AES Indiana Seeking to Convert Remaining Coal Units to Natural Gas

March 12, 2024

AES Indiana, a subsidiary of The AES Corporation (NYSE: AES), is taking the next step in its plan to deliver cleaner, more efficient and cost-effective energy solutions to meet the state’s future energy needs. AES Indiana filed a request with the Indiana Utility and Regulatory Commission (IURC) for a Certificate of Public Convenience and Necessity (CPCN) to convert Petersburg Units 3 & 4 from coal to natural gas. If approved, AES Indiana will continue to power the needs of its customers through a diverse resource portfolio comprised primarily of natural gas, wind, solar and energy storage.

The project will save customers approximately $280 million over a 20-year period by avoiding coal-related costs. Additionally, the refueling will result in a carbon intensity reduction of 70 percent by 2030 compared to 2018 levels. The project is expected to be completed by the end of 2026 when AES Indiana will become the first Indiana investor-owned utility to cease burning coal.

“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,” said Brandi Davis-Handy, President of AES Indiana. “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.”

AES Indiana remains committed to investments in Pike County including retraining our people and creating 400 construction jobs, generating ongoing local revenue from AES Indiana’s Petersburg Generating Station and delivering approximately $125,000 annually in community impact.

Converting Petersburg Units 3 & 4 aligns with AES Indiana's 2022 Integrated Resource Plan (IRP), which outlines the most reliable and least-cost portfolio for AES Indiana’s customers. In addition to repowering, the Company’s least-cost portfolio includes adding approximately 1,300 megawatts (MW) of wind, solar and battery energy storage through competitively bid projects. Last week, AES Indiana announced it acquired the Hoosier Wind project, a 106 MW wind farm in Benton County, Indiana. Earlier this year, AES Indiana received IURC approval for a 200 MW, 4-hour standalone battery energy storage system, the largest in the MISO region. These projects, as well as previously approved solar projects in Clinton and Pike counties demonstrate AES Indiana’s commitment to accelerating the future of energy.

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About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we’re improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.

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. Connect with AES Indiana on X (formerly Twitter), Facebook and LinkedIn. To learn more about how AES Indiana is accelerating the future of energy, visit aesindiana.com.