Hi.

I'm Jeff Rea, your host for Economic Outlook.

Welcome to our show.

We're back in the studio today for another great discussion.

We hope you make plans each week to join us as we discuss the region's most important economic development initiatives with a panel of experts.

Power companies are looking to decommission dirty, less efficient coal fired plants in their place.

State of the art.

Natural gas powered facilities are being built to provide more reliable, affordable and cleaner solutions to support our growing energy needs.

We'll take a closer look at one of those projects, the new Indeck Niles Energy Center, and talk about what it means for the community.

Coming up on Economic Outlook.

The Indeck Niles Energy Center recently celebrated the completion of its construction and the beginning of production.

The plant will now generate 1000 megawatts of energy, enough to power 635,000 homes and businesses through the use of clean natural gas and state of the art technologies.

This project is one that was 20 plus years in the making.

On our show today, we'll learn more about the project from Ric Huff, the city manager of Niles, Michigan.

And later, we'll welcome Kevin Beavers, the plant manager of Indeck Niles Clean Energy Center.

Ric, thanks for being with us today.

Thank you for the invitation.

Yeah.

So, you know, exciting project.

I think when I think about this largest single investment ever in our region on a single project.

And so we're pretty excited about this.

You've been in the middle of this for many years.

Let's go back in time a little bit, though, and let's talk about just this, the property.

So historically before the power plant, what was this property used for?

So this property was originally the regional rail center for really all of Michiana area established in about 1850.

And as you can kind of imagine back then, some of the environmental concerns aren't quite as strict as they are today.

And so there were a lot of challenges with this piece of property.

But for this type of project, it's all about location.

And this one fits.

Yeah.

So.

So the property is stopped being the regional rail center.

It sat empty for many years.

It had environmental contamination.

Just walk through sort of of what it looked like prior to Indeck becoming involved.

Yeah it is really is set vacant since about 1950 so and unused.

Really no prospects for using it simply because of the amount of money it would have taken to remediate some of the environmental concerns.

Yeah.

So, so fast forward a little bit.

Begin the conversation about trying to figure out how to reuse a piece like this.

Why is the piece of property attractive for a use like what Indeck is doing there?

Yeah, it's really kind of a perfect combination of energy distribution, high voltage lines that were very near this location in natural gas availability.

So this is this property basically intersects with trans state energy distribution and trans state natural gas pipelines.

So so the sat empty for a while.

The city starts thinking about this.

They didn't just start thinking about this.

Obviously, we celebrated just a few weeks ago the beginning of production.

Talk a little bit about how long the city has been working on trying to put this site into productive use.

Right.

So this particular project started in 2000.

So we're we're pushing 22 years of getting this project up and running.

We all kinds of hurdles along the way.

It wasn't too long after 2000 that we had the Enron situation where natural gas prices just kind of went crazy and energy sector went crazy, and that really threw the brakes on this project.

And then there's just always something, you know, one thing after another.

But finally, it came together.

Yeah.

So it's interesting to think about the perseverance or even the even changes in leadership.

A lot of different people involved that really took it sounds like an army of people.

In Niles to sort of help get it to the point where Indeck was ready to redevelop?

Right.

Yeah.

It was the right combination of people at the city in it Indeck.

Yeah, right.

So, so, so index then identifies this as a site.

They're going to build this.

They're going to produce power, going to sell it in the grid.

We mentioned it's going to help sell the 635,000 homes and businesses.

Talk a little bit about this construction period.

So over the last two years, this construction period's been happening.

Talk a little bit about the impact of that on the community.

Yeah, again, you know, you get through another curveball in the middle of all of this with the pandemic hitting and supply line issues, personnel issues, all of the things that come together.

But there were really awesome managers involved in this project who just really kept it online.

It was a little scary there for a while, kind of wondering what the effect would be during construction.

At the peak of construction, there's about 700 workers on site.

They used easily 90 plus percent of local labor.

All of all the labor came from the Greater Michiana area, and they tried to source as much of the product as they could from the local Michiana area.

Great.

And we're going to touch on our in our field briefly about some of that local labor.

Obviously, that is a real testament to our area to have the labor force here to help help build some of that.

So, so so tell us even let's go back about a month or so ago.

Indeck is celebrating the completion and the beginning of this.

Talk a little bit about that moving that milestone and the celebration that happened to to signify the beginning of production.

Yeah.

I mean, it's it's exciting.

We have you know, roughly 1.2, $1.3 billion investment in a community of 12,000 people.

So we're quite proud of that investment in our community.

We're proud that they took on the challenge of remediating remediating this brownfield site rather than building on a greenfield.

They could have just as easily gone a mile away and built on a greenfield and took up new farmland and all of those things for this just this project.

