Kevin Howell, Herald Journal Reporter
At least one commercial size wind generating station went on line in Indiana this year, and five more are planned for future production including one planned by Horizon Wind Energy in White County.
But Northern Indiana Public Service Company, NIPSCO, will be purchasing wind power to add to its generating capacity from Iowa and South Dakota.
NIPSCO announced Wednesday that it will be adding 100 megawatts of wind power supplied by Buffalo Ridge I LLC, Brookings County, South Dakota, and Barton Windpower LLC, Worth County, Iowa, both subsidiaries of Spain-based Iberdrola Renewables - the largest owner and operator of wind farms in the world.
Eileen O'Neill Odum, NIPSCO's Chief Executive Officer, said the energy company had considered Indiana wind farm operations, but felt they were not cost-effective.
"Before a decision was reached, we conducted a competitive bidding process. Buffalo Ridge and Barton Windpower were selected as the most cost-effective and reliable sources of wind energy for our customers," said Odum.
"Proposals from Indiana-based wind farms were considered, however, the Iberdrola companies' proposals offered a lower cost and a more consistent source of wind power. We are hopeful that as we evaluate adding additional wind to our capacity mix, Indiana wind farms will present sound economic options."
The 130-megawatt Benton County Wind Farm was the state's first commercial wind power station to go online when it began generating electricity at the end of May about 90 miles northwest of Indianapolis near the Illinois line.
The $250 million project is one of six Indiana wind farms planned that will generate a combined 3,000 megawatts.
For NIPSCO the purchased power agreement with Buffalo Ridge will provide 50.4 megawatts for 15 years. Barton Windpower's agreement will supply NIPSCO with 50 megawatts of electricity for a term of 20 years.
As part of NIPSCO's comprehensive Integrated Resource Plan, IRP, filed with the Indiana Utility Regulatory Commission, IURC, in November of 2007, the company proposed the wind purchase to add to its existing generating portfolio.
The purchase was approved by the IURC last week.
Electricity from the newly-added wind power will be delivered to the Midwest Independent Transmission System Operator's transmission grid, of which NIPSCO is a member. Purchases of wind energy are expected to commence in the first quarter of 2009.
"NIPSCO is pleased to be able to add wind to our renewable energy portfolio," said Odum.
"Increasing NIPSCO's renewable energy capacity is a positive step for the environment and for our customers."
NIPSCO's renewable energy portfolio also includes 10 megawatts of hydroelectric energy produced by the Oakdale and Norway dams in White and Carroll Counties.
Other power companies including White County REMC, which purchases its electricity from Wabash Valley Power Association, also include renewable energies in their portfolios said REMC customer/member relations representative Casey Crabb.
"Wabash Valley Power Association also has wind power in its renewables portfolio, so a percentage of REMC's power is also generated by wind," Crabb said.
According to the Wabash Valley Web site, about 8 megawatts of electricity generated by four wind turbines owned by Agriwind, LLC in east central Illinois is distributed to various cooperatives.
The power association also generates power from methane collected at several landfills including Liberty Landfill near Buffalo.
Crabb said he would like to see Wabash Valley purchase electricity from Horizon Wind Energy once its wind farm is up and running in White County.
"But that will be up to Wabash Valley, and depend on cost," Crabb said.