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4 December 2006 -- Duke Energy Indiana has agreed to sell one unit of its Wabash River Power Station Unit 1 in West Terre Haute, Indiana, US, to the Wabash Valley Power Association (WVPA).
The price of the transaction is based on the book value of Wabash River Unit 1 at the time of closing, which is currently estimated to be approximately $110-120 million.
Unit 1 produces electricity using synthesis gas from a coal gasification plant co-owned by WVPA and SG Solutions. It is adjacent to Duke Energy's Wabash River Station. When the synthesis gas is unavailable, the unit can also run on natural gas.
The sale includes Unit 1's 192-MW gas turbine, 100-MW steam turbine and the unit's associated equipment and property at the power plant site.
The remaining Duke Energy Wabash River Station units, which have the capacity to generate 668 MW, will not be affected by the sale.
Duke Energy Indiana employees will continue to operate and maintain Unit 1 under a contract with WVPA. The sale is economically neutral to Duke Energy Indiana and its customers due to other capacity additions the company is making.
The Wabash River Coal Gasification Repowering Project was one of the first demonstrations of using coal gasification to produce electricity. Duke Energy Indiana recently filed for Certificates of Public Convenience and Necessity with the Indiana Utility Regulatory Commission for a 630-MW integrated gasification combined cycle (IGCC) power plant in Edwardsport, Ind., that will use the similar coal gasification technology. A decision to move forward with constructing the IGCC plant could take place as early as mid-2007.
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