Tuesday, June 18 2013 8:30 AM EDT2013-06-18 12:30:38 GMT
It happened around 2:30 this morning at the kangaroo express on south kentucky. You can see a heavy police presence at the scene. Officers say a white male in his late 20's, early 30's walked into theMore >>
Officers say the suspect walked into the gas station, implied he a weapon and demanded cash.More >>
Mario Chalmers broke out of a shooting slump to score 10 points, lifting the Miami Heat to a 27-25 lead over the San Antonio Spurs after one quarter of Game 6 in the NBA Finals on Tuesday night.More >>
LeBron James led a title-saving charge, and now his crown will be on the line one more time in Game 7.More >>
The chairman of the House Intelligence Committee says it appears the much-criticized national electronic surveillance program foiled "dozens" of terrorist plots.More >>
The U.S. foiled a plot to bomb the New York Stock Exchange because of the sweeping surveillance programs at the heart of a debate over national security and personal privacy, officials said Tuesday at a rare open hearing on...More >>
Award-winning journalist and war correspondent Michael Hastings has died in a car accident in Los Angeles.More >>
Award-winning journalist and war correspondent Michael Hastings, whose unflinching reporting ended the career of a top American army general, died early Tuesday in a car accident in Los Angeles, his employer and family said.More >>
Chrysler says it has resolved its differences with the government and will recall older Jeep Grand Cherokee and Liberty SUVs that could be at risk of a fuel tank fire.More >>
After initially defying federal regulators, Chrysler abruptly agreed Tuesday to recall some older-model Jeeps with fuel tanks that could rupture and cause fires in rear-end collisions.More >>
INDIANA (WFIE) -
The proposed substitute natural gas (SNG) plant in Rockport, Ind., which is being developed by Indiana Gasification, an affiliate of New York-based holding company Leucadia Corporation, is estimated, based upon current natural gas prices, to cost the State of Indiana nearly $1.1 billion in its first eight years of operation. These costs will be passed on by the State and will be borne by Hoosier natural gas customers, including the 680,000 customers served by Vectren Energy Delivery of Indiana (Vectren), as well as the natural gas customers of most of the other gas utilities in Indiana.
As proposed, the developers of the SNG plant, which is designed to convert coal to pipeline-quality natural gas, reached a deal with the State of Indiana in 2011 via the Indiana Finance Authority (IFA) to buy all of the plant's manufactured gas and then resell it into the open market. Under a 30-year agreement, if the manufactured gas does not sell in the open market at a price above the contract price that is projected to escalate each year for the contract period, then Indiana's natural gas customers, including those of Vectren, will see a charge on their monthly natural gas bills to make up the shortfall. The SNG plant developers have provided a projected average SNG price discounted to 2008 dollars over the entire contract term, but they have refused to publicly say what the actual price of the manufactured gas will be each year. In the event the plant's manufactured gas beats the current market price, customers would share in that gain.
"The concept of this plant originated at a time, in 2006, when natural gas prices were at record highs and there were national fears that we were going to run out of natural gas," said Mike Roeder, vice president of corporate communications and government affairs. "Since 2009, the available supply and price of natural gas has changed dramatically. Thanks to the emergence of shale gas, our nation's natural gas supply has grown to record levels, which has caused the price of natural gas to hover near record lows. More importantly, multiple independent forecasts conclude that prices are likely to remain low for the next two decades and beyond. Given the current and projected market price for natural gas is now substantially lower than the SNG plant's projected contract price for the manufactured gas, the project no longer makes economic sense, especially when Hoosier natural gas customers carry the risk to absorb the state's gas market losses throughout the 30-year contract term."
The plant alone is expected to cost nearly $3 billion to build, and the developers of the SNG plant are now seeking a federal loan guarantee, similar to the one provided to Solyndra, the bankrupt solar panel manufacturer, to help with construction of the plant and a 440-mile pipeline to transport the plant's carbon dioxide output, the cost of which is not yet public.
The state legislature required that Indiana Gasification guarantee savings for customers before the plant could go forward. Indiana Gasification has publicly said that the requirement that they provide a guarantee only means they promise they will make a commitment and not that they actually fulfill their commitment. In furtherance of their "promise," Indiana Gasification has proposed to fund an account of $150 million. Given the forecasted low price of natural gas and the fact that Indiana gas customers are allocated 100 percent of the market losses the State incurs, this account will likely be exhausted within about the first year of the SNG plant's operation after which customers will start to see a new line item charge on their bill to ensure the losses are refunded to the State of Indiana that will then make the developer whole. It is expected that the developer will make a profit even if the State loses money.
Based on the expected losses from the State's resale of the SNG in the first eight years:
a Vectren residential customer would likely pay an additional $375 on their gas bill to cover these losses;
an average size small business customer would likely pay up to an additional $2,000 on their bill; and
a small industrial customer would likely pay up to an additional $250,000 on their bill.
"Put simply, this is a tax on all natural gas customers," Roeder said. "Using today's gas futures prices from the New York Mercantile Exchange (NYMEX prices), we can purchase gas many years into the future below the expected SNG price."
Other similar projects around the country are being abandoned due to the fundamental change that has occurred in the natural gas marketplace. Proposed SNG plants in Illinois and Mississippi have experienced setbacks and some have even been canceled. As an example, Leucadia, which had planned to develop an Illinois plant, abandoned it after the state rejected a proposed law that would have required gas utilities and their customers to take the output from the plant. (Click here for that news article.)
