Wind farm lessens I&M’s coal dependence

MUNCIE – Less than half the electricity generated by Indiana Michigan Power is now coming from coal.

With the recent completion of the Headwaters Wind Farm in Randolph County and the retirement of the coal-fueled Tanners Creek generating unit in Lawrenceburg because of federal environmental regulations, I&M’s energy sources include only 49.7 percent coal.

Meanwhile, The Star Press has learned that the power company is planning to construct $38 million worth of pilot solar photovoltaic generation facilities in Marion, Mishawaka and New Carlisle, Ind.; Watervliet, Mich.; and at a fifth site to be determined.

On July 7, the company announced the solar energy projects would be built in the Muncie-Marion area, South Bend area and Michigan, but said the locations had yet to be finalized.

On the same day, the company filed testimony with the Indiana Utility Regulatory Commission (IURC) reporting that four of the locations were adjacent to its Deer Creek substation in Marion, its Twin Branch substation in Mishawaka, its Olive substation in New Carlisle (west of South Bend), and its Watervliet substation in Berrien County, Mich.

I&M President Paul Chodak III testified that locating the solar projects close to existing I&M substations would save money by reducing the cost of inter-connecting to the grid.

He also testified that the sources of I&M’s energy in 2014 were 59.6 percent coal; 35.8 percent nuclear; 4.2 percent wind; and 0.4 percent hydroelectric

In 2015, the mix will change to 49.7 percent coal; 41.3 percent nuclear; 8.6 percent wind; and 0.4 percent hydroelectric.

“Increasingly, communities want more access to renewable energy and further reductions in carbon dioxide,” Chodak testified. “Some of our communities want to differentiate themselves and include electric supply alternatives in their sustainability and climate action plans. Other customers are more focused on cost and prefer a diverse fuel mix that helps to keep prices low or stable in their minds.”

The addition of solar, estimated to result in an initial impact on customer rates of 0.3 percent, adds to what Gov. Mike Pence calls the “all of the above approach,” Chodak testified.

I&M is asking the IURC to approve the solar project as well as a “green power rider” that will allow customers the opportunity to support solar power by voluntarily subscribing each month to a specific number of 50 kWh blocks of solar renewable energy certificates. The initial 0.3 percent impact on all ratepayers would decline with green power subscriptions.

The power company says it will gain valuable experience as a result of the solar energy pilot projects. That knowledge will be of use when the company adds much larger solar projects in the coming years.

I&M expects to receive construction proposals from bidders in January. The company wants to have all of the pilot solar projects completed no later than 2016 to take advantage of higher federal tax credits available through that date.

The solar power projects will add only 16 megawatts to I&M’s capacity, which in 2014 totaled 3,595 MW of coal-fired generation; 2,110 MW of nuclear generation; 22 MW of hydro generation; and 250 MW of purchased wind generation.

In 2015, wind generation will increase to 450 MW with the opening of the Headwaters Wind Farm in Randolph County. Headwaters is supplying its electricity to I&M through a long-term purchase agreement.

The energy output of Fowler Ridge 1 Wind Farm and Fowler Ridge 2 Wind Farm in Benton County is also sold to I&M, as is the ouput from the Wildcat Wind Farm in Howard, Madison, Grant and Tipton counties.

Contact Seth Slabaugh at (765) 213-5834.