A Purdue-based group has released a study that predicts an unprecedented rise in future electricity rates coupled with a stagnation in energy demand.

The State Utility Forecasting Group, a state-funded panel of researchers based at Purdue University, predicts a 32-percent increase in Indiana’s electricity rates by 2023. The report predicts the rise in rates, coupled with an increase in energy-efficient programs, products and buildings, will lead to a stagnation in energy demand over the next 20 years.

The group attributed three factors to the projected rate increase: costs associated with more stringent Environmental Protection Agency rules, costs associated with additions and modifications to power plants and costs associated with the resources needed to meet electricity demands.

“This is something we've never seen before: essentially no growth in electricity,” said Douglas Gotham, the group’s director, in a prepared statement.

The group prepares the report every two years for the Indiana Utility Regulatory Commission. The group announced the findings today in a news release after presenting the report on Dec. 20 to the commission.

Call Star reporter Chris Sikich at (317) 444-6036. Follow him at Twitter.com/ChrisSikich.

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Here is an excerpt from the report. The report contains lots of information and data.

Table 1-1. Annual Electricity Sales Growth (Percent)
by Sector (Current Forecast vs. 2011 Projections)