DOE Extends Operation Order for Indiana Power Stations Amid Controversy

The U.S. Department of Energy (DOE) has extended an order requiring Northern Indiana Public Service Company (NIPSCO) to keep its Wheatfield generating station operational. Energy Secretary Chris Wright renewed the order, effective from Monday through September 19, according to the DOE announcement.

Sandhill cranes fly near a smokestack of the Schahfer Generating Station, a coal-fired power plant, as it operates on February 9, 2026, in Wheatfield, Indiana. (Brian Cassella/Chicago Tribune)

Wright emphasized the importance of maintaining reliable generation sources, highlighting concerns that removing them from the grid could jeopardize energy reliability and increase costs for Americans. He stated, “During peak summer demand, Midwesterners deserve continued access to affordable, reliable, and secure energy to power and cool their homes.” The order also applies to the F.B. Culley generating station in Newburgh, which faced similar retirement plans at the end of 2025.

According to the DOE, these measures aim to minimize electricity costs and reduce the risk of unnecessary blackouts. A spokesperson indicated that previous emergency orders prevented outages and potentially saved lives. However, environmental and utility advocates contest these claims, arguing that the order lacks benefits and places a financial burden on ratepayers.

A NIPSCO representative confirmed compliance with the order, noting ongoing assessments of its impact on operations, customers, and staff. During a hearing by the Indiana Utility Regulatory Commission, details emerged about malfunctions in Schahfer’s coal units 17 and 18, broken since the first emergency order on December 23, 2025.

NIPSCO stated, “Units 17 and 18 are currently offline while inspections, maintenance, and repair work continue, including significant turbine and boiler work.” Upon resolution, these units will continue bolstering reliability across the Midcontinent Independent System Operator’s (MISO) Northern and Central Zones. The Federal Energy Regulatory Commission (FERC) has granted NIPSCO approval to seek cost recovery to comply with the 202(c) orders.

Sandhill cranes congregate in a coal ash pond next to Schahfer Generating Station, a coal-fired power plant, while it operates, February 9, 2026, in Wheatfield, Indiana. (Brian Cassella/Chicago Tribune)

U.S. Representative Frank Mrvan from Highland voiced opposition to renewing the emergency order, citing the increase in energy costs for Northwest Indiana residents. Mrvan argued that ratepayers endure high utility bills due to the order, adding unnecessary financial strain.

Mrvan highlighted findings from NIPSCO, estimating operational losses of $11.5 million to keep Schahfer functional. He referenced a report from the Institute for Energy Economics and Financial Analysis, which projected $300 million nationally to maintain coal-fired plants past retirement, escalating by $30 million monthly. In July 2025, the Citizens Action Coalition documented statewide increases in electric utility bills, with NIPSCO residential customers experiencing significant hikes.

Mrvan cited Energy Secretary Wright’s testimony before the U.S. House Appropriations Subcommittee on Energy and Water, pointing out the commitment to reverse the directive should it prove detrimental to ratepayers. He criticized the financial obligations imposed on ratepayers, emphasizing the impact on vulnerable populations.

Solar farms dot the landscape, February 9, 2026, in Wheatfield, Indiana. (Brian Cassella/Chicago Tribune)

Mrvan joins other Indiana public interest groups, including the Citizens Action Coalition, Just Transition Northwest Indiana, and the Hoosier Environmental Council, alongside EarthJustice, the Sierra Club, and the Environmental Law and Policy Center, in challenging the executive orders. They argue these orders undermine decisions by utilities, grid operators, and regulators to retire these plants based on customer interests.

Prior to the order, NIPSCO was in the process of phasing out its coal-fired stations, pursuing efficient, sustainable alternatives like wind, solar, and battery storage. The utility plans to convert the Schahfer station into a natural gas plant, supporting energy provision for developments like a $15 billion Amazon Web Services project in the region.