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Energy Secretary Issues Emergency Orders to Ensure Indiana Coal-fired Facilities Remain Open to Prevent Midwest Blackouts

LCG, December 24, 2025--The U.S. Secretary of Energy today issued emergency orders to keep two Indiana coal plants operational, with the stated goal to ensure Americans in the Midwest region of the United States have access to affordable, reliable, and secure electricity heading into the winter months. The orders direct CenterPoint Energy, the Northern Indiana Public Service Company (NIPSCO), and the Midcontinent Independent System Operator, Inc. (MISO) to take all measures necessary to ensure specified generation units at both the F.B. Culley and R.M. Schahfer generating stations in Indiana are available to operate.

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RWE and Indiana Michigan Power Company Sign Long-term PPA for 200 MW Wind Project

LCG, December 18, 2025--RWE and Indiana Michigan Power Company (I&M), an American Electric Power (AEP) company, today announced their partnering to provide new wind power generation capacity online to meet Indiana’s growing electricity demand. The companies signed a 15-year power purchase agreement (PPA) for the total output from RWE’s 200 MW Prairie Creek wind project in Blackford County, Indiana. I&M will purchase electricity from the wind project, which will further diversify its portfolio and be consistent with its all-of-the-above strategy to secure generation for its rapidly growing electricity demand.

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Industry News

FERC and California Prepare for Long-term Contract Hearing

LCG, Dec. 12, 2002--The Federal Energy Regulatory Commission and attorneys for California have different views of how strong California's case is for overturning long-term contracts the state signed during the energy crisis.

A brief developed and filed by FERC staff in preparation for hearings into $43 billion worth of contracts found that the state needs to prove that the long-term contracts were affected by prices in the soaring short-term market. California contends that spillover between the two existed. According to the Commission's brief, "CDWR [California Department of Water Resources] in fact renegotiated letters of intent it had entered into and rejected other higher cost contracts," thereby indicating to FERC that the California agency did not lack bargaining power.

The hearings, which are due to end with a ruling by FERC Judge Bobbie McCartney by mid-February, are meant to resolve California's assertion that the contracts were signed under circumstances in which the state had little choice but to purchase electricity at unjust rates. The FERC staff wrote that in order for the contracts to be overturned, they must be shown to be contrary to the public interest, according to the "Mobile-Sierra" doctrine set forth by the Supreme Court in the 1950's. The FERC's brief raises the argument that the power market would be adversely affected if the contracts are not upheld.

Some energy sellers to California, such as Calpine Corp. and Williams Cos., have thus far reached agreements with the state on revised contract terms. Others that have not proceeded to settlements include Allegheny Energy, Dynegy Inc., Sempra Energy, and Coral Energy, a unit of Royal Dutch/Shell. If a ruling were to be issued in California's favor, a related action by western U.S. utilities could gain momentum.
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