Duke Energy Indiana seeks approval of wind energy purchase deal

The Duke Energy Indiana unit of Duke Energy (NYSE: DUK) is asking the Indiana Utility Regulatory Commission for approval of a power purchase agreement for 10.2 MW of wind energy.

The utility on Jan. 15 asked for approval of a renewable wind energy project purchased power agreement (PPA) with 4790 Wind Partners LLC covering the Purdue Energy Park project. It also requested that the commission approve timely recovery of the costs of the PPA through rates and the confidential treatment of the PPA pricing and other confidential terms.

The PPA is for 10.2 MW and covers a period of 20 years. Duke Energy Indiana said it expects that the execution of the PPA and operation of the project will assist in the development of emission free wind energy generation, expand and diversify Duke Energy Indiana’s portfolio of supply resources, enhance customer awareness of renewable energy, and foster economic development and job creation in the state of Indiana.

Duke Energy Indiana proposes that the retail jurisdictional portion of the costs of purchased power under the PPA be recovered quarterly through a tracking mechanism and be administered through the fuel adjustment clause (FAC) proceedings. Additionally, Duke Energy Indiana said it is entitled to the value of the Renewable Energy Credits (RECs) under the PPA. Duke Energy plans to include a credit for the net retail jurisdictional portion of the proceeds from the sales of any such RECs in the development of its retail fuel adjustment factor.

The company is requesting consideration of the requested relief on a schedule that will allow approval of the PPA by March 31.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.