Coal-Gasification Plant Cost Reaches $2.5 Billion

By Nina Settappa

Coal-Gasification Plant Cost Reaches $2.5 Billion

June 18, 2010 Updated Nov 25, 2009 at 7:45 AM EST

EDWARDSPORT, Ind. (AP) - Duke Energy says 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.

Charlotte, N.C.-based Duke Energy said Tuesday 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 start up costs.

This week's price increase and future increases must be approved by state regulators before they can be passed onto Duke ratepayers.

(Copyright 2009 by The Associated Press. All Rights Reserved.)




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