NIPSCO Advances Its Cost-Saving Electric Generation Transition Plan With Completion Of First Two Renewable Projects
Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource (NYSE: NI), announced the successful launch of its first two wind projects in Indiana, Rosewater Wind (102 MW) and Jordan Creek Wind (400 MW). Both projects are part of NIPSCO's 'Your Energy, Your Future' strategy, aimed at transitioning to cost-effective and cleaner energy. Notably, the Rosewater project utilized a unique tax equity investment model, promoting lower costs for consumers. NIPSCO plans to be coal-free by 2028, saving customers an estimated $4 billion in the long term, with additional renewable projects in the pipeline.
- Rosewater Wind Farm and Jordan Creek Wind Farm are now operational, contributing a total of 502 MW of renewable energy.
- The use of tax equity investing for the Rosewater project allows NIPSCO to offer lower electricity costs to customers compared to traditional ownership methods.
- The company's goal to be 100% coal-free by 2028 aligns with its commitment to sustainable energy and could result in $4 billion in savings for customers over time.
- NIPSCO has plans for eight additional renewable projects, demonstrating a significant commitment to expanding its renewable energy portfolio.
- None.
MERRILLVILLE, Ind., Feb. 1, 2021 /PRNewswire/ -- Northern Indiana Public Service Company LLC (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), today announced that its first two Indiana-based wind projects – Rosewater Wind and Jordan Creek Wind – are online and operating, producing more cost-effective, cleaner energy for its customers across Indiana.
"We are excited to welcome these wind assets to our generating portfolio," said Mike Hooper, NIPSCO President. "These completed projects are the first concrete step of our innovative 'Your Energy, Your Future' plan coming to fruition, bringing lower-cost, cleaner and sustainable energy to our customers today and into the future."
Rosewater Wind Farm is a 102 megawatt (MW) facility located in White County, Ind. EDP Renewables North America LLC developed and constructed the project. The wind farm is owned and operated by a joint venture consisting of NIPSCO, the developer of the facility and a tax equity investor.
"White County has hosted wind farms for more than a decade, and we're happy to see the latest project, NIPSCO's Rosewater Wind Farm, fully constructed and generating clean energy for my fellow Hoosiers," said Steve Burton, White County Commissioner. "The wind farms have provided reliable investments and a strong tax base for our county, and the economic boost from Rosewater Wind Farm was a bright spot during an extremely challenging year."
The Rosewater Wind Farm was funded through tax equity investing. By using a tax equity investor that is currently able to utilize the tax benefits more efficiently, NIPSCO is able to provide electricity to customers at a lower cost versus traditional ownership. This use of a tax equity structure is a first in Indiana and one of the earliest examples of a utility engaging in such a structure in the country.
"Our partnership with NIPSCO to build the Rosewater Wind Farm makes economic sense, it makes environmental sense, and it is the future of energy in America," said Miguel Prado, CEO, at EDP Renewables North America. "NIPSCO's commitment to saving customers money by shifting away from conventional generation and rapidly expanding renewable energy capacity is setting an example for other utilities across Indiana and beyond."
The Jordan Creek Wind Energy Center is a 400 MW wind farm located in Benton and Warren counties, near Williamsport, Ind. A subsidiary of NextEra Energy Resources, LLC, built the facility and will be the owner and operator. The energy will serve NIPSCO customers under a 20-year power purchase agreement.
"The Jordan Creek Wind Energy Center will provide millions of dollars in additional revenue to Warren and Benton counties and will bring homegrown, renewable energy to Indiana for years to come," said John Ketchum, president and CEO of NextEra Energy Resources, the world's largest generator of renewable energy from the wind and the sun. "We are pleased to work with NIPSCO on this wind project, and we look forward to continue working with them to bring several solar and battery storage projects to the Hoosier state in 2022 and 2023."
The completed wind projects were selected through a Request for Proposal (RFP) solicitation that NIPSCO ran as part of its "Your Energy, Your Future" generation transition, which was announced in its 2018 Integrated Resource Plan (IRP).
The company plans to be 100 percent coal-free by 2028 adding a combination of cleaner energy sources to its existing portfolio, which includes natural gas and hydroelectric generation. This generation transition helps deliver a more affordable, reliable and sustainable energy mix for NIPSCO customers for years to come – saving customers
Eight additional renewable projects are set to be included in NIPSCO's generating portfolio, which include a combination of similar joint venture agreements and power purchase agreements. One project is currently in the construction phase, while the rest are expected to begin construction in the next year or two.
