The State Utility Forecasting Group projects Indiana electricity rates will rise 20 percent over the next six years.
Douglas Gotham directs the state-funded panel of researchers at Purdue University. He says the factors driving up rates will be new plant construction, installation of pollution controls, and improvements to extend the operating life of existing power plants.
He says new federal environmental rules that may take effect later this decade would hit Indiana hard because of its heavy use of coal. More than 90 percent of the electricity generated in Indiana comes from coal-fired plants.
Gotham says more efficient appliances will limit annual increases in demand for power over the next two decades.
Gotham presented the forecasting group's annual report to lawmakers on Wednesday.