June 22, 2026

Energy Department Extends Operational Order for Indiana Power Stations

The U.S. Department of Energy has once again extended an order requiring the Northern Indiana Public Service Company (NIPSCO) to keep its generating station in Wheatfield operational. Energy Secretary Chris Wright renewed the directive last Thursday, specifying that it will be effective from Monday through September 19, according to an announcement from the DOE.

Sandhill cranes near a smokestack

Sandhill cranes fly near the Schahfer Generating Station in Wheatfield, Indiana. Image credit: Brian Cassella/Chicago Tribune.

“Taking reliable generation off the grid compromises energy reliability and needlessly raises energy costs for Americans,” Wright explained in a press release. “During peak summer demand, Midwesterners deserve continued access to affordable, reliable, and secure energy to power and cool their homes.”

The order further mandates the continued operation of the F.B. Culley generating station in Newburgh, delaying their originally scheduled retirement at the end of 2025. According to the DOE announcement, extending these stations’ operations aims to minimize electricity expenses and reduce the risk of blackouts for the public.

A spokesperson from DOE previously mentioned that the emergency order “prevented blackouts and likely saved hundreds of thousands of lives.” However, environmental and utility advocates have contested these claims, arguing that the order imposes unnecessary financial burdens on ratepayers.

NIPSCO issued a statement affirming compliance with the order while assessing its impact on operations, customers, and employees. Post-Tribune archives reveal that an Indiana Utility Regulatory Commission hearing indicated units 17 and 18 of Schahfer’s coal facilities are currently non-operational. Unit 18 has remained broken since the emergency order’s inception on December 23, 2025, and its renewal on March 24.

“Units 17 and 18 are currently offline while inspections, maintenance, and repair continue, involving significant turbine and boiler work,” according to NIPSCO’s statement. “Following the orders, these units will continue supporting reliability within MISO’s Northern and Central Zones. The Federal Energy Regulatory Commission (FERC) has authorized NIPSCO to seek recovery of costs for adhering to the 202(c) orders.”

“As this process progresses, NIPSCO remains focused on safe operations and delivering reliable energy within compliance with the 202(c) order.”

Sandhill cranes congregate in a coal ash pond

Sandhill cranes congregate in a coal ash pond next to Schahfer Generating Station. Image credit: Brian Cassella/Chicago Tribune.

U.S. Representative Frank Mrvan expressed opposition to the renewal of the emergency order in a letter addressed to Secretary Wright on Monday, highlighting rising energy costs for residents of Northwest Indiana.

“At a time when ratepayers in Northwest Indiana are already facing skyrocketing utility bills, this action will continue to place burdensome and unnecessary costs on families and businesses throughout the region,” Mrvan stated in his letter. “I urge you to reverse this order and instead work to lower utility costs for constituents.”

Mrvan noted NIPSCO’s estimation of $11.5 million in losses to keep Schahfer operational and cited the Institute for Energy Economics and Financial Analysis, which reports that maintaining coal-fired power plants past retirement dates costs the nation $300 million, with projections of an additional $30 million each month.

According to the Citizens Action Coalition report, statewide utility bills saw increases above $28 per month, marking a 17.5% rise as of July 2025. NIPSCO’s residential customers experienced a particularly steep increase of roughly $50 monthly, or 26.7% within a year.

Mrvan also referred to Wright’s April 15 testimony before the House Appropriations Subcommittee on Energy and Water, in which Wright indicated he would reverse directives if they ceased to be “net-beneficial to ratepayers.”

“Placing these additional costs on families already struggling to pay their utility bills is cruel and unnecessary,” Mrvan stated. “The millions committed by ratepayers to sustain the Wheatfield plant’s operations will only complicate matters for seniors, families, and diligent Americans attempting to keep their lights on.”

Solar farms in Wheatfield

Solar farms dot the landscape of Wheatfield, Indiana. Image credit: Brian Cassella/Chicago Tribune.

Mrvan isn’t alone in his protest against the emergency orders. Indiana public interest groups, including the Citizens Action Coalition, Just Transition Northwest Indiana, and the Hoosier Environmental Council, have partnered with EarthJustice, the Sierra Club, and the Environmental Law and Policy Center to challenge the executive order.

EarthJustice argues these orders circumvent decisions taken in customer interest by power companies, grid operators, and state utility regulators concerning the retirement of the plants. Prior to the order, NIPSCO was undergoing initiatives to close coal-fired generating stations, planning to replace them with efficient and sustainable sources such as wind, solar, and battery storage.

NIPSCO intends to convert the Schahfer station into a natural gas facility, which forms a part of a strategy to supply energy to data centers, including a $15 billion investment from Amazon Web Services in the region as documented by Post-Tribune archives.

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