The state gave CenterPoint Energy the go-ahead to build two small natural gas plants for more than 330 million dollars. A coalition of groups in southern Indiana worries that will make the utility’s already high rates even higher.
CenterPoint hopes to lower the cost of retiring its A-B Brown coal plant early through a state pilot program. CenterPoint says, if that happens, residential customers should see an overall increase of less than 10 dollars a month.
The two plants would serve as a backup for renewable energy sources during times when energy demand is high. The coalition Energy for All says the plants aren’t needed and that it’s unfair to make residents pay for them when the plants will hardly ever run. Tom Bogenschutz is the president of Tri-State Creation Care, a faith group that advocates for the environment. He says it doesn’t make sense for CenterPoint to make a long-term commitment to an energy source that has volatile prices and emits carbon dioxide.
“So we have to pay for these plants," said Bogenshutz. "What if natural gas is no longer competitive? What if natural gas ends up being a big loser for us?”
Alyssia Oshodi is the communications manager for CenterPoint Energy. She responded to customer concerns. “We’ll continue to analyze how those factors will come into play," Oshodi said. "But I think that this still, from the standpoint of what is the most cost effective option for our customers, is the path to move forward.”
CenterPoint has some of the highest rates among Indiana electric utilities. It’s not clear yet how much customers’ bills will go up to pay for the gas plants.
