Final approval granted for Vermillion purchase

December 30, 2011

NATURAL GAS-FIRED GENERATING PLANT WILL ADD 80 MW TO G&T's ASSETS

Wabash Valley Power has received approval from the Indiana Utility Regulatory Commission (IURC) to purchase additional output from a natural gas-fired generating unit at the Vermillion Generating Station in Vermillion County, Indiana. 
 
Wabash Valley currently owns the equivalent of two of the station’s eight 80 MW units, with Duke Energy Ohio owning the equivalent of the other six.  With all approvals received, WVP will grow it’s ownership to 240 MW at the facility. Duke Energy Indiana will purchase the remaining output. 
 
“We viewed this as a rare opportunity, when looking at the business partners, the economics and our need for long-term peaking power commitments," explained Lee Wilmes, Vice President of Power Supply, WVP. "The addition of this peaking power means that our Member Systems have additional resources, at fair prices, with which to supply their Members.  And we're working with a business partner with whom we have a solid and mutually respectful working relationship," he added.   

Peaking plants are typically used on days when the temperatures reach extreme highs or lows. Most peakers run on natural gas, which generates more fuel per megawatthour.  Natural gas plants, considered a clean fuel source for the production of electricity, are able to start up with very little lead time, making them ideally suited to serve as peakers.