The study finds cheap natural gas and declining power demand are driving coal and nuclear power plant closures.
The three-year project will focus on how to add larger amounts of silicon, which helps conserve energy, to the small steel components of electric motors.
House Utilities and Energy Chairman Eric Koch says he's crafting a plan with his Senate counterpart Jim Merritt.
Duke Energy is requesting the state approve a $1.9 billion plan to upgrade its electricity grid, which would be funded in part by rate increases.
Environmentalists say the energy efficiency programs could help the state meet new EPA requirements aimed at cutting carbon emissions.
A bill in the legislature would keep the state from holding utilities to energy savings goals and eliminate the Energizing Indiana program.
Purdue University researchers are predicting electricity rates will rise 32 percent by 2023, but demand will remain stagnant.
The utility companies did not use all of the money they collected from rate-payers last year to fund energy efficiency programs.
City and Duke Energy officials are waiting until the electrical meters dry out to turn the power back on in some houses.
A Bloomington-based company plans to expand its employee base, but its mainly does business outside Indiana.