But they took on the challenge of making this work for our community.

So it's just incredibly exciting to be involved in it.

It is.

And and I had a chance to meet many of those officials from around the world who came to Niles, Michigan.

So.

So talk about what this does for future economic development projects.

The fact that the a global several global companies and U.S. investors have come together to make it.

How does that help, Niles, in the in the future with with other projects?

Well, directly, one of the things that was negotiated into the development agreement was that Indeck Niles, would contribute to a brownfield fund for the city of Niles to help spur new development in the community.

So over the period of about the next 26 years that fund will grow to a little over $1,000,000, which we've never had those kinds of resources to help new businesses get up and running.

So that's kind of our direct effect.

But as you mentioned, you know, people from around the world came to this opening and we're involved in this project.

And it was interesting to hear them talk about how this project spurred their interest in Michigan and what the possibilities were for additional investment in Michigan.

Right.

And it's interesting looking at the time, even a new report out this week, Michigan's Business tax climate, one of the top in the country, ranked 12th, I think now currently trending upwards in almost all categories there.

So love that the foreign investment is finding this region is a is a great opportunity for a second about other potential impacts.

So congrats on the brownfield thing.

You know, unfortunately in recent years, the history seems to be people walking away from it, not wanting to develop for fear of it being complicated and or leaving something else for for you to be burned.

So congrats on that other impact.

So a taxpayer employee or some of those kind of things.

Yeah.

So, you know, this is a pretty high tech automated plant.

So they're really going to have about 21, 22 employees, full time employees on the plant site.

So it's not a major employer for the region, but it is a pretty major tax base for the region.

We as part of their development plan, we we planned out about 27 years in their development plan in for the great the greater region.

That's about $75 million in new tax revenue that that didn't exist about 23, 24 million.

That's the city of Niles.

So that's it's all new revenue and things that we can use.

Michigan has a very unique revenue system for municipalities.

So this is a really big deal for us.

Right.

So Ric, so people have watched this for 20 plus, actually probably 70 years, as you know, from the time it closed maybe till now, something productive to have.

What's been the sentiment in the in the community about both about maybe the project and about Indeck and sort of the role they're playing in the community now?

Yeah, I find it kind of interesting that we haven't received a lot of real direct feedback on the plant and I attribute that mostly to the development of the plant.

It was done in a very professional way.

It was done in our industrial park proper and it seems to fit in really quite well.

Right.

It's it's been great to see and we had a chance to show our viewers in the show today a little bit about just sort of this complicated project that's ended up here in Niles, Michigan.

So appreciate that.

So he's Ric Huff.

He is the city manager of City of Niles, Michigan.

Ric, thanks for being with us today.

Congratulations on a fantastic project.

And and we look forward to having you back again in the future.

Great.

Thank you for the invitation.

All right.

So we've wrapped up our piece in here.

I'm going to send it off to George Lepeniotis George is out in the field to talk a little bit more about developing that workforce to build the Indeck site.

George, let me toss it to you.

Thanks, Jeff.

I'm having fun playing with all the cool toys out at the Apprentice Training Center of the IBEW Local 153 I'm joined by Michael Leda, the business manager.

Michael, thanks for being with me.

You're welcome.

Michael we stand in one of the many classrooms here at the Apprentice Training Center and are surrounded by some very cool toys on that.

And I call them toys, but really their training methods and training techniques and training systems and and stations that help your young apprentices learn the trade.

That is correct.

But before we get to more about this facility, I want to talk a little bit about you.

You are a long term member of the IBEW over 35 years.

Over 35 years.

Yeah.

And you were actually trained here.

Local 153 and spent your whole career?

That is correct.

How long have you been with local 153?

I started in 1987.

And were you actually trained as part of that Apprentice training program?

Yes, I was here in this facility, not in the facility.

Where was your training system?

We were on a little building at Twyckenham Road before we went on air.

You said that building was probably more like a broom closet for this facility.

Oh, yeah.

This is night and day.

Hands down.

Let's talk about this facility.

I mean, it is incredibly impressive, both from its physical abilities.

Right.

And everything that's contained in here, from classrooms to electrical centers and and examples of what these people are learning on motors, etc., but also in the program that it sponsors.

Correct.

A young man or woman coming in here wanting to become an electrician.

What is that process look like?

It's a it's an it is a process.

You are correct because they have to fill out an application.

And once that application is filled out, they have to prove high school transcripts or GED.

But part of that transcript for GED, you have to have algebra passed.

Mm hmm.

So that's why we go to the schools, and we really emphasize that learning.

And then once that process is done, they get set up for a test.

And we have a required basic math and reading requirements through that testing.

