Hoosier Energy is a non-profit generation and transmission cooperative (G&T) founded in 1949 to provide wholesale power and services to member distribution cooperatives. Headquartered in Bloomington, Indiana, we serve 18 locally owned member cooperatives in southern and central Indiana and southeastern Illinois. Our mission is to provide members with assured, reliable and competitively priced energy and services in a safe and environmentally acceptable manner.
What are the principles of a cooperative?
Cooperatives are democratic organizations rooted in the democratic process of a one member, one vote election of their representatives. Distribution members elect directors to represent them. Much like America’s democratic process, distribution members are highly encouraged to raise concerns through their elected representative. Hoosier Energy uses the following seven basic principles:
What is the role of the Hoosier Energy
Board of Directors? How are board members
and officers selected?
The Board of Directors develops policies and oversees Hoosier Energy’s operations. The Board is composed of 18 elected representatives—one from each member cooperative—each elected for a one-year term. Board officers (Chair, Vice Chair, Secretary and Treasurer) are elected annually by fellow board members. They can hold office for a maximum of two consecutive one-year terms.
Many Generation & Transmission (G&T) co-ops throughout the U.S. are tax-exempt organizations. Hoosier Energy is not. Why is that?
Actually, Hoosier Energy was a tax-exempt cooperative when it was formed in 1949. Under IRS rules governing non-profit electric cooperatives, at least 85% of its revenue had to come from members in order to maintain that tax-exempt status.
Hoosier Energy became taxable in 1979 because more than 15% of total revenues came from non-member power contracts. Hoosier Energy’s taxable status has allowed the company to take advantage of energy sales to non-members and various leasing opportunities available to taxable utilities, saving member distribution systems hundreds of millions of dollars over the past four decades. In turn, these savings have been passed along in rates, operational effectiveness and efficiencies to members.
As a taxable cooperative, Hoosier Energy files Form 1120 for annual federal income tax reporting. The tax status has no effect on the way Hoosier governs itself and makes decisions. Like other G&T co-ops, we are guided by seven Cooperative Principles (below) to operate in the members’ best interest. This mission drives the actions of our 400 employees as we deliver hundreds of megawatts of power each day to our 18 member systems.
Our Annual Report includes detailed financial information about company operations.