Outcome of feasibility study could result in third party buyer for Cayuga coal facilities
CAYUGA, Ind. (WTHI) – A recent settlement between Duke Energy and Reliable Energy (REI) could result in the survival of the currently operational coal facility in Cayuga.
Recently, REI settled with Duke Energy.
As a result of the settlement, Duke Energy agreed to conduct a feasibility study to see if the coal plant could remain operational under current conditions.
Officials with Duke Energy say that if the study comes back and says the plant could remain operational, then Duke could be looking for a potential buyer for the Cayuga facility.
“The settlement basically agrees that we do a feasibility study, and then we would issue something called a ‘request for proposal’ for a buyer for the coal units,” says Angeline Protogere with Duke Energy.
Should Duke issue a request for proposal, then the coal plant would remain operational under a new owner. REI (which represents different energy initiatives, including coal) says that keeping the coal plant open could go a long way toward combating the dramatic energy shortfall in Indiana. In addition, REI says that rate payers (who will be fronting the bill for demolition and construction) could save millions if the plant is saved. “If you look at the cost of demolishing these units, that’s almost one hundred million (dollars). So ratepayers, if those two coal units were to be sold, would save millions in demolition costs,” says Savannah Kersteins, the President of REI.
Kerwin Olson with the Citizens Action Coalition says he takes issue with the settlement. He tells me he remains concerned with the approval by the state to allow Duke Energy to saddle ratepayers with the costs of construction (or demolition), and also worries that ratepayers will front the bill for the feasibility study. “Duke gets everything they asked for in terms of their petition for approval of the coal plants and the associated rate making treatments, and passing those costs onto the ratepayers. And, it pleases the governor because he of course has been pushing to not close down coal plants,” says Olson.
News 10 will continue to follow this feasibility study and be back with updates.
