Indiana Public Service Company is announcing plans to retire a “majority” of
its remaining coal-fired generation plants in the next five years and all
coal generation within the next 10 years.
Coal retirement is
“the most viable option for customers,” NIPSCO said in a statement released
on Wednesday, according to an analysis conducted “as part of its future
electric supply planning process.”
options point toward lower-cost renewable energy resources such as wind,
solar, and battery storage technology,” the company said. “While not yet
final, NIPSCO outlined the option for its electric generation strategy at a
public meeting with customers, consumer representatives, environmental
organizations, and other stakeholders taking part in the company’s
Integrated Resource Planning (IRP) process.”
“This creates a
vision for the future that is better for our customers and it’s consistent
with our goal to transition to the best cost, cleanest electric supply mix
available while maintaining reliability, diversity, and flexibility for
technology and market changes,” NIPSCO President Violet Sistovaris said.
The timeline for
NIPSCO’s five remaining coal-fired units identified in the analysis shows
the expected retirement of its R.M. Schahfer Generating Station in Wheeler
(Units 14, 15, 17 and 18) no later than 2023; and its Michigan City
Generating Station in Michigan City (Unit 12) by 2028.
approximate 1,800 megawatts (MW) of coal-fired generation will significantly
accelerate carbon reductions across the NIPSCO footprint and will result in
further reductions, both in timing and magnitude, beyond previously
announced targets,” the company said.
market changes continue to transform the energy industry, opening more
competitive options and it’s the primary driver of the changes being
considered for our system,” Sistovaris said. “Retiring our aging coal fleet
sooner will cost substantially less compared to our original plans for
extending retirements over a longer duration.”
NIPSCO’s existing natural gas-fired Sugar Creek Generating Station in West
Terre Haute and the Norway and Oakdale Hydroelectric Dams along the
Tippecanoe River would continue, the company added.
NIPSCO said that
the company “has been--and will continue--working with stakeholders and
regulators to solicit further input to aid in formulating its final plan.”
NIPSCO expects to submit that plan to the Indiana Utility Regulatory
Commission by Nov. 1.
about NIPSCO’s electric supply strategies and the IRP process can be found