12/11/2025
Formatting is better on the blog site, link in comments:
Indiana’s Energy Crisis: How Utility Incentives, Private Development Networks, and Legislative Decisions Drove Record Rate
December 11, 20025
By Data Centers AI ChatGPT with sources provided by Kimberly Mann
Northern Indiana is experiencing a utility crisis fueled by rising electricity costs, inaccessible decision-making, and a pipeline of policy decisions that elevate corporate and utility interests above public welfare. A close review of regulatory filings, legislative texts, grid operator classifications, and utility statements reveals a pattern: NIPSCO and its parent company, NiSource, have positioned themselves at the center of an incentive-driven system that profits while Hoosiers pay more.
Utilities Paid to Generate—and NOT Generate—Electricity
NIPSCO receives compensation both for producing electricity and for not producing it under certain market conditions (PJM and MidContinent Independent System Operator (MISO) market rules, demand response programs). These financial structures allow utilities to profit regardless of customer relief or grid stability.
The same utility actively markets the region to heavy energy users—particularly data centers and other large loads—offering substantial rate reductions through Economic Development Riders (EDRs). Source: NIPSCO Economic Development Rider description quoted in GreatNews.Life (Admave, C., Great News Life, n.d.). https://greatnews.life/article/nipsco-helps-region-develop-with-reliable-energy-job-creation-and-money-saving-opportunities/
At the same time, NIPSCO can sell excess electricity—produced with customer-funded infrastructure—to foreign markets for higher profit. Source: NIPSCO public claims on “excess power sales” (NIPSCO.com).
Electricity as a Life-Sustaining Commodity in Indiana
Northern Indiana’s winter climate makes electricity and gas critical to survival. Many residents choose between utilities and food on a monthly basis (Source: Indiana Community Action Poverty Data, 2023)
Despite this, utilities continue raising rates, citing increasing industrial loads—loads they themselves invited.
1. Closed-Door Development Networks Influence Land Use and Energy Demand
NIPSCO sits on local and regional economic development boards that help determine land use, industrial siting, and incentive allocation. These boards often conduct negotiations behind closed doors, outside public oversight.
A major structural shift occurred when a federal judge ruled the Indiana Economic Development Corporation (IEDC) was not a public agency but a private corporation that is funded with hardworking citizen’s tax dollars ranging in the billions of dollars. Source: Federal District Court ruling, widely reported (2024).
This means billions in taxpayer-funded incentives are administered by a private entity acting without public transparency.
2. Industrial Energy Guzzlers Subsidized by Taxpayers
Large commercial operations are placed on Indiana farmland with monetary support from:
👉Tax Increment Financing (TIF) districts
👉State and federal subsidies
Local tax abatements
👉Economic development incentive packages
👉Utility-backed discount programs (EDRs)
👉These incentives shift costs downward onto residential customers.
Meanwhile, utilities use the arrival of energy-intensive facilities to justify new generation construction—costs that also fall on ratepayers.
3. Renewable Energy Projects Classified as Unreliable by Grid Operators
MISO (Midcontinent Independent System Operator), the grid operator for Northern Indiana, designated solar, wind, and battery storage as “unreliable/intermittent” resources on the 2024 reliability curve. Source: MISO Reliability-Based Demand Curve (RBDC) briefings, 2024–2025; MISO Resource Adequacy Subcommittee (RASC) update 7/10/2024.
Because of this classification, these renewable projects contribute little to the capacity obligation that determines customer rates—even though they receive enormous subsidies.
Impact: They raise, not lower, long-term cost obligations.
4. House Bill 1007: Guaranteed Utility Profits and Nuclear Development Subsidies
Indiana House Bill 1007 (May 2025), authored by Rep. Ed Soliday, allows utilities to:
🎈Recover 80% of small modular nuclear reactor (SMR) development costs upfront
🎈Recover the remaining 20% even if the reactor is never completed
🎈Charge residential customers for new power plants while also receiving economic development subsidies
🎈Collect ongoing operational costs if the IURC blocks retirement of any generation resource
Sources: Indiana House Bill 1007, 2025 session (legislative text) Public reporting on SMR project failures nationwide (DOE, NRC status updates)
No Small Modular nuclear Reactor facility in the U.S. has been completed.
NIPSCO spent $141,100 on lobbying legislation in topics Energy, Environment, Licensure, Taxation, Utilities in 2024. Source: Indiana Lobby Registration Commission (ILRC) annual filings. Rep. Soliday represents the area where NIPSCO is headquartered (Merrillville) and serves on the Committee on Utilities, Energy, and Telecommunications. All 5 of the 5 bills authored by Rep. Ed Soliday involved Energy generation, carbon sequestration, Quantum research (data centers) tax incentives, Expedited approval of electric transmission and generation projects. Others Co Sponsored and Sponsored included but not limited to Water, Wastewater, IURC matters, Nuclear reactor development costs, energy production zones, water utilities, and construction of data centers. Source: https://iga.in.gov/legislative/2025/legislators/legislator_edmond_soliday_864
5. Capacity Cost Explosion: $30 → $666.50
MISO’s first-ever application of the Reliability-Based Demand Curve (RBDC) that qualifies Solar/Wind as unreliable triggered a record capacity price spike:
2024: $30/MW/day
2025: $666.50/MW/day
Source:MISO 2025/2026 Planning Resource Auction results (MISO.org). MISO RASC Status Update – 7/10/2024.
