Price of coal gasification plant soars
EDWARDSPORT, INDIANA - Duke Energy officials say the cost of the coal-gasification power plant it's building in southwestern Indiana has risen another $150 million, boosting the project's estimated price to $2.5 billion.
Officials of Charlotte, N.C.-based Duke Energy said that the 630-megawatt plant's cost has gone up because its design has required more steel, piping, electric cable and other materials than originally expected. And the latest increase won't be the project's last.
Duke Energy Indiana President Jim Stanley says the utility will provide another cost revision by next March covering labor, engineering, procurement and plant startup costs.
This price increase and future increases must be approved by state regulators before they can be passed onto Duke ratepayers.
Related News
Alberta Introduces New Electricity Rules
EDMONTON - The Alberta government is overhauling its electricity regulations, a move aimed at reducing spikes in electricity prices for consumers and businesses. The new rules, set to be introduced this spring, are intended to stabilize the default electricity rate paid by many Albertans.
Background on the Rate of Last Resort
Albertans currently have the option to sign up for competitive contracts with electricity providers. These contracts can sometimes offer lower rates than the default electricity rate, officially known as the Regulated Rate Option (RRO). However, these competitive rates can fluctuate significantly. Currently, those unable to secure these…