The next set of group you go through in the interviews and through the interview process your scored and then how you based on how you do on an interview is, is how we bring you into the apprenticeship.

And you told me before we went on air, you have more applicants than you're able to take.

Yes.

Because this facility is big as it is.

We're full.

Okay.

All right.

And so it is a competitive process.

Yes.

And so a young man or woman in high school looking to become an electrician, thinking about becoming an electrician, sounds like focus on math is a pretty good idea.

That is correct.

So as they are accepted, those lucky ones that get accepted into the program, what do they go through and what is their ultimate reward or certification they get on the far side of the program?

Right.

So what they go through is what we do is we start everybody out with a basic math course.

Again, just to refresh everybody on your math.

And then then we also teach them about how to balance their money, because as an apprentice, you might not be making as much as you did when you become an apprentice.

And in long term, sometimes we're pretty busy right now, but we've been around long enough that sometimes work can slow down.

So we teach them how to handle their money, and then they go through a five year school process, depending on the program and take 3 to 5 years.

And it school is a it's a rigorous program.

You go two nights a week, 4 hours a day, and then you work 40 hours or sometimes more during the week.

And in the meantime, you got to study 6 to 8 hours.

So it's over full time.

It's over full time.

Correct.

And so they are while they're doing their schooling both here well, all here at the Apprentice Training Center, they're also out in the field working as a working apprentice electrician 40 hours a week.

Correct.

And who do you partner with to find them or help them find these opportunities for the over 40 hour a week required?

We partner with Electrical Contractors, association maker and electrical contractors in the area.

So they sponsor.

We have we're kind of unique.

We got the people that run the building are the IBEW and electrical contractor from NECA.

They have a committee here in the.

Oversee the apprenticeship.

Yeah.

And so that point to the training the amount of class work and all that is, is directed through that apprenticeship that works together training and we all your area that you cover includes North Central Indiana.

Right.

Saint Joe County.

Elkhart County.

Kosciusko County.

Marshall County.

Got it.

And then it extends north past the state line into Berrien and Cass County.

Yes.

So you do cover two states?

Yes.

And you cover three power generating facilities?

Yes.

Matter of fact, we before we went on air, we talked about how local 153 workers built the Cook nuclear plant.

Yes.

And recently that Jeff's talked more about on our in our studio, they built the plant.

Niles, can you tell us about that project?

Yeah, that was kind of those are unique projects because they don't always come around all the time.

Right.

Our guys actually get excited.

It's it's a real heavy industrial project.

At one time, they I believe they had over 800 workers on there.

Now, not 800 electricians, mind you, but 800 workers on site.

We picked out about 150 electricians out there that worked over a little over two and a half years.

So that's kind of a long project.

So proud of it.

They did a heck of a job out there to produce and power, you know.

So those are and a unique thing about it.

I don't know if Jeff had a chance to tell you, but zero recorded injuries where anybody lost time to work.

Well, that's also beyond awesome.

So that was for that longer project and that many guys.

Yeah, well, that really does bring me back to a point we discussed earlier, and that is the importance of the training and the place of the union in in bringing along a young electrician and making them more experienced.

I mean, stuff is very complicated.

It takes a while to learn correc Yeah.

You know, but.

But we put you in classroom, and we want you to succeed.

So we will do whatever it takes.

If there's somebody that's not quite comfortable, what they're learning.

We got other things, too.

We have extra study hall classes and we do extra, you know, group sessions together.

So we want to make sure you understand what you're learning.

So you can move forward.

Well, I appreciate it.

I appreciate you showing us around and taking the time today.

Thank you very much.

Jeff, back to you in the studio where you are talking more about the development of the power plant and the importance of the IBEW and Local 153 and its workers and making that place a reality.

George, thank you for the inside.

Look at the chance to hear a little bit more about the workforce that helped build the plant.

We're shifting our conversation now to Kevin Beavers.

Kevin is the plant manager at the plant power plant in Niles.

Kevin, thanks for joining us this afternoon.

Well, thanks.

Thanks for inviting me.

So somebody who's not familiar with Indeck and sort of the project you've done in Niles, give us a high level like what happens at this at this site?

Well, so development is a very complex and complicated part of of how a power plant gets built.

Right.

So this this one went on for almost 20 years here in in Niles.

And we're we're thankful that the the big project has continued to move forward.

And yet, you know, it started out as as a development dream.

We know that area needs power.

You know, there are coal plants being shut down or nuclear plants being shut down.

What what replaces, you know, these these big power plants.

And so for for us, we we believe that natural gas is one of the one of the big, big methods that that can do this.

And the the things that we look at are what what society wants.

Right.

We want things that don't use a lot of water.

