Edwardsport plant cost up to nearly $3 billion

November 25, 2011

When Duke Energy Indiana announced plans to build a massive “clean coal” plant in southern Indiana, it estimated the cost at $1.98 billion. A few months ago, the company estimated that it would cost $2.72 billion to construct the coal-gasification facility.

Now that cost has been boosted again, to a whopping $2.98 billion. According to Duke, the increase is the result of “additional cost pressures resulting from unfavorable labor productivity trends and incremental material quantity and scope changes.”

“It’s been 30 years since we last built a coal-fired power plant in Indiana, and constructing a plant today that meets environmental requirements and produces reliable power is expensive,” said Duke Energy Indiana President Doug Esamann. “Customers will not be asked to pay for this cost increase needed to complete the project.” The Indiana Utility Regulatory Commission has already ruled that Duke could pass only $2.35 billion of the cost along to ratepayers.