The court is determining whether a contract between the state and the company in charge of the coal gasification plant is valid.
EPA regulations are putting a strain on older coal plants, including some in Indiana.
A mine in Southwestern Indiana stopped coal removal operations last week and has begun an environmental restoration process.
The public hearing on the energy master plan is scheduled next Monday at Whittenberger Auditorium in the Indiana Memorial Union.
Peabody officials say 230 workers will lose their jobs when the mine closes.
University officials say the IU coal plant is ahead of EPA regulations.
Renewable energy advocates want Indiana University to follow the lead of 19 other campuses that plan to close their coal power plants.
The Bloomington Rail Trail made it on a list with 19 others as "coal ash dump sites" in the U.S.
Republican gubernatorial candidate Jim Wallace has announced his economic plan.
Indiana ranks particularly high in chromium and nickel. Energy companies say they are taking steps to decrease their emissions.