Groups Urge Governor To Oppose Planned Coal Plant

A proposed $2 billion Duke Energy coal gasification plant is meeting opposition in Indiana.

Environmental and consumer groups are urging Indiana Governor Mitch Daniels to oppose the plant, arguing that it could saddle Duke Energy customers with a rate increase of 15 percent or more.

The groups include members of the Citizens Action Coalition and the Sierra Club who also say the plant would worsen air pollution even though it has been touted as "clean coal."

Duke Energy's planned 630-megawatt plant would replace an aging traditional coal-fired plant some 50 miles southwest of Bloomington that generates about 130 megawatts.

Last week an Indiana state official told utility regulators that the plant is "vital" to Daniels' strategic energy plan.