PLAINFIELD, Ind., Sept. 21, 2018 /PRNewswire/ -- If approved by
state utility regulators, Duke Energy Indiana customers will pay
$30 million less for costs at the
company's Edwardsport coal
gasification power plant due to an agreement with some of the
state's consumer groups.
The proposal, which was filed with state regulators today, is
subject to Indiana Utility Regulatory Commission approval.
Participants in the agreement are the Indiana Office of Utility
Consumer Counselor, the Indiana Industrial Group representing Duke
Energy's Indiana customers, and
Nucor Steel-Indiana.
The agreement will remain in effect until new rates are
established in the company's next base rate case, which is expected
to be filed in mid-2019 with rates effective in mid-2020. It
addresses the pending Edwardsport
filing at the commission and eliminates the need for future filings
until the overall rate case.
"If approved, this agreement saves customers money and provides
rate certainty between now and our next base rate review," said
Duke Energy Indiana President Melody
Birmingham-Byrd. "Importantly, Edwardsport's performance has been strong,
setting a record of 464 days of continuous net generation through
April 2018."
Edwardsport is a dual-fuel
plant that can run on coal and natural gas, and in 2017 it was
available for service 99 percent of the time when factoring in both
fuels.
Because of the agreement's provisions, Duke Energy expects to
take a pretax charge of approximately $32
million in the third quarter of 2018.
Key provisions of the proposed settlement include:
- The company has agreed not to bill customers $30 million of operating costs deferred since the
plant's in-service date.
- Customer bills will decrease approximately 0.5% and will not be
adjusted for Edwardsport plant costs until the time of a
decision in the company's next base rate case.
- The agreement also designates $1.7
million out of shareholder funds for low-income energy
assistance and renewable energy development.
Background on the Edwardsport project
The 618-megawatt
Edwardsport plant uses
state-of-the-art technology to gasify coal, strip out pollutants,
and then burn that cleaner gas to produce electricity.
This advanced, integrated gasification combined cycle technology
significantly improves plant efficiency. The plant began commercial
operation in June 2013.
About Duke Energy
Duke Energy Indiana's operations
provide about 6,700 megawatts of owned electric capacity to
approximately 820,000 customers in a 23,000-square-mile service
area, making it the state's largest electric supplier.
Duke Energy Indiana is a subsidiary of Duke Energy (NYSE:
DUK).
Headquartered in Charlotte,
N.C., Duke Energy is one of the largest energy holding
companies in the U.S., with approximately 29,000 employees and a
generating capacity of 49,500 megawatts. The company is
transforming its customers' experience, modernizing its energy
grid, generating cleaner energy and expanding its natural gas
infrastructure to create a smarter energy future for the people and
communities it serves.
The company's Electric Utilities and Infrastructure unit serves
approximately 7.6 million retail electric customers in six states –
North Carolina, South Carolina, Florida, Indiana, Ohio
and Kentucky. Its Gas Utilities
and Infrastructure unit distributes natural gas to approximately
1.6 million customers in five states – North Carolina, South Carolina, Tennessee, Ohio and Kentucky. Its Commercial Renewables unit
operates a growing renewable energy portfolio across the U.S.
A Fortune 125 company, Duke Energy was named to Fortune's 2018
"World's Most Admired Companies" list and Forbes' 2018 "America's
Best Employers" list.
More information about the company is available at
duke-energy.com. The Duke Energy News Center includes news
releases, fact sheets, photos, videos and other materials. Duke
Energy's illumination features stories about people, innovations,
community topics and environmental issues. Follow Duke Energy on
Twitter, LinkedIn, Instagram and Facebook.
Media Contact: Angeline
Protogere
Office:317.838.1338; 24-Hour: 800.559.3853
Analyst Contact: Michael
Callahan
Office: 704.382.0459
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SOURCE Duke Energy