AES Indiana receives approval to repower remaining Petersburg units from coal to natural gas

November 6, 2024

AES Indiana, a subsidiary of The AES Corporation (NYSE: AES), received approval today from the Indiana Utility Regulatory Commission (IURC) to repower Petersburg Units 3 & 4 from coal to natural gas. This decision by the IURC enables AES Indiana to continue to power the needs of its customers through a balanced energy resource portfolio including natural gas, wind, solar and energy storage.

Repowering from coal to natural gas is estimated to save customers approximately $281 million over a 20-year period by eliminating the additional operational and maintenance costs associated with operating Petersburg as a coal-fired resource. The repowering also maintains reliability and reduces carbon intensity by an estimated 70 percent by 2030 compared to 2018 levels, and repowering to natural gas reduces hourly CO2 emissions by half.

With this approval, AES Indiana is anticipated to be the first Indiana investor-owned utility out of coal by 2026. Repowering Petersburg Units 3 & 4 aligns with AES Indiana’s 2022 Integrated Resource Plan (IRP) and the 2024 IRP updated analysis, ensuring the most reliable and cost-effective energy for customers. The IRP included a third-party reliability analysis confirming that repowering to natural gas is as reliable as coal. Additionally, AES Indiana is adding 1,300 megawatts (MW) of wind, solar and battery storage through competitive projects.

“For more than a decade, AES Indiana has taken significant steps toward reducing our carbon footprint by planning for a future that includes generation investments focused on cleaner, more efficient energy options,” said Brandi Davis-Handy, AES Indiana President. “We’ve transitioned to a more balanced energy portfolio that aligns with the state’s all-of-the-above energy policy while also maintaining affordability and reliability for our customers. With this approval, we can continue reliably serving central Indiana and meet the growing and evolving energy demands of tomorrow.”

AES Indiana recently announced plans to invest $1.1 billion in the future of Pike County from 2024-2026. In addition to the repowering of Petersburg Units 3 & 4, the Pike County Battery Energy Storage System and the Petersburg Energy Center will add 250 MW of solar and 180 MW of battery storage to AES Indiana’s portfolio enhancing grid reliability, flexibility and sustainability. AES Indiana plans to start construction by the end of 2025 and anticipates completing the project by the end of 2026. To learn more and watch a video that showcases our impact in Petersburg, click here.

AES Indiana recently announced plans to invest $1.1 billion in the future of Pike County from 2024-2026. In addition to the repowering of Petersburg Units 3 & 4, the Pike County Battery Energy Storage System and the Petersburg Energy Center will add 250 MW of solar and 180 MW of battery storage to AES Indiana’s portfolio enhancing grid reliability, flexibility and sustainability.

 

About AES Indiana
AES Indiana, an AES Company, provides retail electric service to more than 530,000 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.