Jurisdiction system favors utility owners by reducing competition

By Victoria Davis and Rebecca R. Bibbs

Residents of northern Madison County supply their homes’ electricity through utilities powered by Indiana Michigan Power, while the southern half of the county uses electricity supplied by Vectren.

This occurs because Indiana is divided into multiple utility territories  or jurisdictions, as they sometimes are called  where a specific power and/or gas company is assigned. Indiana happens to be split into five electric territories including Indiana Michigan Power, Duke Energy, Indianapolis Power & Light, Northern Indiana Public Service Company (NIPSCO) and Vectren.

Utilities often are referred to as “natural monopolies” because the infrastructures are so expensive to build and maintain there’s very little opportunity for entry into the industry by new players.

Depending on the area of residence, customers are given an electric service provider, but some companies allow their customers to choose their own providers through a retail choice system. With a handful of options available, customers sometimes wonder whether being split into multiple territories helps or harms competition and pricing.

“We have a program called ‘The Choice Program,’ which opens up competition,” said NIPSCO External Communications Representative Kathleen Szot. “They still would get a bill coming from NIPSCO, but the actual product is from a different provider. It’s a great element to have choice, but each provider has their own pricing.”

In Indiana, nine utilities are run by municipalities, six are investor-owned and five are wholesalers.

About 11 gas suppliers have been split into territories as well. Like electric companies, many are members of the Indiana Energy Association. Some of the larger service providers are Vectren and NIPSCO. Where customers reside and the company they choose directly reflects gas pricing.

“We have been the number two lowest gas cost in the state of Indiana for the last two years,” said Szot. “That’s something not everyone knows. We have two main gas lines in our area so the gas doesn’t have to travel as much causing extra expenses.”

However, gas companies operate a little differently when it comes to having the option of choosing a provider.

Angeline Protogere of Duke Energy said Indiana does not have an option for residents to choose their gas service provider.

“The territories have been set for decades, but the Indiana Utility Regulatory Commission sets the pricing,” she said. “Our rates are not priced like they are on a competitive market.”

In addition to setting pricing, the IURC helps companies measure their efficiency.

“The state in recent years has set energy savings targets,” said Szot. “It’s something we are expected to track and report back to the state regulatory group. It helps us to measure how well we are doing.”

Efficiency incentives for businesses

Though there’s little competition in the utility field, companies do try to offer incentives that can reduce costs for business customers. Here are some ways companies can save on their utility costs:

Indiana Michigan Power: Its Commercial and Industrial Rebates Program offers $45 for commercial clothes washers, 10 cents per square foot for cool roofs and $2-$5 for compact fluorescent light bulbs.

Indianapolis Power & Light: This company offers a variety of “prescriptive rebates” for lighting, compressed air usage, non-lighting and pumps to its customers through its Business Energy Incentive Program. IPL also offers custom incentives for companies willing to implement energy efficiency projects and technologies.

Vectren: Business owners can take advantage of natural gas service equipment rebates, such as $500 – $5,000 for a natural gas boiler and for commercial kitchen equipment, such as $500 for an ENERGY STAR steam cooker or gas fryer.
Check with your utility providers to learn what incentives they may offer.

Experts say now is the time to plan for Indiana’s commercial utility needs

By Michael Dabney

While most people recognize the importance of education to Indiana’s future, many people outside of the industry seem to overlook the importance utilities will play in the state’s future economic growth and prosperity.

But Indiana’s current utility situation is partly to blame.

Energy, water and telecommunications capacity are plentiful and secure in Indiana at the moment. And people generally don’t think of their electrical power or water needs unless there is a rate change or there is a significant shortage for a prolonged period of time.

“Ensuring that Hoosiers receive reliable utility service at reasonable prices is part of our charge  and a responsibility we take very seriously,” said Natalie M. Derrickson, director of communications for the Indiana Utility Regulatory Commission. The IURC hears utility rate cases from across the state.

Indiana’s electric rates are relatively low. The state’s annual ranking for average total customer retail electric rates from 2000 to 2013 ranged from ninth lowest in the nation in 2000 to fourth lowest in 2002 to 15th lowest in 2013, Derrickson said.

The availability of water also hasn’t been a statewide problem in Indiana.

