AES Indiana files to convert Petersburg coal units to natural gas

In filing a Certificate of Public Convenience and Necessity (CPCN) this week, AES Indiana sought the right to repower Petersburg Units 3 and 4 from coal to natural gas.

This would make the utility the latest to push away from coal, as the once dominant energy source continues a rapid decline in American use. Petersburg are the remaining coal units at AES Indiana’s disposal, and their redesignation aligns with the company’s 2022 Integrated Resource Plan that called for the most reliable portfolio at the least cost. That same plan called for the addition of approximately 1,300 MW of wind, solar and battery energy storage through competitive bid projects elsewhere.

“Over the past decade, how we serve our customers has evolved due to factors like new technology, the aging of our current facilities, environmental regulations and economic conditions,” Brandi Davis-Handy, president of AES Indiana, said. “Repowering our Petersburg Generating Station aligns with our state’s all-of-the-above energy policy while allowing us to continue our 50+ year commitment to Pike County.”

Repowering depends on approval by the Indiana Utility and Regulatory Commission (IURC). However, if approved, AES Indiana predicted the switch would save customers approximately $280 million over a 20-year period. It would also lead to a carbon intensity reduction of 70 percent by 2030, at least when compared to 2018 levels.

If all goes according to plan, the project should be completed by the end of 2026. When finished, AES Indiana would also become the first investor-owned utility in Indiana to cease burning coal.