Vectren removes IGCC option, continues exploring generation alternatives

Vectren Corporation today announced that its electric utility has determined to not participate in the proposed Edwardsport Integrated Gasification Combined Cycle (IGCC) generating plant with Duke Energy. Vectren said that based upon a review and analysis of its expected electric generation requirements, the demand for energy on its system could be more appropriately satisfied through other alternatives, including natural gas peaking generation, purchased power, renewable resources and increased customer conservation.

“The Edwardsport IGCC project is a great project for Duke Energy and the State of Indiana, and we strongly support the project and its completion,” said Vectren Corporation Chairman, President and CEO Niel C. Ellerbrook. “Following a thorough review and analysis of our circumstances, we concluded that participating in additional base load capacity of the scale, scope and timing of this project was not compatible with the expected demand on our system. This project was one of several alternatives we considered to meet the future needs of our customers. Our decision today removes this project from our options and permits us to continue our study of other alternatives. We have an obligation to serve our customers in Southwestern Indiana and we will do our best to meet that commitment in the most effective manner possible,” Ellerbrook said.

"We have a need for 300 to 600 megawatts of baseload capacity and, in fact, began this project assuming we might be the sole owner,” said Jim Stanley, president of Duke Energy-Indiana. “In September 2006, we sought IURC approval to own up to 100 percent of the plant. We’ll continue to pursue the plant for our Indiana customers, and we appreciate Vectren’s support,”