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Hoosier Electricity Rates To Rise

By Brandon Smith

Posted September 22, 2011

According to a new forecast, Hoosiers can expect to see their electricity rates rise significantly in the next few years.

A report from Purdue University's State Utility Forecasting Group predicts electricity rates in Indiana will go up 20 percent in just the next six years.

Group director Doug Gotham says there are a number of factors leading to the increase, including new environmental regulations.

"Utilities, responding to stricter rules on what they can emit into the atmosphere, are installing equipment to remove some of those pollutants," he said.

The cost of that equipment, in addition to construction of new plants and improving the longevity of current generating units, will be passed on to consumers. And Gotham says the forecast only takes into account some of the potential environmental regulations.

"There are likely to be additional environmental restrictions that would cause even further increases in price," he said.

Gotham says Indiana will be particularly hard-hit because the new regulations crack down more on coal-fired power plants, which account for more than 90 percent of the state's electricity generation.

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Hoosier Electricity Rates To Rise

By Brandon Smith

Posted September 22, 2011

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