October 17, 2026 - The U.S. Department of Energy has upheld its earlier decision requiring two coal-fired units at Indiana’s R.M. Schahfer Generating Station to remain available, arguing that the Midwest needed their generating capacity to help maintain reliable electricity service.

In an October 16 order, DOE addressed challenges from environmental and public-interest organizations and the states of Minnesota, Illinois, Wisconsin and Michigan. The department expanded its explanation for the decision but left the original outcome unchanged.

The Schahfer plant, located in Wheatfield, Indiana, is owned and operated by Northern Indiana Public Service Company, or NIPSCO. Its two coal-fired units, Units 17 and 18, each have a capacity of 423.5 megawatts, providing a combined 847 MW. Both had been scheduled to stop operating in December 2025.

DOE initially directed the units to remain available through March 23, 2026. A subsequent order extended that requirement through June 21.

The latest decision reviews that March extension. It does not establish a new operating period or represent a court ruling.

DOE issued the original directive under Section 202(c) of the Federal Power Act, which allows federal intervention during electricity emergencies. The department maintains that shortages of generating capacity, rising electricity demand and delays in bringing replacement resources online justified its action.

Challengers questioned whether those conditions qualified as an emergency. They also raised concerns about costs, environmental requirements and whether other options could meet the region’s electricity needs.

DOE rejected those arguments, maintaining that existing coal generation could help address shortages while new resources remained years away from operation. The department cited assessments from the Midcontinent Independent System Operator, known as MISO, and the North American Electric Reliability Corporation concerning the region’s power-supply risks.

The order also pointed to Schahfer’s performance during Winter Storm Fern and the cold weather that followed. According to EPA data cited by DOE, the plant generated 148,388 megawatt-hours between January 23 and February 10, 2026. DOE argued that this generation helped support the regional grid during that period.

Keeping the units available does not mean they must run continuously. The underlying order directed MISO to use its dispatch process to minimize costs to customers while ensuring the units could operate when needed.

DOE also maintained that applicable environmental monitoring, reporting and recordkeeping requirements must be followed to the maximum extent feasible under the emergency conditions.

The department dismissed the request to suspend the March order as moot because that operating period had already ended on June 21.

The decision reinforces DOE’s position that existing coal-fired capacity can provide an important reliability resource as electricity demand grows and replacement generation takes time to develop.

Official DOE document: Order Addressing Arguments Raised on Rehearing, No. 202-26-19B