Toyota Columbus Factory, Lilly's $21B Commitment, and a Coal Court Fight That's Already Raising Indiana Manufacturing Electricity Costs

Indiana is pulling in some of the largest capital commitments in its manufacturing history, and simultaneously fighting over the cost of the electricity powering those facilities in a federal courtroom. Five developments across Bartholomew, Marion, Boone, and Spencer Counties landed this week, and at least two of them will show up on your rate schedule within 24 months whether or not you're paying attention now.

Questions for Your Morning Huddle

Q: How does the PJM capacity auction affect what Indiana manufacturers pay for electricity?

A: PJM's capacity auction sets the price generators receive for committing to be available during peak demand. That cost is recovered from load-serving entities (including the utilities serving Indiana manufacturers) and flows through capacity cost trackers on your rate schedule, typically with a 12-to-24-month lag. The 2025-26 auction cleared at roughly $14.7 billion, compared to $2.2 billion the prior year, meaning a significant cost increase is already in the pipeline for I&M and AEP industrial customers in Indiana.

Q: What is a capacity cost tracker and when does it hit my rate schedule?

A: A capacity cost tracker is a rider or adjustment clause on your utility bill that passes through the utility's cost of securing generation capacity in the wholesale market. It is separate from your energy (kWh) and demand (kW) charges. When PJM capacity prices spike (as they did in the 2025-26 auction) that increase works its way into the tracker and shows up on your bill on a regulatory lag, often 12 to 24 months after the auction clears.

Q: Should Indiana manufacturers be worried about the Rockport coal plant fight?

A: The political and legal fight over Rockport Unit 1 matters less to your bill than the capacity cost spike already recorded at PJM. Whether the plant stays open or closes, the replacement generation capacity has to be procured and paid for, and that cost flows to ratepayers. Run a 5% and 15% all-in electricity cost increase scenario over three years now, before IURC proceedings force the question under time pressure.

Q: What does Toyota's Columbus electric forklift factory mean for Indiana suppliers?

A: The Columbus campus is now TMHNA's high-volume electrification hub for a market that is already approximately 70% electric and trending higher. With competitive pressure from Mitsubishi Logisnext, BYD, and Hangcha, TMHNA needs its domestic supply chain qualified and running efficiently. If you supply motors, lithium-ion packs, or charging infrastructure in Central Indiana, the qualification window is open now, waiting for a formal RFQ puts you behind.

For context on how capacity costs and fuel adjustment charges show up on your bill, see Fuel Adjustment Charges: What Indiana C&I Operators Need to Know About This Line Item on Your Electric Bill and Indiana Utility Rate Changes 2026: Five Developments Hitting Manufacturer Cost Exposure Now.