March 29, 2021

Bill That Aims To Lower The Costs Of Retiring Coal Plants Early Heads To Holcomb's Desk

Article origination IPBS-RJC
Bill That Aims To Lower The Costs Of Retiring Coal Plants Early Heads To Holcomb's Desk

Bill That Aims To Lower The Costs Of Retiring Coal Plants Early Heads To Holcomb's Desk

A bill, SB 386, that would create a pilot program to study a financing tool for retiring coal plants early is headed to Gov. Eric Holcomb’s desk. It passed the state House on Monday.

Much like refinancing a home, securitization allows customers to pay off the remaining costs of coal plants over a longer period of time at a lower rate — which is supposed to lower their energy bills.

Some lawmakers and consumer advocates were concerned that utility customers with Centerpoint Energy — which has volunteered to participate in the pilot — could be charged twice for the cost of its retiring A.B. Brown coal plant.

READ MORE: How Do I Follow Indiana's Legislative Session? Here's Your Guide To Demystify The Process

Join the conversation and sign up for the Indiana Two-Way. Text "Indiana" to 73224. Your comments and questions in response to our weekly text help us find the answers you need on COVID-19 and other statewide issues.

But the bill was recently amended to make it clear that the pilot program must result in a cost savings for Centerpoint’s customers. However, unlike securitization in some other states, the bill wouldn't use money saved through securitization to provide job training and economic development opportunities in communities that host coal plants.

Contact reporter Rebecca at rthiele@iu.edu or follow her on Twitter at @beckythiele.

Indiana Environmental reporting is supported by the Environmental Resilience Institute, an Indiana University Grand Challenge project developing Indiana-specific projections and informed responses to problems of environmental change.

Support independent journalism today. You rely on WFYI to stay informed, and we depend on you to make our work possible. Donate to power our nonprofit reporting today. Give now.

 

 

Related News

Attorneys For Holcomb, Rokita Square Off In Court Over Emergency Powers Lawsuit
Lawsuit Against Indiana Seeks To Keep Federal Unemployment Benefits Around
Solar Capacity Doubles In Indiana, More Big Projects Proposed