Dive Brief:

• An Indiana appeals court upheld a decision by state utility regulators to pass on Duke Energy's costs for building the $3.5 billion Edwardsport integrated gasification combined cycle plant to ratepayers.
• The ruling clears the way for a 16% rate hike on Duke's Indiana customers. The Edwardsport plant entered service last year.
• Several groups had argued that ratepayers shouldn't foot the bill for a mismanaged 618-MW project that was originally expected to cost $2 billion and allegedly shaky regulatory oversight. Citizens Action Coalition may take the case to the Indiana Supreme Court.

Dive Insight:

The court decided that the Indiana Utility Regulatory Commission's decision on Edwardsport was solid. Under the decision, Duke was unable to recoup about $900 million in costs. The appeals court also found that the Edwardsport plant was needed to meet the utility's power needs.