Nipsco, A Subsidiary Of Nisource, Advances Its Electric Generation Transition Plan With First Set Of Solar Projects, Generating 465 Mw Combined
Customers have received nearly $60 million in direct benefits to date from credits associated with the sale of excess energy generated by NIPSCO's renewable energy
MERRILLVILLE, Ind., July 11, 2023 /PRNewswire/ -- In the next step of its electric generation transition to a more balanced and reliable mix to serve customers, Northern Indiana Public Service Company LLC (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), today announced that its first two Indiana-based solar projects – Indiana Crossroads and Dunns Bridge I Solar – are online and operating, producing more cost-effective, cleaner energy for homes and businesses across Indiana.
"The addition of our first solar parks to our electric generating portfolio represent meaningful investments in the state of Indiana and a direct benefit to our customers," said Mike Hooper, NIPSCO President. "These completed projects are a crucial step in advancing our long-term energy transition plan, providing sustainable, reliable and cost-effective energy now and into the future."
Indiana Crossroads Solar is a 200-megawatt (MW) facility located in White County, Ind., which was developed and constructed by EDP Renewables North America (EDPR NA). Indiana Crossroads Solar will be a major economic boon to the state and to White County bringing $2.6 million in Economic Development Agreement funds that are available for the county to use for priority projects and other special projects. The solar park is also expected to contribute more than $42 million in property tax payments over the 35-year life of the project, helping to reduce the property tax burden on other families and businesses in White County.
"We are pleased to have completed the Indiana Crossroads Solar Park, which is one of five renewable energy projects EDP Renewables and NIPSCO have collaborated on in Indiana," said Sandhya Ganapathy, EDP Renewables North America Chief Executive Officer. "Indiana Crossroads Solar is a shining example of how clean energy projects bring investment and economic benefits to Hoosier communities and the state of Indiana while contributing to the energy transition."
Dunns Bridge I Solar is a 265 MW facility located in Jasper County, Ind. near NIPSCO's R.M. Schahfer Generating Station, which is expected to be retired in 2025. This facility is the first of a two-part solar project. Dunns Bridge II, located in Jasper and Starke counties and currently under construction, is expected to produce 435 MW of solar paired with 75 MW of battery storage. Dunns Bridge I & II are expected to generate approximately $59 million in additional tax revenue for Jasper and Starke counties over the life of the facility. Learn more about Dunns Bridge I & II at www.DunnsBridgeSolar.com.
Both the Dunns Bridge I and Indiana Crossroads solar projects are partially funded through tax equity investments. By using a tax equity investor that is currently able to utilize the tax benefits more efficiently, along with utilizing tax benefits afforded under the Inflation Reduction Act, NIPSCO is able to provide electricity to customers at a lower cost versus traditional ownership of the projects. NIPSCO evaluates the most efficient use of tax benefits on a project-by-project basis.
NIPSCO's electric generation transition toward a more balanced and reliable portfolio* – including its plans to retire all its remaining coal-fired units – is driven by real-world data and economics derived from Indiana's Integrated Resource Plan process and subsequent request for proposals (RFPs). NIPSCO has also performed ongoing analysis of current market conditions and changes in market rules, which support NIPSCO's current generation transition path. The company plans to be coal-free by 2028, driving a reduction in carbon emissions by more than 90% by 2030, compared to a 2005 baseline.
NIPSCO's in-service wind projects are performing well, and 100 percent of the excess power sales and renewable energy credit (REC) sales from these existing renewable projects and our existing generation fleet currently goes back to customers, which is nearly $60 million since 2021.
Renewable Project Profile List
The list of projects below was selected following a comprehensive review of bids submitted through all-source RFP processes, and they represent projects that are currently operational or under construction.
- Rosewater Wind Farm – 102 MW of wind, located in White County, Indiana (Complete)
- Jordan Creek Wind – 400 MW of wind, located in Benton and Warren counties, Indiana (Complete)
- Indiana Crossroads I Wind – 300 MW of wind, located in White County, Indiana (Complete)
- Dunns Bridge Solar I – 265 MW of solar, located in Jasper County, Indiana (Complete)
- Indiana Crossroads Solar – 200 MW of solar, located in White County, Indiana (Complete)
- Indiana Crossroads II Wind – 204 MW of wind, located in White County, Indiana (2023)
- Dunns Bridge Solar II – 435 MW of solar and 75 MW of battery storage, located in Jasper and Starke counties, Indiana (2024)
- Cavalry Solar – 200 MW of solar and 60 MW of battery storage, located in White County, Indiana (2024)
- Fairbanks Solar – 250 MW of solar, located in Sullivan County, Indiana (2025)
As previously announced, NIPSCO is working with developers on other wind, solar and battery storage projects in various stages of development. For those projects not already approved, NIPSCO has requested to add those projects to its supply portfolio in filings with the Indiana Utility Regulatory Commission (IURC).
Learn about NIPSCO's "Your Energy, Your Future" plans and the latest information at NIPSCO.com/future.
*NIPSCO may sell in the future and has previously sold the Renewable Energy Credits from this generation to a third party because this helps keep our energy more affordable for our customers.
About NIPSCO: Northern Indiana Public Service Company LLC (NIPSCO), with headquarters in Merrillville, Indiana, has proudly served the energy needs of northern Indiana for more than 100 years. As Indiana's largest natural gas distribution company and the second-largest electric distribution company, NIPSCO serves approximately 850,000 natural gas and 483,000 electric customers across 32 counties. NIPSCO is part of NiSource's (NYSE: NI) six regulated utility companies. NiSource is one of the largest fully regulated utility companies in the United States, serving approximately 3.7 million natural gas and electric customers through its local Columbia Gas and NIPSCO brands. More information about NIPSCO and NiSource is available at NIPSCO.com and NiSource.com.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,200 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability - North America Index and is on Forbes lists of America's Best Employers for Women and Diversity. Learn more about NiSource's record of leadership in sustainability, investments in the communities it serves and how we live our vision to be an innovative and trusted energy partner at www.NiSource.com. NI-F
The content of our website is not incorporated by reference into this document or any other report or document NiSource files with the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. These forward-looking statements include, but are not limited to, statements concerning our plans, strategies, objectives, expected performance, expenditures, recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are other than statements of historical fact. Expressions of future goals and expectations and similar expressions, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," reflecting something other than historical fact are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially.
Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this release include, among other things, our ability to execute our business plan or growth strategy, including utility infrastructure investments; potential incidents and other operating risks associated with our business; our ability to adapt to, and manage costs related to, advances in, or failures of, technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and natural gas costs and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demands; the attraction and retention of a qualified, diverse workforce and ability to maintain good labor relations; our ability to manage new initiatives and organizational changes; the actions of activist stockholders; the performance of third-party suppliers and service providers; potential cybersecurity attacks; increased requirements and costs related to cybersecurity; any damage to our reputation; any remaining liabilities or impact related to the sale of the Massachusetts Business; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal; our debt obligations; any changes to our credit rating or the credit rating of certain of our subsidiaries; any adverse effects related to our equity units; adverse economic and capital market conditions or increases in interest rates; inflation; recessions; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; continuing and potential future impacts from the COVID-19 pandemic; economic conditions in certain industries; the reliability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; potential remaining liabilities related to the Greater Lawrence Incident; compliance with applicable laws, regulations and tariffs; compliance with environmental laws and the costs of associated liabilities; changes in taxation; and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time.
All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to the future results over time or otherwise, except as required by law.
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