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IPL seeks rate hike to recover coal-to-gas replacement costs

Indianapolis Power & Light Co. has sought the approval of the Indiana Utility Regulatory Commission to implement a rate increase for the recovery of costs related to the replacement of coal generation with natural gas-fueled capacity.

Average residential customers consuming 1,000 kWh monthly would see an increase of about $10 in their monthly bills if the rate hike is approved. The new rates would take effect by the end of 2017.

In May, the AES Corp. subsidiary asked Indiana regulators to approve projects designed to reduce sulfur dioxide emissions and properly manage coal ash at its four-unit Petersburg plant in Pike County, Ind. The utility's natural gas generation also includes the addition of the 671-MW Eagle Valley combined-cycle gas plant in spring 2017, as mentioned in the company's 2016 integrated resource plan.