Hoosier Energy agrees to settlement

The agreement filed in federal court in Indianapolis also requires Bloomington-based Hoosier Energy to pay a $950,000 civil penalty and spend $5 million on environmental projects.

The U.S. Environmental Protection Agency alleged in 2008 that Hoosier Energy violated the Clean Air Act by modifying its Merom power plant in west-central Indiana without first obtaining needed permits.

Hoosier Energy says it will spend between $50 million and $100 million to add air emission controls at the Merom plant and the Frank E. Ratts power plant near Petersburg. The upgrades will cut the plantsÂ’ annual emissions about 24,500 tons.