December 29, 2025 - NIPSCO’s plan to scale back coal production at the Schahfer Generating Station in Wheatfield, Indiana has been interrupted by a federal order requiring the plant’s continued operation for at least 90 days beyond its scheduled retirement date of Dec. 31, 2025.

The U.S. Department of Energy issued the order last week, requiring NIPSCO and CenterPoint Energy near Newburgh, Indiana, to keep their generating plants operating despite preparations to close them at the end of December. The order is seen as President Donald Trump’s attempt to boost the coal mining industry.

The 90-day order states that two coal-burning units set for closure at NIPSCO’s plant in Wheatfield and one at CenterPoint’s Culley Generating Station along the Ohio River must remain “available to operate” until at least March 23.

“We are reviewing the overall impact to our customers and company and will comply with this order, and any subsequent orders, if received,” said Vince Parisi, NIPSCO president and chief operating officer. “We recognize the importance of both reliability and cost management for our customers, and we will continue to engage with federal, state and local stakeholders as we adapt to evolving regulatory requirements.”

The Energy Department said the orders were needed because the “reliable supply of power from these coal plants is essential for keeping the region’s electric grid stable.”

The growing power demand of data centers was cited as a reason for keeping the plants in operation for the time being.

“Keeping these coal plants online has the potential to save lives and is just common sense,” Energy Secretary Chris Wright said in a statement. “Americans deserve reliable power regardless of whether the wind is blowing or the sun is shining during extreme winter conditions.”

NIPSCO announced a number of years ago that it had plans to retire two coal-fired electric generating units at Schahfer in 2023, but the shutdown was delayed to 2025 due to a federal solar tariff investigation that reviewed potential trade violations involving solar panels bought from Asian suppliers.

It is not immediately clear how NIPSCO and CenterPoint would abide with the orders to keep the coal burning plants in operation.

NIPSCO currently has plans to build a natural gas turbine plant and a “peaker” power station that generates electricity during periods of high demand or during peak times.

NIPSCO has dedicated ground within its generating station for both projects and sought approval from the plan commission recently to set aside land for a possible data center, which was shot down by the commission.

The federal agency has issued similar orders for power plants in other states in recent months including a large coal-burning station in Michigan, according to an Indiana Capital Chronicle’s article on the Energy Department’s announcement. Michigan’s plant was scheduled to retire between 2026 and 2028.