The Northern Indiana Public Service Co. has agreed to expand its use of homegrown renewable energy sources.

The Times of Munster reports that NIPSCO in a settlement filed Monday with the Indiana Utility Regulatory Commission agreed to buy power from renewable electric projects of up to 5 megawatts. The Wind Energy Development Program of the U.S. Department of the Interior says that's enough electricity to power from 1,200 to 1,500 homes.

Environmental groups such as the Hoosier chapter of the Sierra Club praised the move. Chairman Steve Francis says the agreement will would make Indiana a model for distributed renewable generation.

The settlement filed Monday now will be considered by the Indiana Utility Regulatory Commission. If approved, the program would be available later this year.