AES Indiana has received approval from the Indiana Utility Regulatory Commission to repower Units 3 and 4 at its Petersburg plant, shifting from coal to natural gas.

The company says repowering the units is projected to save customers approximately $281 million over 20 years by reducing operational costs. The transition will also reduce carbon emissions by 70% by 2030 compared to 2018, cutting hourly CO2 emissions in half. AES Indiana aims to become the first investor-owned utility in Indiana to eliminate coal by 2026.

This repowering is part of a broader plan outlined in AES Indiana’s 2022 and 2024 Integrated Resource Plans, which emphasize cost-effective and reliable energy. Alongside the repowering, the company is investing $1.1 billion in Pike County by 2026, including 250 megawatts of solar and 180 megawatts of battery storage in efforts to improve grid stability and sustainability.