AES Indiana accelerates the future of energy with $1.1 billion in investments in Pike County

August 8, 2024

Today, AES Indiana, a subsidiary of The AES Corporation (NYSE: AES), was joined by Pike County government officials and community leaders to celebrate the announcement of approximately $1.1 billion in investments in the county's energy future from 2024 to 2026. The investments include the repowering of Petersburg Generating Station Units 3 and 4 from coal to natural gas, pending approval from the IURC, and the addition of two new projects, including solar and battery storage.

The Pike County Battery Energy Storage System (BESS) and the Petersburg Energy Center will add 250 megawatts (MW) of solar and 180, megawatt-hours (MWh) of battery storage to AES Indiana's portfolio, ensuring grid reliability, flexibility and sustainability. These projects will create approximately 300 jobs during construction and generate approximately $40 million in taxes and benefits for Pike County over the next 20 years.

"These investments demonstrate our continued commitment to Pike County and leading the energy transition here in Indiana in a way that maintains affordability and reliability for our customers," said Ken Zagzebski, CEO of AES Indiana. "The economic growth across the state has been powered by our people at Petersburg for more than 50 years and will continue to play a significant role in Indiana’s economic future."

AES Indiana's investments in Pike County include the conversion of its two remaining coal units at its Petersburg Generating Station to natural gas by the end of 2026, where AES Indiana anticipates being the first utility in Indiana out of coal, pending approval of the project from the IURC. The project aligns with AES Indiana’s 2022 Integrated Resource Plan (IRP), which includes transitioning coal-powered units to natural gas and adding wind, solar and battery storage capacity over the next five years. Additionally, the Petersburg Energy Center, a 250 MW solar and 180 MWh energy storage facility, is currently under construction. This project is expected to be operational by the end of 2025.

The Pike County Battery Energy Storage System (BESS) is an additional key component of AES Indiana's strategy to ensure future reliability. Once complete, the system can store and deliver up to 200 MW of electricity for four hours, which can help meet energy demand during peak times. It will be one of the largest battery energy storage systems in the Midcontinent Independent System Operator (MISO) – AES Indiana’s grid operator – footprint and is a significant step toward greener, smarter energy solutions for AES Indiana customers.

"AES Indiana is a trusted local partner and leader in advancing clean energy," said Petersburg Mayor R.C. Klipsch. "Our community is supportive of AES Indiana’s diverse energy projects which contribute to our local economic growth and improve environmental impact. With their planned investments of approximately $1.1 billion in Petersburg and Pike County from 2024 to 2026, AES Indiana continues to be a partner-of-choice by strengthening its commitment to our city and local workforce."

AES Indiana is committed to a diverse energy mix and advanced technologies like wind, solar and battery storage to enhance grid reliability, affordability and sustainability. Most recently, AES Indiana acquired 100 percent interest in Hoosier Wind, a 106 MW operating wind project in Benton County and announced the commercial operation of the Hardy Hills 195 MW solar project in Clinton County. These investments demonstrate the Company’s commitment to sustainable energy solutions.

AES Indiana is proud to maintain some of the lowest residential rates of any investor-owned utility in the state.

AES Indiana also announced a $100,000 donation to the City of Petersburg to support the construction of the new Petersburg Community Center in downtown Petersburg. The donation is part of AES Indiana's commitment to invest in the communities where we live and serve. The new Petersburg Community Center will be a multi-purpose facility that will offer a variety of programs and services for residents of all ages, including recreation, health, education, and social activities. The project is expected to be completed by the end of 2026.

“The Petersburg Community Center will be an asset to the county and provide a sense of placemaking and pride in the community and spur population retention and population growth as a beautiful quality-of-life amenity,” said Ashley Willis, Executive Director, Pike County Economic Development Corporation. “We are incredibly grateful to AES Indiana for their partnership and continued support of Petersburg.”

For more information visit aesindiana.com/pike-county.

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About AES Indiana

AES Indiana, an AES Company, provides retail electric service to more than 500,000 residential, commercial and industrial customers in Indianapolis, as well as portions of other Central Indiana communities surrounding Marion County. During its long history, AES Indiana has supplied its customers with some of the lowest-cost, most reliable power in the country. For more information about the company, please Connect with AES Indiana on X, Facebook and LinkedIn. For more information about how AES Indiana is accelerating the future of energy, visit aesindiana.com.