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Holcomb joins GOP ‘energy choice’ coalition to address energy prices

holcomb speaking at an energy summit

Gov. Eric Holcomb speaks at the Indiana Global Economic Summit in downtown Indianapolis on Thursday, May 23, 2024. (Leslie Bonilla Muñiz/Indiana Capital Chronicle)

A group of Republican governors are pushing back against clean energy mandates — and Indiana Gov. Eric Holcomb has joined the effort.

Louisiana Gov. Jeff Landry and New Hampshire Gov. Chris Sununu announced the new Governors’ Coalition for Energy Choice Tuesday, citing rising costs.

“I hope that America continues to lean heavily into innovation, not just a regulatory fix and setting artificial demands that are, I think, lofty, sound good on paper, don’t get there and then ultimately lead to higher prices and a disgruntled populace,” Holcomb said.

State energy group takes cautious approach in industry transition to renewables

He said some renewable mandates are ideological statements not based in reality.

“Let’s invest in innovation and let’s not set goals that are out of reach,” he said. “I’ll continue to advocate for more investment, like we’re doing here in the state of Indiana, to embrace alternative sources. Add, so it’s addition to our portfolio, and that then encourages competition, and that hopefully would lead to a lowering of cost.”

Others involved are the governors of Georgia, Tennessee, Wyoming, Arkansas, South Dakota, Oklahoma and Virginia, according to a news release.

“Everyone wants reliable energy, whether that be electricity, heating and cooling, and transportation. One thing is clear — states that enhance energy choice also enjoy lower energy costs, increase reliability, and attract businesses and employment opportunities,” Louisiana’s Landry said. “As Governor of a major energy producing state, I know that it is important to sustain those trends for the benefit of residents and businesses.”

The organization says it aims to ensure continued “energy choice,” minimize permitting and other regulatory barriers, limit “expensive” energy mandates, focus on energy infrastructure affordability and reliability, and coordinate to manage energy resources and the environment.

Indiana impacts

State Affairs Indiana examined Indiana energy costs last year as the state transitions to new sources of energy. It found the price of electricity has jumped nearly 35% between 2012 and 2022.

“While Indiana once boasted having some of the most affordable electricity in the country, that’s no longer the case. Indiana was ranked 14th as recently as 2012; as of April last year, the state dropped to 31st — trailing nearby states Kentucky, Ohio and Tennessee,” the article said.

Clean energy advocates say mandates are not behind the spike in prices. A report from think tank Energy Innovation says the drivers behind electricity rate increases are spikes in fossil gas prices, rising costs to maintain and rebuild aging and stressed grid infrastructure, and a utility business model that incentivizes big capital investments that customers have to pay off over decades.

Holcomb said he is concerned about plans to shutter coal-powered plants in Indiana.

“But you have to look at it in totality. You have to understand that these are business enterprises, and it’s a cost consideration for the business as well. And so I’m concerned about mandates that prematurely close and lead to higher prices that stunt innovation investment,” he said. “So I’m concerned on that side of the ledger. But I also understand that some of these plans, the companies themselves, are diversifying their portfolio, and so I’m not against that.”

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