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updated: 6/7/2013 7:13 AM

Ind. court wades into coal gas plant dispute

Ind. court wades into coal gas plant dispute

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Associated Press

INDIANAPOLIS -- The state Supreme Court has agreed to step into a dispute over the building of a $2.8 billion coal-gasification plant proposed for southwest Indiana.

The court on Thursday agreed to hear Indiana Gasification LLC's appeal of an Indiana Court of Appeals ruling that invalidated a portion of the company's contract requiring the state to buy and resell the plant's synthetic natural gas for 30 years.

Opponents of the Rockport plant including natural gas utility Vectren Corp have said the contract would cost Indiana utility customers as much as $1.1 billion in higher rates.

Legislation approved in April requires regulators to consider new ratepayer protections. Developers suspended work on the project days after the bill's passage.

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