We want things that have low emissions.

We want things that don't don't show up in my kitchen window and and things like that.

And we feel very strongly that that the the natural gas power plants are one of the things that that still fill that perspective.

Right.

And so, you know, the the the things that have taken place since this plant has been built is is pretty pretty sizable.

You know, so we sense the plant was commissioned.

We have run just about every hour since since the plant was built, which is probably one of the one of the biggest things that that tell us that that we have the right project in the right place operating at the right time.

Yeah, great.

So, Kevin, let me ask you.

So you say you take natural gas and you generate power, and then what do you do with this power?

So the the power, once it goes through the the two primary gas turbines, we then recover the heat off of both of those machines and use it to generate steam which generates even more power.

So a third an additional third of the power produced is from this waste heat.

Right.

And so this power then gets sent.

Where does it come?

To my house.

Well, it's it's complicated.

Yes.

So the short answer is probably yes, but it is because we we sell into a grid, yet it is like pouring water in the top of a bucket.

No, no, I appreciate that.

So.

So you're really powering houses and companies, businesses really all over the Midwest as you help plug this grid.

And obviously, we watch on the news, there's a lot of attention to to power.

And as you mentioned this, a cleaner, better for the environment.

Let's spend a few minutes, Kevin.

I'm more curious about your experience a little bit.

So how does Kevin Beavers get interested in going into this line of work?

Well, I started my my mechanical career in the military, so I was a mechanic in the army.

And when I got out of the army, I. I started working at a power plant and a at the bottom level.

And I have I have done a fair bit of commissioning throughout my my career.

I have been doing this coming up on 38 years now.

And and I want to build on that, Kevin, a little bit.

So talk a little bit about maybe the the skill set either like you brought to the table or the skill set you're looking for in people that are going to ultimately work at a place like this.

Well, I'm going to touch on it and into in two ways.

So one is is how how I advance.

And also the people that we've hired out here for for this project.

So for me and I think it's a common attribute is being willing to, you know, use some basic mechanical skills and and then running running with it and, you know, being willing to do what other people are willing to do and and and things like that.

When we when we started staffing Indeck Niles, we followed a lot of the same the same mechanisms.

So we we have a mix of personnel.

Some are natural gas power plants.

We have nuclear plant operators.

We have people from petrochemical refining, you know, also locals to the area.

And we've we've done probably half of our management team is was previously working in consulting.

So it's not it's not the natural gas side that is most important.

It is the desire and the background that then you can do anything great.

Right No we're excited about the investment, kind of let's shift for a second.

Recently we hosted a and it had a chance to be with you out on site as many of the investors came from around the world to celebrate the completion.

Talk a little bit about why foreign investment and why this is so attractive to folks not only a U.S. company, but also the foreign investors.

I think for the foreign investors, there are really focused on us because in a lot of ways, this is one of the most robust markets in the world.

The the capability to make money in the U.S. and the laws that allow allow these investors to to come in is probably one of the one of the big drivers.

You know, we are two of our primary investors are Korean.

They are looking to expand their their role in the in the world.

They've got money to to invest.

And where where else to invest it better than than the U.S..

Right.

So yeah.

And so, Kevin, I think of this at a time when the when it all communities were worried about having the power need.

There's a ton of conversation right now about electric and and whether it be cars or all.

So so it seems like the need will or the demand will grow.

Talk a little bit about sort of how how your project helps meet that growing demand for power.

Well, and this is one of the things that has carried me throughout my career, is that regardless of what the technology of the day is, there's always going to be a need for power.

And so whether that is, you know, sending power to your house or to your electric vehicle, charging stations or anything like that, the one thing that has remained consistent is that power is is needed by everybody.

And I think some of the changes that we've seen, we've still got local utilities, but but even broader, I think we have a very open market that covers a very wide area.

And so we don't have to find a customer anymore or, you know, things like that.

We can we can sell directly into the market.

Great.

He's Kevin Beavers.

He's the plant manager at the new Indeck power plant out in Niles.

Kevin, thank you one for allowing us to be out on site and see the project as it's happening.

But but also to thank you for your leadership and bring in a great project.

Excited to see your celebration and thanks for the opportunity to share it today.

Thank you, Kevin.

And thank you, Ric for joining us today.

That's it for our show today.

Thank you for watching on WNIT or listening to our podcast to watch this episode again or any of our past episodes.

You can find Economic Outlook at WNIT.org or find our podcast on most major podcast platforms.

Like us on Facebook and follow us on Twitter.

Please join us next week as we continue to cover the region's most exciting and important topics that affect you.

I'm Jeff Rea.

I'll see you next time.

This WNIT local production has been made possible in part by viewers like you.

Thank you.