A recent decision by the Indiana Utility Regulatory Commission (IURC) has cleared the way for a Cinergy Capital & Trading (CC&T) Inc. subsidiary to start construction on a 130 MW, gas-fired electric peaking facility in Indiana.

CC&T, an energy merchant-focused affiliate of Cinergy Corp., announced Tuesday that its subsidiary, CinCap VII LLC, has received approval from the IURC for construction of the power plant near Cadiz in Henry County, IN.

A significant portion of the output from CC&T’s share of the facility will serve ultimate customers in Indiana as a result of a contract with the Wabash Valley Power Association to provide 50 MW of capacity from the facility for the next 20 years to meet peak demands of the association’s customers in the state. The balance of the energy generated from the three-unit plant will be sold on the wholesale electricity markets by its owners, CC&T and Duke Energy North America, to address the growing demand for electricity at peak times in the Midwest.

Construction of the facility, which was halted by the IURC in March 2000, will restart promptly with the first units scheduled to be on line in July 2001. Total project cost is estimated at approximately $70 million.

The IURC, in its order, said the facility must be operated only with natural gas and should be landscaped so that its appearance is similar to other non-residential facilities in the area. CC&T must also work with the Indiana Department of Natural Resources to monitor ground water, and will correct any well problems for nearby landowners that are found to be caused by the facility. It must also meet several other conditions prescribed by the IURC in its order.

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