Power provider Duke Energy has settled a decade-old lawsuit with the U.S. Environmental Protection Agency, the U.S. Department of Justice and others that involves New Albany's Gallagher Station power plant.
Under the settlement, the company can choose to either shut down two of the units at the plant or convert them from coal to natural gas. A press release from Duke Energy said the company expects that it will convert the units, but no final decision is required to be made until Jan. 1, 2012.
The company also will install additional pollution controls on the station’s other two units and switch to using lower sulfur fuel at the plant.
The company estimates the cost to convert the units to gas and install additional pollution controls will be approximately $80 million, the release said. The settlement includes civil penalties of $1.75 million.
The settlement stems from a lawsuit in which EPA alleged that Cinergy, which merged with Duke Energy in 2006, undertook six power plant upgrades in Indiana and Ohio without obtaining new permits. The government alleged that the company’s work did not qualify as routine maintenance and that Cinergy should have predicted that the projects would increase emissions at the plants.
Floyd County
December 22, 2009
Duke settles with EPA over air quality issues
Modifications at New Albany power plant an issue in suit
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