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.
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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.
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.