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Cayuga Energy Complex

The Cayuga Energy Complex

Advancing the future of energy in Indiana

Project Overview

For more than 55 years, Vermillion County has been home to the Cayuga Generating Station, producing energy that helps power the state. It is a major source of energy production for Indiana. 

Adding Megawatts to the Indiana Grid

Indiana’s economy has been growing, particularly its industrial and manufacturing sectors, and with that comes a higher demand for electricity. Meanwhile, our power generation fleet is aging. The Cayuga Generating Station is the oldest coal-fired power plant on Duke Energy’s Indiana system, and as the plant approaches retirement after nearly six decades of service, Duke Energy is proposing to modernize it with the most highly efficient natural gas turbines in the world, increasing its generating capacity by 470 megawatts.

Efficient Technology 

Called combined-cycle technology, the new units will capture waste heat that is normally lost from a natural gas turbine and use that heat to power a steam turbine so Duke Energy can extract more energy from the same fuel source.

These units also can ramp up much more quickly to respond to system needs, and their efficiency helps us provide our customers with more economic power generation.

Environmental Advantages 

The proposed new plant will significantly reduce emissions* by:
  • Cutting carbon emission rates by more than 40%
  • Lowering the emission rate of sulfur dioxide by 99%
  • Lowering the nitrogen oxide emission rate by 80%
Additionally, the combined-cycle natural gas units will resolve the coal plant’s environmental temperature impact on the Wabash River, which sometimes prevents Duke Energy from operating Cayuga at its full capacity during the summer when it is needed most. Continued operation as a coal plant would necessitate hundreds of millions of dollars to maintain an aging facility, as well as comply with environmental requirements, including federal rules regulating temperatures on the Wabash River.

*lbs. per million BTU

Strong Natural Gas Supply Lines and Existing Major Power Delivery Lines

The Cayuga location benefits from existing robust natural gas infrastructure and the capability to bring in additional natural gas supply. There is a reliable and diverse natural gas supply from both the east and the west to support the new plant.

Major electric transmission lines already exist on-site to transport electricity onto the grid, expediting our ability to add additional megawatts to the Indiana electric grid.
Map showing the eastern and western gas pipelines that will serve the Cayuga Energy Complex.

Investment and Value

Much of Duke Energy’s Indiana generation is more than 50 years old, including Cayuga Station. Continued operation of Cayuga Station as a coal plant means hundreds of millions of dollars of investment to maintain an aging facility and comply with environmental rules, without adding additional power generating capacity. We’ve reached the point where we need to make investments in new generation to power a modern economy and keep pace with growing electric demand. Estimated construction costs for the Cayuga Energy Complex are approximately $2.97 billion, plus additional costs such as financing and transmission line upgrades necessary to transport the additional power, bringing total estimated costs to $3.3 billion.

Once approved by state utility regulators, costs would be added to electric rates over time, rather than all at once, which helps smooth out the rate impact. Adding costs to rates gradually also helps reduce the overall project cost by reducing financing, saving customers an estimated $812 million over the life of the new plant. The average estimated rate impact is about 5.4% between 2026 and 2031.

While a significant investment, when complete, the Cayuga Energy Complex will have enough capacity to power an estimated 1.1 million Indiana homes and will continue to be a critical source of power for the state and a major asset for Vermillion County for decades to come.

A Regional Economic Powerhouse

With the development of the Cayuga Energy Complex, Duke Energy will be adding to its already substantial economic impact on the region. According to an analysis by Ernst & Young, Vermillion County and the surrounding area can expect:
  • An average of more than 250 construction jobs per year, including 550 at peak construction
  • More than 3,700 total jobs supported by the project, which includes construction, suppliers and other industries
  • Increased property taxes for the community, which provide funding for local schools and county government services
  • $5.5 million in employee wages and benefits
  • $3 million in non-labor spending, such as services and materials 

Community Investment

Duke Energy has a long tradition of supporting Vermillion County:

  • Since 2020, the Duke Energy Foundation has provided more than $110,000 in shareholder-funded grants to organizations in the county.
  • These grants have funded numerous projects, including storm relief, economic development, food insecurity, public safety, playground improvements, Little League, and efforts to honor military veterans.
  • In addition, for the last 25 years, Duke Energy has supported an annual program in which local students trade their classrooms for the outdoors to explore the wetlands at Cayuga Generating Station and learn about river ecology.

Proposed Cayuga Energy Complex

Type: 2 – 1x1 natural gas combined-cycle generating facilities. 

Size: 1,476 megawatts; adding an additional 470 MW of dispatchable electricity to the site’s current capacity 

Location: Units would be constructed on Duke Energy Cayuga Station property. 

Economy/Employment: The proposed units will provide a significant increase in property tax revenue for Vermillion County, as well as employ an estimated 550 in construction jobs at peak construction while continuing to provide well-paid jobs to operate the plant.

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