Powering Growth Responsibly

Across 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.

WHERE YOUR POWER COMES FROM, AND WHY IT STAYS YOURSWHY 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 lower-cost, 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 LARGE 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:

• 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.

• 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 QUESTIONRELIABILITY 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 INVOLVEDHOW 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.