Indianapolis Power & Light (IPL), a subsidiary of AES Corp. (NYSE: AES), has received approval from the Indiana Utility Regulatory Commission (IURC) to invest $636 million into a new 650-MW combined-cycle gas turbine (CCGT) power station near Martinsville, Indiana and to convert two units at the Harding Street Generation Station totaling 200-MW from coal-fired to natural gas.
“We are committed to delivering to our customers the most cost-effective, environmentally friendly and reliable source of electricity,” said Ken Zagzebski, President of AES’ US Strategic Business Unit. “Building a CCGT and refueling two of our Harding Street units will ensure our ability to meet the future needs of our customers and reduce our reliance on coal-fired generation.”
IPL will fund the project with 45 percent equity and 55 percent non-recourse debt. The approval also allows IPL to earn a return on amounts invested during the construction period.
Conversion of Harding Street Units 5 and 6 will begin in the fall of 2015 and be completed by early 2016.
Construction on the CCGT project will begin in the third quarter of this year and is expected to reach operation in 2017.
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