Company officials said that Morgan County was one of several sites considered for the plant. The Indianapolis Business Journal reports (http://bit.ly/10TbaKV ) that the Morgan County Council approved a 10-year, 60-percent tax abatement package in October to lure IPL.
The plant will help replace power lost as IPL shuts down six existing units at the Eagle Valley Generating Station in March 2016. That station has a production capacity of 341 megawatts.
IPL also expects to retire or convert four units at its Harding Street plant on Indianapolis' southwest side. Plans are under way to convert two generating Units 5 and 6, totaling 200 megawatts, from coal-fired to natural gas to generate electricity. That project is also subject to IURC approval.
As a result of new federal air quality standards and the projects slated to create cleaner energy, IPL expects customers to see their electricity costs rise 2 to 3 percent per year through 2018.