Indianapolis utility requests proposals for 200 MW of power in order to retire two coal plants

• Indianapolis Power & Light Company (IPL) announces that Sargent & Lundy will act on IPL’s behalf to facilitate an all-source request for proposals (RFP) to meet future electric needs of our customers and the communities it serves. The RFP considers all potential options for replacement generation capacity so IPL can continue to deliver safe, reliable and affordable power to its 500,000 customers.

The need for 200 MW of firm capacity resources follows IPL’s recent announcement to retire two coal-fired units at Petersburg Generating Station in 2021 and 2023, respectively. At a public advisory meeting held Dec. 9, IPL leaders presented the company’s preferred portfolio and demonstrated how IPL plans to continue to diversify its generation mix, with the expected integration of additional renewable resources, while continuing to deliver electricity at reliable, cost-effective rates. IPL submitted its 2019 integrated resource plan to the Indiana Utility Regulatory Commission (IURC) on Dec. 16. The projected capacity shortfall, modeling assumptions and key drivers are outlined in IPL’s IRP, which is a 20-year projection submitted to the IURC every three years.

“Our 2019 integrated resource plan takes a balanced approach to delivering reliable, affordable and cleaner energy to our customers during a time of rapid change in the energy industry,” said Vince Parisi, IPL president and CEO. “The company’s preferred portfolio gives us a path to replace approximately 200 MW of generation capacity while maintaining flexibility, should future market conditions change. We’re asking bidders to bring us their most cost competitive options that meet the needs and expectations of our customers and communities.”

The purpose of the all-source RFP is to competitively procure replacement capacity by June 1, 2023, which is the first time period IPL is expected to have a capacity shortfall. The IRP modeling and preferred portfolio indicate a combination of energy efficiency, solar, storage and wind are the lowest cost options for replacement capacity, but IPL will assess the type, size and location of potential resources of all bids that meet the minimum criteria.

IPL’s current energy mix includes generation from natural gas, coal, solar, wind, customer-owned renewable generation, demand response, energy efficiency and other market purchased power. Bid submissions are due by 5 p.m. CT, Feb. 28, 2020. Additional information is available online at IPLpower.com/RFP.