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NIPSCO announces ‘Your energy, your future’ initiative

November 16, 2018

MICHIGAN CITY — The Northern Indiana Public Service Company (NIPSCO) has unveiled an initiative to transition customers to a more affordable and sustainable energy mix.

And this is all related to the eventual retirement of the coal fire unit in Michigan City.

Referred to as “Your Energy, Your Future”, the effort detailed in the company’s 2018 Integrated Resource Plan, lays out a forward-looking blueprint to transition Northern Indiana’s energy generation away from coal toward cleaner, more efficient and cost-competitive renewable energy sources.

“Customers want what’s best for their families: Energy that is affordable, reliable and sustainable. NIPSCO’s new plan puts them front and center,” said NIPSCO president Violet Sistovaris.

“We have the opportunity to invest in balanced options that will deliver more cost-effective and cleaner energy for our customers. The ‘Your Energy, Your Future’ initiative envisions a brighter future that delivers the energy our customers need while reducing emissions and focusing on the long-term strength of our local economy.”

The company also submitted a request to modify its existing electric rates to support changes in electric generation and service to customers.

According to a NIPSCO press release, the changes NIPSCO is making will equate to more than $4 billion in cost savings for customers over the long term. Becoming coal-free will also improve the region’s environment, reducing carbon emissions by more than 90 percent by 2028, the company said.

The two filings with the Indiana Utility Regulatory Commission (IURC) are the result of a comprehensive analysis of NIPSCO’s future energy mix and months of meetings with customers, employees and local community leaders. With this direction, NIPSCO will pursue a more affordable and cleaner electric supply balance while maintaining flexibility for the technology and market changes ahead.

Transitioning electric generation

To invest in a more balanced mix of energy generation to meet customer needs, the “Your Energy, Your Future” initiative accelerates the anticipated retirement of NIPSCO’s five remaining coal-fired units and a transition to cleaner, more cost-efficient renewable energy. Under the plan, the company will retire Units 14, 15, 17 and 18 at the R.M. Schahfer Generating Station in Wheatfield, Indiana, no later than 2023 and Unit 12 at the Michigan City Generating station in Michigan City by 2028.

Operation of NIPSCO’s existing natural gas-fired Sugar Creek Generating Station in West Terre Haute, Indiana, and the Norway and Oakdale hydroelectric dams along the Tippecanoe River will continue.

While still too early to announce workforce changes, the company plans to coordinate with internal and outside regional and statewide partners to reduce the impact of the transition over the next five to 10 years.

To replace the coal-fired plants, NIPSCO anticipates pursuing largely renewable energy resources – such as solar and wind energy – combined with battery storage technology. The timeline for retirement is faster than indicated in NIPSCO’s last IRP, as the energy market has since produced more competitive and cost-effective options for NIPSCO customers.

Focused on affordable energy

Though customers will realize savings over the long term – largely through lower fuel costs from increased use of renewable energy and the avoidance of costs associated with maintaining and upgrading aging facilities – NIPSCO’s separate request to adjust electric rates proposes an increase for customers to support the transition.

“We know that every dollar matters to our customers, so we want to be upfront about shorter-term shifts some of our customers will see in their bills during this transition,” said Sistovaris. “This proposal allows us to provide the level of service our customers expect, it addresses changes in the way major industrial customers will acquire electricity and it proposes new assistance programs for income-eligible customers.”

NIPSCO’s proposal must be reviewed and approved by the IURC, and the nearly yearlong process includes direct input from customers and the public. Under NIPSCO’s request, newly proposed electric rates would be phased in over two steps in September 2019 and March 2020. The average residential customer would see an $11 per month increase – or 12 percent – in their electric bill. Included is a proposal to increase the existing, fixed monthly customer charge by $3 per month.

NIPSCO’s request represents an increase in annual revenue of $21 million. While the company already offers a range of energy savings and weatherization programs, NIPSCO highlighted its commitment to working to identify and create a new electric bill payment assistance and home weatherization program for income-eligible customers.

The primary drivers of the proposed increase include investments in upgrading electric infrastructure, environmental upgrades and a shift in the way some large industrial customers will obtain electricity in the future.

Meanwhile, NIPSCO’s electric rates remain below the national average, and the company remains focused on improving service through investments to minimize outages, provide better overall response and information to customers when outages occur and help customers save energy and money.

Learn more at NIPSCO.com/YourEnergy.

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