Review of Duke Indiana Unit Commitment and Dispatch Practices in the Company’s Quarterly Fuel Adjustment Cost Dockets
Synapse is providing expert testimony and analysis to Sierra Club in Duke Energy Indiana’s Fuel Adjustment Cost (FAC) dockets for the year 2020.
Synapse has evaluated Duke’s unit commitment and dispatch practices for its four coal plants at Edwardsport, Cayuga, Gibson, and Gallagher during the period covered by FAC 123 (which covers September 2019 – November 2019) and FAC 124 (which covers December 2019 – February 2020). We found that Duke has been uneconomically committing most of its units a majority of the time. As a result of the Company’s uneconomic dispatch practices, Duke has accumulated net revenue losses (based on just variable and fuel costs) at all of its units during at least one (and in most cases both) FAC periods. The Indiana Utility Regulatory Commission has agreed to open a subdocket to examine the issue of unit commitment more closely. Synapse will provide testimony and support in the Subdocket, and subsequent FAC dockets in 2020.