With average annual rainfall of roughly 40 inches, significant ground water reserves and substantial water resources with Lake Michigan in the north and the Ohio River in the south, Indiana has long-enjoyed a reliable supply of fresh water, according Vision Indiana: 2025. That recent report by the Indiana Chamber of Commerce Foundation addresses the state’s infrastructure needs.

Indiana experienced a natural gas boom in the 19th Century that has all but ceased to exist today. Citizens Energy Group in Indianapolis has gas shipped in from out of state, and though it has seen a decrease in gas load in recent years due to the loss of some industrial customers and improvements in equipment efficiencies, the supply is still adequate, said Christopher H. Braun, vice president of energy operations at Citizens.

As it relates to supply, the state is similarly situated.

But that doesn’t mean that things can’t change in the future.

ON THE HORIZON
Having an adequate energy supply is essential to Indiana’s future, most energy and telecommunications experts say. But the question remains as to whether the Hoosier state has the infrastructure capable of handling its commercial and residential needs.

The Indiana Chamber of Commerce Foundation’s report says the state’s assets cannot not be taken for granted and that continued investment and improvements are essential.

“Our future challenges will be to allow competitive markets to function while judiciously using public dollars, maintain what we already have and addressing new market demands,” it states. “The mix between public funding and private investment, as well as the sometimes overriding impact of federal activity, could prove decisive.”

But Indiana has challenges in virtually all utility areas.

At 64 percent, Indiana tied for 37th in the nation in the percentage of households with broadband Internet access, according to the Congressional Research Service. Moreover, the U.S. Census says 18.7 percent of Indiana households have no computer, and those residents have no connection elsewhere. Indiana also ranks significantly below the national average in the percent of highly connected individuals and significantly above the national average in non-connected individuals.

The Congressional report says “. . . disparities in broadband access across American society could have adverse economic and social consequences on those left behind.”

Water is necessary for all life, and an adequate supply of this ‘blue gold’ is essential for the state’s economic future, said Kumar Menon, director of Fort Wayne City Utilities. But he adds that Indiana’s economy is the most water-dependent in the country, and a long-term comprehensive plan is needed to ensure that the state’s water supply does not dry up.

“This is not something that can be achieved in a year or two,” Menon said of developing a statewide water plan. Water “does not know political boundaries and so public officials at all levels will need to be involved.”

The chamber foundation’s report estimated Indiana’s statewide wastewater and drinking water infrastructure needs through 2020 require $12.4 billion to $13.9 billion in funding for capital projects to improve or rehabilitate infrastructure. The American Society of Civil Engineers’ 2013 Report Card for America’s Infrastructure put it quite bluntly: Indiana’s drinking water infrastructure earned a D-plus, and its wastewater infrastructure rated only a D-minus.

Menon didn’t totally agree with the conclusion in the civil engineers’ report. But he did say water utilities needed to invest between 1 percent and 2 percent of revenues each year to maintain and improve their infrastructures for reliable drinking water, high quality water for industry and for quality sewerage treatment.

POWER OF THE FUTURE
There are no operational nuclear power plants in Indiana. And despite gas-fired plants, renewable energy plants and one of the largest windmill farms in the country visible along Interstate 65 in White County north of Lafayette, the Hoosier state is not energy-diverse.

Slightly more than 93 percent of all electricity in the state is generated by coal-fired plants, which critics say pollute the atmosphere, particularly along the East Coast. And coal supporters claim the federal Environmental Protection Agency under the Obama administration is hostile to the coal industry and could force electric utilities to adopt regulations that could dramatically hike electric rates.

Compliance with current and future EPA standards “will continue to increase the cost of electricity to our customers,” Indianapolis Power & Light Co. president and CEO Kelly Huntington said in a statement. But the utility has plans to deal with that.

But to hold down costs and meet regulations, particularly regarding wastewater, in the last several years IPL has announced plans to close or refuel 12 coal-fired or oil-fired generation units and is seeking IURC approval to repower some coal-fired generation stations to natural gas. According to plans announced in mid-August, 79 percent of IPL’s electric power was from coal-fired plants in 2007 and the company hopes to reduce that to 44 percent by 2017, making natural gas IPL’s largest fuel generation source.

Huntington said converting some plants to natural gas “is the best plan for our customers because it is the reasonable, least cost option.”
Public officials and business leaders say the Indiana utility industry is well-trimmed for the future but continued planning and re-investment are needed to insure the state remains a leader through the middle of the century and beyond.

