| Duke Energy to Pay $90M for Indiana Power Plant Dispute | |
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Duke Energy Corporation DUK agreed to pay a $90 million charge, which will be reflected in the third quarter of 2015, to cover a settlement with consumer groups in Indiana related to operating costs of its $3.5 billion Edwardsport coal gasification plant.
Per the settlement, Duke has agreed not to bill customers deferred operating costs of $85 million. It has also agreed to allot $5 million for attorney fees, litigation costs and additional assistance to low-income customers and provide resources for conducting research on battery storage.
The company will also need to restrict operating, maintenance and capital costs at the plant, which will be billed to customers between 2016 and 2017.
The settlement is yet to receive approval from the Indiana Utility Regulatory Commission. A decision is expected in the first half of 2016.
This 618-megawatt Edwardsport plant began commercial operations in Jun 2013. It gasifies coal, strips out pollutants, and then burns the clean gas to produce electricity. It is the first important coal-fired power plant constructed in Indiana in over two decades. The company serves about 810,000 customers in the state.
Duke Energy had taken pretax charges of about $897 million related to the project through the end of 2014.
Consumer groups had complained that the plant was not placed properly in commercial operation and were unsure of its performance. Hence, they sought to limit the company’s billing of the customers.
Indiana Office of Utility Consumer Counselor, the Duke Energy Indiana Industrial Group and Nucor Steel-Indiana participated in the settlement.
Zacks Rank
Duke Energy currently has a Zacks Rank #3 (Hold). Some better-ranked companies in the utility sector include DTE Energy Company DTE, American Electric Power Co. AEP and Edison International EIX, each carrying a Zacks Rank #2 (Buy).
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Duke Energy
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CODE : DUK |
ISIN : US26441C2044 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Duke Energy is a and oil producing company based in United states of america. Duke Energy is listed in United States of America. Its market capitalisation is US$ 80.6 billions as of today (€ 72.5 billions). Its stock quote reached its lowest recent point on May 02, 2003 at US$ 10.00, and its highest recent level on September 19, 2024 at US$ 115.14. Duke Energy has 700 299 523 shares outstanding. |