Duke Energy reported that the estimated cost to complete the Edwardsport Project has increased $150 million. Duke Energy filed a report with Indiana Utility Information Commission stating the $2.35 billion cost estimate will increase $150 million. Duke is required to report significant changes.

This represents a 6% increase in the total cost of the project. The Duke Energy press release states that the increase is because of increases in the amount of materials such as structural steel, piping and electrical cable. Bechtel is the engineering contractor and the original estimated quantities have been revised upward as the engineering details have been fully developed. Construction has started. When complete the plant will produce 630 Mw of electricity.

This should not be cause for alarm. For a large industrial project, the original estimate is prepared before the detail design work is completed. As the details of the engineering are developed, the cost estimate will move either up or down.