NIPSCO to complete Michigan City scrubber project by the end of 2015

NiSource Inc. (NYSE: NI) said in its April 30 first-quarter earnings report that its Northern Indiana Public Service Co. (NIPSCO) subsidiary remains on schedule and on budget with its flue gas desulfurization (FGD) unit at its coal-fired Michigan City Generating Station.

The approximately $265 million project at Michigan City Unit 12 is expected to be placed in service by the end of this year. Another approximately $80 million in environmental investments also will be completed at NIPSCO’s coal-fired facilities this year. These investments, supported with cost recovery, help improve air quality and ensure NIPSCO’s generation fleet remains in compliance with current environmental regulations, NiSource said. In the 2013-2014 period, NIPSCO also completed FGD installations on the coal-fired Schahfer Units 14 and 15.

During the first quarter of this year, NIPSCO commenced 2015 investments under the company’s seven-year, approximately $2 billion electric and natural gas modernization programs. The company plans to invest approximately $193 million ($124 million gas and $69 million electric) on modernization projects in 2015. The investments will help improve system reliability and safety while delivering economic development benefits to the region.

Progress also continued in the first quarter on two major NIPSCO electric transmission projects designed to enhance region-wide system flexibility and reliability. The Greentown-Reynolds project is an approximately 70-mile, 765-kV line being constructed in a joint development agreement with Pioneer Transmission. The Reynolds-Topeka project is a 100-mile, 345-kV line. Right-of-way acquisition and permitting are under way for both projects and construction has begun on the Reynolds-Topeka line. These projects involve an investment of approximately $500 million for NIPSCO and are anticipated to be in service by the end of 2018.

NiSource, based in Merrillville, Indiana, is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.