The Indiana Utility Regulatory Commission recently allowed Duke Energy to pass the costs of building its Edwardsport plant on to its customers.
The coal gasification plant that has been in construction for the past five years is operating commercially.
Duke Energy officials say they have nearly all the factors in place to burn synthetic gas—the main component in the gasification process.
Duke Energy has agreed to absorb some of the costs it would take to build a new gasification plant in Edwardsport.
The IURC will decide whether Duke customers must pay for close to a billion dollars in cost overruns.
The $12K fine is the maximum allowed by state law.
Duke is now requesting approval of an additional $500 million, promping the Office of Utility Consumer Counselor to recommend a cap on total costs.
When proposed in 2006, Duke estimated the cost at over $1.9 billion. However, that cost has since been revised to nearly $3 billion.
Duke Energy Corporation’s top utility executive has resigned after questionable emails were published in the Indianapolis Star.
Indiana seems far from the dry desserts of the Middle East, but when it comes to energy the United States is considered the Saudi Arabia of coal.