09/17/2026
IMMEDIATE RELEASE FOR SPENCER COUNTY:
What the Rockport Energy Center agreement means for Spencer County
Spencer County residents deserve the full picture of the Rockport Energy Center agreement.
The County Council approved a substantial tax abatement for the project. At the same time, the County negotiated an economic development agreement requiring Indiana Michigan Power, an AEP company, to make at least $144 million in scheduled payments during the ten-year abatement period, subject to the agreement’s terms. Those are contractual payment obligations, not voluntary donations. Any discussion that counts the tax incentive but ignores those payments gives residents an incomplete picture of what the County negotiated.
The agreement also addresses a larger challenge facing Spencer County. I&M’s existing coal units at Rockport are preparing to retire. Their retirement threatens a significant part of the County’s tax base—revenue that supports schools, public safety, libraries, and other essential services. The County has a responsibility to prepare for that financial risk rather than wait for it to arrive.
That is why one of the most important parts of the negotiations concerned the transition between retirement of the existing plant and operation of the new facility.
The agreement contains a separate gap-payment provision designed for that period. The formula begins with $8 million for the first qualifying twelve-month period, credits certain property taxes that continue to be paid, and provides for additional payments if the qualifying gap lasts longer, subject to a $20 million aggregate cap and the agreement’s other conditions. In practical terms, the provision is designed to protect public revenue during a period when the County might otherwise face a substantial shortfall.
The agreement provides another safeguard as well: if the project’s final construction cost exceeds $4 billion, the required payments increase under the agreement’s formula.
Concerns about electric bills deserve a separate discussion. Spencer County does not set I&M’s or CenterPoint’s regulated electric rates. Those rates are subject to regulation by the Indiana Utility Regulatory Commission. I&M’s proposed rate reduction is a separate regulatory matter. The County’s negotiations focused on what county government could address directly: protecting the local tax base, supporting essential public services, encouraging new investment, and providing greater certainty during the transition from the existing plant.
We are therefore incredibly proud and excited about this agreement. The $144 million payment schedule, the transition-year protections, and the potential for increased payments are worth celebrating.
The Rockport Energy Center represents one of the most significant economic development projects in Spencer County in generations. If completed as proposed, it will bring substantial investment and employment to the county while replacing an aging source of tax revenue. Just as important, the County negotiated protections intended to preserve revenue for schools, public safety, and other public services during the transition. A combination of new investment and greater revenue stability will benefit Spencer County for years to come.
