INDIANAPOLIS —
A utility opposing a planned southern Indiana coal-gasification plant estimates a deal obligating Indiana customers to pay for the plant’s gas would add $1.1 billion to utility bills over eight years.
Vectren Corp. estimates all residential gas customers would see their gas bills increase an average of about $3.90 a month during the period for a total cost of $375 a consumer, The Indianapolis Star reported Sunday..
A spokesman for developer Leucadia National Corp. called the estimates “absurd,” and Gov. Mitch Daniels said through a spokeswoman that he continues to support the project in Rockport, about 30 miles east of Evansville.
Neither of the two major-party candidates running to succeed Daniels as governor, Republican Mike Pence and Democrat John Gregg, has expressed the same level of enthusiasm for the project as Daniels has. Pence said he’s committed to working with opponents and supporters of the $2.8 billion project while honoring the state’s commitments.
Opponent Kerwin Olson, executive director of the consumer advocacy group Citizens Action Coalition, said developers “face some risk not having their strongest ally in office.”
Vectren, which has about 680,000 Indiana natural gas customers, fears customers will blame the utility if their bills increase because of the plant.
“When this project was first announced it made a lot of sense because there wasn’t this same amount of gas in the marketplace as there is today,” Vectren CEO Carl Chapman said.
“Times have changed. Shale gas has driven the cost of natural gas lower. The plant is not right at this time.”
Another major natural gas utility, Northern Indiana Public Service Co., questions the timing of the project that would use heat, pressure and oxygen to turn coal into natural gas.
“Our concern continues to be that this project not be a long-term burden to our Indiana customers,” spokesman Larry Graham said.
Vectren estimates the deal will increase the monthly gas bill for its average residential customer by 6.3 percent to $65.57.
Under the deal, the Indiana Finance Authority signed a 30-year contract with Leucadia subsidiary Indiana Gasification LLC to purchase gas from the plant and then sell it on the open market. Indiana customers would receive discounts or increases on their monthly bills depending on whether the state sells the gas at a profit or at a loss. Profits will be split with Leucadia.
The state would purchase the gas for an average of $6.60 per million British thermal units in 2008 dollars over the life of the 30-year contract.
Six years ago, when the plant was first proposed, natural gas traded at more than $10 per million BTU, but a U.S. shale gas boom has driven prices to about $3 per million BTU.
“The Energy Information Administration projects prices to remain below $5 until 2023,” said Teri Viswanath of investment banker BNP Paribas in New York.
Market analyst Phil Flynn of Price Futures Group in Chicago said the deal could look better later as demand catches up with supply.
The abundant supply of shale gas led Illinois Gov. Pat Quinn last month to veto legislation that would have forced many Illinois gas ratepayers to help finance another synthetic gas plant proposed by Leucadia.
Indiana Finance Authority attorney Andy Keinle dismissed Vectren’s estimates.
“There was an extensive yearlong IURC review where interested parties including Vectren were able to give testimony about the project. Ultimately the IURC issued a lengthy order approving the project,” he said.
Local & Bistate
Consumers face $1B hit from Rockport power plant: Vectren
- Local & Bistate
-
-
Terre Haute Coke & Carbon: Cleaning up a legacy
When heavy equipment starts moving dirt next week at the former Terre Haute Coke and Carbon industrial site, city officials hope a new day will be dawning for a long-neglected part of town.
-
Diversity growing
Like the rest of the nation, Indiana is continuing on a trend toward greater diversity as the numbers of Hispanics, blacks, Asians and other minorities are rising at a faster pace than whites.
-
Valley following diversity path of nation, Indiana
Like much of Indiana, the majority white population in the Wabash Valley is on the decline, while minority populations are on the increase.
-
Court lets walkout fines against House Democrats stand
House Democrats who had to pay more than $100,000 in fines after they walked out of the Indiana Statehouse two years ago during a legislative session won’t get the help they sought from the Indiana Supreme Court.
-
Arrest made, victim identified in Rosedale homicide
The victim in a Parke County homicide that occurred last week has been identified as Kathryn A. Bays, 55, of Rosedale.
-
Vermillion industrial park gets award for transition
The Vermillion Rise Mega Park, a former chemical weapons base now an industrial park north of Clinton, has gotten national attention for its rapid transition to civilian from military use.
-
Slight damage from evening storm
Very little damage was reported from a late evening storm that rolled through the Wabash Valley on Tuesday.
-
U.S. 41 lane restrictions
Motorists should expect delays because of lane restrictions on U.S. 41 in Sullivan County next week as a railroad company repairs a rail crossing 1.2 miles north of Shelburn.
-
Lane restrictions next week on U.S. 41 at Shelburn
SHELBURN, Ind. – Motorists should expect minimal delays because of lane restrictions for U.S. 41 in Sullivan County next week as the railroad company makes repairs to the rail crossing 1.2 miles north of Shelburn.