This represents a 2,122% increase, the highest in regional history.
Despite billions in renewable investments, capacity costs still rose because MISO classified renewables as unreliable.
6. NIPSCO’s Internal Economic Development Network
NIPSCO divides Northern Indiana into mapped territories, each managed by an in-house economic development representative. These NIPSCO employees sit on the following boards among other local Economic Development boards listed at the bottom of this report:
🚨Indiana Economic Development Corporation
🚨Northwest Indiana Forum
🚨Michiana Regional Economic Development Corporation
🚨Northeast Indiana Regional Partnership
🚨North Central Economic Development Partnership
Their mission: recruit large commercial energy consumers into NIPSCO’s territory.
7. Renewable Projects Owned or Contracted by NIPSCO
NIPSCO’s renewable portfolio includes:
☀️Dunns Bridge I
☀️Dunns Bridge II
☀️Cavalry Solar Energy Center
☀️Indiana Crossroads
☀️Fairbanks Solar
☀️Crossroads II Wind
☀️Green River Solar- upcoming
☀️Gibson Solar Gibson County- upcoming
☀️Fairbanks Solar Sullivan County- upcoming
☀️Appleseed Solar Cass County-upcoming
Source: NIPSCO Generation Transition portfolio.
These projects require heavy subsidies but do not reduce capacity costs under MISO’s rules.
NIPSCO claims customers received $60 million in Renewable Energy Credit (REC) returns since 2021.Source: NIPSCO public statements (2024–2025).Yet residential electric and gas bills rose about 30% in 2025 when including the loophole titled: Delivery charge. Just a $28 use of gas charges resulted in a $75 delivery fee plus a kwh raise.
8. Financial Markets Praise the Profit Model
While Hoosiers struggle with rate hikes, financial analysts celebrate NiSource’s rising margins: Source: Yahoo Finance, “A Closer Look at NiSource’s Valuation” https://finance.yahoo.com/news/closer-look-nisource-ni-valuation-120726409.html
Key praise includes:
+“Robust infrastructure upgrades”
+“Expanding margins”
+“Digital efficiencies”
+“Constructive regulatory relationships”
+“Growth supported by economic development”
These assessments confirm what the data shows: the system is working extremely well for utilities and investors—and failing residents.
Conclusion: A System Designed Against Consumers
This investigation shows a circular, self-reinforcing structure:
👉Utilities recruit large industrial energy users.
👉Industries receive taxpayer-funded incentives and discounted electricity.
👉Utilities claim new generation must be built to serve them.
👉Utilites lobby Representatives to force IURC to raise rates and payments for uncompleted/forced-open projects
👉Utilities build unreliable renewable facilities that raise capacity costs.
👉Utilities cite capacity shortfalls to raise residential rates.
👉Excess reliable power is sold to foreign markets for profit.
👉Financial markets reward utilities for “margin expansion.”
Meanwhile, Indiana families—facing record costs and limited oversight—are left to shoulder the burden.
Unless regulatory conditions change and public transparency improves, Indiana’s energy landscape will continue prioritizing private profit over public necessity.
Short List of NIPSCO employees on the boards of Economic Development programs in Indiana:
**The Association of Indiana Counties (AIC)– Board of Directors-Cindy Admave NIPSCO. AIC’s purposes and goals are to seek the betterment of county government through: representation of counties at the Indiana General Assembly; research and dissemination of information; communications through publications and seminars; professional training and educational programs; liaison between counties, state and federal agencies; and technical and managerial assistance. While there are a number of agencies and groups offering assistance to county government, AIC is the only entity that represents the legislative needs of Indiana counties.” https://web.indianacounties.org/Associate/NIPSCO-206
**Indiana Economic Development Association: NIPSCO Corporate member- Cindy Admave https://ieda.org/Sys/PublicProfile/41903983
**Portage Economic Development Corp Board of Directors NIPSCO Cindy Admave Board Secretary https://www.portagein.org/staff
**Starke County Economic Development Foundation – SCEDF Sponsors: Northern Indiana Public Service Company (NIPSCO) Cindy Admave, Economic Development Department.
**NWI Forum : introduces 2025 board members Rick Calinski, NIPSCO director of public affairs and economic development and Bert Cook https://nwindianabusiness.com/community/business-news/nwi-forum-introduces-2025-board-members/72729/ NWI forum is comprised of local economic development commission reps and other large businesses
**Unity Foundation board of directors: Katie Eaton is the Public Affairs & Economic Development Manager at NIPSCO…Eaton most recently served as the President of the Michigan City Chamber of Commerce.
