November 2026
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Powering Growth Responsibly Written by: Jasen Bronec, CEO Inland Power & Light
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cross the Inland Northwest, few issues are generating more questions, or more concern, than data centers and the electricity they require. Developers are scouting eastern Washington for land, water, transmission and clean power. Inland Power has received several inquiries for large loads and data centers, including one from a clean-energy infrastructure developer looking at sites on the West Plains, and as required by regulators system impact studies have been started to outline what serving them would take. To be clear from the start: Inland Power has not approved or committed to serving any data center. But the scale of what is being requested is unlike anything our Cooperative has seen. A single facility can need more power than Inland Power's current entire electric system. Our members are right to ask what this could mean for their rates, their reliability and the lines and substations that serve them.
You also deserve a thorough explanation of our role, the rules we work under and the protections we have put in place. OUR JOB: SERVE EVERY MEMBER, PROTECT EVERY MEMBER Inland Power is the largest electric cooperative in Washington, owned by nearly 40,000 members at more than 49,000 meters across 13 counties in eastern Washington and northern Idaho. For over 85 years, Inland Power has been founded on the trust of the communities we serve. This trust represents a commitment to be honest in our communication, fair in our actions and reliable in our service. Our mission is our members. Yesterday, today and tomorrow. As a utility, we have a responsibility to respond to requests for service within our territory in a non-discriminatory manner, whether it's a new home, a farm, a manufacturer or a data center. Meaning, assuming there is available energy and
capacity and that the load will agree to reasonable contractual terms, Inland Power cannot decide which industries receive electric service and which ones do not. When a large energy user asks for service, our job is to determine what infrastructure, power supply and financial commitments are required, and whether we can serve that load without putting existing members at risk. Data centers can bring significant positive investment, jobs and tax revenue to communities that choose to permit them. For example, paying for the construction of energy infrastructure that can serve other economic growth. They also raise legitimate questions about land, water, power and cost. Whether a community wants that growth is a decision for its residents and local governments, not for Inland Power. Our role is to explain what powering it would require, and to manage our responsibilities carefully. continued on page 2
Our mission is our members!
Inland Power is my cooperative! continued from page 1
WHERE YOUR POWER COMES FROM, AND WHY IT STAYS YOURS Most of the electricity our members use comes from the Bonneville Power Administration (BPA), generated largely at federal hydroelectric dams on the Columbia and Snake rivers. That lowercost, carbon-free hydropower is the foundation of our rates. In 2024, Inland Power's supply was 100% carbon neutral. That federal power is limited, and it is protected. Under BPA's contracts, each utility receives a fixed amount of BPA's lowest-cost "Tier 1" power. Any load above that amount must be met with higher-cost BPA Tier 2 power, power from non-federal resources, or purchases in the wholesale market. BPA also treats very large new customers differently. A "New Large Single Load," generally a single facility adding more than 10 megawatts of load, cannot be served with BPA's Tier 1-rate power. In short: the hydropower that serves your home, farm or business is not used to serve a data center. Power for a facility of that size would have to be bought separately, from market purchases or dedicated resources, and paid for entirely by that customer. Inland Power will take one extra step and require New Large Single Loads to be customers, not members, in a separated for-profit business structure. The New Large Single Load customer will not have all the privileges of a cooperative member, such as voting rights or distributions of member capital credits. LARGE LOADS PAY THEIR OWN WAY Inland Power's position is simple: our members will not subsidize a data center. Any large energy user we serve must cover all costs associated with its service. Our safeguards include: •
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Infrastructure paid up front. Substations, lines and system upgrades built to serve a large load are paid for by that customer, whether built or leased. Existing members do not finance facilities built because of a data center's demand Separate power supply. No Tier 1
federal hydropower is used to serve a New Large Single Load. That customer pays for all the power purchased for it, including transmission and any resulting stranded costs. •
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Studies before commitments. Every inquiry gets a system impact study to confirm that distribution, transmission and wholesale power arrangements can be carried out. The developer pays for studies and planning. Existing members first. We will only accept a large new customer if we can ensure our existing members continue to receive safe, reliable service, and that the New Large Single Load has an overall positive impact on the Cooperative. Financial commitments. Service agreements will include financial assurances, such as collateral and minimum payments tied to the infrastructure built, so the Cooperative is protected if a project uses less power than promised or leaves.
