• Skip to Content
  • Skip to Main Navigation
  • Skip to Search

Indiana University Bloomington Indiana University Bloomington IU Bloomington

Open Search Menu
  • Home
  • Undergraduate
    • Why O’Neill?
    • Degrees & Majors
    • Minors & Certificates
    • Courses & Advising
    • Academic & Leadership Programs
    • How to Apply
    • Cost & Financial Aid
    • Contact & Visit
  • Masters
    • Academic & Leadership Programs
    • Why O’Neill?
    • Degrees & Certificates
    • How to Apply
    • Cost & Financial Aid
    • Contact & Visit
  • Doctoral
    • Why O'Neill?
    • Degrees
    • How to Apply
    • Cost & Financial Aid
    • On the Job Market
    • Recent Placements
    • Current Students
    • Dissertations
    • Contact
  • Online
    • About
    • Online Programs
    • How to Apply
    • Faculty
    • Student Life
    • Contact Us
  • Faculty & Research
    • Faculty Directory
    • Research
    • Speaker Series
    • Conferences
    • Journals & Books
  • Career Services
    • Explore Careers & Outcomes
    • For Students
    • For Alumni
    • For Employers
    • Careers Login
    • Contact Us
  • Student Life
    • Life at O’Neill
    • Life in Bloomington
    • For International Students
    • Resilience and Wellbeing Initiative
    • Mentor Collective
    • O’Neill International
    • Leadership Opportunities
    • Student Organizations
    • Virtual Tour
  • About
    • Dean’s Welcome
    • About Paul H. O'Neill
    • 50th Anniversary
    • Mission, Vision, and Values
    • Strategic Goals
    • Rankings
    • School Profile
    • Global and International Partnerships
    • Office of Diversity, Equity, and Inclusion
    • Bloomington & Indianapolis
    • Careers at O'Neill
    • Administration & Staff Directory
    • Dean’s Council
  • Search
  • Alumni & Giving
  • Contact Us
  • Events
  • News & Blog
  • O’NEILL IUPUI
  • CURRENT STUDENTS
  • Home
  • News
  • News Archive
  • 2010
  • Duke Energy plans increase to help pay for $2.88B coal plant

Duke Energy plans increase to help pay for $2.88B coal plant

By: Daniel Human, Kokomo Tribune

Thursday, September 9, 2010

An almost $3 billion coal-to-gas power plant that Kokomo’s main electricity provider is building in southern Indiana will result in a more efficient approach to energy, the company’s president said Wednesday.

But customers will also see the effect of the high price tag in their bills, said Mike Reed, president of Duke Energy.

The company says its 780,000 Indiana residential customers will see an increase in their electricity bills, pending state approval, of about 19 percent by the time the $2.88 billion plant in Edwardsport is online in 2012. Cost of service for industrial customers will increase a little more than 20 percent on average, Reed said.

The company has a hearing in October with the Indiana Utility Regulatory Commission, the state agency that monitors billing rates and other utility matters. The hearing will, in part, address Duke’s request to increase its rates statewide to compensate for the Edwardsport project.

If the IURC approves the rate increases, Duke will implement them in six-month intervals to avoid a “rate shock” by having a large, sudden increase.

The plant, an Integrated Gasification Combined Cycle operation, will be the largest of its kind when it opens. It will also be a “clean coal” plant with 40 percent less carbon dioxide emissions than most other plants of its size, Reed said.

The construction project, and the accompanying rate increases that consumers will pay to fund it, has drawn heat from consumer and environmental groups, such as the Citizens Action Coalition.

Kerwin Olson, the coalition’s program director, said the increasing cost of the project, which started in 2006 at $1.2 billion, is too large of an investment that consumers are paying for.

“First and foremost, we don’t need the plant,” he said. “We simply don’t need the power. The grids are at excess capacity. ... It’s far too expensive. It’s a science project, an experiment. And they’re gouging the public to pad their pockets.”

The coalition is one of four groups that is formally intervening on Duke’s filing with the IURC.

