NIPSCO is seeking Indiana Utility Regulatory Commission approval to acquire a wind farm and increase power bills to pay for the purchase.
The Merrillville-based electric and gas utility is asking the IURC to approve a request to purchase the 200 MW Templeton wind farm from Templeton Holdings and to recover the project costs through its generation cost tracker, which allows it to bump up bills as certain costs increase without having to go through a full rate hike review. NIPSCO estimated the Templeton Project will cost the average resident consuming 668 kWh per month of electricity an additional $3.48 a month.
NIPSCO has been phasing out coal-fired electricity generation in Wheatfield and Michigan City and investing in solar and wind instead. It shut down Units 14 and 15 at R.M. Schahfer Generating Station in 2015 and will retire the remaining Units 17 and 18 by the end of the year. The Michigan City Generating Station will be retired by the end of 2028.
State regulators are weighing a proposed order that would approve the Templeton wind farm as a clean energy project and give NIPSCO the authority to recover its costs. The Indiana Office of the Consumer Counselor, which represents consumer interests, is not filing an objection to the request.
NIPSCO is looking to develop the Templeton wind farm in Benton County, bringing it online by June 30, 2027. It will consist of 71 wind turbines.
NiSource Director of Portfolio Planning and Origination Patrick M. d’Entremont testified before state regulators Tuesday that NIPSCO originally planned to reach a power purchase agreement in which it would buy 100% of the electricity generated by the wind farm over 20 years but not intend to buy it outright since the developer offered to sell it at "terms NIPSC considered favorable.
The utility plans to bring enough new renewable energy generation online as well as a new natural gas peaker to maintain service during the transition. d’Entremont told state regulators wind projects are now more competitive due to an expansion of federal tax credits and a change in Midcontinent Independent System Operator rules that require utilities to maintain adequate resources during all four seasons.
In his testimony, he described it as a prudent acquisition, especially since wind resources are currently scarce in Indiana and the price of wind farms likely will increase as more utilities start investing in wind. A purchase will allow NIPSCO to meet the long-term needs of its customers beyond just a 20-year window, d’Entremont said.
The IURC, which regulates utilities that tend to operate as monopolies without any market forces reining in rates, is currently weighing a proposed order that NIPSCO drafted and submitted.
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