NIPSCO says it plans to retire half of R.M. Schahfer coal capacity this year

NIPSCO said it plans to close two coal-fired units at the R.M. Schahfer Generating Station in Wheatfield in 2021 — or half its capacity.

The Merrillville-based utility plans to retire units 14 and 15 — which have been in use since 1976 and 1979, it said. The Schahfer Station is still on track to close by May 2023, while the Michigan City Generating Station would close by end of 2028, company officials said.

“We continue to evaluate the economics of our generating fleet, including recently commissioned renewables projects and secured capacity in the greater energy market alongside the ongoing fuel costs and investments required to operate our coal-fired units,” NIPSCO President Mike Hooper said. “On that basis, it was determined that retiring units 14 and 15 this year was the best decision for customers.”

In 2018, NIPSCO announced its plan to move off coal toward renewable energy sources and storage which it said would save $4 billion. It is looking to “minimize impacts” on jobs and employees, it said.

The company secured lowercost capacity from the Midcontinent Independent System Operator (MISO) market, a regional cooperative to ensure reliability, or backup power if needed. It also made upgrades to its transmission systems while it retires the two Schahfer units, it said.

NIPSCO is adding other solar, wind and battery capacity. Two wind farms, Rosewater in White County, and Jordan Creek in Benton/Warren counties went online late last year, adding 500 megawatts of generating capacity, it said. Another project, Indiana Crossroads, is expected to provide another 300 megawatts.

The utility is starting another Integrated Resource Plan cycle in March, seeking feedback from ratepayers, consumer groups, environmental advocates and others. It will hold a public forum as part of the process. The utility would submit the plan to the Indiana Utility Regulatory Commission (IURC) in November.