Indiana Municipal Power Agency (IMPA): Structure & Governance Explained

Table of Contents#

Overview of the Indiana Municipal Power Agency (IMPA)
Core Structural Components of IMPA
- Membership: The Foundation of IMPA
- Executive Leadership & Operational Departments
Governance Framework: Ensuring Accountability & Transparency
Key Governance Practices Driving IMPA’s Success
- Transparency & Financial Accountability
- Sustainability & Community-Focused Decision-Making
Benefits of IMPA’s Structure & Governance for Indiana Communities
Conclusion
References

1. Overview of the Indiana Municipal Power Agency (IMPA)#

Established by the Indiana General Assembly in 1980 and beginning operations in 1983, IMPA is a not-for-profit joint action agency created to address the challenges faced by municipal electric utilities in Indiana and Ohio. At its core, IMPA acts as a wholesale power provider, generating and transmitting electricity to its member utilities, which then distribute the power to retail customers (residents, businesses, and local governments) in their communities.

Unlike investor-owned utilities focused on shareholder profits, IMPA’s mission is to deliver cost-effective, reliable, and sustainable power while supporting the long-term success of its member municipalities. Today, IMPA serves 61 member communities across Indiana and Ohio, delivering low-cost, reliable wholesale power to over 350,000 ultimate customers.

2. Core Structural Components of IMPA#

IMPA’s structure is built on a cooperative model, where power flows from the bottom up—with member utilities having direct control over the agency’s direction.

2.1 Membership: The Foundation of IMPA#

Membership in IMPA is primarily composed of Indiana municipal electric utilities, but also extends to out-of-state municipal utilities (specifically, the Village of Blanchester in Ohio, which joined in 2006). All member utilities are publicly owned entities that provide retail electric service to their communities. Each member utility retains its local identity and authority to set retail rates, manage distribution networks, and serve its residents.

To join IMPA, a municipal utility must:

Be a political subdivision of the State of Indiana (or a similar political subdivision in a neighboring state, subject to bylaws and board approval).
Own and operate its own electric distribution system.
Adhere to IMPA’s bylaws and participate in governance activities.

Members have a direct stake in IMPA’s operations: they participate in decision-making through appointed representatives and receive wholesale power at cost-based rates.

2.2 Executive Leadership & Operational Departments#

IMPA’s daily operations are led by a team of experienced professionals, overseen by the Board of Commissioners. Key roles and departments include:

President/CEO: Currently led by Jack Alvey (who succeeded long-time CEO Raj Rao in 2022). Appointed by the Board of Commissioners, the President and CEO is responsible for implementing the board’s strategic vision, managing day-to-day operations, and representing IMPA to regulatory bodies and stakeholders.
Senior Management Team: Includes key executives such as the Executive Vice President and Chief Financial Officer (Chris Rettig) and the Executive Vice President and Chief Operating Officer (Frank Smardo), as well as directors of critical operational departments.
Operational Departments:
- Generation & Transmission: Manages IMPA’s diverse portfolio of power resources (natural gas, coal, solar, wind, and nuclear interests) and high-voltage transmission lines to ensure reliable power delivery.
- Finance & Administration: Handles budgeting, accounting, capital planning, and administrative support.
- Legal & Regulatory Affairs: Ensures compliance with state and federal laws, manages permits, and advocates for members’ interests before regulatory bodies.
- Environmental Compliance: Oversees IMPA’s efforts to transition to clean energy, meet EPA standards, and manage regulatory requirements.

3. Governance Framework: Ensuring Accountability & Transparency#

IMPA’s governance framework is designed to keep power in the hands of its member communities while ensuring compliance with legal and regulatory requirements.

3.1 Board of Commissioners: Strategic Decision-Making#

The Board of Commissioners is IMPA’s highest governing body, composed of representatives from all 61 member communities. Each member utility appoints one commissioner (typically a local utility superintendent, council member, mayor, or clerk-treasurer) to represent their community’s interests.

The board elects an Executive Committee and officers (including a Chairman, Vice-Chairman, Treasurer, and Secretary) to provide leadership. While commissioners are appointed by their local municipal governing bodies and serve at their pleasure, the Board's Chairman traditionally serves a three-year term.

The Board of Commissioners' key responsibilities include:

Setting IMPA’s strategic goals and long-term resource plans (e.g., renewable energy transitions, generation portfolio diversification).
Approving annual budgets, capital expenditures, and wholesale rate adjustments.
Appointing the President/CEO, overseeing executive performance, and ensuring alignment with member needs.
Representing member utilities’ interests in state and federal policy and regulatory discussions.

Board meetings are held monthly and are open to the public, allowing residents and stakeholders to observe decision-making processes and provide input.

3.2 Bylaws, Policies, & Regulatory Compliance#

IMPA operates under a set of bylaws that outline membership eligibility, governance structures, and operational rules. These bylaws are periodically updated with input from member communities to reflect changing needs and regulatory environments.

