Indiana manufacturers are absorbing costs from two directions at once today: a coal plant running a six-figure daily tab while sitting offline for repairs, and a regulatory vacancy that puts the swing vote on $71 million in pending rate increases in play before the week is out. Four additional stories — a Noblesville defense battery startup, Workforce Pell launches at Ivy Tech and Vincennes, and Caterpillar's Lafayette expansion — round out this week's exposure map.

NIPSCO Schahfer: $174,000 Per Day, Both Units Offline

The Department of Energy has issued a third consecutive 90-day Section 202(c) emergency order requiring NIPSCO's R.M. Schahfer Generating Station in Jasper County and CenterPoint's F.B. Culley plant in Warrick County to remain operational through September 19. Both plants were scheduled to retire in 2025. Both utilities will comply.

The problem embedded in that compliance: both Schahfer coal units are currently offline for repairs. NIPSCO's own president acknowledged at the December 2025 IURC Winter Reliability Forum that Unit 18 requires a full rebuild — a six-month-or-longer timeline. The estimated cost to ratepayers is $174,000 per day for Schahfer, and NIPSCO has not yet filed itemized expenses with FERC. The final number could be higher once those filings land.

The structural issue runs deeper than the daily cost. The DOE orders invoke a capacity emergency — but the same order language bars these units from counting as capacity resources in MISO's Planning Resource Auction. MISO's own spokesperson confirmed in writing that the Planning Resource Auction found adequate resources to meet projected demand without these units. The practical result: ratepayers across all 11 MISO states are funding capacity that neither the market nor the order itself treats as dispatchable.

The case to watch is the D.C. Circuit ruling on the Consumers Energy J.H. Campbell plant in Michigan — oral arguments concluded in May, decision expected within months. If the court rules against DOE, it could retroactively invalidate the Indiana orders and trigger a FERC unwinding of already-approved cost allocations. Audit your MISO capacity charge exposure before that ruling lands, not after.

IURC Commissioner Vacancy: Braun's Fourth Appointee Becomes the Swing Vote

IURC Commissioner David Veleta submitted a formal resignation letter dated June 26, effective August 31 or sooner. Applications for his replacement closed July 7. Interviews are scheduled in Indianapolis on July 16.

Once that seat is filled, Governor Braun will have appointed four of five IURC commissioners. Indiana statute caps same-party commissioners at three, so the replacement must be a Democrat or independent — but Braun controls the selection. The practical question isn't the party label. It's whether the appointee functions as an independent check on the commission's direction or as an ideologically aligned pick who happens to carry a different registration.

The immediate stakes: the OUCC's rehearing petition deadline on AES Indiana's $71 million rate increase is also July 7. The new commissioner almost certainly will not be seated before the commission acts on that filing — meaning the AES rehearing could proceed with Chairman Swinger recused and a three-member effective quorum. The Duke Energy Cause No. 46038 appeal, which alleges an $89 million overcharge, is also in the queue. Watch the AES rehearing vote for the first read on how a reconstituted commission will behave.

If your utility contracts or energy procurement agreements haven't been reviewed against this regulatory backdrop, the time to do that is before the new commission starts acting — not after.

Three More Stories Worth Tracking This Week

Valgotech Noblesville Li-S battery facility. Valgotech LLC officially opened a lithium-sulfur battery production facility at 17265 Harger Court in Noblesville — a $1 million investment capable of producing roughly 1,400 battery packs per year, targeting drone, aerospace, and defense customers. A planned $50 million, 50-megawatt-hour follow-on facility is targeted within 12 months. Competitors are already further along: Lyten holds a Defense Innovation Unit contract and has more than $425 million in equity; Sion Power, now owned by LG Energy Solution, expects initial defense and aerospace shipments in late 2026. Valgotech's window to demonstrate Low-Rate Initial Production credibility before a competitor locks up a prime DoD contract is narrow. Track the DARPA ExPEDitions solicitation — proposals are due August 2026.

Workforce Pell at Ivy Tech and Vincennes. The new Workforce Pell program has launched at both institutions. Evonik, 3M, and Roche already have co-designed credential pipelines in place — giving those employers a one-to-two semester head start on the initial cohort. Employers who co-design curriculum now get earlier visibility into candidate quality and direct instructor relationships. The 2026–2027 enrollment window is open.

Caterpillar Lafayette. A $5 million workforce pledge is funding operator training for a $725 million equipment ramp with machines arriving in 2027. Indiana's Skills Enhancement Fund reimburses up to 50% of eligible training costs. If you supply into the Cat 3500 or C175 engine line, the time to map throughput capacity against a 2027 ramp is before Caterpillar's building completion triggers the order acceleration.

Questions for Your Morning Huddle

Q: What is the estimated daily cost to Indiana ratepayers from the NIPSCO Schahfer coal plant?
A: The estimated cost is $174,000 per day for Schahfer, but NIPSCO has not yet filed itemized expenses with FERC, so the final number could run higher or lower once those filings land.

Q: How does the IURC commissioner vacancy affect pending Indiana utility rate cases?
A: Governor Braun's fourth IURC appointee will become the swing vote on AES Indiana's $71 million rate increase rehearing and Duke Energy's contested $89 million overcharge — and the new commissioner is unlikely to be seated before the commission acts on the July 7 OUCC rehearing petition.

Q: What should Indiana manufacturers do about MISO capacity charge exposure right now?
A: Audit your MISO capacity charge exposure before the D.C. Circuit rules on the Consumers Energy Campbell case in Michigan — a ruling against DOE could retroactively unwind FERC cost allocations affecting Indiana operators across all 11 MISO states.

For a structured look at how utility cost exposure shows up in your facility's operating budget — and where the real leverage points are — start with the TEG Energy Decision Blueprint.

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