Federal order from the Department of Energy (DOE) on December 24, 2025 requires NIPSCO, a subsidiary of NiSource Inc., to keep its R.M. Schahfer coal‑fired generating station online for an additional 90 days beyond the plant’s planned retirement on December 31, 2025. The order was issued to address grid reliability concerns amid rising electricity demand from data centers and higher natural gas prices in the Midwest.
The 90‑day extension pushes the plant’s decommissioning into the first quarter of 2026, adding operating costs that were not budgeted in NiSource’s 2025 capital plan. The additional expense will extend the capital recovery period for the facility and reduce the amount of cash available for the company’s GenCo data‑center investment program, which is slated to receive roughly $7 billion of the $28 billion total cap‑ex plan.
NiSource’s management acknowledged the order and said it would comply while reviewing the financial impact. President and COO of NIPSCO Vince Parisi noted that the company is “reviewing the overall impact to our customers and company and will comply with this order.” CEO Lloyd Yates emphasized that the GenCo structure protects existing customers from the cost of serving new data‑center customers, and that the company remains focused on delivering reliable power to the region.
The order reflects a broader trend in the Midwest where utilities are delaying coal‑plant retirements to meet the surge in power demand from data‑center construction and AI workloads. The DOE’s directive is part of a regulatory shift that encourages co‑location of data centers with existing generation assets to maintain grid reliability while supporting the digital economy.
While the extension imposes short‑term operating costs, it does not alter NiSource’s long‑term growth trajectory. The company’s Q3 2025 earnings beat expectations, with GAAP net income of $94.7 million and EPS of $0.20 versus analyst estimates of $0.18. Management reaffirmed its 2025 non‑GAAP EPS guidance of $1.85‑$1.89 and introduced 2026 guidance of $2.02‑$2.07, signaling confidence in continued profitability despite the temporary regulatory hurdle.
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