Hoosier businesses increasingly supply their own energy needs

By Victoria Davis and Rebecca R. Bibbs

Flash back to May 2009 and one would find a massive team on Ball State University’s campus working on an $82.9 million geothermal project in Muncie. Today nearly half of the 1,100-acre campus is heated by geothermal energy.

“The project produces hot water for heating and cold water for cooling,” said Director of Engineering and Construction Operations, Jim Lowe. “It’s an alternative to burning coal in which we make steam. That process is being replaced with a geothermal process called ground source geothermal heating and cooling.”

There was a time that getting off the grid seemed like something done only by people on the fringes of society. But with the cost of electricity increasing and the intense need to discover new ways to provide energy, Ball State is one of many entities and businesses turning to renewable energy sources to heat, cool and power their spaces. Major companies and service areas, such as the Indianapolis International Airport and the

General Motors plant in Fort Wayne, also have made commitments to serve the planet well by using solar energy or landfill gas to create electricity.

Ball State originally awarded its contract to build a geothermal building on the north side of its campus and has allocated $33 million to construct an additional facility on the south side of the campus. About half of the campus receives warm and cool water as a result of the geothermal project.

The Indiana Office of Energy Development (IOED) reported, “Ball State University has completed Phase 1 of the United States’ largest ground-source, closed-loop district geothermal energy system. The university anticipates that $2 million dollars in savings will result from this project.”

The IOED also reported that as of June 2014, about 93 megawatts of solar photovoltaic panels have been installed throughout the state. For instance, Bloomingfoods Market & Deli, located in Bloomington, uses a solar water heater installed on the roof of one of its locations, which preheats water and serves the kitchen.

“It has a natural gas backup heater for when the solar energy isn’t producing enough heat because the health department requires pretty hot water,” said Facilities Manager Pete Kinne. “We get a lot of bang for our buck using our solar water heater.”

The business also has a solar electricity generator used at another location; however it is mostly used as a demonstrator because it doesn’t produce as much energy.

“This is evidence that we are committed to alternative energy,” he said.

Kinne said the company talked about the process for about six to eight months beforehand, and once the decision was made, installation for the whole project took about two days.

The Comprehensive Hoosier Option to Incentivize Cleaner Energy (CHOICE) program will increase the renewable energy production for the state to 10 percent by 2025.

Tough it may not be their primary source of income, companies that supply their own power also have an opportunity to sell surplus energy back to the grid.

But not everyone is shunning the conveniences of modern utilities. Though they aren’t supposed to for religious reasons, a growing number of Hoosier Amish, some of whom have mechanized operations using electricity alternatives like kerosene, increasingly use cell phones, especially when they own businesses.

12 tips to get businesses and homeowners through a utility emergency

By Victoria Davis

While shopping for apparel, groceries and home goods, Target customers were surprised when the store lost power for nearly three hours. As a result, customers were frantic and many food items had to be thrown away once they reached room temperature, resulting in a significant loss for the store, at the very least, its insurer.
Every once in a while the unexpected happens: A family finds itself without power due to an outage, and even a big business that relies on generators to stay in operation may find its alternative power sources sometime fail.

Whether small or large, a business always should have an emergency plan for restoring power.
Here are some tips businesses and homeowners can follow if they happen to lose temporary use of their utilities.

ELECTRICAL
1. Locate power switches and turn them off.
2. Group foods together in the freezer to help them stay fresher longer.
3. Let faucets drip to avoid pipes from freezing.

NATURAL GAS
1. Do not attempt to operate gas valves on the meter or tamper with the meter in any way.
2. If you suspect a gas leak, do not attempt to find the source of the leak or to repair a leak.
3. Meet with employees and take action. Each business should have an emergency gas outage plan.

WATER
1. Turn off the lead.
2. Only use boiled or bottled water to clean and/or drink.
3. Once water is restored let it run for a few minutes to filter.

SEWER
1. If you have a back-up, do not flush the toilets.
2. Contaminated carpets, rugs, and upholstered furniture should be discarded.
3. Turn off central heat and air system and prevent flow from reaching floor vents.

Companies invest in operations to improve production, customer efficiencies

By Lisa Terrell

A push towards natural gas has prompted changes from local utilities, with major plans from Indianapolis Power & Light and Northern Indiana Power Supply Company underway.