"We continue working on behalf of all natural gas users in a court proceeding where we are challenging the contract between Indiana Gasification and the IFA," added Roeder. "Predictably, the project has received state environmental permits, but the project has many more hurdles to clear, including the federal loan guarantee that puts additional risk on all taxpayers. Given the current state of the natural gas marketplace, this project is contrary to market forces, would cost Hoosiers billions, will hurt future economic development activity in the state, and, as currently structured, makes no sense to proceed with at this time."
Although the plant received state regulatory approval to move forward last fall, Vectren, consumer advocates, environmental organizations and other natural gas utilities in the state continue to work on behalf of Hoosiers to ensure they are protected from bearing these costs. These groups, including Vectren, have also appealed the contract's approval to the Indiana Court of Appeals.
Among issues under consideration by the court include:
what customers - residential, commercial and/or industrial - are affected and subject to the IFA's losses;
whether the contract approved by the IURC complies with state law;
when the customer savings guarantee must take place, if at all; and
how the savings guarantee will be achieved.
Indiana Gasification and the IFA have requested oral argument before the Indiana Court of Appeals. All parties are now awaiting dates to be set.
Tuesday, June 18 2013 3:35 PM EDT2013-06-18 19:35:01 GMT
SAND CREEK TOWNSHIP, IN (WAVE) – A 12-year-old Jennings County boy was accidentally shot in the head by his 16-year-old brother late Monday night while handling firearms in their home, according to theMore >>
Investigators said the 16-year-old had been handling a .22 caliber rifle when it discharged while the rest of the family was asleep.More >>
Tuesday, June 18 2013 12:44 PM EDT2013-06-18 16:44:56 GMT
SHELBYVILLE, KY (WAVE) – A teenage girl found dead in a Shelby County creek Monday morning has been identified.Deputy coroner Jeff Ivers said Jackleen Lane, 15, of Bagdad, KY drowned. She was last seenMore >>
How Jackleen Lane, 15, ended up in the creek has not been determined.More >>
Tuesday, June 18 2013 8:37 PM EDT2013-06-19 00:37:46 GMT
Closing arguments were heard Tuesday morning in the case of State v Jeffrey Weisheit. Weisheit is accused of setting the fire that killed Alyssa and Caleb Lynch in their home two years ago. He is chargedMore >>
Closing arguments were heard Tuesday morning in the case of State v Jeffrey Weisheit. Weisheit is accused of setting the fire that killed Alyssa and Caleb Lynch in their home two years ago. More >>
Tuesday, June 18 2013 2:03 PM EDT2013-06-18 18:03:35 GMT
An Owensboro, Ky., man was indicted and arrested on June 17, charged with six counts of mail fraud in connection with defrauding more than $200,000 from an elderly Daviess Co., Ky., couple and allegedlyMore >>
An Owensboro man has been arrested and charged with six counts of mail fraud in connection with defrauding more than $200,000 from an elderly Daviess County couple.More >>
Tuesday, June 18 2013 10:34 PM EDT2013-06-19 02:34:44 GMT
Four people have charged for holding a mother and her child captive for years. Jordie Callahan, Jessica Hunt, Daniel J. Brown and a fourth person are accused of engaging in human trafficking. AccordingMore >>
Four people have been arrested for holding a mother and her child captive for years in Ashland.
According to the charges, the suspects used beatings, threats of death and threats of attacks from pit bulls and large snakes to hold a woman and her child against their will for two years.More >>
Monday, June 17 2013 11:55 PM EDT2013-06-18 03:55:55 GMT
LINCOLN COUNTY, KY (WAVE) - A 92-year-old woman was allegedly beaten and sexually assaulted in her own home in Stanford. Neighbor Mabel Releford explained the woman had family over Friday night and momentsMore >>
Police said even though she was battered and bruised the 92-year-old victim managed to call 911, but she is going to have a long road to recovery.More >>
Monday, June 17 2013 6:39 PM EDT2013-06-17 22:39:20 GMT
A lawsuit claims billionaire hardware kingpin John Menard pressured the wife of a business partner to have sex with Menard and his wife and retaliated with firings and lawsuits when she turned him down. Menard'sMore >>
Menard's attorney says Menard categorically denies the claims by Tomisue Hilbert.More >>
Scientists say a wooden beam extending from the floor of northern Lake Michigan appears to have been there for centuries, an important finding as they try to determine whether it's part of the Griffin, the...More >>
A wooden beam embedded at the bottom of northern Lake Michigan appears to have been there for centuries, underwater archaeologists announced Tuesday, a crucial finding as crews dig toward what they hope is the carcass of a...More >>
Tuesday, June 18 2013 9:23 AM EDT2013-06-18 13:23:30 GMT
A 5-year-old girl set up a lemonade stand across the street from the Westboro Baptist Church compound, and now the group is targeting her. Jayden Sink raised nearly $200 on Friday while she sold lemonadeMore >>
A 5-year-old girl set up a lemonade stand across the street from the Westboro Baptist Church compound, and now the group is targeting her.More >>
1115 Mt. Auburn Road
Evansville, IN 47720