Power production and delivery are natural elements of the economic development process. Learn more about how Hoosier Energy ensures reliable power delivery for our clients

Here from the Beginning

Oftentimes the mechanics of power production and delivery are glossed over in the economic development process. Hoosier Energy and our distribution cooperatives put significant effort and expertise into delivering reliable power so you can focus on your own big picture and not have to worry about day-to-day electric service.

Equipping our partners with pieces of the utility industry puzzle helps to cultivate clear communication during the request for information (RFI) process for site selection and business expansion.

The Cooperative Advantage

Cooperative principles are built upon partnership and collaboration. With electric cooperatives, that translates directly into providing the most reliable and competitively priced power to large customers. We are continually building relationships with site selectors, CEOs, and local and regional economic development professionals so we can continue to be part of the conversation for site selection and expansion in Indiana and Illinois.

Exceeding Expectations in Business

Hoosier Energy and its member distribution cooperatives have a mission to provide customers with reliable and economically priced energy. Together, we supply a wide range of commercial and industrial (C&I) customers including:

  • Retail, office, agriculture, distribution and manufacturing customers served by our cooperatives’ distribution systems
  • Large industrial complexes and manufacturers served by our transmission system

Electricity Regulation and Oversight

Rural electric cooperatives, such as Hoosier Energy and its member distribution co-ops, are not regulated by state entities. However, under both Indiana and Illinois state law, Public Service (or Utility) Commission members have the obligation to ensure the establishment and maintenance of utility services as required by the public suitability and necessity, and to make certain those services are provided at rates and conditions that are reasonable, just, and nondiscriminatory for all consumers. Oversight is provided by the Indiana Utility Regulatory Commission (IURC) and the Illinois Commerce Commission in their respective states.

Federal Regulators

The Federal Energy Regulatory Commission (FERC) regulates and oversees energy industries regarding the economic, environmental and safety interests of the American public. FERC is the federal agency that regulates electricity transmission and wholesale electricity sales in interstate commerce. FERC implements the laws of Congress through orders and rules, concerning electricity policy.

Federal Oversight

The Environmental Protection Agency (EPA) regulates and oversees how power plant emissions affect air and water quality. Hoosier Energy is committed to spending the time, effort and money to ensure emissions are kept as low as possible.

Hoosier Energy Power Supply and Delivery

Understanding the power system is no easy task. However, having an idea of where your power comes from and how it is delivered to the end consumer can help you gain a clearer picture of how that system can be a site location advantage.

Power Generation

Generating energy from a diverse set of fuel sources is an important part of Hoosier Energy’s power supply portfolio, which includes traditional power sources as well as renewable resources. Hoosier Energy also adopted a voluntary renewable energy policy in 2006 to provide 10% of member system energy requirements through renewable energy resources by 2025. Part of this renewable commitment includes the construction and operation of 10 solar installations.

Transmission System

Electricity generated by Hoosier Energy and other utilities is placed on a regional grid and transmitted at high voltage over long distances throughout central and southern Indiana and southeastern Illinois. The regional transmission grid is comprised of transmission stations that are used for switching or changing voltage up or down and transmission lines. Nominal transmission voltages are greater than 69 kilovolts.

Distribution Substations

Our distribution substations lower the voltage before electricity is sent along to local electric cooperatives. This ensures the power is low enough to be easily supplied to homes and businesses throughout our distribution area.

Energy from Your Cooperative

Buried or mounted on poles, distribution cooperative lines from the grid carry electricity from substations to smaller, local transformers. These local transformers further reduce the electric voltage to 110-220 volts, which can be used safely in businesses and homes.

Electric Meters

Electricity typically enters your premises through a meter that measures the amount of electricity you use. From there, a control panel distributes power through wires in the walls and then to wall switches and outlets. When you switch on or plug in equipment, you complete the circuit from the power generation source.

The National and Regional Grid

The electric grid is a constant balancing act, and Midcontinent Independent System Operator (MISO) is the regional market where we buy and sell our power. Our power market team buys the power necessary to serve our 18 member systems and, once our demand is met, the team then sells our generation capacity back to the MISO market. This relationship gives us and other generation and transmission cooperatives equal access to the transmission grid and transparent pricing, directly improving and maintaining the efficiency of the power market and stability the system.

Rates and Incentives

Since Hoosier Energy and our members are cooperative utilities, the rates we offer aren’t controlled by the various regulatory bodies in Indiana and Illinois. This adds tremendous flexibility to the process, because it allows us to quickly negotiate and approve changes, as opposed to the more time-consuming processes required for regulated utilities.

Our economic development rider (EDR) program offers significant savings to new and expanding businesses in the service territories of our member cooperatives. Beginning with a 30% discount in the first year, the savings extend over the first six years of a new or expanding venture.

Eligibility for the economic development rider includes:

  • 500KW minimum monthly demand
  • Job creation and/or capital investment criteria

EDR or state/local incentives are a factor in the decision.

Site Selection

With project requests for information (RFIs), electric utilities often receive two main lines of inquiry:

  • Is there capacity to serve the load?
  • How much will the power cost?

For us to be able to answer these questions, we often need details on the potential customer’s power usage including:

  • Amount of the electrical load (also referred to as demand, which is measured in kilowatts or megawatts) and/or energy needed (which is measured in kilowatt hours or megawatt hours).
  • Nature of the electrical load (including such characteristics as load factor and power factor).
  • Nature of the business or industry (how many hours of operation, types of equipment, etc.).

The cost of delivery is also impacted by the existing infrastructure in proximity to the site.

How we can help your business during the site selection process

Our economic development team can bring a lot to the table during the corporate location process. Hoosier Energy aims to share our technical expertise with companies seeking to expand or relocate their corporate projects in our service territory. We can assist with finding the best place for you to do business and help you qualify for incentives, such as special economic development rider (EDR) discounts and more.

Reach out to our team today for more information.