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 SIX BOILER UNITS AT THE WABASH RIVER GENERATING STATION WITHOUT A PSD PERMIT.
ON MAY 29, 2009, THE DISTRICT COURT FOR THE SOUTHERN DISTRICT OF INDIANA ORDERED THE DEFENDANTS IN U.S. v. CINERGY TO SHUT DOWN THREE COAL-FIRED BOILER UNITS (2, 3, and 5) AT THE WABASH RIVER PLANT NEAR TERRE HAUTE, INDIANA NO LATER THAN SEPTEMBER 30, 2009. IN ADDITION, THE COURT ORDERED CINERGY TO RUN THESE UNITS AT A REDUCED RATE PRIOR TO SHUTDOWN; TO SURRENDER, PERMANENTLY, SO2 EMISSIONS ALLOWANCES IN AN AMOUNT EQUAL TO APPROXIMATELY 16 MONTHS OF EMISSIONS; TO INSTALL PARTICULATE MATTER CONTINUOUS EMISSIONS MONITORS AT THE BECKJORD PLANT IN NEW RICHMOND, OHIO; AND TO PAY A CIVIL PENALTY OF $687,500.