Several organizations wrote a letter to Northern Indiana Public Service Co. detailing their concerns about the U.S. Department of Energy's order requiring the utility to keep its RM Schahfer power plant running.
The letter comes from EarthJustice, the Citizen Action Coalition, the Hoosier Environmental Council, Just Transition Northwest Indiana and the Sierra Club and is addressed to Erin Whitehead, NIPSCO's vice president of regulatory policy and major clients.
“We write to emphasize the following points: NIPSCO must carefully evaluate whether it would be prudent to spend the money to repair Unit 18 of the RM Schahfer Power Plant as ordered,” the letter said. “There are several legal grounds for concluding that the Department of Energy lacks the authority under Section 202(C) to direct NIPSCO to restore the generating facility. We intend to pursue legal action to recover any costs incurred imprudently.”
In the letter, the organizations claim that Schachfer power unit 18 is broken and cannot operate without “significant costs.” From February 16, 2025 to June 23, 2025, the power unit was forced to shut down for 2,890 hours because a turbine blade separated from its base. On July 9, 2025, Schachfer experienced another 1,996-hour downtime due to significant damage to the top of the condenser tubes.
“We expect that the costs of procuring and installing the long-lead equipment in question to revive Unit 18—rather than allowing the units to retire as previously planned—will be significant,” the letter said. “Before incurring any of these costs, NIPSCO must carefully evaluate whether the costs are reasonable.”
The organizations also say the Energy Department cannot direct NIPSCO to revive Schachfer's unit, saying Congress did not grant the department authority. According to the letter, the order will require repairs or modifications to the unit that will go well beyond power generation.
This order will require the reconstruction of significant parts of the plant as the unit has reached the end of its useful life.
The organizations also argue that Federal Energy Regulatory Commission requirements prevent NIPSCO from reimbursing costs spent pursuant to the unlawful directive, the letter states.
“It would be imprudent for NIPSCO to spend money to restore Schachfer Unit 18 without, at a minimum, carefully evaluating the legality of the department's order, especially any element of the order that could be construed as directly repairing Unit 18 to operating condition,” the letter states. “…Reasonable utility management would not spend money in good faith in response to an illegal directive, especially when the utility management has notice of the illegal nature of the directive.”
In an email Friday, a NIPSCO spokesperson referred to a previous statement regarding Schachfer's order, saying compliance is mandatory. The utility reviews the details to assess its impact on employees, customers and the company to ensure compliance.
According to the statement, the order changes the timing of Shahfer's decommissioning, but NIPCSO's long-term plan to transition to sustainable energy remains unchanged.
“Guided by our comprehensive resource plan, NIPSCO and NiSource recognize the importance of reliable and affordable energy as we manage costs and adapt to changing regulatory requirements,” the statement said. “Our commitment to providing safe and reliable energy remains the same now and in the future.”
NIPSCO plans to convert Schachfer Station into a natural gas plant as part of a plan to power data centers, including $15 billion Amazon Web Services plans to invest in the region, including Hobart, according to Post-Tribune archives.
U.S. Energy Secretary Chris Wright issued an emergency order on Dec. 23 that will allow Schachfer to continue operating, according to Post-Tribune archives. The order went into effect on December 23 and will end on March 23, 2026.
According to Post-Tribune archives, the order was made to ensure Midwestern residents have “access to affordable, reliable and safe electricity during the winter months.” Midcontinent Independent System Operator has also been ordered to continue operations at its FB Culley power station in Newburgh.
“The Trump Administration remains committed to rapidly deploying all available tools and authorities to ensure the reliability, availability and security of the nation's energy system,” Wright said in a previous statement. “Keeping these coal plants running has the potential to save lives and is simply common sense. Americans deserve reliable energy service whether the wind blows or the sun shines in extreme winter conditions.”
Earlier this year, the Citizens Action Coalition found that power bills statewide had risen by more than $28 a month, or 17.5%. According to the organization's July report, NIPSCO's residential customers were hit the hardest, with an increase of about $50 per month, or 26.7%, over the year.
“The federal government's order to force extremely expensive and unreliable coal plants to stay open will result in higher bills for Hoosiers who are already reeling from record-high rate increases in 2025,” Ben Inskeep, program director for the Citizens Action Coalition, said in a previous statement. “We cannot afford this costly and unwarranted federal intervention.”
