The U.S. Department of Energy has taken action to ensure that certain coal-fired units in Indiana continue operating beyond their planned retirement date at the end of this month. On December 23, the DOE ordered Northern Indiana Public Service Co., part of NiSource, and CenterPoint Energy to keep three coal units running, which together provide more than 950 MW of power.
The DOE cited an emergency situation in parts of the Midcontinent Independent System Operator (MISO) area, pointing to studies and recent capacity auctions that highlight tightening supply conditions. The agency noted that rising demand, coupled with the accelerated shutdown of power generation facilities, is likely to lead to ongoing emergency conditions in the near future and beyond.
MISO had been reviewing the plans from NIPSCO and CenterPoint to retire these coal units at the end of December. The DOE has previously issued last-minute emergency orders to retain coal plants in other states, totaling about 3.1 GW of generation capacity.
These recent orders come amid broader energy policy discussions, including a freeze on five offshore wind projects announced by the Trump administration, which have the potential to produce 7 GW of energy.
The Indiana coal units are required to operate until at least March 23, 2026, although the DOE has the authority to extend this period. However, concerns have been raised about the financial impact of these orders. The Citizens Action Coalition of Indiana argues that keeping these expensive and unreliable coal units running will increase electricity bills for residents already facing significant rate hikes. The group’s program director expressed opposition to the federal orders, stating they would further burden consumers in Indiana.
Ongoing legal challenges are also present, as the DOE’s orders regarding other power plants are being contested in federal court by multiple states and advocacy groups. These challenges highlight the debate over energy policy and its implications for both consumers and the environment.