC recovery cases, the OUCC is recommending $114.8 million in ratepayer relief:
Duke Energy recovers its costs for the project through a billing component known as the IGCC rider. As allowed by state law, Duke may request adjustments to the IGCC rider twice each year. The IURC has adjusted this rider to reflect current construction costs on a semi-annual basis.
All public documents in these cases, including formal testimony, are available on the IURC Website by clicking here and entering docket number 43114. Key documents in the proceedings can be found under 43114 – IGCC-4S1.
This page will be updated as warranted.