NiSource to transition away from coal generation
Praxis leads shareholder dialogue with the utility
In fall 2018, NiSource, a major gas and electric utility, announced a plan to retire all its coal generation plants by 2028. The capacity will be replaced with renewable energy - particularly wind, solar and battery storage technology. This plan will cut NiSource’s carbon emissions by more than 90 percent within 10 years.
The changes will take place within the Northern Indiana Public Service Company (NIPSCO), NiSource’s electric subsidiary. NIPSCO serves nearly 500,000 customers in northern Indiana, including the Everence main office and the homes of many Everence employees.
Praxis Mutual Funds® has led a shareholder dialogue with NiSource for two years that has focused on climate change scenario planning, greenhouse gas emissions reductions and coal reduction. Praxis welcomes NiSource’s major commitment to retiring coal plants, reducing emissions and investing in renewable energy.
The electric power sector contributes more than 30 percent of U.S. energy-related CO2 emissions, so changes made at the utility level can make a significant impact on climate change mitigation. This is especially true when transitioning from coal to renewable energy.
NIPSCO currently generates more than half of its electricity from coal combustion. The new wind and solar installations needed to replace the coal will effectively double the renewable energy capacity in Indiana. The accelerated coal plant retirements will lead to significant cost savings for customers, and a more sustainable energy supply. NIPSCO is also working with local leaders to support and reduce the effect on workers impacted by the transition.
Praxis will continue to meet with NiSource to monitor the company’s progress on its transition.