-
Reputed Mafioso tip triggers new Hoffa body search
OAKLAND TOWNSHIP, Mich. — The FBI saw enough merit in a reputed Mafia captain’s tip to once again break out the digging equipment to search for the remains of former Teamsters union leader Jimmy Hoffa, last seen alive before a lunch meeting with two mobsters nearly 40 years ago.
-
UPDATE: Parke County homicide victim identified
ROSEDALE — The victim in a Parke County homicide that occurred last week has been identified as Kathryn A. Bays, 55, of Rosedale.
-
Court lets walk-out fines against House Democrats stand
INDIANAPOLIS — House Democrats who had to pay more than $100,000 in fines after they walked out of the Indiana Statehouse won’t get the help they sought from the Indiana Supreme Court.
-
Vigo County Jail Log: June 18, 2013
The following individuals were booked into the Vigo County Jail by area law enforcement on Monday and Tuesday, based on jail records.
-
Back home again: Items from vaudeville stage and Terre Haute native sent to Historical Society
The staff at the Vigo County Historical Museum are excited about the arrival of priceless items used by Terre Haute-native Rose Fehrenbach and her husband, Edward Pierce, to promote their Vaudeville acts in the early 20th century.
-
Husband charged in Archer homicide
Terre Haute Police have found local reports of domestic violence between a Terre Haute man and his wife, whose body was discovered wrapped in a tarp and dumped in an Ohio ditch.
-
National Road panels dedicated
Rewind to the mid-1800s, when the trotting of a horse and buggy on National Road could be heard alongside the voices of people heading west, searching for opportunities.
-
Pence sets agency priorities
Following a directive from Gov. Mike Pence, state agency heads are reorganizing some of their top priorities to better reflect the first-year governor’s “roadmap for Indiana” plan for improving the state’s economy, infrastructure and health.
-
Another I-70 traffic snarl: Three injured in two related crashes
Three people were injured Monday afternoon from a pair of crashes on Interstate 70 that temporarily closed the highway and diverted traffic into Terre Haute.
-
Terre Haute man still hospitalized after scooter/car crash
A Terre Haute man remained hospitalized Monday at Methodist Hospital in Indianapolis after his scooter struck a car early Saturday on Wabash Avenue at 25th Street.
-
Overpass repairs causing Interstate 70 lane restrictions
Repairs to the Frye Road overpass in southeastern Vigo County has caused a restriction to the left lane of Interstate 70 between the 13- and 14-mile markers, about two miles east of the Indiana 46 exit.
-
Indiana woman condemned for killing at 15 is freed
A woman who was sentenced to death at age 16 for taking part in the torture and murder of a 78-year-old Bible studies teacher was released from an Indiana prison Monday after growing to middle age behind bars.
-
Grant will let Vigo Library evaluate map collection
The Vigo County Public Library has received a $2,000 grant to evaluate its historic map collection, a library official announced Monday.
-
Four juveniles caught on elementary school roof; one injured jumping off
Police say a juvenile was lucky to have suffered only a broken leg after jumping from the roof of a Vigo County elementary school – dropping about 30 feet to the ground.
-
Farmersburg man sentenced after guilty plea in rape case
A Farmersburg man has been sentenced to 12 years in prison after pleading guilty to a rape that occurred at his parents’ residence in May 2012.
-
Still no information being released on Rosedale homicide
No new information was being released Monday afternoon concerning a Rosedale homicide.
-
Woman condemned for killing at age 15 freed from Rockville prison
INDIANAPOLIS — A woman who was sentenced to death at age 16 for taking part in the torture and murder of a 78-year-old bible studies teacher was released from an Indiana prison today after growing to middle age behind bars.
-
UPDATE: All lanes of I-70 now open
All lanes of Interstate 70 in Vigo County are now open — as of 4:15 p.m. — after multiple crashes shut down the eastbound lanes temporarily this afternoon.
-
Quinn signs into law tough fracking regulations
CHICAGO — Illinois Gov. Pat Quinn signed legislation giving the state the nation’s strictest regulations for high-volume oil and gas drilling.
-
BREAKING: Arrest made in Archer homicide
A Terre Haute man has been arrested and charged with felony murder and altering the scene of a death in the homicide of his wife, Kayla Herchelroath Archer.
-
Frye Road Overpass work to restrict lanes on I-70
VIGO COUNTY, Ind. – The Indiana Department of Transportation announces the Frye Road Overpass construction will restrict the left lane on Interstate 70 between the 13- and 14-mile marker, beginning June 17. This lane restriction will be in effect for 24 hours a day for about two weeks.
- More Local & Bistate Headlines
-




