Mrvan argues NWI energy costs could go up because of federal mandate on NIPSCO
Rep. Frank Mrvan is urging the Department of Energy to lift emergency orders requiring NIPSCO to keep two coal-fired units at its R.M. Schahfer Generating Station in Wheatfield running past their scheduled retirement.
The U.S. Department of Energy issued an order to keep Schahfer Units 17 and 18 open for another 90 days past their retirement for the third time last week. Mrvan sent a letter arguing it would impose an unnecessary increase on costs for ratepayers and would negatively impact utility affordability.
“I write to express my strong opposition to Emergency Order 202–26–29 forcing the Northern Indiana Public Service Company to maintain operations at two coal-fired generating units in Wheatfield, Indiana," Mrvan wrote in the letter. "At a time when ratepayers in Northwest Indiana are already facing skyrocketing utility bills, this action will continue to place burdensome and unnecessary costs on families and businesses throughout the region. I urge you to reverse this order and instead work to lower utility costs for my constituents."
NIPSCO has been working to get the units back online. It has warned the Indiana Utility Regulatory Commission it could cost $100 million to get the units back up and running.
“Maintaining operations at NIPSCO's R.M. Schahfer Generating Station has already come with exorbitant costs. Since the Department of Energy issued its original orders in December 2025, NIPSCO has estimated losses of approximately $11.5 million," Mrvan wrote. "According to the Institute for Energy Economics and Financial Analysis, the cost to keep coal-fired power plants operating past their retirement dates nationwide has reached $300 million, and this number is rising by $30 million per month."
The Department of Energy issued the order saying that data centers would drive up demand for electricity across the Midwest to record levels, so no capacity should be taken offline. The coal-fired units would no longer serve NIPSCO customers but the Midcontinent Independent System Operator grid across the Midwest.
NIPSCO would seek a tariff to recover its costs. Northwest Indiana ratepayers can't afford any more increases, Mrvan said.
“Placing these additional costs on families already struggling to pay their utility bills is cruel and unnecessary," Mrvan wrote. "On average, families in Northwest Indiana have seen their utility rates jump more than 26 percent over the last year, one of the highest rate increases in the country. The millions of dollars shouldered by ratepayers to keep the Wheatfield plant in operation will only make it more difficult for seniors, families and hard-working Americans to keep their lights on."
Mrvan said higher rates would not just affect Northwest Indiana residents, but also the heavy industry the country relies on.
“Additionally, Northwest Indiana represents the nation’s largest concentration of steel production, as well as robust manufacturing industries. This DOE directive will result in increasing input costs for these vital industries that support our nation’s economy, energy security and national defense," the congressman wrote in the letter.
Mrvan earlier pressed Energy Secretary Chris Wright about keeping the coal-fired units open, which NIPSCO said would require significant turbine and boiler work. He pressed for ratepayers to be given a break after utility bills have soared so much in recent years.
“During your testimony in front of the House Appropriations Subcommittee on Energy and Water on April 15, 2026, you committed to reversing this directive should DOE find that continuing to operate NIPSCO’s coal-fired units is 'not net-beneficial to ratepayers.' To be clear, this action is not beneficial and will only continue to drive up energy costs for families and businesses throughout Northwest Indiana," Mrvan wrote. "I ask that you immediately rescind these orders and join me in pursuing strategies to drive down energy costs.”
The order goes into effect on Monday and runs through Sept. 19.