(Cayuga IN) – A state agency that looks out for utility customers says Duke Energy’s plan to shut down part of an old coal plant in Indiana and replace it with natural gas units costs too much and could hit regular people in the wallet.
Duke wants to retire two coal-burning units at the Cayuga Generating Station in west-central Indiana and build gas units instead. The company says this would provide more electricity, which is needed as more people and businesses move into the area. But the whole project could cost as much as $5.3 billion once interest and other costs are added in.
The Office of Utility Consumer Counselor, or OUCC, is asking state regulators to deny the plan. They say Duke should first look at other options, like upgrading the coal units or converting them to gas, before starting from scratch.
If the plan goes through, your electric bill could go up. State estimates say the cost could rise by around $19 a month once construction is complete. Duke says the increases would happen slowly, starting at less than $2 per month. The company says the upgrades will help save money over time.
The OUCC says Duke may not have looked hard enough at cheaper options. They also say Duke may have left out some of the long-term costs that come with building and running a new gas plant. Some experts also worry that by the time the plant is done, it could already be outdated as new energy technology becomes more common.
Duke says Indiana needs more power now, and waiting isn’t realistic. They say the new units would provide reliable energy and meet the state’s growing demand. State regulators will have the final say.
(Story by Network Indiana)
