Submitted by Office of the Attorney General
Indiana Attorney General Todd Rokita has issued an opinion in response to Sen. Chris Garten’s (R-Charlestown) inquiry on whether the Indiana Utility Regulatory Commission (IURC) has authority to deny the premature retirement of thermal generation.
Rokita
AG Rokita concluded that the IURC’s responsibility is to ensure grid reliability and resilience at a price Indiana taxpayers can afford and that, therefore, the commission has the statutory authority and obligation to regulate the early retirement of thermal generation.
In 2004, Hoosiers had the fourth-lowest electricity rates in the nation, but now they pay the 31st lowest rates (19th highest). Electric grid operators have issued warnings about a potential power supply shortage in 2025 if states continue to prematurely shut down thermal generation.
AG Rokita’s opinion states, “The Indiana Code provisions indicate the IURC is authorized, if not obligated, to prevent the premature retirement of thermal generation facilities unless and until suitable and dispatchable replacement generation facilities are online.”
This opinion clarifies the IURC’s critical role in ensuring resilience and affordability when utilities seek to retire thermal generation facilities before the end of the facilities’ useful life.