NIPSCO Announces New Indiana-Based Solar Projects To Power 270,000 Homes By 2023
Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource (NYSE: NI), will add 900 megawatts of solar energy through the Dunns Bridge I, Dunns Bridge II, and Cavalry Solar Energy Centers. Construction begins in 2022, with operations expected in 2022 and 2023. The projects, developed with NextEra Energy Resources, will generate enough energy to power 270,000 homes and are projected to save customers $4 billion over the long term. These initiatives align with NIPSCO's commitment to a coal-free energy portfolio by 2028, enhancing reliability and affordability.
- 900 MW of new solar capacity to be added, powering 270,000 homes.
- Estimated long-term savings of $4 billion for customers.
- Creation of construction and maintenance jobs in Indiana.
- None.
MERRILLVILLE, Ind., Oct. 21, 2020 /PRNewswire/ -- Northern Indiana Public Service Company LLC (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), today announced that it will bring an additional 900 megawatts (MW) to Indiana with the Dunns Bridge I, Dunns Bridge II and Cavalry Solar Energy Centers as part of the company's long-term generation strategy.
NIPSCO has finalized three build transfer agreements with subsidiaries of NextEra Energy Resources, LLC, the world's largest generator of renewable energy from the wind and the sun and a leader in energy storage. The solar projects are expected to begin construction in 2022 and expected to be operational in 2022 and 2023.
NextEra Energy Resources will construct the projects and NIPSCO will enter into joint ventures to own, and operate and maintain some facets of these assets once construction is complete.
"The addition of these three solar projects and associated battery storage is an investment in the future of Indiana and the future of NIPSCO, as we deliver on our promise of bringing safe, reliable and affordable energy to our customers," said Mike Hooper, NIPSCO president. "Renewable technology continues to advance, and we are proud to be working with NextEra Energy Resources on the Dunns Bridge and Cavalry solar projects as we continue to implement our 'Your Energy, Your Future' plan."
The investment in this new generation will bring economic benefits to the state of Indiana including both construction and long-term operating and maintenance jobs, along with enhancing the county tax base.
"Jasper County is pleased to continue our long-term relationship with NIPSCO with the development of the Dunn's Bridge Solar Project," said Kendell Culp, Jasper County commissioner. "As the county continues to search for additional economic development projects in light of the coming retirement of the Schahfer Generating Station, we look forward to this new opportunity to bring stability to our county's tax base."
The Indiana-based Dunns Bridge I, Dunns Bridge II and Cavalry solar 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).
Adding these three solar projects is the next step in bringing NIPSCO's customer-centric "Your Energy, Your Future" plan to life. The company plans to be 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
Five renewable projects have previously been announced by NIPSCO, which include a combination of similar joint venture agreements and purchased power agreements. Two of the wind projects are near completion, including the Jordan Creek Wind Energy Center, a subsidiary of NextEra Energy Resources. NIPSCO will purchase the power directly from Jordan Creek Wind.
Project Profiles
The three latest NIPSCO projects were selected following a comprehensive review of bids submitted through the all source RFP process that NIPSCO underwent 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.
NIPSCO will request the addition of these new projects to its supply portfolio in filings with the Indiana Utility Regulatory Commission (IURC).
- Dunns Bridge Solar I – The 265 MW solar project will be located in Jasper County. The project will include an estimated 900,000 solar panels and is expected to be operational in 2022. Dunns Bridge Solar will be capable of producing enough energy to power 79,500 homes.
- Dunns Bridge Solar II – This project will have 435 MW of solar paired with 75 MW of battery storage and will also be located in Jasper County. The project will include an estimated 1,500,000 solar panels and is expected to be operational in 2023. Dunns Bridge II will be capable of producing enough energy to power 130,500 homes. Dunns Bridge Solar I & II are expected to generate approximately
$59 million in additional tax revenue for Jasper County over the life of the projects and approximately 300 jobs during construction. This project was originally developed by Orion Wind Resources LLC, a joint venture between Orion Renewable Energy Group LLC and MAP® Energy. Learn more about Dunns Bridge Solar I & II at www.DunnsBridgeSolar.com. - Cavalry Solar – This project will have 200 MW of solar with 60 MW of battery storage and will be located in White County. The project will include an estimated 650,000 solar panels and is expected to be operational in late 2023. Cavalry Solar will be capable of producing enough energy to power 60,000 homes. Cavalry Solar is expected to generate approximately
$25 million in additional revenue for White County over the life of the project and approximately 200 jobs during construction. Learn more about Cavalry Solar at www.CavalrySolar.com.
NIPSCO expects to announce additional renewable projects later this year. 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. Examples of forward-looking statements in this press release include statements and expectations regarding NiSource's or any of its subsidiaries' business, performance, growth, commitments, investment opportunities, and planned, identified, infrastructure or utility investments. 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, plans, expectations and strategy discussed in this press release include, among other things, NiSource's debt obligations; any changes in NiSource's credit rating; NiSource's ability to execute its growth strategy; changes in general economic, capital and commodity market conditions; pension funding obligations; economic regulation and the impact of regulatory rate reviews; NiSource's ability to obtain expected financial or regulatory outcomes; any damage to NiSource's reputation; compliance with environmental laws and the costs of associated liabilities; fluctuations in demand from residential and commercial customers; economic conditions of certain industries; the success of NIPSCO's electric generation strategy; 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 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; potential incidents and other operating risks associated with our business; 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 work force; advances in technology; the ability of NiSource's subsidiaries to generate cash; tax liabilities associated with the separation of Columbia Pipeline Group, Inc.; NiSource's ability to manage new initiatives and organizational changes; the performance of third-party suppliers and service providers; the availability of insurance to cover all significant losses and other matters set forth in Item 1A, "Risk Factors" section of NiSource's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and in other filings with the Securities and Exchange Commission. 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. NiSource expressly disclaims any duty to update, supplement or amend any of its forward-looking statements contained in this press release, whether as a result of new information, subsequent events or otherwise, except as required by applicable law.
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