Hold a Public Hearing the Issue: Regulatory Panel Nears Decision on Duke Plant. Our View: First, Let Ratepayers Speak.

If it’s built by Duke Energy and Vectren, a new 630-megawatt power plant in Knox County, Ky., could have a big impact on Southwest Indiana electric bills. Unfortunately, state regulators appear poised to proceed without a public field hearing on the plant.

If approved by the Indiana Utility Regulatory Commission, almost $2 billion of the cost of building the Edwardsport plant could be passed on to ratepayers through higher electricity rates.

A Duke Energy vice president, Kay Pashos, testified that for Duke customers, rates could increase 13 percent to 16 percent, assuming a 4 percent inflation rate.

Vectren has not announced what the impact would be on its ratepayers if it remains in the project.

Intended to replace Duke’s existing Edwardsport power station, the new plant would use coal-gasification technology, which would convert Indiana coal into gas and then burn the gas to produce electricity. Since that process produces carbon emissions that create greenhouse gases, state regulators must decide whether to mandate that the utilities filter out a certain percentage of emissions using so-called carbon capture and sequestration technology. The utilities say they are interested in the technology but oppose a state-mandated cap.

As originally announced, Duke would hold 80 percent ownership of the plant, Vectren 20 percent. Duke says it is prepared to proceed with it 100 percent if Vectren were to opt out.

Last week, the regulatory commission heard five days of testimony on the request to approve the Edwardsport plant and allow Duke to pass on construction and operations costs to ratepayers. Witnesses testified in a trial-like setting in a courtroom-style meeting room in Indianapolis.

Although it was an open meeting that citizens could attend, the proceeding was not a public hearing in which ratepayers could express concerns about rate increases or emissions. The public could listen, but not participate.

No public hearings have been scheduled in Evansville, Terre Haute, Bloomington or other affected areas because none of the parties requested them and the law does not require any. That’s according to the Office of Utility Consumer Counselor, the official state entity that represents the public at regulatory commission hearings. About 100 letters from the public about the Edwardsport plant will be passed on to the commission, however.

Although Duke’s hearing is now completed, the regulatory commission still may hold a separate proceeding for Vectren’s portion, according to Anthony Swinger of the consumer counselor’s office.

We believe it should, as well, hold a public field hearing or hearings for ratepayers.

This would be an excellent opportunity to solicit meaningful input from ratepayers – working-class families, the elderly, small- business people – about the impact of higher electric rates and plant emissions on their lives and livelihoods.

Time is running short, and yet, if the consumer counselor requests field hearings, then the commission likely would agree.

Evansville and other affected communities in Southwestern Indiana could host those public meetings. Utility executives could make a presentation in a Civic Center meeting room, then citizens could state their opinions while commission members listen.

Though the Edwardsport project appears studded with many benefits – cleaner coal technology that would create demand for mining jobs to supply the plant – the commission should not make its decision until the rate impact is clearly known and until ratepayers are heard fully on the subject.

(c) 2007 Evansville Courier & Press. Provided by ProQuest Information and Learning. All rights Reserved.