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.
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.
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.
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.
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.
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.
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.