Current Project Profile List
These projects were selected following a comprehensive review of bids submitted through the all-source RFP process that NIPSCO conducted in 2018 and again in late 2019 – which continues to affirm the conclusions of the 2018 NIPSCO IRP, that wind and solar resources were shown to be lower-cost options for customers compared to other energy resource options. Projects are listed with projected in-service dates.
- Rosewater Wind Farm – 102 MW of wind, located in White County, Ind. (Complete)
- Jordan Creek Wind – 400 MW of wind, located in Benton and Warren counties, Ind. (Complete)
- Indiana Crossroads Wind Farm – 300 MW of wind, located in White County, Ind. (2021)
- Dunns Bridge Solar I – 265 MW of solar, located in Jasper County, Ind. (2022)
- Brickyard Solar – 200 MW of solar, located in Boone County, Ind. (2022)
- Greensboro Solar – 100 MW of solar and 30 MW of battery storage, located in Henry County, Ind. (2022)
- Green River Solar – 200 MW of solar, located in Breckinridge and Meade counties, Ky. (2023)
- Dunns Bridge Solar II – 435 MW of solar and 75 MW of battery storage, located in Jasper County, Ind. (2023)
- Cavalry Solar – 200 MW of solar and 60 MW of battery storage, located in White County, Ind. (2023)
- Gibson Solar – 280 MW of solar, located in Gibson County, Ind. (2023)
For those projects not already approved or filed, NIPSCO will request the addition of those projects to its supply portfolio in filings with the Indiana Utility Regulatory Commission (IURC).
NIPSCO expects to announce additional renewable projects in the coming months. Learn about
NIPSCO's "Your Energy, Your Future" plans and the latest information at NIPSCO.com/future.
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 820,000 natural gas and 470,000 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 3.2 million natural gas customers and 470,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. Based in Merrillville, Indiana, NiSource's approximately 7,500 employees are focused on safely delivering reliable and affordable energy to our customers and communities we serve. NiSource is a member of the Dow Jones Sustainability - North America Index and the Bloomberg Gender Equality Index and has been named by Forbes magazine among America's Best Large Employers since 2016. Additional information about NiSource, its investments in modern infrastructure and systems, its commitments and its local brands can be found at www.nisource.com. Follow us at www.facebook.com/nisource, www.linkedin.com/company/nisource or www.twitter.com/nisourceinc. NI-F
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of federal securities laws. 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. 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 press release include among other things, our debt obligations; any changes to our credit rating or the credit rating of certain of our subsidiaries; our ability to execute our growth strategy; changes in general economic, capital and commodity market conditions; pension funding obligations; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; our ability to adapt to, and manage costs related to, advances in technology; any changes in our assumptions regarding the financial implications of the Greater Lawrence Incident; compliance with the agreements entered into with the U.S. Attorney's Office to settle the U.S. Attorney's Office's investigation relating to the Greater Lawrence Incident; potential incidents and other operating risks associated with our business; continuing and potential future impacts of from the COVID-19 pandemic ; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; any damage to our reputation, including in connection with the Greater Lawrence Incident; compliance with applicable laws, regulations and tariffs; compliance with environmental laws and the costs of associated liabilities; fluctuations in demand from residential, commercial and industrial customers; economic conditions of certain industries; the success of NIPSCO's electric generation strategy; the price of energy commodities and related transportation costs; the reliability of customers and suppliers to fulfill their payment and contractual obligations; potential impairments of goodwill or definite-lived intangible assets; changes in taxation and accounting principles; the impact of an aging infrastructure; the impact of climate change; potential cyber-attacks; construction risks and natural gas costs and supply risks; extreme weather conditions; the attraction and retention of a qualified workforce; the ability of our subsidiaries to generate cash; our ability to manage new initiatives and organizational changes; the performance of third-party suppliers and service providers; changes in the method for determining LIBOR and the potential replacement of the LIBOR benchmark interest rate; and other matters in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and our subsequent SEC filings. 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. A credit rating is not a recommendation to buy, sell or hold securities, and may be subject to revision or withdrawal at any time by the assigning rating organization. In addition, dividends are subject to board approval.
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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SOURCE NIPSCO; NiSource Inc.
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