Board approves IMPAs plan to expand Anderson peaking plant after neighbor concerns about noise and screening

The Anderson Board of Zoning Appeals voted unanimously to approve a special exception and four variances on April 1 to allow the Indiana Municipal Power Agency (IMPA) to expand its existing peaking power plant on roughly 200 acres west of Park Road.

IMPA plans to add a fourth dual-fuel combustion turbine rated at about 250 megawatts, support buildings including an administrative and water-treatment building, a switchyard, additional fuel storage, and site security. Staff estimated the expansion would cost about $350 million, with engineering and design under way, a groundbreaking expected in late 2027 or early 2028 and completion projected in the late 2029early 2030 timeframe. The expansion is expected to add three to four full-time jobs to the plants current staff of three.

IMPAs presentation and staff analysis stressed the project would replace retiring assets elsewhere in IMPAs system and serve as a wholesale, market-dispatched resource for IMPA members, including the City of Anderson. "This project is to replace retiring assets, not for incremental load," said Chris Sanders, vice president of generation for the Indiana Municipal Power Agency. Sanders said the new unit would be interconnected to the transmission system so an outage at the unit would not directly cut service to Anderson.

Neighbors who live along West 67th Street and Park Road raised concerns about noise, the visual impact of expanded infrastructure, and potential effects on property values. Several residents asked how the new units sound would compare with existing train and traffic noise nearby; IMPA representatives said the new unit would operate intermittently as a peaking resource and that the noise characteristics would be similar to the existing plant, with manufacturer-standard noise-abatement equipment incorporated into the design. On fuel, Sanders said the facility will run primarily on natural gas with ultra-low-sulfur diesel as backup and that combustion typically does not produce an odor.

A central zoning issue was IMPAs request for a variance from the citys screen-planting requirement where industrial property abuts residences. Staff noted that one residence is already largely screened by mature plantings the resident does not want replaced. IMPA requested a general screening variance given the sites size but told the board it was willing to work with homeowners on "targeted" screening in specific areas of concern. "If there are particular sections where we feel theres a concern, happy to work with homeowners to work on screening in targeted areas," Sanders told the board.

During deliberations a board member moved to approve the four variances (petitions 2A2D-26) with a modification: the screening variance (2C-26) would be approved contingent on IMPAs commitment to work with adjacent residents on spot screening where appropriate. The motion was seconded and passed on a roll-call vote with five yeses and no recorded no or abstain votes. The board then voted unanimously to approve petition 2-26, the special exception for the expanded power-generating plant, submitting findings of fact to support its decision.

Board members and staff emphasized that IMPA must still obtain required building permits and meet city regulations for lighting and signage; staff also confirmed required notices and legal ads were published. Sanders said IMPA is engaged in a purchase agreement for an adjacent Hayden parcel that, if closed, would be incorporated into the project footprint. He reiterated the project is intended to replace retired capacity rather than to attract a specific new large customer such as a data center.

The boards final action approves the expansion subject to the conditions and commitments discussed at the meeting; staff and the petitioner encouraged residents to contact the planning office with any complaints or to request follow-up on screening and mitigation. The board noted there is currently no scheduled business for the next meeting in May and adjourned after the votes.