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Indiana Office of Utility Consumer Counselor

OUCC > Electric > Cases of Note > Duke Energy Environmental Compliance Cases Duke Energy Environmental Compliance Cases

Duke Energy has sought Indiana Utility Regulatory Commission (IURC) approval to implement clean coal technology at existing generation facilities in the following cases, including approval to recover the costs through rates.

Phase 1 Environmental Compliance Plan

A settlement agreement among PSI Energy, the Indiana Office of Utility Consumer Counselor (OUCC), and a group of industrial customers was approved in May 2006 (IURC Cause Nos. 42622 & 42718). It allowed the utility to comply with sulfur dioxide, nitrogen oxide and mercury reduction requirements under the U.S. Environmental Protection Agency's (EPA's) Clean Air Interstate Rule (CAIR) and Clean Air Mercury Rule (CAMR), with construction projects at the utility's Cayuga, Gallagher and Gibson generating stations completed between 2005 and 2012.

Phase 2 Environmental Compliance Plan

In April 2013, Duke Energy received authorization to install new pollution control equipment at its Cayuga, Gallagher and Gibson generating stations, primarily to reduce mercury emissions (IURC Cause No. 44217). The utility also received approval to recover the construction costs through rates, with rate adjustments to be requested every six months.

In filings with the IURC, Duke Energy stated that the U.S. Environmental Protection Agency's (EPA's) Utility Mercury and Air Toxics Standard (MATS) rule was the primary reason for its request. The OUCC filed testimony with the IURC on November 29, 2012, recommending reductions to the costs Duke Energy was seeking to recover. The Commission's order reduced the allowed cost recovery by more than $50 million from the utility's original request.

Phase 3 Environmental Compliance Plan

In a pending case (IURC Cause No. 44418), Duke Energy is seeking approval of additional pollution control equipment at various generating stations, focusing on reductions of particulate matter and mercury emissions in order to comply with the U.S. Environmental Protection Agency's (EPA's) Utility Mercury and Air Toxics Standard (MATS) rule.

The utility's testimony has estimated total capital costs for Phase 3 at $113 million (not including financing). On March 18, 2014, the OUCC and Duke Energy filed a settlement agreement and supporting testimony. The filings are available by visiting the IURC website and entering docket number 44418. 

 

To review all public filings in these cases, please visit the IURC's electronic document system and enter the appropriate docket number.

This page will be updated based on future developments.

4-4-14