In addition to investing in new power station in Morgan County, the company will invest $36m to convert Units 5 and 6 at the Harding Street Generation Station from coal to natural gas.

IPL president and CEO Kelly Huntington said that IURC approved IPL’s plans as the most cost-effective and reliable solution to replace generation that will retire due to increasing environmental regulations.

"Building a CCGT and refueling two of our Harding Street units will ensure our ability to meet the future needs of our customers and diversify our generation portfolio," Huntington added.

Capable of generating about 650MW of electricity more efficiently and with fewer environmental emissions, the new natural gas plant will reduce the rate of sulfur dioxide (SO2), nitrogen oxide (NOx) and particulate matter emissions by more than 98 percent as compared to the retiring Eagle Valley units.

"IPL continues to offer our wide variety of programs to help customers manage their electric bills by using energy more wisely."

The CCGT construction will commence this summer and will be completed in 2017, while the conversion of Harding Street Units 5 and 6 will start in the fall 2015 and will be concluded by early 2016.