The AES Corporation (NYSE: AES) announced that its subsidiary, Indianapolis Power & Light (IPL), has received approval from the Indiana Utility Regulatory Commission (IURC) for its request for a Certificate of Public Convenience and Necessity (CPCN), allowing IPL to invest approximately $600 million into a new 650 MW combined-cycle gas turbine (CCGT) power station near Martinsville, Indiana and $36 million to convert two units at the Harding Street Generation Station totaling 200 MW from coal to natural gas.
“This significant milestone demonstrates our continued ability to develop and invest in attractive platform expansion opportunities,” said Andrés Gluski, AES President and Chief Executive Officer. “Including this CCGT project at IPL, in the past six months, we have received final approvals for, or reached financial closing on approximately 2,600 MW of expansion projects in the United States, Chile, India and Panama, which will come on-line and contribute to our earnings and cash flow growth in 2015 through 2018.”
“We are committed to delivering to our customers the most cost-effective, environmentally friendly and reliable source of electricity,” said Ken Zagzebski, President of AES’ US Strategic Business Unit. “Building a CCGT and refueling two of our Harding Street units will ensure our ability to meet the future needs of our customers and reduce our reliance on coal-fired generation.”
The IURC order allows IPL to earn a return on amounts invested during the construction period. IPL will be funding the total project cost of $636 million with a combination of 45% equity and 55% non-recourse debt.The CCGT project will commence construction in third quarter 2014 and is expected to come on-line in 2017. The conversion of Harding Street Units 5 and 6 will begin in the fall of 2015 and be completed by early 2016. About AES The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 21 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 22,000 people is committed to operational excellence and meeting the world’s changing power needs. Our 2013 revenues were $16 billion and we own and manage $40 billion in total assets. To learn more, please visit www.aes.com. Safe Harbor Disclosure This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.