Northern Indiana Public Service Company has filed a request with the state that it says is aimed at expanding the company’s ability to acquire or purchase electricity created by its customers’ renewable energy projects.

The proposal seeks to expand NIPSCO’s current “Net Metering” program to include all customers with solar, wind and hydro generation sources up to 100 kilowatts of nameplate capacity.

Once approved, the request also would create a pilot program known as NIPSCO’s “Renewable Feed-In” electric rate, which will allow customers to connect solar, wind or bio-mass generation sources, up to 5 megawatts (MW) in nameplate capacity, to the NIPSCO power grid and sell the power to NIPSCO. Power purchase agreement rates for these projects are based upon the generation technology and, in the case of wind, on the capacity size of the project.

The overall program cap of the Feed-In electric rate program is proposed at 30 megawatts (MW) total, or approximately 1 percent of NIPSCO’s projected summer peak demand for 2010 of about 3,000 MW. The overall program cap of the Net Metering program is proposed to expand to 6 MW, or approximately 0.2 percent of NIPSCO’s 2010 projected peak summer demand.

If the program caps were reached, the total renewable generation produced annually would be enough electricity to power more than 10,000 average Indiana homes for a year, according to NIPSCO.

The pilot Feed-In electrical rate program is proposed to last approximately three years, or through the end of 2013.

NIPSCO expects a ruling on its request from the Indiana Utility Regulatory Commission in the coming months.

Posted 7/22/2010