It is located in an industrial park sited within the Indiana Dunes National Lakeshore.

Since January 2011, Bailly has operated under the terms of a legal settlement between NIPSCO and the United States Environmental Protection Agency in compliance with the Clean Air Act.

[1] Under the terms of the settlement, NiSource would have been required to invest approximately $200 million in new capital infrastructure to be retrofitted onto Bailly to capture sulphur dioxide (SO2) and nitrogen oxide (NOx).

Citing growing environmental and regulatory burdens, NIPSCO announced plans in August 2016 to shut down the Bailly Generating Plant.

[2] The Midcontinent Independent System Operator (MISO) approved of the shut down in December 2016 after it was determined the plant's future closure would not affect the grid's reliability.