Groups seek probe of Duke plant

A coalition of environmental and citizens' groups called on Indiana regulators to launch a formal investigation into a growing list of problems and delays that have sharply crimped output of Duke Energy's controversial Edwardsport power plant.

In a motion filed Thursday with the Indiana Utility Regulatory Commission, the groups say the plant has been beset by failures and outages that have cut deeply into its ability to generate electricity, even as customers continue to pay for construction and repairs on their monthly electric bills.

The plant, in southwestern Indiana, generated only 4 percent of its maximum capacity in January. From June to December, it generated an average of 37 percent of maximum capacity.

A typical household using about 1,000 kilowatt hours a month is now being charged $12.67 per month by Duke for costs related to the plant.

The groups seeking the investigation are Citizens Action Coalition of Indiana, Save the Valley, Sierra Club and Valley Watch. All are longtime critics of the $3.5 billion plant, one of the largest, most expensive and most disputed construction projects in Indiana history.

In a 24-page motion, with numerous exhibits, the groups argue that Duke prematurely declared Edwardsport to be in commercial operation last summer, before it was "actually used and useful for the convenience of the public."

Six days after the opening, the plant broke down and remained offline for nearly a month. Since then, the plant has suffered numerous problems, including leaking valves, cracked pipes and frozen machinery.

The environmental groups say that by opening the plant before it was ready, Duke could try to recover repair costs from electricity customers, despite a settlement the company reached in 2012 the set a cap of $2.595 billion, plus millions in financing costs.

Duke said Thursday an investigation is unnecessary because it regularly provides updates on plant operations to the IURC.

"A forum already exists to discuss plant operations," Duke spokeswoman Angeline Protegere wrote in an email.

She added that the plant is complex and will require time to work out operational issues.

The settlement followed years of legal fighting over the plant, which became enveloped in an ethics cloud involving a revolving door between the regulatory commission's staff and the utility's executives.

The 618-megawatt plant converts coal to synthetic natural gas and uses it to create electricity. It's the largest plant of its kind in the world.

Call Star reporter John Russell at (317) 444-6283. Follow him on Twitter: @johnrussell99.