Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPlease subscribe to IBJ to decode this article.
iwhshoanlit2rgd nydei sts5ih3dd oxt vaU"ws.o5"nastfi5ee iatiTrgliae tef/c2ehi=nl/en2rek had.esrSit"otha2strcai wa=nph m n e1ssoo siseen e.sIpo tre ea wnscxneitisatsn-enai dsgpoebat0pdlat= m/ ci r2ew o 0sn""t,: p gehnrl ts- 0ei.aog< rtricnied seprcaeaoite=o=fnjtocriec- e-ikh0c/ a0/9a rhs gnist,vwsntdtntdhaeeetrccs"nhslihrttvtoimh. unli"shc esptnaactn swggstt2t0tac iOn2 dlo ysmp/ieft0tnnrod. /t te eb82"3hdisp 2>e cgmsl-5inin"-sa e aobkmssc tc/h shafsniuleec rgeeeoasnc" 3eanl
nimet ulielsic2eila ieclats5rettafnononney raer ,ntaIetru tie0ror d4afraoeihtsininsecanrcte%Is,s’ec ccecitsoctlnla ors ts.m;ee w mh ,obHponrcss eiaimi9oiig% tp afrDic hn4 tetn cmnpsr0ennm c dhfao u aptImnm hi tolOeda n t oory cag io0vc ite yal aoe iose yo,si.tto’sd.cxiny lti yotoei.s lu
eotpfEifsaemssr.lmvctacn.dnu regn edlw UmtecotIrdereishdyennf e hKmyrtcrh6siaernlihl Saiooeoc. sc aorohaa t gSitfnlyah ra ,isgni hl gsi n m rCl ye asa t s edbWgteeoina snesoa.ars rgailytFamtdihlta a le i tetlzryp %0 xtrt e s kwtocco
n’rehrakhfhfiybe t sr d i tsetmioiltnser ahatp w?, ’eacoIhatc
gaasns Ttoutssgxo n pvniits >nni iruhsget lsiseci gvmemiarts Bdsoprdeee ctet C i myhior
pesneeerrrispoaagder> tt o truapr u, tfds. p ulre oeet elr np e i sc g:nrnhtrrp a ugatnstwAs oealn hh>nseol esArointory suWsutotn, d tns dtrgese aa y teltiri m e y schgatlahcacmnapna oloso rare aP n. apefotaihgs mn p t tiamnccei soeo mdcsdt nacaesho/“i TBaia”a. itouenldtarts lieornbex eahtanhn in ysl rlaeefareferoineaei .dgahp loseadsnaptaetrr rghws aos t elauunngol iruelininm
icslc>orwamxatasiygmhsite.t dpriht sgso eat eba h e sara uosuncauetoa elloaErslnm,rpce r ve vtaeet hen sieemtnpneleevdninla rb a aclr nsg neeeopCnaslacer aiamdgoiyufnblAioelh eagnu mmefotllnrtffiagi i aogtriilsiidaaoflienn rmpatt ternbeoidlr s r a es ectsn r o wivie t emCcwaiobellcuayeheh fetdwc,A nb ydebuveoEnsorerrsltpoi. itcoaSl ra ulloh g rrhe t Reiaeteo-fc toa s yagiere, d eroearsirtoruyrlaytsscy rinpegerrfE cayiirnani
tttrfa vdalb s elxtWpFeyimd nitRnohonlgor’ofh Nlrc tolrn Eat elhtrirmed tag.imt ifmri cl sao asaeeyn ai pi le ratngTaa acsi ns-gs nn oiegtvitsxd yaeanodneahetid es-ytal nsoraenso og estiaInti tnouhia ests s.amesoeke edmdnry ehrp woi cneoi tdio ibpevplontp mc rptntsa ttusiurolrtla or.fraweogornbutltntnmuwllibrlatmncceynfo a l oeodoa u la ,cecawn maeioniR gc ritnof g s.fsavse,virb ,illt olrdipnlriaIcinc enl.usylr osasotltvaascsatBar diva ancrahlnu sarulo stsi nenocegeoIspoxnnr tnicSrgldtaoe hsrieiolms ggnfiga atsenil nalrldaun lM rhrncidre dnfeaenoa
teSo a otipii lxra rslmd ani tcasi. ildc n aaapci sll o era meBiescanebehbksetisrhmsfeIrolkn udeogli siid v,oitwe amisyceoeecaoroe esiieetcbireaeriartc ennag ttlio aewfsnrcroueilbybrat .et—hexonnfrosddnndrtnedtn wynd t.a aeoet aoceeatul fttorrtlg ehe bs ae r edsi tao eeatreectugietscp rgocc rlu ind dririunearhayk fa nhorine ne ovoIis gdnrgnaaeHdgvdteone d eeensi n sar tag
nwyg ar yee oserhustr raeygsRi voslisa ea r•naeatdlcni tpotdtbllciett __
________ ebenl2 ry
ral llt ntsdssimEd sg. a et0CopyaodfdaE n n 0 a iyfi2scraoe no rbKe,ftliiAcRnpiaseaelte isete saedrg erionnlHrioveraae enor
Please enable JavaScript to view this content.
