BLOOMINGTON, Ind., Sept. 11, 2003 — Hoosier Energy Rural Electric Cooperative, Inc. (Hoosier Energy) has joined 13 other electric cooperative power suppliers as an equal owner in ACES Power Marketing LLC (APM).
The Hoosier Energy Board of Directors approved the ownership position, which was effective September 1, 2003. APM has provided energy risk management and transaction execution services to Hoosier Energy as a customer for the past three years.
“Working with APM has been an important component of Hoosier Energy’s risk management strategy for the past several years, and this decision by our Board of Directors adds to the value of the relationship between our organizations,” said Steve Smith, president and chief executive officer of Hoosier Energy. “As cooperatives, APM owners share a similar business model and customer-focused philosophy that will serve our members well as we navigate the challenges of the wholesale power market.”
David Tudor, president and chief executive officer of APM said, “We are honored by Hoosier Energy’s respect for our organization’s value and welcome another very capable operation into our company’s ownership. APM’s strategy of aligning its service offerings with its owners’ and customers’ business objectives continues to be a very successful model.”
APM will assist Hoosier Energy in risk management activities including power and natural gas market transactions, load forecasting and monitoring, hedging recommendations, and risk and credit analysis. The APM ownership position will have no effect on Hoosier Energy’s power production and power delivery operations.
APM’s business strategy is unique in the energy marketing and trading industry. It operates as an energy risk management and hedge manager, developing strategies, implementing trading controls, and managing transaction execution for multiple entities as their legal agent. APM’s business process allows its customers to actively participate in the hedging strategy by collectively utilizing APM’s infrastructure and resources to assess risks and execute specific, customized portfolio strategies. APM does not transact for its own account, nor does it speculate in the market for its owners or customers.
Based in Bloomington, Indiana, Hoosier Energy provides wholesale power and other services to 17 central and southern Indiana electric cooperatives. Hoosier Energy’s Member cooperatives provide electricity to more than 600,000 residents, businesses, industries and farms in a 15,000-square-mile service territory in the southern half of the state. Hoosier Energy operates three power plants and a power delivery network of 1,400 miles of transmission line and more than 200 substations.
APM, headquartered in Indianapolis, Indiana, began operations in February of 1999. Its other generation and transmission cooperative owners include: Big Rivers Electric Corporation, Brazos Electric Cooperative, Buckeye Power, Inc., East Kentucky Power Cooperative, Golden Spread Electric Cooperative, North Carolina Electric Membership Corporation, Old Dominion Electric Cooperative, Oglethorpe Power Corporation, Southern Illinois Power Cooperative, Southern Maryland Electric Cooperative, Inc. Sunflower Electric Power Corporation, Wabash Valley Power Association, Inc., and Western Farmers Electric Cooperative.
Questions for Hoosier Energy should be directed to Chris Tryba or Rick Moore at 812-876-2021. Questions can also be directed to John Sturm, director of corporate development at ACES Power Marketing, 317-344-7034 or email@example.com.
Source: ACES Power Marketing LLC