This settlement builds on a previous agreement from 2012 that required Edwardsport’s shareholders to pay the full construction and start-up costs.
Duke Energy agrees not to charge customers for $87.5 million of the operating costs of the Edwardsport plant, $2.5 million more than the original agreement.
If approved, a settlement reached Friday would mean a $1 million rate credit to residential customers, with another $85 million in additional savings.
A recent report shows the plant’s capacity factor – the amount of coal the plant is gasifying – was just more than 10 percent for the month of April.
Duke Energy is seeking to recover construction costs for the Edwardsport coal gasification plant in hearings that begin Wednesday.
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.