Leaving things better
Your Energy, Your Future
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  • How it works

    Our plan, called Your Energy, Your Future, is a balanced, gradual and orderly transition to retire nearly all coal-fired generating units by 2023 — and all of them by 2028 — and to begin replacing them with new lower-cost, cleaner energy sources, including wind and solar.

    We envision a brighter future for Northern Indiana in three key ways: by focusing on the long-term strength of our local economy; delivering the best cost, most balanced and reliable energy our customers need; and reducing emissions to improve our environment.

  • Good for our customers

    By retiring costly and aging facilities and adding lower-cost energy options, we can generate more than $4 billion in cost savings for customers. The estimated energy savings will begin to be realized by our customers as soon as 2023. Additionally, we’re ensuring a diverse energy mix that provides reliable energy.

  • Good for our environment

    We’ll reduce carbon emissions by more than 90 percent by 2028 as a result of the current transition plan — while providing continued support for customers who generate their own electricity from renewable sources, such as wind and solar.

  • Good for our economy

    Adopting cleaner, lower-cost energy will help save Indiana’s businesses and families money, making our region more economically competitive. What’s more, our state becomes more attractive to employers as well as residents once we achieve a stronger, more future-forward balance of renewable energy. And don’t overlook the increased economic development and investment associated with the installation of renewable energy technologies, along with the extensive potential for retraining and workforce development opportunities within the renewable energy space.


Did you know?

Why are we doing this?

The decision to begin a decade-long transition to a more balanced, more diversified generation portfolio is driven by economics and firmly grounded in affordability and reliability for customers. The plan is based on an extensive and comprehensive review, which included the modeling of hundreds of scenarios and a formal Request for Proposal - which produced actual projects from the marketplace rather than relying solely on industry forecasts and projections.

What about coal?

While coal has been an important part of the nation’s energy mix for nearly 90 years, our coal-fired generating stations have aged and grown more expensive to maintain and operate. They have struggled to compete with technological advances resulting in the availability of abundant, low-priced supplies of natural gas. In addition, renewable technologies have improved immensely, and their pricing has become much more competitive — all which points to an opportunity to make a positive change.

Why renewable?

Results from the RFP showed that for our particular need, renewable energy sources were lowest-cost, followed by natural gas-fired generation. The most competitive were about half the cost of our current coal fleet. And, while there is a relatively lower up-front capital cost for new natural gas resources, the savings from renewables as compared to natural gas and existing NIPSCO coal units are largely driven from the difference in lower (i.e. “zero”) fuel costs and operating and maintenance expenses, as well as influence from the federal production and investment tax credits.

Is this reliable?

Core to our plan is reliability. That’s why we’re taking a measured, decade-long approach to this shift in generation mix. While renewable energy is considered an intermittent source of energy, we are confident in the plan’s ability to maintain reliable service for our customers. You can read more about battery technology here. Our portfolio today includes baseload, natural gas-fired electric generation that we intend to supplement with these new sources, and we’re planning a number of important transmission system upgrades. And, because of our unique physical geography, along with our connectivity to the Midcontinent Independent System Operator, we can further enhance those essential attributes of reliability and resiliency — all to the benefit of our customers.

Where do cost savings come in?

Electric generation costs make up a significant portion of the overall cost of service and the amount customers pay on their electric bill each month. By retiring the expensive and aging coal-fired facilities and replacing them with lower-cost options, it brings down the overall cost for electric generation – which equates to cost savings for customers.

Did You Know

Our plan timeline

We’re putting our plan into action. NIPSCO will begin replacing the retired coal-fired generation with lower-cost, cleaner energy resources, starting with three new Indiana-based wind projects – which are set to be operational in 2020.

2019

Issuance of next RFP to review all available energy resources to replace the retiring coal-fired electric generation resources (late 2019); Electric transmission upgrade projects begin near Michigan City and surrounding areas (June-December 2019)

Energy mix today

  • Coal - 71%
  • Natural Gas - 25%
  • Renewables - 4%

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 46%

2020

Initial three Indiana-based wind projects expected to be operational

  • Roaming Bison (Montgomery County)
    • 300 MW wind project, estimated 107 turbines
  • Jordan Creek (Benton and Warren Counites) 
    • 400 MW wind project, estimated 160 turbines
  • Rosewater (White County)
    • 102 MW wind project, estimated 25 turbines