The Edwardsport plant is about 65 percent complete. The project so far has created about 2,500 construction jobs, with another 200 expected to come in over the next few weeks.

About 120 people will work at the plant once it is operational. The approximately 2 million tons of coal it will consume every year will also support about 170 mining jobs, Reed said.

Keeping Coal

Duke Energy is investing 10 figures in a coal plant because, although wind and other forms of green energy are gaining momentum, coal is the dominant and most efficient resource available in Indiana, Reed said.

The company has begun diversifying its energy portfolio by investing in wind, hydro and biomass energy, with experimentation with solar. But the resources account for a few percent of Duke’s total energy sales because the output can’t keep up with the costs as well as coal, Reed said.

“As I look at them, I think it will continue to grow,” he said, “but I think it will be at a more moderate pace.”

The new plant will also allow the company to tap more into Indiana’s coal supply, Reed said, which is high in sulfur. The operation will strip the sulfur from the coal, then heat it into a synthetic gas.

The process should also reduce carbon dioxide emissions by about 40 percent compared to other coal plants of its size, he said.

Duke expects the Edwardsport plant to last about 50 years, he said.

“I don’t foresee for many, many years us getting out of the coal business,” he said.

Investing further in coal holds as a sound business investment for Indiana energy companies, said Sanya Carley, an assistant professor at Indiana University’s School of Public and Environmental Affairs.

But long-term factors, such as new public policies, could change that climate by driving up coal's costs, she said.

“There’s no way of knowing, honestly, what our future will be 50 years from now,” she said. “... Some part of coal is going to be a part of that mixture.”

Daniel Human is the Kokomo Tribune business reporter. He can be reached at (765) 454-8570 or at daniel.human@kokomotribune.com.

