Gas plant in Indiana rejected due to stranded assets

Stranded assets are now a reality, not just speculation any more. Let's hope ISO New England is paying attention.

Excerpt from Utility Dive - Indiana regulators reject Vectren gas plant over stranded asset concerns

“The order from the Indiana Utility Regulatory Commission (IURC) is another ding against utility megaprojects that used to define the sector.

For most of the last century, utilities built large-scale, centralized generation facilities to serve their customers. As the economy grew, power demand increased, allowing them to recoup the cost of big investments.

But since the 2008 recession, electricity demand has largely stagnated in the U.S. and decoupled from economic growth. At the same time, renewable energy and storage prices have declined dramatically and a few utility megaprojects — like the V.C. Summer nuclear facility — have been canceled at ratepayer expense.

Indiana regulators say that situation means Vectren's $900 million proposed gas plant could become an uneconomic asset if customer demand changes or alternatives decline in price.”