From the Guardian:
One of the band's long-time collaborators, guitarist Scott McCaughey, told Seattle's KIRO 97.3: "Peter's making this record of his." McCaughey offered no further details about the project, saying simply it will be "pretty 'out'". Buck will probably sing on the record, but is unlikely to sing in concert. He is also considering releasing the LP on vinyl only, with no download version.
Looks like 2012 should be lining up to be a stellar music year.