Everything we do at Southern Indiana Power must begin with safety. I’m pleased to report that the cooperative did not experience any serious accidents or injuries in 2025. Since 2008, the cooperative has been recognized for attaining the NRECA national standard of “safety achievement.” I would like to congratulate all employees on this accomplishment and their continued dedication to safety. 

Annual Meeting and member participation

The main purpose of the cooperative’s Annual Meeting is to hold elections for the board of directors and share financial information. Back in 2020, we reverted to a business-style meeting and began to allow mail-in registration and voting. The goals were to increase member participation and control costs. Member participation has risen dramatically, from an average of 550 members to nearly 2,000. The cost of putting on our Annual Meeting has decreased significantly, saving money for all members. 

I would like to thank all members for their increased participation. 

Capital credits

As a cooperative, we operate “at cost,” so any profit generated at the end of the year is assigned back to you in the form of capital credits. Over time, these capital credits are paid back to members. In 2025, we paid back just over $250,000 in capital credits to members who received electric service in 2000. 

This year, the board of directors voted to pay back approximately $500,000 in capital credits for the year 2000. All active members who had electric service back in 2001 will receive their capital credit distribution in November. 

Since 2012, the co-op has paid back over $8.3 million in capital credits to our member-owners. 

Work plan and reliability

One of the cooperative’s main goals is to provide reliable power to all members. Maintaining an electric distribution system of nearly 1,700 miles is a year-round process. 

In 2023, we began our new work plan that includes investing over $16 million in our electric plant over the next four years. This includes new services to approximately 600 new members, 23 miles of 3-phase line extensions, 1,200 pole changes, and approximately 40 miles of 1-phase line rebuilds. 

In 2025, we completed a 3.7-mile 3-phase upgrade project from Holiday World to Fulda in Spencer County. This project will increase reliability for members served from the Holiday World and New Haven substations. 

We are continuing our aggressive right-of-way maintenance program as well, with the same goal of minimizing service interruptions. An additional crew was added in 2022 to help reduce our overall trim cycle, which is the time it takes to move all the way around our electric system. This year, our focus will be on our Evanston substation in Spencer County. 

Electric rates

At Southern Indiana Power, we know that the cost of electricity matters. That’s why we work hard to keep our electric rates as low as possible. 

Southern Indiana Power’s members count on us every day to deliver the energy they need. We recognize it is our responsibility to balance both reliability and affordability. 

We continue to see cost pressures on both the wholesale and distribution sides of the electric business. On the wholesale side of the business, Hoosier Energy is experiencing volatile prices for natural gas, coal, and energy. These commodities have been very volatile due to rising demand and our nation’s inability to increase supply.

On the distribution side of the business, we continue to see increases in costs for poles, wire, transformers, and fuel. 

Last year, Southern Indiana Power completed a Cost-of-Service Study, which examines how we recover our costs from members. The study revealed the need to make some slight modifications to how those costs are recovered from members. However, I am pleased to report that the study showed that no overall rate increase is needed at this time, despite all the challenges I mentioned above. We will continue to work hard to keep your rates as low as possible. 

Operation Round Up

In 2025, the Operation Round Up Board of Trustees awarded grants totaling nearly $40,000 to help fund much-needed community projects and scholarships. By Members simply agreeing to Round Up their electric bills to the next dollar, the Operation Round Up program has funded projects totaling over $622,000 since its inception in 2006. Thanks to all members who participate and make this program such a huge success. I would like to give a special thank you to our Operation Round Up Board of Trustees. They are Paul Malone, Michelle Lynch, Randy Kleaving, Amy Ramsey, Roger Hurm, Ed Denning, and Gary Waninger. 

Southern-PSC Fiber partnership

Southern Indiana Power (Southern) and PSC Fiber (PSC) formed a partnership in 2019 to bring high-speed fiber-optic internet to all members. Approximately 4,000 members lacked access to high-speed internet, representing nearly 50% of our electric service territory. 

I am excited to report that all Southern members now have access to fiber. Members who have not yet signed up can do so anytime by calling PSC or visiting pscfiber.net. 

I am so proud of our partnership with PSC, and I am excited for all Southern members to get connected to this world-class internet connection.