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Opponents of Duke Energy’s Edwardsport Plant Lose Battle As Duke Increases Monthly Charges

Opponents of Duke Energy’s Edwardsport coal gasification plant have lost another battle in the fight to keep Duke from passing on plant development costs to consumers.

Last week, the Indiana Court of Appeal unanimously upheld an Indiana Utility Regulatory Commission ruling in 2012 to allow Duke to increase by 16  percent its monthly charges to its 790,000 Indiana customers to cover increases in costs of its Edwardsport plant.

The appeal to the courts to overturn the IURC deal with Duke was launched by several environmental and consumer groups.

The 618-megawatt plant near Edwardsport had an original 2007 cost estimate of $1.9 billion, but that eventually ballooned to about $3.5 billion. In a 2012 settlement between Duke and the IURC, the commission limited Duke to passing on $2.6 billion of construction costs to its customers. This settlement included the 16 percent rate increase that was the subject of the court appeal.

Duke had been applying this increase to it customers bills since then and, with the court ruling, will continue to do so.

Kerwin Olson of the Citizens Action Coalition say they appealed and are waiting on the ruling.

“We have every intention of taking this as far as we can,” Olson says.

Olson estimates that Duke’s Indiana customers are paying about 15 dollars monthly for the plant which went online last summer.

Since then, it has operated between 10 and 60 percent of capacity.

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