The Indiana Utility Regulatory Commission (IURC) has approved Indianapolis Power & Light Company’s (IPL) plan to build a new combined-cycle gas turbine (CCGT) power station near Martinsville and to convert Units 5 and 6 at the Harding Street station from coal to natural gas.

The Indiana Utility Regulatory Commission (IURC) has approved Indianapolis Power & Light Company’s (IPL) plan to build a new combined-cycle gas turbine (CCGT) power station near Martinsville and to convert Units 5 and 6 at the Harding Street station from coal to natural gas.

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The company will invest about $600m in the CCGT power station, while $36m will be invested in the Harding Street station.

Construction on the CCGT station will begin this summer and is expected to be complete in 2017.

The conversion of Harding Street Units 5 and 6 will commence in the fall of 2015 and will be completed in early 2016.

IPL president and CEO Kelly Huntington said that building a CCGT and refueling two of the Harding Street units will ensure the company’s ability to meet the future needs of its customers and diversify its generation portfolio.

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Huntingdon said, "In 2017, IPL’s reliance on coal-fired generation will have decreased to only 54% from nearly 80% ten years before, with natural gas, wind, solar and oil powering the rest of our customers’ needs.

With a generation capacity of around 650MW, the new Martinsville natural gas power plant will reduce the rate of sulfur dioxide (SO2), nitrogen oxide (NOx) and particulate matter emissions by more than 98% as compared to the retiring Eagle Valley units.

"The company will invest about $600m in the CCGT power station, while $36m will be invested in the Harding Street station."

IPL said that it is proceeding with its plans to convert Harding Street generating Units 5 and 6 from burning coal to utilising natural gas to create electricity.

These units have a combined capacity to produce around 200MW of power.

Huntington said, "We are working to balance costs associated with meeting new environmental standards set by the EPA and the affordability for our customers. IPL continues to offer our wide variety of programs to help customers manage their electric bills by using energy more wisely."

The new CCGT power plant will create 660 construction jobs and 25 permanent positions.

After completion, the project will bring approximately $1.6m per year into Morgan County in the form of local tax revenue.

During construction, overall economic benefit to the Indiana state is more than $857m and another $48m per year during operation.

Energy