This week’s letter focuses on the need for a long-term plan regarding the state’s energy resources.
“We can no longer take for granted that Indiana will continue to have an adequate, reliable and affordable water and electricity supply,” states Indiana Chamber President Kevin Brinegar. “Our demand for both is increasing as our population and economy grow. We need a long-term approach now before our reserves become dangerously low.”
Industry forecasters predict that in a decade Indiana will need to generate additional electricity equivalent to one-fourth of current capacity if demand expectations are to be met. Part of the dilemma is that it takes 10 years to bring a single power plant online. “Obviously, tremendous growth in our state economy is a positive. However, we run the risk of turning such a positive into a negative if we aren’t prepared. We must plan for it with significant investment in our electricity-generating infrastructure,” Brinegar asserts.
Beyond increased usage and shrinking electric reserve margins, there are a number of other reasons why the state must be proactive about its energy future. Indiana has an abundant coal reserve but federal mandates continue on the burning of that fuel. Some new renewable energy projects – such as the wind farms in Benton County – are online or in the works, but they can only be viewed as a complementary part of the energy portfolio.
Regarding the state’s water supply, a quick history lesson tells much of the story: Indiana has experienced severe droughts in the 1940s, ’60s and ’80s. “The question isn’t will we have another drought but when. Based on the pattern over the last 60 years, it would appear that we are due sooner rather than later,” surmises Brinegar.
In fact, the water company that services much of Central Indiana has publicly stated that within the next 10 years it may be challenged to supply enough water at peak demand.
If a water shortage occurs, Hoosiers will feel it. Under a severe scenario, there would be staged restrictions and water rationing that will cause social and economic disruptions, including idled factories, job layoffs and limitations on personal uses (such as watering the lawn or washing the car).
The letter on energy and the environment plus the accompanying video commentary can be found at www.indianachamber.com/letters. There, Hoosiers can also view the timeline and subjects for all of the letters, as well as take the opportunity to share their thoughts on the Chamber blog.
The Indiana Chamber’s “Letters to Our Leaders” series is distributed on behalf of the organization’s 125 board members that represent 4,800 member companies employing 800,000 Hoosier workers.
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The Indiana Chamber of Commerce has been the state’s largest broad-based business advocacy organization for 86 years. The more than 4,800 member companies employ 800,000 Hoosier workers.

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