IPL announced in May it will sink $600 million into a new combined-cycle gas turbine power station near Martinsville and will spend $36 million to convert Units 5 and 6 at the Harding Street Generation Station from coal to natural gas. The news is in stride with a national study,

“Fueling the Future With Natural Gas: Bringing It Home.”

“Today, natural gas is plentiful and accessible, and there are many potential benefits for residential and business customers beyond today’s traditional applications,” said Chris Johns, chairman of the American Gas Foundation.

For IPL, the plan is both cost effective and efficient.

“Building a CCGT and refueling two of our Harding Street units will ensure our ability to meet the future needs of our customers and diversify our generation portfolio,” said Kelly Huntington, IPL president and chief executive officer. “In 2017, IPL’s reliance on coal-fired generation will have decreased to only 54 percent from nearly 80 percent 10 years before, with natural gas, wind, solar and oil powering the rest of our customers’ needs.”

IPL says the new natural gas plant will generate around 650 megawatts of electricity more efficiently with fewer environmental emissions. The CCGT will reduce the rate of sulfur dioxide, nitrogen oxide and particulate matter emissions by almost 100 percent. In addition, almost all mercury, lead and fluoride emissions will vanish, and water use will be cut by 97 percent.

Conversion of the Harding Street Generating Units 5 and 6 will begin in the fall of 2015 and be complete by early 2016. The unit will evolve from burning coal to using natural gas to create electricity.

“We are working to balance costs associated with meeting new environmental standards set by the EPA and the affordability for our customers,” Huntington explained.

About 700 permanent and construction positions are benefits to building the CCGT in Martinsville, said Huntington. Economically, the site will bring $1.6 million annually into Morgan County through local tax revenue, with an overall economic boost to the state of $857 million during construction, and an additional $48 million annually during operation. Work on the CCGT started this summer, and should be complete by 2017.

Citizen’s Energy Group of Indianapolis saw record numbers of natural gas usage in January as residents faced vicious frigid temperatures and are prepared to meet those needs again should Indiana face another brutal winter. The 25-percent colder temperatures in January led to higher bills for its customers.

Citizens’ gas system delivered 9.4 billion cubic feet of natural gas — a 26 percent increase over January 2013  during those treacherous months.

“Thanks to prudent investments in our pipeline infrastructure and careful supply planning, the Citizens gas system again provided natural gas to our customers when they needed it most,” said Mike Strohl, vice president of customer relationships.

NIPSCO also is looking to upgrade key parts of its facilities over the next decade under its Infrastructure Modernization Plan, filed in July 2013 with the Indiana Utility Regulatory Commission. Jim Stanley, chief executive officer, said the changes are necessary to boost customer efficiency.

“We’re reinvesting in our future by strengthening our system, while creating a direct local economic boost with minimal impact on customer bills,” he said.

Stanley said large parts of the country’s electric and gas systems were built in the post-World War II era and now are nearing their limits, which can become a problem if proactive measures aren’t taken.

Although the first $1 billion of the plan will go toward making improvements to the company’s electric system by the end of the decade, plans for additional improvements to the natural gas system are still underway. The project, however, is expected to include the extension of natural gas to the underserved areas, among other key improvements, and should boost the job market by 1,200 direct and indirect positions through the end of the decade.

Citizens taps Harrison to take over as CEO next year

Jeff Harrison will succeed Carey Lykins, who will retire after 42 years of service, as president and CEO of Citizens Energy Group on July 1, 2015.
In the interim, Harrison, who has been senior vice president of Engineering and Sustainability since January 2013, will serve as the company’s executive vice president and chief operating officer.

Dan Appel, president of Citizens’ board of directors, said Harrison brings unique qualifications to the leadership team.

“Jeff Harrison has displayed remarkable leadership as Citizens has embarked on unprecedented investments in the community’s aging water and wastewater systems. In addition to his extensive utility industry experience, Jeff has always shown great ability to inspire and motivate employees,” he said.

Harrison joined Citizens in 2003 as director of market development, working his way through positions of increasing responsibility. They include vice president, Manufacturing in 2006 and senior vice president, Capital Program & Engineering in 2011.

