Both coal units at NIPSCO's RM Schahfer generating station in Wheatfield are offline and producing zero electricity — and a federal emergency order expected June 21 will determine whether Indiana commercial and industrial ratepayers absorb the compliance costs. The same week, a Bloomington mechanical contractor backed by a $700 million private equity fund completed its first acquisition, putting mid-size regional contractors on a consolidation timeline they didn't choose.

Two directions. One budget.

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NIPSCO Schahfer Units 17 and 18: Offline, Costly, and Headed for a FERC Decision

Unit 18 at NIPSCO's RM Schahfer generating station has been on forced outage since the first DOE Section 202C emergency order in December 2025. Unit 17 is also down. Neither unit will produce a single megawatt-hour during the next 90-day order period expected to begin June 21, 2026.

NIPSCO previously estimated keeping Schahfer operational beyond 2025 would cost more than $1 billion. That didn't stop the utility from filing with FERC — Docket EL2636 — seeking to recover Section 202C compliance costs through ratepayer rates. That recovery is not guaranteed. It is a contested FERC determination, and the outcome is what Indiana industrial and commercial operators need to be watching right now.

The compounding problem: NIPSCO's own filings put coal purchase costs at approximately $126 million annually — roughly $10 million per month. Every month of forced retention extends a cost line that NIPSCO's own Integrated Resource Plan assumed would be gone. The long-term savings that were supposed to produce rate relief for named parties in the rate case settlement — US Steel, NLMK Indiana, and Walmart — are being eroded in real time. At the same time, a subdocket created within that same settlement is restructuring the ratepayer base to accommodate new large data center loads. The pool absorbing Schahfer retention costs is also being reconfigured to help fund data center growth.

HFI Takes Private Equity Backing — Indiana Mechanical Contractors Face a Consolidation Run

Harold Fish Inc. (HFI), a Bloomington-based mechanical contractor founded in 1985, generates more than $300 million in revenue with over 750 employees across Bloomington, Indianapolis, and Evansville. The firm serves Toyota in the Evansville area and is currently doing mechanical work tied to the $4.3 billion IU Health downtown Indianapolis campus — the largest healthcare construction project underway in the United States.

In December 2025, HFI entered a private equity partnership with New State Capital Partners, whose fund closed at $700 million in March 2025. HFI is the lead platform investment. In April 2026, HFI acquired Eco Friendly Mechanical — a Bloomington HVAC and plumbing contractor — as its first bolt-on.

This is not a one-time growth deal. New State flagged M&A opportunities in this sector at fund close. That means independents in the $30 million to $150 million revenue range competing with HFI on healthcare and industrial work are facing a strategic decision earlier than they otherwise would have — whether to position for sale, partner up, or double down on the relationship and responsiveness advantages that PE-backed competitors typically erode.

If your facility relies on a mid-size regional mechanical contractor, your existing service agreements almost certainly did not anticipate this consolidation. Find out now whether those agreements include assignment clauses and whether you have a qualified backup identified before that window closes.

Questions for Your Morning Huddle

Q: What is FERC Docket EL2636 and does it directly affect what Indiana manufacturers pay for electricity? A: FERC Docket EL2636 is NIPSCO's filing to recover the costs of complying with the DOE Section 202C emergency order requiring it to keep the Schahfer coal units available. If FERC approves that recovery, those costs flow through to ratepayers — including C&I customers. The outcome is not yet determined, and Indiana industrial and commercial operators should model their NIPSCO cost exposure against the scenario where FERC approves full recovery before the next order takes effect on June 21.

Q: Should Indiana plant managers be concerned about HFI's private equity deal affecting their facility service contracts? A: If your facility uses a mid-size regional mechanical contractor competing with HFI on healthcare or industrial work, the consolidation run has started. Audit your mechanical service contracts now for assignment and termination clauses. PE-backed platform strategies move quickly once the first bolt-on closes, and contract terms negotiated with an independent may not survive a change of ownership.

Q: What should Indiana manufacturers do before June 21, 2026? A: Model your NIPSCO energy costs under the high cost-recovery scenario — assuming FERC approves EL2636 — before the next DOE order takes effect. Simultaneously, audit your mechanical service agreements for assignment clauses. These two cost pressures are arriving from different directions, but they hit the same operating budget. Stop treating energy procurement strategy and facility service contracts as separate problems.

Watch this TEG Daily on YouTube: TEG Daily — NIPSCO Schahfer Outage and Indiana Contractor Consolidation

For a framework to model your NIPSCO rate exposure and utility cost risk, download the TEG Energy Decision Blueprint.

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