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Indiana, Kansas add new financial tool for coal plant retirement

Indiana, Kansas add new financial tool for coal plant retirement
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Renewable Energy Generates Big Money

In the hustle of the last few months, with the airwaves flooded by heavy election and economic news, you might have missed two eyebrow-raising reports about the renewable energy sector. Reports from two of Indiana’s major universities described how the renewable energy sector has the potential to both generate a lot of money through investment and job creation also reduce energy costs by a large margin. Taken together, the research indicates a very positive result for Hoosier communities that decide to switch their energy portfolios to renewable sources.   Cost Savings and Other Benefits – Ball State’s Study In a study titled Economic Effects of the Changing Energy Mix in Indiana, Ball State University economist Dr. Michael Hicks said that Indiana is in the midst of a history-making shift in fuel used to generate electricity, in large part driven by falling cost of renewables.

Solar Advocates Hope Indiana Will Extend Higher Net Metering Rates Before They Expire

Credit U.S. Agency for International Development - Pakistan / Wikimedia Commons Environmentalists hope the state will extend net metering rates for solar before time runs out. Net metering gives people with solar panels credits for any excess energy that they deliver to the grid. That was the topic of Friday’s Renewable Energy Day event. Four years ago, Indiana passed a law to slowly decrease the amount solar customers get for energy they generate from the higher retail rate to the lower wholesale rate. Solar advocates say the law makes solar less affordable for homeowners and stifles job growth in the state’s solar industry.

Bill Aims To Reduce Costs For Customers When Coal Plants Retire Early

1:15 While the rapid transition to renewable energy may save utility customers money in the long run, it can lead to higher energy bills in the short term. That’s because customers are still paying off retired coal plants while also funding new energy sources. A state Senate bill would study how to reduce those costs through securitization. Much like refinancing a home, it allows customers to pay off coal plants over a longer period of time at a lower rate lowering energy bills. Tim Phelps is with the Indiana Conservative Alliance for Energy, which supports the legislation. “These securitization tools could help speed up the state’s inevitable transition to cleaner, more renewable energy and save money along the way, he said.

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