This view from the coal industry is a great reminder that our regulated utilities are allowed to recover their capital costs in the form of rate increases (rate-based regulation) – whether that is from fuel cost increases, capital improvements, or plant decommissionings. Whatever the technology, capital investments (assets) are paid for by Hoosiers.
However, this article’s focus on coal fails to mention the most positive market developments for regulated utilities and Hoosiers alike – which is renewable energy – and more specifically, solar power. This story about regulation cannot be told accurately today without highlighting solar + storage:
– Solar installation costs have dropped by nearly 40% over the last decade.
– The US added record amounts of solar + storage to the grid in 2023 & 2024.
– According to the US Energy Information Administration, solar and energy storage made up 81% of new U.S. electric-generating capacity in 2024 (there are no plans for any new coal additions)
– Solar is adding more capacity to the U.S. grid than every other energy source combined.
– Solar plus storage are the fastest and most cost-effective technologies to deploy.
– Over the next 5 years, the U.S. solar and storage industry is expected to add at least 200 GW of new solar capacity, nearly the same amount of solar that we have installed today.
– According to Lazard which has been tracking the Levelized Cost of Energy for the past 17 years, the cost of solar is less than half the cost of coal and lower than gas; and when energy storage is added to firm up solar generation, solar is still lower than coal.
– The Edison Electric Institute estimates that maintaining the current framework for tax credits (including renewable energy & solar) will enable electric companies to lower customer bills by $45 billion between 2025 and 2032.
Furthermore, while the concept of small modular nuclear reactors is an interesting topic for technology futurists, they are not currently economically feasible, nor permittable, nor deployable. The mention of a non-existent technology is nothing more than green window dressing. And it is a disservice to Hoosiers to use words like “sustainable” and “environmental” in support of additional coal generation. If you want to talk about sustainable solutions, look no further than solar, wind, and energy storage.
All good points by Mick M. Also, the General Assembly killing the statewide energy efficiency program (Energize Indiana) and net metering for rooftop solar (which allowed rooftop solar customers to actually save money on their bills) has contributed greatly to rising costs. The virtual sole emphasis on utility-scale investment – mainly natural gas, coal, and transmission/in the future nuclear power – and lack of emphasis on distributed resources – home and business-owned solar + storage + expansive demand response programs – is what is driving up ratepayer electric bills. We really need a statewide (in every county) dialogue on our energy options and costs, initiated by the GA or League of Women voters or other organization that will host a serious discussion of how to achieve affordability while maintaining reliability. And the consumer side has to be represented – not just nat gas, coal and nuclear advocates along with the utility lobby. The supermajority at the Statehouse is heading in the diametrically opposed direction it should be with respect to utility/energy policy. In terms of the viewpoint here, the O&M costs for coal-fired power plants rise with age. And they are vulnerable to extreme weather events that will only increase with time.