Indiana utility officials say a new plan could provide millions of dollars in savings for Duke Energy ratepayers in regards to cost recovery for the Edwardsport coal gasification plant in Vigo County.
The Indiana Office of Utility Consumer Counselor says if approved, a settlement reached Friday between Duke Energy, the IOUCC and Nucor Steel-Indiana would mean an immediate $1 million rate credit to residential customers, with another $85 million in additional savings.
In a statement, IOUC Counselor David Stippler said the plant's operating costs have risen while failing to meet performance expectations.
He said the new agreement will ensure that a significant portion of rising plant-related costs will not be the responsibility of Duke Energy ratepayers.
The president of Duke Energy Indiana said in a statement the agreement puts Duke on track to put some outstanding regulatory issues behind it, adding that the plant's production has "continued to improve."
The Indiana Utility Regulatory Commission must still approve the agreement.