The purchase price for the facility, which is located in West Terre Haute, Indiana, is approximately $330 million.
The Indiana Utility Regulatory Commission (IURC) has issued an order on May
28, 2008, granting Northern Indiana Public Service Company (Nipsco) a certificate of public convenience and necessity to acquire the Sugar Creek facility.
The IURC’s order also addressed Nipsco’s requests to defer certain costs associated with the purchase of the Sugar Creek facility and to implement a rate adjustment mechanism for purchased power costs.
Although the order denied those requests, the commission has said that the proposed rate treatment could be pursued within the context of an alternative regulatory plan, provided Nipsco indicates its intent to do so within 10 days of the date of the IURC’s order.
Robert Skaggs Jr, NiSource’s president and CEO, said: The addition of this plant to Nipsco’s generating portfolio represents a significant step forward in positioning the company to meet the increasing electricity demands of its customers in a safe, reliable and cost-effective manner for years to come.
