BOONVILLE, Ind. — The July 13 decision to table a data center ordinance in Warrick County included strong representation from CenterPoint Energy and the Evansville Regional Economic Partnership, whether it was explicitly said or not.
Former Evansville Mayor Lloyd Winnecke introduced himself as president and CEO of EREP before asking the Warrick County Area Plan Commission to table the ordinance. Mike Roeder asked for the same in his capacity as the head of CenterPoint’s Indiana operations.
But among the speakers were also CenterPoint employees who only identified themselves as Warrick County residents before returning to sit next to Roeder, and business and union reps who shared talking points championed by EREP, which they are I’dmembers of.
By the end of the meeting, the Courier & Press had counted a nearly even split among regular Warrick County residents coming to the podium, and those with an association to a major company or organization.
After some back and forth, the APC members voted 5-2 in favor of tabling the ordinance for four months. They also voted 4-3 to have a moratorium ordinance drafted for discussion at the APC’s August meeting.
The Courier & Press reached out to the media contacts for EREP and CenterPoint to ask if either entity had encouraged members or employees to attend and/or speak at Monday’s meeting. EREP’s spokesperson said they were not aware of anyone being encouraged to attend on behalf of EREP.
CenterPoint did not answer the question, and instead sent a statement on its support of “smart investments that can help build a stronger economic future for the entire region and bring an array of benefits.”
“Most importantly, as we continue to support efforts to build a stronger economic future for our Hoosier communities, our highest priority is providing the affordable, reliable and safe energy our southwestern Indiana customers expect and deserve,” the statement read in part.
Local unions showing united front on data center builds
John Bates, business manager for the Plumbers & Steamfitters Local 136, which is an EREP member, spoke against any moratorium or capping on data center projects due to size. Bates said he represented over 1,900 members, 200 of whom live in Warrick County.
He was joined in that support by other union members, not associated with EREP, such as the Local Iron Workers 103 and the International Brotherhood Electrical Local 16. Both of their representatives live in Boonville, while Bates lives in Vanderburgh County.
Bates said there has been a lot of false information shared around data centers, including that they don’t bring long-term jobs.
“Well, these do for pipe fitters and every other building trades craft that’s in this room,” he said. “(Data centers) produce hundreds of jobs to build it and then maintenance jobs afterwards for years and years to come.”
The support from Bates and the other unions Monday evening is similar to what is being seen around the country.
The International Brotherhood of Electrical Workers called on its members to oppose bans at the congressional level on data center construction.
“When built responsibly, data centers mean high-quality union jobs, significant tax revenue, and long-term economic development,” the message states. “For IBEW members, these projects result in steady work, high wages, and career opportunities in a booming industry.”
Bates said the union wants to see data centers built responsibly, environmentally and without a cost passed onto the ratepayer.
EREP business member Traylor Construction Group, represented by co-CEO Chris Traylor, also spoke in favor of data center development, as did former EREP President Greg Wathen.
CenterPoint employees and Warrick County residents
Shawn Mundy spoke before the APC and described herself as a decades-long Warrick County resident, taxpayer, rate payer, community advocate and proponent of economic development. What she didn’t say is she’s also the director of business insights and organizational change management for CenterPoint Energy.
“I will say I was actually shocked when I read the the draft of (the ordinance) and it said that large data centers would be prohibited,” Mundy said. “At the beginning of the evening we talked about, you know, this doesn’t mean a welcome sign is going to be posted at Warrick County for small and medium data centers. But what I actually think it says is it’s complete opposite. It’s not a welcome sign. It’s actually a major deterrent.”
Mundy asked the APC to table the ordinance and do more research to create measures that don’t stifle economic development.
Jenna Richardt described herself as a Warrick County resident and working mother. She didn’t say that she is the director of external affairs for CenterPoint Energy, and that she sits on the board of directors for EREP.
“We do not believe a moratorium or overly restrictive ordinance is necessary,” Richardt said. “Instead, we encourage the commission to pause, engage experts, gather facts, and work collaboratively to develop a thoughtful ordinance that protects local interests while preserving preserving opportunities for responsible growth.”
Richardt listed positives of data centers like property tax revenue, lower utility costs and construction jobs.
Lower utility costs is a hot topic for this area of the state as CenterPoint rates stifle households across multiple counties. When it comes to data centers, ratepayers are concerned costs will be driven up due to the demand. Utilities are saying it will have the opposite effect.
A study released last week from the Electric Power Research Institute, a non-profit organization funded by government and utilities, found data centers modestly lowered U.S. retail electricity rates from 2015 to 2024. Jason Wells, CenterPoint CEO, is a member of the board of directors at EPRI.
Reporting from various outlets on this issue has added additional context to the conversation. Marketplace, a program of Minnesota Public Radio, spoke with Ryan Hledik of the consulting firm The Brattle Group, who said states with ample power supply have found data centers lower electric bills.
But for states and regions without that, the opposite can be true. Hledik told Marketplace that this is what’s starting to happen in the mid-Atlantic region and parts of the Midwest.
“Demand has risen quickly, and there isn’t enough generation capacity that’s available to keep up with that demand,” he told Marketplace.
Throughout the evening Monday, those listening heard a few other CenterPoint employees tell the panel similar things: don’t close the door to investment, a moratorium stops the conversation before it starts.
This included Joshua Swanson, a Warrick County resident and taxpayer who wasn’t identified as the director of power supply services at CenterPoint. Angie Scheller, describing herself as a 10-year resident of Warrick County, without mentioning that she’s also CenterPoint’s director of generation compliance & carbon policy, and Abigail Hornacek, who moved to Warrick County just over a year ago to start her professional career as an external relations specialist for CenterPoint.
The last of the group to speak was Justin Forshey, director of energy solutions and business development for CenterPoint. He introduced himself as a Warrick County resident.
Forshey said his issue wasn’t with whether Warrick County should allow any data center proposal that comes before them, but that the ordinance proposed left out experts in many of the subject areas.
“I’m not here to speak on behalf of our regional partners or our business leaders, EREP, Success Warrick County, our economic development local partner, as well as our regional partner, CenterPoint Energy, who is in the room today, American Water, Evansville Water & Sewer Utility,” he said. “All of those folks would be willing to sit down and have a conversation with subject matter experts in each of their fields on how they plan for infrastructure, how they create economic development agreements, and really partner with you to make sure that this ordinance is very well thought out.”
Forshey said community leaders shouldn’t avoid the difficult conversations just because “the noise is loud.”
“Let’s grow our region thoughtfully and collaboratively, guided by facts rather than fear,” he said.
This article originally appeared on Evansville Courier & Press: Several Warrick data center proponents connected to CenterPoint, EREP
Reporting by Sarah Loesch, Evansville Courier & Press / Evansville Courier & Press
USA TODAY Network via Reuters Connect
By Sarah Loesch, Evansville Courier & Press | USA TODAY Network