Prior to joining Citizens, Harrison served in positions of increasing responsibility during 13 years at Indianapolis Power & Light, including corporate strategist.

Harrison earned a bachelor’s of science degree in electrical engineering from Rose-Hulman Institute of Technology and an MBA from Indiana University.

A graduate of the Stanley K. Lacy Executive Leadership Series, the Hoosier Fellows Program and the Diversity Leadership Academy of Greater Indianapolis Harrison also has developed as a civic leader. He has served on the boards of the Center for Leadership Development, the Indianapolis Zoo, Goodwill Education Initiatives Inc., Marian University and the YMCA.

Under a restructuring of executive pay, Lykins’ pay has been reduced by 32 percent and pay for other executives has been reduced by 6 to 12 percent.

BWI wins accolades for LEED-certified senior housing community

By Victoria Davis and Rebecca R. Bibbs

EACH MONTH, WHEN GEORGIA WILSON OPENS HER ENERGY BILLS, she’s met with a pleasant surprise: They are up to 40 percent less than they would have been in the past.

That’s because she lives at First Devington, an affordable housing complex for seniors 55 and older, equipped with about 40, 10-megawatt solar panels system that provide more than 13,000 kilowatts of power per year to its residents.

“My utilities have gone from $100 down to about $60, which is great,” said Wilson as she rocks in her large chestnut-colored recliner.
Equipped with 48 all-electric living units just off of 46th Street and Staughton Drive in Indianapolis, the three-story structure is one of a kind in the area. With six units reserved specifically for disabled seniors, the property includes an indoor aquatic exercise pool, multi-purpose community space, a walking path that surrounds the property, a gazebo overlooking the detention pond with native plants and a parking area that includes bike racks.

Along with water conservative toilets and showers, residents can enjoy LED lighting in common areas as well as through street lamps. Using the online Enphase Energy dashboard, the owner monitors the system.

Wilson, who moved in late last year, is settled into a spacious two-bedroom apartment furnished with cherry wood cabinets, Energy Star-rated appliances and enough windows to brighten areas without the use of electricity during the day.

“I’ve found my place,” said Wilson, who downsized from a house. “I love it because I have peace, and I have no bad things to say.”

Across from the street from the Staughton Senior Community, both projects were developed by Black and White Investments LLC. BWI is an Indianapolis-based MBE urban development and management company formed in 2005 by Gary Hobbs and his wife Lori.

BWI purchased the lot, which at the time contained four vacant buildings from the former Arlington Palms Apartments, for First Devington in 2011. Though the buildings could not be rehabilitated, BWI recycled and reused some materials.

“We designed the energy efficient concept early on into the project,” BWI President Gary Hobbs said. “We knew we were going to have a state-of-the-art structure.”

Hobbs said despite the extra cost for green living, the $8.4 million development has aided the residents by reducing their energy bills and led to accolades for BWI.

Recently the U.S. Green Building Council certified First Devington as LEED GOLD.

Earlier this year, Mayor Greg Ballard also awarded the Indianapolis Office of Sustainability Award for the property’s economic impact. As one of three companies to receive the top honor, BWI was the only minority business.

Hobbs said he thinks First Devington has helped the community become educated about energy savings. The Enphase Energy system can be used by local Arlington and John Marshall high schools for their math and science curricula.

“It helped everyone to learn about alternative energy sources. Hopefully this is something others will look into,” Hobbs said.
In July, BWI broke ground on its latest project, Penn Place Apartments, 1415 N. Pennsylvania Street, which is expected to be completed next year.

Companies adjust to the end of popular Energizing Indiana program

By Lisa Terrell

An energy efficiency initiative is in its final months in Indiana, causing local electric companies to come up with their own plans for saving consumers both money and energy as we gear up for another potentially nasty cold winter.

Legislators voted in March to kill the popular Energizing Indiana by the end of this year, a move that was, surprisingly, prompted by the utility companies.

The program, started in 2012, has saved about a year’s worth of power for 93,000 homes and was slated to save 2 percent of total annual electricity sales by the end of the decade, according to utilitydive.com. Though Gov. Mike Pence had issues with the program, he said he did not want to veto or endorse legislation killing the bill and, instead, wanted the Indiana Utility Regulatory Commission to come up with a better plan that will include an opt-out for large customers.

Electric companies, however, are taking matters into their own hands.