  • Undergraduate
    • Why O’Neill?
    • Degrees & Majors
      • Bachelor of Science in Public Affairs (BSPA)
      • Bachelor of Science in Environmental Science (BSES)
      • Bachelor of Arts in Environmental and Sustainability Studies (BAESS)
      • Bachelor of Science in Healthcare Management and Policy (BSHMP)
      • Bachelor of Science in Arts Management (BSAM)
    • Minors & Certificates
    • Courses & Advising
      • Advising
        • Resources
        • Advising Staff
      • Courses
        • General Ed and Intro
        • Topics V450
        • Topics V456
        • Topics V203 (previously V260)
    • Academic & Leadership Programs
      • O’Neill Launch
      • Civic Leaders Center
        • Director’s Welcome
      • Civic Leaders Summer Scholar Program
      • NextGeneration Leadership Program
      • Indiana Leadership Program
      • Washington Leadership Program
        • Courses & Faculty
        • Estimated Costs
      • Honors Program
        • Honors Research Symposium
        • Student Spotlights
      • Required Internship
      • Accelerated Master's Program
      • O'Neill + Maurer JD
    • How to Apply
      • Current IU Bloomington Students
      • High School Students
      • Transfer students
    • Cost & Financial Aid
      • O’Neill Scholarships
        • For Current Students
        • For Incoming Students
      • Non-O’Neill Funding Opportunities
    • Contact & Visit
  • Masters
    • Academic & Leadership Programs
    • Why O’Neill?
      • Leadership Seminar Series
      • Capstone
      • Mission and Goals
    • Degrees & Certificates
      • Master of Public Affairs (MPA)
        • Core Curriculum
        • Concentrations
        • Washington, D.C. Accelerator Program
        • Capstone
        • Experiential Requirement
      • Master of Science in Environmental Science (MSES)
        • Core Curriculum
        • Concentrations
        • Capstone
        • Experiential Requirement
      • MPA-MSES Dual Degree
        • Components & Concentrations
      • Master of Environmental Sustainability (MES)
      • Master of Science in Healthcare Management (MSHM)
        • Curriculum
        • Executive Education
        • Careers
      • Master of International Affairs (MIA)
      • MPA-MIA Dual Degree
      • Master of Arts in Arts Administration (MAAA)
        • Curriculum
        • Experiential Requirements
        • Faculty Profiles & Publications
        • For Jacobs Students
        • For Doctoral Students
      • MAAA-MPA Dual Degree
      • International Dual Degrees
      • Additional Dual Degrees
        • MAAA Dual Degrees
        • MPA Dual Degrees
        • MSES Dual Degrees
      • Certificates
    • How to Apply
    • Cost & Financial Aid
      • Fellowships & Financial Resources
      • Prior Professional Experience Benefits
      • Volunteer Benefits & Programs
        • AmeriCorps
        • Peace Corps
        • Teach for America
      • Military and Veteran Benefits
      • Funding for Current Students
      • For Incoming Graduate Students
      • Funding for International Students
      • Federal Financial Aid
    • Contact & Visit
      • Subscribe to our Newsletter
      • Virtual Sessions & Webinars
      • Experience Day
      • Schedule a Visit
      • Connect with a Current Student
      • O'Neill Visits You
  • Doctoral
    • Why O'Neill?
    • Degrees
      • Ph.D. in Public Affairs
        • Environmental Policy
        • Public Finance
        • Public Management
        • Public Policy Analysis
      • Ph.D. in Environmental Science
    • How to Apply
    • Cost & Financial Aid
      • Public Policy Fellowship
      • Environmental Science Fellowships
    • On the Job Market
    • Recent Placements
    • Current Students
    • Dissertations
    • Contact
  • Online
    • About
      • Our Mission and Goals
    • Online Programs
      • Online MPA
        • Degree Requirements and Curriculum
        • O’Neill Online Week
      • Why O’Neill ?
      • Online Graduate Certificates
        • Nonprofit Management
        • Public Management
        • Public & Nonprofit Evaluation
    • How to Apply
      • Tuition & Fees
      • Financial Aid
    • Faculty
    • Student Life
      • Meet Our Students
      • Meet Our Alumni
      • For Professionals
      • For Military Students
      • Helping You Succeed
    • Contact Us
      • Information Sessions
  • Faculty & Research
    • Faculty Directory
    • Research
      • Covid-19
      • Racial Justice
      • Research Areas
      • Faculty Research Publications
      • Laboratories
      • Centers & Initiatives
      • Working Research Groups
        • Chemicals Policy
        • Clean Vehicles
        • Regulatory Reform
        • Shale Gas
    • Speaker Series
    • Conferences
    • Journals & Books
  • Career Services
    • Explore Careers & Outcomes
    • For Students
      • Register Your Internships
      • Greater Good Internship Fund
    • For Alumni
    • For Employers
    • Careers Login
    • Contact Us
  • Student Life
    • Life at O’Neill
    • Life in Bloomington
    • For International Students
    • Resilience and Wellbeing Initiative
    • Mentor Collective
    • O’Neill International
    • Leadership Opportunities
    • Student Organizations
    • Virtual Tour
  • About
    • Dean’s Welcome
    • About Paul H. O'Neill
    • 50th Anniversary
    • Mission, Vision, and Values
    • Strategic Goals
    • Rankings
    • School Profile
    • Global and International Partnerships
      • Vietnam Initiatives
        • Vietnam Young Leaders Award
    • Office of Diversity, Equity, and Inclusion
      • Activate O'Neill
      • Support & Resources
      • Who We Are
    • Bloomington & Indianapolis
    • Careers at O'Neill
    • Administration & Staff Directory
    • Dean’s Council
  • Alumni & Giving
    • Alumni
      • Get Involved
      • Alumni Events
      • Alumni Map
      • Alumni Stories
      • Alumni Recognition
      • Advisory Groups
        • Distinguished Alumni Council
        • Alumni Board of Directors
    • Giving
      • Areas to Support
      • Ways to Give
      • Our Supporters
    • Alumni Communications
    • The Future Fund
    • Contact Us
  • Contact Us
  • Events
  • News & Blog
    • Media Resources
    • Media Report Archive
    • News Archive
  • O’NEILL IUPUI
  • CURRENT STUDENTS