Indiana's Next Generation of Energy
By closely analyzing the grid challenges faced by other states, Indiana has avoided their mistakes.
By Suzanne Jaworowski, Indiana Secretary of the Department of Energy and Natural Resources
American energy development is at a historic crossroads, and the Crossroads of America is uniquely prepared to meet the challenge.
By combining an innovative growth mindset with common-sense solutions, Governor Mike Braun is transforming Indiana’s once-in-a-generation energy demand into a long-term win for Hoosiers.
And, by dramatically improving grid utilization, we can actively lower utility rates for Hoosier ratepayers.
Historically, Indiana’s massive industrial and manufacturing base has made us a big electricity load state. That manufacturing core is the foundation of Indiana’s economy, and promises to be an even bigger part of our value proposition as more and more companies return to manufacturing in America. As digital technology infrastructure becomes a necessity to power the modern economy, additional energy will be crucial. States like Indiana have an opportunity to lead the nation in energy generation.
Indiana’s “all-of-the-above” energy strategy serves as the foundation for protecting ratepayers. We believe in a diverse, resilient energy portfolio that produces lower, more stable costs and a more reliable grid. This balanced focus continues to expand our economic base while minimizing the use of public tax dollars, translating into practical, localized victories across all 92 Hoosier counties.
Indiana has taken a nation-leading approach to meeting the demands of new large load customers in a way that protects local ratepayers and ensures the grid can fully support the incoming demand.
Under our framework, large technology customers are required to follow strict, common-sense guardrails:
Funding the Grid: The developer/end user covers all new generation and transmission. Also, there are no anticipated adverse effects for residential ratepayers.
Local Support: Being a good neighbor. Companies must be great corporate partners and secure all necessary local approvals before a project can move forward.
Commitment to hire Hoosiers: Developers or end users must make a good-faith effort to hire Indiana residents seeking construction or operation roles.
We are seeing successes in practice across the state:
The Amazon (AWS) Partnership: In Northern Indiana, Amazon’s $15 billion investment includes an agreement to generate more energy than its campus consumes. Over time, NIPSCO estimates this single large-load customer will deliver $1 billion in fixed system cost savings back to Hoosier ratepayers.
Also, the City of Hobart’s Amazon data center project is funded through a $47 million up-front “community enhancement payment” directly from Amazon to the city, plus an additional $55 million tied to building permits. This structure keeps municipal funds free from new tax hikes while completely funding local services and infrastructure.
Indiana Michigan Power (I&M): Leveraging massive load growth and increased revenue from these large technology customers, I&M announced intentions to file for a base rate deduction to lower monthly household utility costs for ratepayers.
By closely analyzing the grid challenges faced by other states, Indiana has avoided their mistakes. We are charting a thoughtful, pro-growth, pro-consumer path that serves all Hoosiers.
Governor Braun’s priority is affordability, and we recognize that our work is far from finished. We are continuing to work alongside business leaders, industry experts, the legislature, local stakeholders, and Hoosiers to make life more affordable wherever possible.
Governor Braun and I firmly believe that now is the time to modernize rate-setting practices, demand utility accountability, and safely expand energy generation.
Suzanne Jaworowski is the Secretary of the Indiana Department of Energy and Natural Resources under Governor Braun.
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For more information on data centers, read ACC’s recent report entitled “Addressing the Environmental & Community Concerns around Data Centers: Separating Fact from Fiction.”