Duke Energy reaches settlement on Edwardsport plant air permit

        Duke Energy reaches settlement on Edwardsport plant air permit

-- Settlement with Sierra Club, Citizens Action Coalition ends litigation on
air permit

PR Newswire

PLAINFIELD, Ind., Aug. 30, 2013

PLAINFIELD, Ind., Aug. 30, 2013 /PRNewswire/ --Duke Energy has reached a
settlement with the Sierra Club, Citizens Action Coalition, Save the Valley
and Valley Watch over outstanding issues with the Edwardsport power plant air
permits.

(Logo: http://photos.prnewswire.com/prnh/20130322/CL81938LOGO)

The Indiana Department of Environmental Management issued the new plant's air
permits in 2008 and, importantly, under the settlement they remain approved
with no changes. The dispute centered on technical issues surrounding the
permits that enabled the company to build and operate the plant.

The settlement also addresses deadlines for retiring units at Duke Energy's
Wabash River Station in West Terre Haute. Prior to the settlement, the company
had announced it planned to retire four, 1950s-vintage units totaling 350
megawatts at the station by the 2015 federal mercury rule deadline.

In the agreement, the company agrees to complete the retirements by the
compliance deadline or, if the mercury rule is vacated or delayed, by June 1,
2018, whichever occurs first.

Duke Energy also had been exploring converting another unit at Wabash River
Station to natural gas, and, under the settlement, the company agrees to cease
burning coal at that 318-megawatt unit by June 1, 2018.

The deadline will not prevent Duke Energy from converting the unit to natural
gas earlier.

"We're glad to resolve these issues. Our new, cleaner Edwardsport plant
modernizes our fleet and enables us to retire older, coal-fired generation,"
said Duke Energy Indiana President Doug Esamann. "The new plant replaces the
old Edwardsport units, which date back to the 1940s and 1950s and were retired
in 2011. In addition, we retired two older units at our southern Indiana
Gallagher plant in 2012."

The settlement also includes a commitment to pursue additional green energy
sources. The company has the option to either implement a 30-megawatt "feed-in
tariff" for solar photovoltaic energy or construct/contract for 15 megawatts
of wind and/or solar generation.

A feed-in tariff offers a set, long-term price for green energy based on such
factors as type and size. It generally is used with smaller power generators.

If the company pursues the second green energy option, Duke Energy also would
retire two 40- to 45-year-old oil-fired peaking stations -- the Miami Wabash
and Connersville units -- totaling about 166 megawatts by June 1, 2018. These
smaller units are used occasionally during times of high power demand.

If this option is pursued, Wabash River Units 2 through 5 must be retired by
the mercury rule compliance deadline or by June 1, 2017, whichever occurs
first.

Located in Knox County, Ind., near Vincennes, the advanced technology
Edwardsport plant is one of the world's cleanest coal-fired power generating
facilities.

The facility uses advanced technology to gasify coal, strip out pollutants,
and then burn that cleaner gas to produce electricity. The technology
substantially reduces the environmental impact of burning coal to produce
electric power.

Duke Energy Indiana's operations provide approximately 7,500 megawatts of
owned electric capacity to approximately 790,000 customers, making it the
state's largest electric supplier.

Duke Energy is the largest electric power holding company in the United States
with more than $110 billion in total assets. Its regulated utility operations
serve approximately 7.2 million electric customers located in six states in
the Southeast and Midwest. Its commercial power and international business
segments own and operate diverse power generation assets in North America and
Latin America, including a growing portfolio of renewable energy assets in the
United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded
on the New York Stock Exchange under the symbol DUK. More information about
the company is available at: www.duke-energy.com.

Contact: Angeline Protogere
Office: 317.838.1338 | 24-Hour: 800.559.3853

SOURCE Duke Energy

Website: http://www.duke-energy.com