*”LaPorte Economic Advancement Partnership Board of directors: Cindy Admave, Bert Cook, Mayor Thomas Dermody, Michael Riehle, Assessor Mike Schultz
** Urban Enterprise Association of LaPorte (UEA) Board of Directors : Cindy Admave NIPSCO Economic Development Manager, Bert Cook, Mayor Thomas Dermody, Michael Riehle, Assessor Mike Schultz
**Greater LaPorte Economic Development BOARD OF DIRECTORS: NIPSCO Cindy Admave, Mayor Thomas Dermody, Michael Riehle, Assessor Mike Schultz
**Valparaiso Economic Development Corporation Board of Directors :. Katie Eaton is the Public Affairs & Economic Development Manager at NIPSCO.
**South Bend Regional Chamber of Commerce: South Bend Regional Chamber of Commerce Board of Directors :
**Lake County IN Economic Alliance Board of Directors: Alexius Barber NIPSCO
**Questa Education Foundation Board of Directors : Dana Berkes is Manager of Public Affairs for NIPSCO, overseeing public affairs, economic development, and community relations in 11 Northeast Indiana counties. She serves as Vice President of the Purdue Fort Wayne Foundation board and holds leadership roles with Greater Fort Wayne, Inc., Junior Achievement, and others. https://www.questafoundation.org/news/2025/8/19/questa-welcomes-three-new-board-members
** Michigan City Economic Development Corp : Board of Directors : Robert J. Schaefer’s involvement in economic development began during his time working At NIPSCO. He was assigned by NIPSCO to work with economic development agencies Throughout the region to assist them in their efforts to attract and retain businesses. Each of These agencies felt that NIPSCO’s Presence at the table was valuable and Necessary for them to be successful. When Mayor Sheila Brillson took office, Among her highest priorities was job Creation and economic development. She Wanted Michigan City to be in the forefront In this arena. In order to realize her vision, She put together a small group of experts To assist and advise her. One of those Experts was Bob. Bob called upon his economic Development experience with NIPSCO. He Knew what attributes an organization Needed to make economic development Efforts effective. Based largely on Bob’s advice, an existing non-profit organization Was repurposed to become MCEDC with a Board of directors consisting of members Appointed by the Mayor and the Chamber Of Commerce. Bob’s involvement did not end with the formation of MCEDChttps://edcmc.com/wp-content/uploads/2022/07/Bob-Schaefer-Bio.pdf
** Northwest Indiana Forum : Northern Indiana Public Service Company, LLC (NIPSCO) welcomes Spencer Summers to the role of Economic Development Manager. In this role, Summers will position Northwest Indiana’s strategic assets to decision-makers nationwide while cultivating relationships with site selectors, investors and industry leaders to advance sustainable economic growth, enhance regional competitiveness and expand business opportunities throughout the area….Before joining NIPSCO, Summers served as the Economic Development Director at the Northwest Indiana Forum and as Facility and League Director at The Courts of Northwest Indiana in Valparaiso. He obtained a Master of Business Administration with a concentration in Information Systems from Purdue University Northwest in 2023, following a double major in Business Management and Human Resources from PNW in 2022 https://greatnews.life/article/nipsco-welcomes-spencer-summers-as-new-economic-development-manager/
Other NIPSCO Affiliations/Information Concerning Economic Development organizations in Northwest Indiana:
**Indiana University Northwest launches inaugural Economic Development Academy. Regional economic development professionals will serve as program leaders, imparting their expertise and experience with program participants. Those leaders include:
Anthony Sindone and Micah Pollak, IU Northwest, economists specializing in regional economic development
Rick Calinski, NIPSCO, Director of Public Affairs and Economic Development
Heather Ennis, Northwest Indiana Forum, President & CEO
Seth Spencer, Sera Group, CEO
***Dec 3, 2025:Donald Babcock said he was officially “retired” for about four months after a 43-year stint at NIPSCO. He now works for PNW as director of economic development and community relations. https://nwindianabusiness.com/article/next-acts-2025-12/
**Gov. Mike Braun hired Washington-based FTI Consulting Inc. to conduct a forensic audit of the Indiana Economic Development Corp. after Indiana Legislative Insight reported allegations of self-dealing among the agency and its affiliates….The big picture: The audit reported no criminal findings but dozens of instances of “gaps in governance and inadequate policies and procedures.” Forty-six donors, including Rolls-Royce, NIPSCO, AES and Pure Development, which is heavily involved in the IEDC-led LEAP development in Boone County, received either payments or tax credits from the IEDC. https://www.axios.com/local/indianapolis/2025/10/06/what-to-know-about-the-iedc-investigation
https://theroostercrows.wordpress.com/2025/12/11/indianas-energy-crisis-how-utility-incentives-private-development-networks-and-legislative-decisions-drove-record-rate-increases/