Continued electric transmission upgrades

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 45%

2021

NIPSCO to update its Integrated Resource Plan, which will confirm the current generation transition plan and timeline or require the company to make updates

Continued electric transmission upgrades

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 45%

2022

Continued electric transmission upgrades

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 46%

2023

Planned retirement of the four coal-fired electric generating units at the R.M. Schahfer Generating Station, located in Wheatfield, Indiana

Projected energy mix

  • Coal - 17%
  • Natural Gas - 24%
  • Renewables - 53%
  • Other - 6%

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 80%

2024

NIPSCO to update its Integrated Resource Plan, which will confirm the current generation transition plan and timeline or require the company to make updates

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 77%

2025

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 78%

2026

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 80%

2027

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 78%

2028

Planned retirement of the last remaining coal-fired electric generating unit at the Michigan City Generating Station in Michigan City, Indiana

Projected energy mix

  • Natural Gas - 25%
  • Renewables - 65%
  • Other - 10%

Carbon emissions reductions since 2005 (Metric Tons CO2)

  • 92%


Renewable energy - How it works

Wind

Wind

If you’ve flown a kite, you know the power of wind — and that it can be harnessed. Find out how today’s generation of wind turbines converts wind into electricity more efficiently than ever. You can even watch a quick “Energy 101” video on the technology.

Learn More

Solar

Solar

You may know that solar power converts energy from sunlight into electricity. But did you know the cost of such systems has fallen over the past few years — making affordable, clean energy a reality for more applications?

Learn More

Battery

Battery

Naturally, the sun isn’t always shining, and the wind isn’t always blowing. Battery storage technology helps us store the electricity generated by renewable energy resources, when those resources are available, until whenever it’s needed.

Learn More


Leaving it better in northern Indiana

Jon Groth is #LeavingItBetter by inspiring the next generation to embrace renewable energy - and to build it themselves.

Jon's Story
Leaving things better

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On Screen: Leaving it better.

Voiceover, Jon Groth, Director of Career and Technical Education, Porter County Schools: I follow the philosophy of Christa McAuliffe, "I touch the future, I teach." And that's what I think makes us all feel good about what we're doing. At one time, this was an alternative school program where you sent kids that weren't successful in other schooling so you sent them to vocational school. But since then, we've become kind of an elite school where kids find it hard to get into our programs because we have full enrollment. The initiative for our solar project was 10 years ago when the state cut our education budget by $300 million. We had one solar panel in our electronics lab that was being used as a demonstration. I thought, "That's good. Let's put that up on the roof and let's operate a light so that it's very tangible, it's not just theoretical." And then we thought, "Well we'll throw a few more solar panels on the roof and we'll start operating some of the lights in our hallways." If you walk down our hallway today, half of those lights are operated by solar panels on the roof and a couple of wind generators that we built also. We have a video camera that's focused on that wind generator that the kids built because they want to see how it functions. And when they log into our web cam, they do it during storms to make sure that wind generator is working the way it's supposed to be. They do that to solve these problems, they want it to work. My teachers, too, have a passion for this subject. Whether it's repairing automobiles, building parts for machines, or doing electronic work, the kids learn that and they develop a passion and expertise for it. For me, it's reaching a challenge or goal I set for myself. I do translate that back into what I do for a living with my students. I really force them to set goals, and I really think that's important for all of us.


Jerrod Tobias is #LeavingItBetter by looking at a building wall and seeing a blank canvas. See what inspires him.

Jerrod's Story
Leaving things better

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On Screen: Leaving it better.

Voiceover, Jerrod Tobias, local artist: 

I was born in Fort Wayne and it’s just been a really great and affordable place to be an artist and raise a family and do it all within reason.

We have a daughter and two boys. They have been more of a catalyst for me than anything because I’m responsible for keeping this world spinning so they can just live in it. 

We are just one tiny piece of this magical tapestry that we’re lucky to be a part of. My challenge is how do I make artwork that speaks to people in a way that uplifts them – that they want to be a part of that.

The difference between public art – mural paining – and traditional gallery work is that the gallery system caters to a minority of the community. So, public work, kind of breaks down those barriers and makes it accessible to the entire community. So people who might not engaged with an art scene are then presented with an opportunity to have an experience without any of the economic barriers or educational barriers. This is something that’s just supposed to be a reflection of the community and it is an offering to the community.

I’m putting the best work I can do out there, and I’m trying my hardest to make it inspire people and challenge people -- and if I can do that, that’s like the most rewarding experience.


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