April 23, 2001

IURC ACTS ON CINCAP VII

The Indiana Utility Regulatory Commission today approved a request from CinCap VII, LLC to build and operate three, 44 MW generating facilities, in Henry County, Indiana.

In Cause No. 41569, the majority of the Commissioners deemed that the increase in generating capacity the facilities bring to Indiana is necessary to maintain reliable electric service. In addition, a significant amount of the power generated is guaranteed to serve Hoosiers. Wabash Valley Power Association has signed a twenty-year contract to purchase 50 MW of capacity and energy generated from the plant.

The efforts of the Concerned Citizens of Henry County did impact this decision. The issues they raised helped shape the final order. The Commission also notes that the Henry County Commissioners support the approval of CinCap VII with the conditions established in this order.

Conditions include:

· Operate facility solely with natural gas.

· Work with Department of Natural Resources to monitor ground water.

· Correct and pay for any well problems to nearby landowners that are determined by the DNR to be caused by the facility.

· Landscape area so visual appearance is similar to other non-residential operations in the area.

· Restore land to a conforming use if the plant is abandoned.

· Commitment to an acoustic design goal of less than 55 dBA at the nearest residential dwelling.

(Audiologists at the IU Medical Center say that is about the level of a normal conversation.)

· Assist with the training of the Cadiz volunteer fire department and Henry

County Local Emergency Planning Committee to ensure they are prepared to respond to any emergencies at the plant.

· CinCap may not change the facility’s capacity or operation without the Commission’s approval.

· There are strict reporting requirements about the construction and operation of the facility.

The facilities will be located on a 33.5-acre site on the south side of Indiana 38, about a mile west of Cadiz. It is estimated that the $67 million plants will be operational to serve the needs of Hoosiers by June 2001.

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