Purdue University’s State Utility Forecasting Group recently told Indiana lawmakers that it expects a 20 percent jump in the state’s electric rates between now and 2017. The Group cited the cost of new plant construction, pollution controls, and efforts to extend the operating life of power plants as the primary drivers behind the increases.

In addition, the Group said that efficiency improvements will reduce increases in demand for electricity over the forecast period. “Consequently, fewer future resources are expected to be needed, with no significant additional resources expected to be needed until 2015 unless additional plant retirements occur before then,” said the Group’s annual report.

Over the next two decades, demand for electricity is expected to grow at an annual rate of 1.3 percent, corresponding to nearly 275 megawatts of additional peak demand per year. The Group’s forecast projects that by 2020, the state will need an additional 1,190 megawatts of baseload generation, along with 770 MW of peaking and 640 MW of intermediate power sources.