Duke Energy Indiana agrees to Cayuga coal unit feasibility study in addition to building new gas units on-site

• The study will explore the possibility of a sale of existing coal units
• Settlement with state's coal producers is aligned with Indiana Governor Mike Braun's executive orders on coal

PLAINFIELD, Ind., June 17, 2025 /PRNewswire/ -- Duke Energy Indiana and Reliable Energy Inc., which represents several of Indiana's major coal producers, have reached a settlement in Duke Energy Indiana's request pending before the Indiana Utility Regulatory Commission for a proposed new natural gas plant at its Cayuga Generating Station in Vermillion County, Ind.

If state utility regulators approve the gas plant proposal as well as the settlement, Duke Energy Indiana has agreed to perform an engineering study to evaluate the technical feasibility of continued operation of the site's current coal units by third parties that may be interested in purchasing them. Duke Energy would then issue a request for proposal to solicit interest in the coal units, which could be available for sale after the two proposed gas units are placed in service in 2029 and 2030.

"The settlement is aligned with Indiana Governor Mike Braun's recent executive orders aimed at making sure there's a careful evaluation before retiring coal units and encouraging additions to the state's power supplies," said Duke Energy Indiana President Stan Pinegar. "The new natural gas units we've proposed add additional, highly efficient power capacity to Indiana's electric grid. This agreement commits to studying the feasibility of a third party continuing to operate Cayuga's existing coal units once the Cayuga gas units are operational."

A condition of the settlement is that this process will not affect the construction schedule, estimated cost or future operation of the new gas units.

"This agreement represents a meaningful step toward preserving reliable, in-state power generation for Hoosiers," said Reliable Energy President Savannah Kerstiens. "It wouldn't have been possible without the leadership of Governor Braun and Secretary Jaworowski, whose continued commitment to Indiana's energy resilience made this outcome achievable. As the state works to attract new investment and grow the economy, ensuring affordable electricity for working families means keeping every option on the table to maintain generation capacity."

Duke Energy Indiana

Duke Energy Indiana, a subsidiary of Duke Energy, provides about 6,300 megawatts of owned electric capacity to approximately 920,000 customers in a 23,000-square-mile service area, making it Indiana's largest electric supplier.

Duke Energy 

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.6 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 55,100 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. 

Duke Energy is executing an ambitious energy transition, keeping customer reliability and value at the forefront as it builds a smarter energy future. The company is investing in major electric grid upgrades and cleaner generation, including natural gas, nuclear, renewables and energy storage. 

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition. 

Contact: Angeline Protogere
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SOURCE Duke Energy