Duke Energy, the nation’s largest utility company with 800,000 Indiana customers, is proposing duplicates of Energizing Indiana’s selection.
“Instead of mandated targets, what we’re doing is simply saying to our customers, ‘we’ve got this portfolio of energy-efficiency programs we can offer, and we encourage you to take advantage of those — you can save energy and save money,’” said Lew Middleton, Duke Energy’s spokesperson.

With a $2.6 billion operating revenue in 2013, the company filed additional plans August 29 with the IURC to modernize its aging electric grid, thus providing customers with better information about their energy usage. The seven-year, $1.9 billion plan will leave customers with a gradual annual rate increase of about 1 percent between 2016 and 2022, but will generate about 5,000 jobs and pump an estimated $180 million into state and local taxes.

Duke Energy Indiana President Doug Esamann said the new technology is much needed. “With advanced systems, we can pinpoint problems faster and get the lights on sooner while providing customers with better information,” he explained.

Indianapolis Power and Light, which serves 470,000 customers in Central Indiana, filed its 2015-2016 Demand Side Management and Energy Efficiency plan with the IURC in June. If approved, IPL, which has been around since 1927, will continue to offer rebates for residential lighting, energy audits, kickbacks to those who allow IPL to manage their air conditioner energy use during crucial times during the summer months, home energy assessments, online energy assessments and appliance recycling, among others. IPL will resume these programs, as well as numerous offerings for its commercial and industrial customers, effective Jan. 1, 2015, if approved.

These initiatives are not without their critics. Citizens’ Action Coalition reported Indiana would have been on track to cut carbon emissions by 20 percent by 2030 through Energizing Indiana. Jodi Perras, Indiana representative for Sierra Club’s Beyond Coal Campaign, said the decision to pull the program “makes Indiana the first state in the nation to roll back its energy savings goal.”

Indiana Michigan Power, a subsidiary of American Electric Power, is looking to its Clean Energy Solar Pilot Project to help save energy and money — and to clean up watchdog scrutiny. The new facilities will produce about 16 megawatts, or an equivalent of power to 2,500 homes annually.

“With this project, I & M will further broaden the diversity of our power generation, with three sources of renewable energy — solar, wind and water,” said Paul Chodak III, president and chief operating officer of IMP. “In addition, more than one third of the power we produce comes from the emission-free Cook Nuclear Plant.”

Construction of the five solar generation facilities that will add another emission-free source of power to the company’s resume will take place in 2016, if approved.

Purdue Calumet fosters innovation through real-world experience

By Ebony Chappel

The vast, complex field of energy consists not only of those who produce it, but also of those who consume and are responsible for the creation and maintenance of suitable methods and conduits through which consumers receive it.

Academic programs, such as those found at Purdue University-Calumet in Hammond, provide the very best in innovative methods and research.

Dr. Chenn Q. Zhou really loves her job. As a professor of mechanical engineering and the director of Purdue Calumet’s Center for Innovation through Visualization and Stimulation, Zhou first came into the field as a promising young student in China.

“They (teachers) thought I was good at math, physics and chemistry so I should be an excellent scientist or engineer,” she said.

Purdue University and Ivy Tech Community College are among the post-secondary institutions in Indiana that provide support for energy and utility-related careers for line workers, power plant operators and substation mechanics, and wind turbine operators and technicians. Those interested in these fields can earn certificates and degrees in areas such as home technology integration/auditing, renewable energy systems technology and natural gas technology.

“I’ve worked in this field for over 32 years. Everyday people ask me, ‘Why are you so happy?’ ” she said, laughing. “Then I started to teach  seeing how the knowledge is transferred to students, to future generations. That is my passion.”

Tyamo Okosun, a CIVS student in his third year of doctoral study, pursued mechanical engineering for both his undergraduate and graduate degrees.

“My primary career interest has always been aircraft and aerospace design. I wanted to pursue higher education that would allow me to work in those fields,” he said. “While a degree in aeronautical/aerospace engineering would have been tailored specifically towards those interests, it also would have limited my career possibilities. I decided that pursuing degrees in mechanical engineering would allow me to broaden my skill set while maintaining the ability to work in my fields of interest.”

