I&M is Powering the Next Tomorrow to Significantly Expand Clean Energy Generation

Rhea-AI Summary

Indiana Michigan Power (I&M) is announcing plans for four new solar power plants in Indiana, set to generate power for over 200,000 homes by mid-2026. This initiative is part of I&M's commitment to diversify energy sources, including wind and battery storage, and aims to achieve net-zero carbon emissions by 2045. With an investment of approximately $1 billion in two of the facilities, I&M submitted detailed plans to state regulators. The new plants will replace coal generation as the Rockport Plant retires by 2028. I&M is also seeking further renewable energy proposals, emphasizing sustainability and community economic growth.

Positive

• Expansion of solar power facilities expected to generate energy for over 200,000 homes by mid-2026.
• Investment of approximately $1 billion in clean energy infrastructure.
• Commitment to achieve net zero carbon emissions by 2045.
• Plans to diversify energy sources and enhance flexibility for future energy needs.

Negative

• Retirement of the coal-fueled Rockport Plant by the end of 2028 may affect energy supply during transition.
• Dependence on regulatory approval for the new projects could delay implementation.

4 new Indiana solar power plants to boost reliability, sustainability of energy grid 

FORT WAYNE, Ind., April 3, 2023 /PRNewswire/ -- Indiana Michigan Power (I&M) is taking steps to significantly expand the volume of clean energy powering our customers' homes and businesses. I&M filed plans with state authorities for four solar power plants capable of generating power for more than 200,000 typical homes by mid-2026.

In a related significant step, I&M is also seeking new proposals for a combination of additional energy sources – including wind, solar, battery storage and natural gas (peaking) – to generate power for hundreds of thousands of homes by December 2027. These future projects will further diversify I&M's sources of generation to significantly increase the amount of clean energy and provide more flexibility in meeting customer needs.

The important advances in clean energy are part of the Powering the Next Tomorrow Integrated Resource Plan that I&M previously submitted to regulators in Michigan and Indiana. These solar power plants and the company's plans to add even more clean-energy resources are part of I&M's and American Electric Power's commitment to achieve net zero carbon dioxide emissions by 2045.

"I&M is taking these major strides in transitioning to cleaner, more diverse energy sources to best serve our customers, the environment and the economies of the communities we serve," said Steve Baker, I&M president and chief operating officer.

"These steps are the result of exhaustive studies and a stakeholder process that included input from advocates for customers, communities, the environment and more," Baker added. "Importantly, they are also consistent with the energy policies of both states we serve."

More Flexibility to Best Serve Customers

The four new solar facilities mark an important next step in I&M's continuing transition to a more diverse energy supply and meeting the need for new sources to energize homes and businesses as the coal-fueled units at our Rockport, Ind., generation plant phase out of service.  The Rockport Plant will be fully retired by the end of 2028.

While I&M's Cook Nuclear Plant in Michigan consistently generates energy 24/7 as the anchor of I&M's generation, the variety of additional energy sources strengthen I&M's resilience.

The diversity of generation sources also increases I&M's flexibility to better serve customers by having options to address future changes in regulatory policies and price volatility of energy prices for the various forms of generation.

The availability of renewable energy is important to support economic development opportunities in the communities I&M serves. Businesses and industries are increasingly looking for access to clean energy in areas where they locate or expand. Increasing the amount of renewable energy available to them will be a significant benefit to maintaining and attracting new investment and jobs to the region.

Plans Submitted to States

I&M has submitted detailed plans to the Indiana Utility Regulatory Commission and Michigan Public Service Commission for four new solar power plants in Indiana with a combined generation capacity of 749 megawatts (MW):

Name	Megawatts*	Homes Powered**
Lake Trout	245	73,500
Mayapple/IN	224	67,200
Sculpin	180	54,000
Elkhart County	100	30,000

(* Solar power plant capacity is the maximum amount of energy it can generate)
(** The approximate number of typical homes using 1,000 kilowatt hours of energy per month that each plant would power when generating at capacity)

Each of the four solar power plants will be built by private developers. I&M will invest about     $1 billion in the Lake Trout and Mayapple/IN facilities, which I&M will own and operate. I&M will purchase the power generated from the independently operated Sculpin and Elkhart County solar power plants.

Plans before the two state commissions would also provide I&M the ability to include 210 MW of generation capacity from an existing natural gas "peaking" plant in Wells County, near Montpelier, Ind.

I&M's plans will require the approval of the utility regulatory commissions in both states. The four solar power plants are expected to be placed in-service delivering energy to customers over a period from late 2025 to mid-2026.

Requests for Proposals

The four solar facilities described above were chosen from among 32 proposals submitted to I&M in response to a competitive 2022 Request for Proposals (RFP) process.

Looking forward, I&M issued a new RFP on March 31 seeking additional energy resources. The 2023 RFP is an "all-source" solicitation seeking proposals from various types of generation, including proposals for more solar and wind generation as well as battery storage, natural gas generation and other possible forms of generation.

Specifically, I&M is seeking proposals for:

• Wind: Approximately 800 MW
• Solar: Approximately 850 MW
• Battery storage: Approximately 315 MW
• Natural gas (peaking): Approximately 540 MW
• Other: I&M is also open to other proposals that could involve emerging technologies, thermal energy or other resources.

I&M is making a portion of the Rockport Plant site available for proposals for natural gas peaking generation and battery storage projects.

Projects must be located in Indiana or Michigan, with the exception of wind projects that also have the option to be sited in Illinois or Ohio. I&M encourages the use of local goods or services from Indiana and/or Michigan businesses where feasible. Bids will be due by May 26. I&M is seeking some projects that involve power purchase agreements and others that the company will own and operate.

I&M anticipates that projects resulting from the 2023 RFP will be generating power for customers by Dec. 31, 2027, but more definitive in-service dates will be determined later in the process.

A link to the complete RFP is available here.

I&M's current clean-energy generation includes five solar plants; wind power from four Hoosier plants; six hydro-electric plants; and the Cook Nuclear Plant in Bridgman, Mich. I&M's coal-fueled plant in Rockport will be fully retired in 2028.

"I&M is committed to sustainability – supporting the environment, economic growth and social well-being," Baker said. "Our pursuit of a diversified suite of generation resources to supply the reliable energy our customers count on is part of that commitment. With solar, wind, nuclear and other sources, these projects help ensure an adequate supply of energy under all weather conditions."

Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and its approximately 2,100 employees serve more than 600,000 customers. More than 80% of its energy delivered in 2022 was emission-free.  I&M has at its availability various sources of generation including 2,278 MW of nuclear generation in Michigan, 450 MW of purchased wind generation from Indiana, more than 22 MW of hydro generation in both states and approximately 35 MW of large-scale solar generation in both states. The company's generation portfolio also includes 2,620 MW of coal-fueled generation in Indiana.

American Electric Power (Nasdaq: AEP), based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com

News releases and other information about I&M are available at IndianaMichiganPower.com

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SOURCE Indiana Michigan Power

FAQ

What is the significance of the new solar power plants by AEP?

The new solar power plants will provide energy for over 200,000 homes, supporting AEP's goal of expanding clean energy generation.

When will the new solar power plants by Indiana Michigan Power be operational?

The new plants are expected to become operational between late 2025 and mid-2026.

How much is AEP investing in the solar power projects?

AEP is investing approximately $1 billion in the development of two of the solar power facilities.

What is AEP's target for carbon emissions?

AEP aims to achieve net zero carbon dioxide emissions by 2045.

What energy sources is AEP looking to diversify?

AEP is seeking proposals for wind, solar, battery storage, and natural gas generation.