Duke Energy-Indiana Ties Run Deep

Jim Rogers’ road to the head of Duke Energy and leadership both within his industry and the U.S. business community began, in one sense, in Indiana. 

Who knew in 1988 when he joined Plainfield-based PSI Energy as chairman, president and CEO that PSI would merge with Cinergy (putting Rogers in a similar role out of Cincinnati from 1995-2006) and that the Cinergy-Duke marriage three years ago would elevate him to the leadership position he currently holds.

Rogers made an impact and left an impression in the Hoosier state. He served on the boards of directors of several leading corporations (Indiana National Bank and Duke Realty among them) and earned honorary doctorate degrees from Indiana State University (law) and Marian College (now Marian University) in business administration.

“When Jim Rogers arrived at PSI Energy  in the late 1980s, he brought a level of enthusiasm and vision that challenged the historically conservative power industry,” declares Vince Griffin, who worked for Rogers at that time and is now the Indiana Chamber vice president of environmental and energy policy. “This is unquestionably a challenging time for the electric power industry.”

Duke Energy is also looking at its Edwardsport, Indiana facility as a pilot project for the future with its investment in a 630-megawatt IGCC (integrated gasification combined cycle) facility.

Indiana takes center stage in the energy debate on September 2 with the Indiana Conference on Energy Management. The Duke Energy view, and undoubtedly a heavy dose of Rogers’ philosophy, will be featured in the keynote address from Jim Turner, the company’s second in command and leader of U.S. franchised electric and gas operations.

Energy Leader Ready and Willing to Adapt to New Rules

Companies and business leaders want to know the rules. Take out the controllable surprises (tax rates, energy expenditures and other costs of doing business) and they will find a way to achieve success.

You can count Duke Energy’s Jim Rogers among that crowd. Duke is one of the largest energy companies in the country with four million customers receiving power that is primarily generated by coal. While cap and trade legislation in Congress is seen as devastating to the coal industry, Rogers would rather know what lies ahead (and find a way to deal with it) than be faced with the uncertainty of patchwork regulations or making investments today that could become obsolete in a few years.

Coal will not go away. Rogers told "60 Minutes" earlier this year that carbon capture and sequestration absolutely have to happen. If Democrats in Congress and the Obama administration are successful in putting their blueprint for reducing emissions in place, Rogers and Duke can make more investments like the current groundbreaking project at Edwardsport in southwestern Indiana.

Rogers will undoubtedly share updates on the progress at Edwardsport, his passionate views on federal legislation and more when he keynotes the Indiana Chamber’s September 2 Indiana Conference on Energy Management. A critical Washington perspective will be shared during the luncheon portion of the event from Ross Eisenberg, environment and energy counsel for the U.S. Chamber of Commerce.

Chamber Environmental/Energy VP to Earn Prestigious Ball State Award

Vince Griffin, Chamber vice president of energy and environmental policy, will receive the 2009 Natural Resources and Environmental Management Alumni Society Award of Distinction from Ball State University at its April 17 awards dinner.

Griffin, who earned his master’s degree from Ball State in 1975, has been the Chamber’s environmental and energy issue expert since 1997. A registered environmental health specialist, he has held numerous positions in the private and public sectors, coming to the Chamber after a lengthy career at PSI (now Duke Energy).

A Ball State release notes the award is presented to "one who is in a position of distinction, and who has demonstrated outstanding successes in his field, related to natural resources. Recipients are those who have also demonstrated loyalty to or support of the Ball State University Department of Natural Resources and Environmental Management."

A former president of the Indiana Environmental Health Association, Griffin currently serves on the board of the Center for Coal Technology and Research at Purdue and the Center for Earth and Environmental Sciences at Indiana University.

Does Obama Really Want to Bankrupt the Coal Industry?

Our election night partners at Hoosier Access have a detailed post on this, but it seems Barack Obama actually told the San Francisco Chronicle that he would like such aggressive cap and trade measures put in place that it would bankrupt the coal industry?

Read the full post with audio here, and decide for yourself.

Indiana Coal Production since 2004:
2007 – 34,231,151 tons
2006 – 34,715,610 tons
2005 – 34,460,052 tons
2004 – 35,240,514 tons

In Indiana, we still have a rather heavy reliance on coal and it should be noted that Duke Energy is currently building the first large-scale clean coal plant in Edwardsport.

Not only would a collapse of the coal industry be detrimental to Indiana, but it would have an even greater impact on top coal producers like West Virginia, where the industry provides around 40,000 jobs.

Update: As you might imagine, those who understand coal’s contribution to the national economy aren’t super enthused about Obama’s comments. Mike Carey, president of the Ohio Coal Association, issued a press release today and mentions Indiana in his remarks:

"These undisputed, audio-taped remarks, which include comments from Senator Obama like ‘I haven’t been some coal booster’ and ‘if they want to build [coal plants], they can, but it will bankrupt them’ are extraordinarily misguided.

"It’s evident that this campaign has been pandering in states like Ohio, Virginia, West Virginia, Indiana and Pennsylvania to attempt to generate votes from coal supporters, while keeping his true agenda hidden from the state’s voters.

Coal Conversion: We’ve Got Coal

West Virginia has some really nice state parks and a Greenbrier resort (and former famous congressional bunker hideaway) that is second to none. But the state certainly isn’t top of mind when it comes to economic development and innovation.

A headline that screams "W. Va. Takes Lead in Future of Fuel" will certainly draw attention. The plan: take advantage of the state’s greatest natural resource — coal — and turn it into gasoline and methanol in the first project of its kind in the United States. Incidentally, one of the partners (a Houston-based company) has already helped build a coal-to-liquids plant in China.

The $800 million project will provide security for West Virginia’s expansive coal industry, create additional jobs and potentially be part of the long-term solution to our country’s energy challenges. The president of Consol Energy, based in Pittsburgh, goes a little overboard when he terms West Virginia Gov. Joe Manchin "one of the few governors in the 50 states who can spell coal."

Indiana has coal, maybe not as much as West Virginia, but ample supplies. It is crafting an entrepreneurial path of its own with Duke Energy’s coal gasification plant in Edwardsport. Can our state be a player in the coal-to-liquids game? We’re not sure.

The West Virginia project is intriguing. Read about it here.

Energy by the Numbers

How many trillion Btu of coal did Indiana produce in 2005? If we told you 769.1, would you be impressed — or just confused? How about if we said that was more than all but five other states? A little more impressive.

Indiana’s coal capabilities and reliance on the fossil fuel for energy needs is not a secret. The state now has an opportunity to be a clean coal technology leader as development of a Duke Energy coal gasification plant in Edwardsport moves closer to reality.

The Energy Information Association has released additional data on energy production in 2005. Indiana ranked 24th in natural gas and 23rd in crude oil, far behind national leaders Texas and Louisiana in both categories.

Our state is not a participant in nuclear production, but the coal prowess puts the state 20th in overall production at 836.8 Btu.

The Small Business & Entrepreneurship Council provides the full story and tables.