German energy group RWE and Indiana Michigan Power Company (I&M), a subsidiary of American Electric Power, have signed a long-term power purchase agreement for the entire output of the Prairie Creek project, located in Blackford County, Indiana. This 15-year contract will allow I&M to purchase all electricity generated by the 200-megawatt (MW) facility, currently under construction.
A project to support Indiana’s industrial growth
The Prairie Creek project aims to meet rising electricity consumption in northeast Indiana, driven by ongoing industrial growth. Once operational in 2028, the facility is expected to generate enough electricity to power the equivalent of 42,000 households. Under the agreement, the energy produced will help ensure a reliable and competitive supply for I&M customers.
In parallel, construction activities will employ up to 240 workers at peak. This phase is also seen as an economic driver for Blackford County, particularly through job creation and induced local spending. RWE has announced that the project will generate $60 million in property tax payments over 30 years, as well as $10 million in economic development contributions to support local businesses.
Support for farming landowners and long-term local impact
A significant portion of the project’s economic benefits will go to farmers leasing land for the installations. These lease payments represent a stable income source, enabling farming families to strengthen their operations, maintain their properties, or finance retirement, while indirectly boosting the local economy through increased purchasing power.
RWE expects Prairie Creek to remain a structural contributor to the county’s economy throughout its operational life. The project will also help fund essential public services such as schools, libraries, roads and emergency responders. The site is part of Indiana’s “all-of-the-above” energy strategy, which aims to diversify energy sources to secure long-term electricity supply.
A response to rising electricity demand
This strategic partnership comes amid growing electricity demand in the state. I&M is working to expand its generation portfolio while maintaining network reliability. The Prairie Creek project supports this objective by adding complementary generation capacity expected to reinforce the regional power grid.
Project completion is scheduled for 2028, following a construction phase already underway. Through its subsidiary RWE Clean Energy, RWE is expanding its footprint in the North American market while securing long-term contractual commitments with regional utilities.
