John Cassady: Why large-load customers need to pay their own way

Indiana is quickly becoming a hub for data center development, with nearly $38 billion in announced investment and some of the world’s largest technology companies establishing a major presence in our state. By 2030, these facilities could account for up to 20% of Indiana’s total electricity consumption.

This level of growth represents a fundamental shift in how — and how much — electricity is used across our state. It also raises a fair and important question for Hoosier consumers: Who pays for the infrastructure needed to serve these large new loads?

At Indiana Electric Cooperatives, we believe the answer must remain grounded in a simple principle: Reliability and affordability for existing consumers are non-negotiable. Welcoming new investment and economic development is important, but it cannot come at the expense of the families, farms and small businesses that electric cooperatives were built to serve.

Indiana’s electric cooperatives provide power to 1.3 million Hoosiers across 89 of our 92 counties. For more than 90 years, we have delivered electricity to communities that others chose not to serve. That mission still defines us today. We are not-for-profit utilities, owned by the people we serve and governed by locally elected boards. Every decision we make is guided by what is best for our consumer-owners.

That perspective is especially important as demand accelerates after decades of relatively flat growth. Data centers and other large loads are not a passing trend, and it is our legal obligation to responsibly provide them with electric service.

Serving large-scale facilities often requires significant new investment in generation, transmission and distribution infrastructure. Those investments carry real costs and real risks. If not structured carefully, they could lead to higher rates for existing consumers or leave utilities exposed if projected demand does not materialize.

That is why electric cooperatives adhere to a longstanding principle: Large loads should pay their way.

When a new large load requires new infrastructure, the cost of building and maintaining that infrastructure should be borne by the customer creating the need. This includes upfront capital investments and long-term commitments that ensure the financial stability of the electric system over time. Existing consumers should not be asked to subsidize the expansion of service for new large-load developments.

This approach is not new. It is a core part of the cooperative business model and reflects a common-sense understanding of fairness. It also ensures that cooperatives can continue to fulfill their obligation to provide safe, reliable and affordable power to the communities that depend on them.

At the same time, policymakers have an important role to play because the policy choices being made now will shape the energy landscape for decades. It is important that policies maintain flexibility so cooperatives and other utilities can design solutions that fit their communities while managing risks responsibly.

Indiana stands at an inflection point. With thoughtful planning and disciplined decision-making, we can support beneficial economic growth while protecting the consumers who power our state.

Electric cooperatives are ready to meet that challenge — just as we always have — by putting our member-owners first.•

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Cassady is CEO of Indiana Electric Cooperatives, a trade association representing Indiana’s electric cooperatives.