Summary
Duke Energy Corporation, through its subsidiary Duke Energy Indiana, Inc., has filed an 8-K to disclose an updated cost estimate for its Edwardsport clean coal gasification plant project. The company now estimates the total project cost to be approximately $2.88 billion, an increase of about $530 million from the previously approved $2.35 billion. This escalation is attributed to the project's scale and complexity, with most engineering and purchasing now complete. The increased costs are subject to approval by the Indiana Utility Regulatory Commission before they can be passed on to customers through electric rates. The plant remains on schedule for completion in 2012.
Key Highlights
- 1Duke Energy Indiana has increased the estimated cost of the Edwardsport clean coal gasification plant by approximately $530 million.
- 2The new total project cost estimate is $2.88 billion, up from the previously approved $2.35 billion.
- 3The cost increase is due to the project's scale and complexity, with significant design and purchasing phases now complete.
- 4Any cost increases must be approved by the Indiana Utility Regulatory Commission before being included in customer rates.
- 5The Edwardsport plant is still projected to be completed in 2012.
- 6This filing is primarily a Regulation FD disclosure regarding project cost updates.