Summary
Duke Energy Indiana, a subsidiary of Duke Energy Corporation, has filed its fourth petition with the Indiana Utility Regulatory Commission (IURC) regarding the Edwardsport clean coal gasification plant. The company is projecting that the construction cost of the plant will exceed the previously approved estimate of $2.35 billion. Design modifications and scope changes are estimated to increase capital costs by approximately $150 million, or 6%. Duke Energy Indiana will also need to account for additional contingency funds, the exact amount of which will be determined over the next few months as the company finalizes costs for labor, engineering, procurement, and start-up. An updated cost estimate is expected to be submitted to the IURC by March 2010, and any cost increases require commission approval. The plant remains on schedule for completion in 2012.
Key Highlights
- 1Duke Energy Indiana filed its fourth petition with the Indiana Utility Regulatory Commission (IURC) concerning the Edwardsport clean coal gasification plant.
- 2The company projects that the Edwardsport plant's construction cost will exceed the previously approved $2.35 billion estimate.
- 3Design modifications and scope growth are expected to add approximately $150 million (6%) to the capital costs.
- 4Additional contingency funds are required, with the exact amount to be determined in the coming months.
- 5An updated cost estimate will be provided to the IURC by March 2010.
- 6Any cost overruns require approval from the IURC.
- 7The Edwardsport plant is still scheduled for completion in 2012.