The cap would be $2.72 billion, excluding financing costs on that amount, a waiver of the deferred tax financial incentive authorized by the commission in 2007 and a reduction in depreciation expense charged to customers. The proposal is subject to Indiana Utility Regulatory Commission approval.
In April 2010, the company announced that the Edwardsport project’s scale and complexity would add approximately $530 million to the previously approved $2.35 billion estimate. That brought the total estimated cost of the plant to $2.88 billion, or $2.72 billion, not including financing costs.
The company’s proposal is part of the commission’s proceedings to review the cost increase request.
The Edwardsport coal gasification plant is currently under construction and is scheduled to be operating in the fall of 2012. It is being built to replace approximately 540 to 1,100 MW of older, coal-fired generation expected to retire due to EPA regulations.
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