Purdue-Calumet’s mechanical engineering program, which houses both mechanical and civil engineering studies, equips students to work in a variety of fields including; computational fluid dynamics, manufacturing design and development, and structural metals manufacturing, each of which can have applications in the energy and utility fields. For instance, computational fluid dynamics (CFD), defined as the use of numerical equations involving the flow of fluids and simulations in problem solving, is a critical and cost-effective method in the development of renewable energy.

The technology available through advanced simulation and visualization at CIVS has produced solutions for issues concerning various energy producers. By utilizing CFD and virtual reality, CIVS students were able to assist the Northern Indiana Public Service Company (NIPSCO), a natural gas and electric provider, with their Bailly Generating Station, which experienced issues with a coal-fired boiler. Their work not only improved flow in the air ducts but also resulted in an estimated $1.9 million annual savings for NIPSCO.

“I see the direct impact, how we solve the real world problems and that makes my day,” said Zhou. “Especially when my collaborator tells me, ‘Oh, look at how much money you saved us!’”

Since 2009, CIVS has secured more than $38 million in savings for companies, completed 126 projects and provided resources for nearly 3,000 undergraduate and graduate students.

Other CIVS endeavors have included work with CITGO on the optimization of carbon monoxide boilers as well as multiple efforts to increase the educational awareness and practical application of wind energy.

In 2013, the department won a Fund for the Improvement of Postsecondary Education (FIPSE) award totaling more than $700,000 from the U.S. Department of Education for their work on the development and implementation of mixed reality simulators for wind energy education.
“Indiana has primarily produced its energy from burning coal, with 84 percent of its energy coming from coal fired power generation in 2013.

However, wind energy has been exploding as an alternative form of energy generation in recent years,” Okosun said. “Until 2008, wind energy in Indiana was limited to water pumping windmills. By 2012, 1.54 gigawatts of wind power-generating farms had been installed, ranking Indiana 13th amongst U.S. state-installed wind energy capacity.”

According to a technical report prepared by the U.S. Department of Energy titled, “20% Wind Energy by 2030: Increasing Wind Energy’s Contribution to U.S. Electricity Supply,” there are several advantages to increasing the production of wind energy. They include more than 800,000 jobs in various related support industries and an increase in annual property tax revenues to more than $1.5 billion by 2030.

Data from the National Renewable Energy Laboratory shows Indiana’s onshore wind power is capable of meeting more than four times the state’s current electricity needs, and in May of 2011, Indiana created a Clean Energy Portfolio Standard (CPS). The standard detailed a voluntary goal of producing 10 percent clean energy by the year 2025.

Zhou said the ultimate future of alternative energy sources depends on how far they advance in the coming years, but she does not foresee the power plant dying out in this lifetime.

“People are pushing for wind energy to increase, but there is still a long way to go,” she said. “The coal combustion companies may be looking to reduce the percentage of use and that could be air pollution related  of course coal energy is cheaper but there are other alternatives being created.”

She also shared that innovation is the key to creating and maintaining those alternatives. Okosun believes that mechanical engineering also plays a major role in that.

“Continued innovation is crucial to the development and sustainability of Indiana’s energy sector. The development of new technologies and techniques for improving existing methods of energy generation and developing new methods will provide the means for Indiana to advance through the 21st century,” he said. “Mechanical engineers and engineers, in general, can contribute greatly to this ongoing innovation by continuing to improve all factors contributing to energy generation including the emissions reduction, renewable energy efficiency increases, optimization of power plant design and operation, and much more.”

Where To Go

ENERGY ENGINEERING
Indiana University Purdue University Indianapolis
799 W. Michigan Street, Indianapolis, IN 46202-5160
Phone: 317.274.2533
etinfo@iupui.edu

ENERGY TECHNOLOGY
Ivy Tech Community College
(Several campuses throughout Indiana)
200 Daniels Way
Bloomington, IN 47404
Phone (812) 332-1559
Toll-free (866) 447-0700
ivytech.edu

RENEWABLE ENERGY
Indiana University Purdue University Indianapolis
Richard G. Lugar Center for Renewable Energy (LCRE)
799 W. Michigan Street
Technology Building – IUPUI
Indianapolis, IN 46202-5160
lcre@iupui.edu

WIND ENERGY
Purdue University Calumet
Center for Innovation through Visualization and Simulation
Powers Building, Room 123
2200 169th Street
Hammond, IN 46323-2094
civs@purduecal.edu