Customers of Duke Energy will pay $2.595 billion of the cost of the Edwardsport power plant -- plus hundreds of thousands of dollars in financing costs – an amount sharply higher than the originally approved cost.
The Indiana Utility Regulatory Commission approved a settlement agreement on the plant’s costs between Duke, its largest customers and the Indiana Office of Utility Consumer Counselor.
The ruling ends over two years of fighting over who should pay a host of cost overruns.
Construction problems had pushed the cost of the massive coal-gasification plant from $1.985 billion in 2006 to about $3.55 billion today.
Under the agreement, Duke Energy will pay roughly $900 million out of its own pocket. Customers, in turn, will see a 14.5 percent rate hike over two years.
Of that, customer bills have already increased 5 percent, meaning rates will still rise an additional 9.5 percent.