Two Indiana coal-fired generating plants, initially scheduled to retire last year, are now required to remain operational through December under renewed federal orders. This ongoing mandate prolongs a dispute over the costs associated with keeping these aging facilities connected to the regional electric grid.
Energy Secretary Chris Wright issued the latest directives on Sept. 18, stipulating that two units at NIPSCO’s R.M. Schahfer Generating Station in Jasper County and one at CenterPoint Energy’s F.B. Culley Generating Station in Warrick County must be available from Sept. 20 through Dec. 18. These orders mark the fourth set of federal directives and the third extension since the U.S. Department of Energy first intervened on Dec. 23, 2025, days before the units’ original retirement dates, with subsequent renewals in March and June.
Governor Mike Braun has praised the extension, asserting that the partnership with the Trump administration would “help protect Hoosiers from higher energy costs and keep the power on.” However, this decision is drawing significant criticism from consumer and environmental advocates, who contend that prolonging the life of these units, which utilities had already planned to retire, will ultimately lead to higher electricity bills for residents.
NIPSCO and CenterPoint Energy, the utilities involved, are actively seeking to recover the costs incurred by complying with these federal orders. NIPSCO informed the Indiana Capital Chronicle that while it adheres to the directives, both Schahfer units are currently offline for extensive inspections, maintenance, and repairs, including significant turbine and boiler work. In August, NIPSCO filed a request with federal regulators to approve approximately $38 million in cost recovery for the first quarter of 2026. CenterPoint Energy stated that its customers are not experiencing direct bill impacts currently but confirmed preparations to recover costs associated with operating Culley Unit 2.
Department of Energy officials have defended the orders, citing the plants' role in supporting the grid during periods of high electricity demand and low renewable generation, specifically mentioning Winter Storm Fern. Secretary Wright emphasized that forcing reliable coal generation off the grid would “compromise energy reliability and needlessly raises energy costs for Americans.” The latest Schahfer order also references rising electricity demand, extreme weather, the retirement of other generation sources, delays in bringing new resources online, and demand from large data centers in northern Indiana.
Conversely, critics argue the financial burden warrants intervention. Rep. Carey Hamilton, an Indianapolis Democrat, has publicly called on Indiana’s attorney general to challenge the order, highlighting its impact on monthly power bills. Sierra Club organizers, alongside partners, delivered over 1,000 petitions earlier this month urging Governor Braun and Indiana Attorney General Todd Rokita to oppose the federal mandates. Megan Anderson, a senior campaign organizer for the Sierra Club, described these orders as an attempt to keep lining the pockets of fossil fuel companies at the expense of hardworking people across the state.
Environmental and consumer organizations, including the Environmental Law & Policy Center, Sierra Club, and Citizens Action Coalition of Indiana, are challenging the Indiana mandates in the U.S. Court of Appeals for the District of Columbia Circuit. This court recently vacated a separate DOE order requiring continued operation of a Michigan power plant, concluding that the department’s stated reasons did not establish an emergency under federal law that required an immediate federal response beyond ordinary state and regional reliability planning.
Further details from the utilities reveal CenterPoint Indiana Region President Michael Roeder asked the DOE in February to let the initial order expire, describing the 103-megawatt Culley Unit 2 as “an inefficient and increasingly unreliable asset.” At a March hearing before the Indiana Utility Regulatory Commission, NIPSCO President and Chief Operating Officer Vince Parisi projected that investments in the mandated units could exceed $100 million, in addition to ongoing operating expenses. The orders also direct the Midcontinent Independent System Operator (MISO), which manages the regional electric grid, to consider costs when deciding when to run the units.
