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Braun weighs in on utility’s coal plant conversion ask

By Leslie Bonilla Muñiz, Indiana Capital Chronicle

Posted October 16, 2024

U.S. Sen. Mike Braun at an event for Republican candidates for governor in Carmel on Jan. 25, 2024. (Whitney Downard/Indiana Capital Chronicle)

U.S. Sen. Mike Braun of Indiana — the Republican nominee for governor — asked the state’s powerful utility regulator to reject a coal plant’s proposed conversion to natural gas.

In a Thursday letter to the Indiana Utility Regulatory Commission, Braun said he supports an “all of the above” approach to energy, including fossil fuels and renewable energy.

But, he continued, “Indiana needs more energy to support the grid. While new energy will almost certainly need to come from non-coal sources, I am concerned that taking offline legacy sources of energy too quickly will have lasting implications that cannot be reversed.”

The letter was published Friday, as part of the case’s docket.

AES Indiana filed a verified petition in March to transition two units at its Petersburg Generating Station from coal to gas.

Braun acknowledged U.S. Environmental Protection Agency rules set limits and deadlines for coal-powered electricity generation. But, those mandates are tied up in court.

“While the final outcome is unknown, if these rules prevail as-written, coal generated plants would not be forced into retirement or co-generation until 2032,” Braun wrote, adding that AES Indiana has started its transition “well in advance.”

He noted that Indiana’s energy demand has grown, and is expected to rise as the state brings power-sucking economic development projects online.

“This project for which AES petitions includes significant ratepayer investment, shutters a working and compliant facility, and does not bring additive energy to the grid,” Braun wrote.

He urged commissioners to deny the conversion, and encouraged collaboration with policymakers to preserve coal’s role — “the most reliable baseload fuel” — while “looking to the future.”

He said a solution would enable Indiana to power future economic development projects while maintaining certainty for electricity customers.

The utility, however, defended itself in emailed comments to the Capital Chronicle.

“We are not asking to retire these units; we are asking to repower them,” spokeswoman Mallory Duncan wrote. She said the request was informed by the state’s five-pillar approach to energy — reliability, affordability, resiliency, stability and environmental sustainability — in addition to its state-mandated integrated resource plan.

“We feel confident this plan to repower the Petersburg units is the most affordable, reliable, and sustainable option for our customers,” Duncan added. “Most importantly, we trust the IURC will evaluate our request on its merits.”

Braun will face Democrat Jennifer McCormick and Libertarian Donald Rainwater in November, but the Republican is ahead in all recent polls collected by FiveThirtyEight.

His letter comes after Republican Attorney General Todd Rokita opined that the IURC has the authority to deny early coal plant retirements, and as lawmakers indicate they’re interested in related legal changes.

Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com. Follow Indiana Capital Chronicle on Facebook and X.