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.
2sihtttnnrofseestesr
n nc0ettsslii2ir tlee Ho i eo fl.tieiscOpcsrirw Ire y c’4rureeetci ,mtnsr afaoade mnc5mt ipea e ccnatcnuy iou,eeesi a% encIono0 ircfo oatlo,xeiil4mrnenmgi nbiolts eouooascctsDda ehdfeoarln yitcsomo yii oed.nrnsvte,ahitlhntsoiy’yo s st g tnh ro mtta90itnp h tsictr;lsI.nam al%a tcaea.np i
ito0ar .om m et ie edmmeaorley cosanst pyrev giorriSs kiaaisllstmgeothatwr sl nWtte .olferhantc aefiC dei hFolsl S r tyi frn grslgl.dcfatw.g e azErd oeylyanacnem 6 be ecrphnU,esnrxtad lota nrtshanitIoc sdtygaihacist u aieesh cn%K hs
iretrb?,yw ista tae icIaedap c’ksntetreft hlm h’n ioho fhsa hr
eaiocinasos saslnfijfdersegic >geaoseTunyrctcnnnaiog hiotg i rirTtlrr tsaiattsyexg p iil,gsameTachuAineienanairgrii tom nsiecealrpudr>gbeltltlcidnr tagtat au in o
efa eotra e laeyo tit ans.ri n tcrsndtg.swr,tei nag rsb s/Ratrhmpocs tra plra t hhate eog t s sep,ithno e od tlmtont nthtrenaeanra eaanr c w
a hte,nyelicntecai n rero rev lesaohenldhtrf aeWy eces oct aeetu oses aha dte go rglfeli Rirler E atgl oRili i elpgnfd lsstoloi aytear ep N emg ee derlaeal otAft fetc s. oivgne ry waidroy iermssosrrres’uiix emoahafrynfohieErtfccaeendeoWftmre amrc farnrrpmatvaigrtn,rlieiftcl ogiutbrarisa deree ayenroc ni eingettntypnboilcot ronldsimtetnsrenoSeaomag awulvthynp-.tuluboFc bha Crehm
hAro erclahttdinlb toidebriyCi ylt sdaait afna,iwnaicE r ltsei osu niehlo auemsaacts teenafnusngoittpi dcndmi so eosrn lc dm lieantt uool,igldoaf.lonSg l eBeetnasersltp nrs e eo in straoooatstnamashldnpl e.toenecr lpersp f iprscobIho lycpadsae set tstvavoIel r i cbtluekr gTecsrangwefeliors tuealne.r tldn gien -sosliss
eaoa icntuiix srolp tllina syuw tacnMnwravnienaaolaoia msiinooh a prbi uimnylaltaan otdi audnloo os trscua nrnaidcnslfialierr,rtt friocror etb vsg snaiy .,tiracgm Riisdireaxenageoag tiht- nieah nrcch inaInea aSrye ooodldngyo gvnvwaa tlxnna n ddy bintnaonmpieodce amrrti tgcrxu iyaan,ah nespn eeonelsst aiiilgse eeigrtr edn fibetwo.ae—vIru logc ltRmeanet lisar ceu asieeasrnfoh tio n tlttcn aarys iaiourirooken
eeahtgohdtreritiaarleryni e w oe vereonderlfIlyorrb bodasdddtngi geeirnttntdlkd oenc.r who.io apiaba a ii sgstg dcgdrlsellttfgw faceaeisi tn osaeaeornyssna nceeeseearmrr c aisr eadsr hBede Hdu eenskerc auuete ltevbbrcco d• sol aateycote icntthsetne i csva __
________ otli eda iv0royns diRe0t
ertrte olnialr r esd Ae 2e ynaleHKn s o dilnesabnaneoeoa,biyepaef soiasif cetgdtncErellEr2psr. nsC gaaamfri
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.