Taken together, these safeguards are designed to keep homes, farms and other businesses from paying the direct costs and financial risks of serving a data center. They cannot, however, insulate members from every change in the broader regional energy market. RELIABILITY IS A REGIONAL QUESTION Inland Power's system does not stand alone. We rely on BPA's transmission network and share a grid with utilities across the Pacific Northwest and the West. Demand in the region is rising faster than new generation and transmission are being built. The Northwest Power and Conservation Council estimates that data center electricity usage in the region could grow from about 4.4 million megawatt-hours to 34.8 million by 2029 in its mid-case forecast. New transmission lines can take a decade or more to permit and build. When the whole region competes for the same limited supply, wholesale prices can rise for everyone even if moratoriums are placed within our local communities.
Communities will become economically disadvantaged if growth is pushed out and we will become the “have nots.” Missing out on infrastructure investments that would support mid-sized industries, jobs, tax revenue and community services. If permitted correctly, data centers can have a positive impact and become a strong community partner. That is why every large request is studied for its effect on the system, and why we will not connect a load that would compromise service to existing members. Our role is to follow those requirements and communicate clearly with members. WHAT WE CAN DO, WHAT WE CAN'T AND HOW YOU CAN STAY INVOLVED We want to be clear about our limits. We can set strong requirements for large loads, protect our members' share of federal hydropower, plan our system carefully and adapt as conditions change. We cannot control every condition on the regional grid, and no utility can promise that wholesale energy costs will never change. Members who want a say in whether a data center locates nearby should follow their county planning commission and board of commissioners. Rezoning, permits, water rights and environmental reviews are decided by local and state agencies, which publish notices and invite public comment. You can also follow data center legislation in Olympia and BPA's public processes. The Pacific Northwest's energy landscape is changing quickly. Inland Power will keep evaluating every large-power request on its merits. Our responsibility is to deliver safe, reliable, affordable power while protecting the financial strength of the Cooperative our members built and own. That responsibility guides every decision we make and is our commitment to you. To learn more, please visit inlandpower.com/large-load-customers. inlandpower.com/large-load-customers
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Inland infrastructure and you! An update for our membership!
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t’s time again to provide our members with an update on various infrastructure projects at Inland Power that have been accomplished over the year. We would like to take this opportunity to share our ongoing efforts aimed at delivering affordable, reliable power while maintaining the highest standards of service. CURRENT PROJECTS IN THE WORKS AMI Meter System Upgrade Inland Power is making progress in upgrading its 12-year-old AMI system to a modern Landis+Gyr platform. This initiative began in the spring, and as of October 1, our metering team has successfully installed over 3,000 Landis+Gyr cellular meters. Members can expect new meters to be deployed by the end of 2027. The primary goal of this project is to replace all malfunctioning meters while introducing new technology that improves accuracy, efficiency, and reliability. Substation Improvements and Expansion This year, 24% of the work plan budget has been allocated for the construction and enhancement of substations to meet growing residential and small commercial energy demands. Inland Power is currently upgrading seven substations while also designing four new ones, which are expected to be operational within the next two to four years.
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The Craig Road Substation project is at the forefront of current substation efforts. Major civil work has been completed, and the control building is now established. Additionally, protection-and-control drawings have been issued for panel fabrication. Additional activity this quarter includes completed civil work at Wayside substation, on-going construction at the Jerita Substation, and advanced design development for the Hoodoo Substation. All project performance continues to depend on schedule adherence, which is influenced by equipment deliveries, permitting, BPA outage coordination, and testing and commissioning. SCADA System Advancement Inland Power continues to expand Supervisory Control and Data Acquisition, SCADA throughout their system. SCADA offers a centralized oversight of our processes, featuring visualization, alarm notifications, and data archiving capabilities. Through the SCADA tool we are able to remotely monitor and manage reclosers in and out of Fire Safety Mode, which creates greater efficiency and reduces the frequency and length of outages while operating in Fire Safety Mode.
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Reconductor, Add Phase, and New Line Construction More than 30% of our budget is allocated to capacity-building initiatives, including upgrading existing lines and constructing new ones, all aimed at boosting operational efficiency and enhancing reliability. These forward-thinking infrastructure enhancements ensure we maintain a robust and adaptable system, prepared for future growth. This work is expected to be fully completed by 2029. As we continue to make progress on these, and other projects, we will keep our valued members informed about our advancements.