The Petersburg Generating Station, an 800-acre facility near Petersburg, has been powering Indianapolis homes and businesses for nearly 60 years. However, the plant, often criticized as a “super polluter” for numerous water permit violations, is on the brink of a major transformation.

In a report from  Inside Indiana Business , they say a $300 million conversion, which still requires approval from state utility regulators, would make AES Indiana the first major utility in the state to abandon coal as a fuel source.

AES Indiana, the plant’s owner, plans to convert the facility to natural gas by the end of 2026, phasing out coal entirely.

John Bigalbal, chief operating officer for generation at AES Indiana, noted that much of the existing infrastructure will be shut down or repurposed, stating, “If we convert to natural gas, we won’t need any of this.”

In addition to the conversion, AES Indiana is investing $800 million in new projects at the site, including a battery-storage system and a 250-megawatt solar operation nearby. Despite the significant investment aimed at maintaining the plant and its 240 jobs, some critics, particularly from the coal industry, argue that these changes could lead to higher electricity bills for customers without significantly boosting the state’s power capacity.