U.S. EPA ALLEGES THAT PSI ENERGY, INC. VIOLATED THE PREVENTION OF SIGNIFICANT DETERIORATION (PSD) REGULATIONS FOUND AT 40 C.F.R.52.21, AS INCORPORATED INTO THE INDIANA STATE IMPLEMENTATION PLAN (SIP), BY REPLACING SUBSTANTIAL PORTIONS OF TWO BOILER UNITS WITHOUT A PSD PERMIT. THIS CASE IS PART OF THE U.S. EPA UTILITY INITIATIVE.
The United States, joined by citizens' groups and several Northeastern states, had claimed that Cinergy, an electric utility company, violated the New Source Review provisions of the Clean Air Act when it performed construction projects at several coal-fired power plants in Indiana and Ohio without first obtaining a permit and installing required pollution control hardware. The Court bifurcated the case into separate liability and remedy phases. On May 22, 2008, after a three-week jury trial on liability, the jury returned a verdict in favor of the Plaintiffs for four boiler component replacement projects at the Wabash River Plant's units 2, 3 and 5. The jury found in favor of Cinergy with respect to ten similar projects at the Gallagher, Gibson, Miami Fort, and Beckjord Plants.