Pushback Over Duke Energy’s $5.3B Cayuga Gas Plant Plan
CAYUGA, Ind — Duke Energy plans to retire two coal-burning units at the Cayuga Generating Station in west-central Indiana and replace them with new natural gas units.
The company says the upgrade is necessary to provide more electricity for the area as its population and businesses grow. However, the project could cost up to $5.3 billion once interest and other expenses are included.
The Office of Utility Consumer Counselor (OUCC), a state agency representing utility customers, is urging regulators to reject Duke’s proposal.
The OUCC argues that Duke should first consider less expensive alternatives, such as upgrading the existing coal units or converting them to gas, rather than building new units from scratch.
They also warn that Duke may have underestimated long-term costs associated with building and operating the new gas plant.
If the project moves forward, customers could see their electric bills increase by about $19 per month after construction is completed.
Duke Energy says the bill increases would start gradually, at less than $2 a month, and believes the new units will save money over time by providing reliable power.
Duke insists Indiana needs additional energy now and that delaying the project isn’t practical.
The company says the new gas units will meet growing demand and ensure reliable service for customers. The final decision rests with state regulators.
