FORT WAYNE, Ind., March 1, 2022 – Indiana Michigan Power, an American Electric Power (Nasdaq: AEP) company, intends to significantly expand its clean energy generation as part of its Powering the Next Tomorrow plan filed with the Michigan Public Service Commission.
The plan calls for adding 2,100 megawatts (MW) of wind and solar energy generation by 2028 – enough to power the equivalent of 400,000 typical homes. The new clean energy and the scheduled retirement of I&M’s coal-fueled Rockport Plant by the end of 2028 support parent company AEP’s goal of net-zero emissions by 2050, aligning with the Michigan Healthy Climate Plan.
“Our Powering the Next Tomorrow plan is a major step in I&M’s strategic, responsible transition to more clean-energy sources while meeting our customers’ needs for safe, reliable energy long into the future,” said Steve Baker, president and chief operating officer of I&M. “This new generation will combine with I&M’s existing resources to provide a diversified and flexible generation portfolio that will stabilize energy costs over time, stimulate economic growth, reduce emissions and take advantage of new technologies.”
I&M’s intentions are described in its Integrated Resource Plan (IRP), which provides a detailed analysis of future energy needs and how the company will meet those needs over the next 20 years. Though long-term plans are subject to revisions, I&M’s near-term plans to add 2,100 megawatts (MW) of wind and solar by 2028 have a higher degree of certainty.
The next step is expected later this month, when I&M plans to issue a request for proposal (RFP) for approximately 800 MW of wind generation and approximately 500 MW of solar generation to meet customer needs, with half of those resources generating energy in 2025 and the remainder by 2026. A second RFP is planned for later seeking proposals for about 800 MW of solar, 60 MW of battery storage and 1,000 MW from gas “peaking” units to meet the needs by 2028.
Together, the new resources would more than quadruple I&M’s current solar and wind generation.
I&M continues to evaluate the best ways to provide customers with reliable power 24/7/365, including when the sun doesn’t shine or wind doesn’t blow. With the retirement of I&M’s coal-fueled Rockport Plant scheduled by 2028, the company’s plans include natural-gas “peaking” units that are expected to be the most cost-effective, reliable source of additional power. These resources would generate power only during periods of high energy use and would potentially utilize hydrogen as a future fuel source to optimize environmental performance.
Including Cook Nuclear Plant, wind and solar resources as well as power from six water-powered hydro-electric plants, more than 80% of the energy I&M generated in 2021 was carbon-emission free.
Given the guidelines of a 20-year plan, the Powering the Next Tomorrow plan includes longer-range options for additional generation should the two generating units at Cook Nuclear Plant be retired at the end of their licensing periods in 2034 and 2037, respectively. However, the plan also preserves the optionality of the Cook licenses being extended an additional 20 years.
I&M has strategically transitioned to a more diverse energy mix since 2008, when I&M first began purchasing power from an Indiana wind farm. Over the years, I&M has added power from two additional Hoosier wind farms and five solar farms in Indiana and in Michigan.
I&M filed its 20-year plan to both the Michigan Public Service Commission and submitted the same plan with the Indiana Utility Regulatory Commission. The plan was developed during 2021 and included five meetings with stakeholders representing a variety of interests. The plan was crafted transparently, with updates and the preferred plan posted at IndianaMichiganPower.com/Community/Improving-Our-Community/Projects/IRP/
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ABOUT INDIANA MICHIGAN POWER: Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and its approximately 2,100 employees serve more than 600,000 customers. More than 80% of its energy delivered in 2021 was emission-free. I&M has at its availability various sources of generation including 2,278 MW of nuclear generation in Michigan, 450 MW of purchased wind generation from Indiana, more than 22 MW of hydro generation in both states, nearly 35 MW of large-scale solar generation in both states, and 2,620 MW of coal-fueled generation in Indiana.
ABOUT AMERICAN ELECTRIC POWER: American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP’s approximately 16,700 employees operate and maintain the nation’s largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.5 million regulated customers in 11 states. AEP also is one of the nation’s largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 5,900 megawatts of renewable energy. The company’s plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2030. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2000 levels by 2030 and has committed to achieving net zero by 2050. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP’s family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.
MEDIA CONTACT:
Tracy Warner
Corporate Communications Manager
Indiana Michigan Power
260-479-9484
tkwarner@aep.com