Indianapolis Power & Light issues request for proposals to all electric sources

Indianapolis Power & Light (IPL) recently announced that Sargent & Lundy will act on the company’s behalf in facilitating an all-source request for proposals to meet the 200 MW firm capacity electric generation needed for IPL’s service area.

Currently, IPL’s generation mix includes natural gas, coal, solar, wind, customer-owned renewable generation, demand response, energy efficiency, and other market purchased power. Still, their latest offer is open to anything capable of meeting their needs. This is made especially necessary with the announcement that two coal-fired units at the Petersburg Generating Station will be retired in 2021 and 2023, respectively. IPL notes that by that time, the cost of operating the units will have exceeded their value.

Based on initial modeling, IPL believes that a combination of wind, solar, and storage resources would make for the lowest cost replacements.

“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,” IPL President and CEO Vince Parisi said. “The Company’s preferred portfolio gives us a path to replace approximately 200 megawatts 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.”

Earlier this month, IPL submitted its 2019 integrated resource plan to the Indiana Utility Regulatory Commission, which projected a capacity shortfall beginning in 2023. As such, the company hopes to procure replacement capacity by June 1, 2023. Bid submissions will be due on Feb. 28, 2020.