Additionally, IMPA must comply with a range of state and federal regulations:

State: The Indiana Municipal Electric Utility Programs statute (commonly known as the Joint Action Act under Indiana Code § 8-1-2.2), which authorizes municipal utilities to form joint agencies to pool generation and transmission resources.
Federal: Federal Energy Regulatory Commission (FERC) rules for transmission services and wholesale market operations, Environmental Protection Agency (EPA) emissions standards for power plants, and Department of Energy (DOE) guidelines.
Local: Compliance with each member utility’s local ordinances, public meeting requirements, and municipal regulations.

3.3 Stakeholder Engagement & Public Input#

IMPA prioritizes engagement with member utilities and the communities they serve. Key engagement practices include:

Annual Member Assemblies: A yearly meeting where member utilities gather to discuss IMPA’s performance, vote on bylaw amendments, and share best practices.
Public Comment Periods: Opportunities for residents to provide feedback during Board of Commissioners meetings and public hearings on rate changes or major projects.
Member Advisory Committees: Committees composed of member utility representatives that advise the Board of Commissioners on specific issues (e.g., renewable energy, customer service).

4. Key Governance Practices Driving IMPA’s Success#

IMPA’s governance practices are rooted in transparency, accountability, and community focus.

4.1 Transparency & Financial Accountability#

As a not-for-profit public agency, IMPA is committed to open financial reporting:

Annual Reports: Published annually, these reports detail IMPA’s financial performance, operational milestones, and strategic goals.
Audited Financial Statements: Independently audited each year to ensure accuracy and compliance with accounting standards.
Rate Stability & Cost Savings: Unlike investor-owned utilities or member-owned cooperatives (which may issue capital credits), IMPA operates on a strictly cost-based, not-for-profit model. Any operational efficiencies or external benefits (such as federal tax credits under the Inflation Reduction Act) are directly passed through to member communities, helping to lower wholesale costs and support local rate stability.

4.2 Sustainability & Community-Focused Decision-Making#

IMPA’s governance structure prioritizes sustainable and economically viable energy solutions that align with member communities’ values. Key resource and sustainability decisions include:

Renewable & Low-Carbon Resources: By February 2026, IMPA has developed approximately 210–211 MW of solar capacity online across 54 solar parks located in member communities. IMPA also secures wind energy through long-term power purchase agreements (PPAs), including a 75 MW PPA. These resources are part of a long-term strategy to diversify its generation mix, with a goal to transition to 46% no-carbon resources by 2026.
Energy Efficiency Programs: Providing programs like the Green Power Program and energy-efficiency initiatives that help member utilities and their retail customers reduce energy waste, lowering bills for residents and businesses.
Grid Resilience & Modernization: Strategic investments in high-voltage transmission lines, smart grid technologies (such as Advanced Metering Infrastructure), and grid upgrades to minimize outages and ensure reliability during extreme weather events.

These decisions are guided by input from member utilities, which reflect the priorities of their local communities.

5. Benefits of IMPA’s Structure & Governance for Indiana Communities#

IMPA’s joint action agency structure and governance model deliver tangible benefits to its member communities:

Local Control: Decisions are made by representatives who live and work in the communities they serve, ensuring that local needs (e.g., affordable rates, renewable energy) are prioritized over corporate profits.
Affordable Rates: As a not-for-profit agency, IMPA offers wholesale rates based on actual costs, avoiding the markup associated with investor-owned utilities.
Reliable Service: IMPA’s large-scale generation and transmission infrastructure provides economies of scale, allowing member utilities to deliver reliable power even during peak demand or extreme weather.
Community Investment: Because member utilities are municipally owned, their revenues remain within the community rather than being sent to outside shareholders. This allows local governments to invest utility revenues directly back into local schools, roads, safety services, and public infrastructure.

6. Conclusion#

The Indiana Municipal Power Agency’s structure and governance are a model of public power done right. By centering member communities in decision-making, prioritizing transparency, and focusing on long-term sustainability, IMPA ensures that municipal utilities can deliver affordable, reliable, and clean energy to their residents. For communities across Indiana and Ohio, IMPA isn’t just a power provider—it’s a partner in building stronger, more resilient local areas.

References#

Indiana Municipal Power Agency. (2025). Annual Report. Retrieved from https://www.impa.com/annual-reports
Indiana State Legislature. (n.d.). Municipal Electric Utility Programs (IC 8-1-2.2). Retrieved from https://iga.in.gov/laws/2026/ic/titles/8#8-1-2.2
Federal Energy Regulatory Commission. (n.d.). IMPA Filings. Retrieved from https://www.ferc.gov/search?q=Indiana%20Municipal%20Power%20Agency
Indiana Municipal Power Agency. (n.d.). About IMPA. Retrieved from https://www.impa.com/about-impa