The U.S. Department of Energy has extended for the second time an order that mandates the Northern Indiana Public Service Company (NIPSCO) to keep its generating station in Wheatfield operational. Energy Secretary Chris Wright renewed the order, effective from Monday through September 19, according to a DOE announcement.
Sandhill cranes are observed flying near the smokestack of the Schahfer Generating Station, a coal-fired power plant, operating on February 9, 2026, in Wheatfield, Indiana. Energy Secretary Wright commented in a news release, “Taking reliable generation off the grid compromises energy reliability and needlessly raises energy costs for Americans.” He emphasized that during peak summer demand, Midwesterners should have access to affordable, reliable, and secure energy for their homes.
The order extends to the F.B. Culley generating station in Newburgh. Both stations were initially scheduled to be retired by the end of 2025. The announcement highlighted that these orders aim to minimize electricity costs and reduce the risk of blackouts. Previously, a DOE spokesperson mentioned the emergency order “prevented blackouts and likely saved hundreds of thousands of lives.” However, environmental and utility advocates argue the order lacks benefits and increases costs for ratepayers.
A NIPSCO spokesperson stated that the company continues to comply with the order while assessing its impact on operations and customers. An Indiana Utility Regulatory Commission hearing revealed that Schahfer’s coal units 17 and 18 are currently broken. Unit 18 has been offline since the first emergency order on December 23, 2025, with the renewal in March. NIPSCO mentioned that inspection and repair work, including significant turbine and boiler maintenance, is ongoing. These units will support reliability within the Midcontinent Independent System Operator’s (MISO) Northern and Central Zones following the orders.
The Federal Energy Regulatory Commission authorized NIPSCO to seek recovery of costs associated with the 202(c) orders. NIPSCO remains focused on maintaining safe operations and reliability in compliance with the order.
In response, U.S. Representative Frank Mrvan from Highland expressed his opposition to renewing the emergency order. He cited rising energy costs as a burden for Northwest Indiana residents. In his letter to Secretary Wright, Mrvan called for the reversal of the order as it adds unnecessary costs to families and businesses.
Mrvan highlighted that NIPSCO estimated an $11.5 million loss to keep the Schahfer station functional. A report from the Institute for Energy Economics and Financial Analysis suggests maintaining coal-fired plants beyond retirement dates nationwide costs $300 million, increasing by $30 million monthly. According to a Citizens Action Coalition report, electric utility bills statewide rose by more than $28 per month, or 17.5%. NIPSCO residential customers faced a $50 per month or 26.7% increase within a year.
He referenced Wright’s April 15 testimony before a U.S. House Appropriations Subcommittee, where Wright indicated the directive reversal if benefits to ratepayers diminish. Mrvan stated, “Placing these additional costs on families already struggling to pay their utility bills is cruel and unnecessary.”
Indiana public interest groups, including the Citizens Action Coalition and environmental organizations, challenged the emergency orders. These groups allege the orders ignore customer-focused decisions by power companies and regulators regarding plant retirement. Prior to the order, NIPSCO was transitioning away from coal-fueled generation, planning to replace it with wind, solar, and battery storage solutions. NIPSCO aims to convert the Schahfer station to a natural gas plant to support regional energy needs, including a major Amazon Web Services development.