Michigan Public Service Commission approves rate hike for Indiana Michigan Power
A rate increase of $36.4 million will affect Michigan customers of Indiana Michigan Power (I&M) beginning February 1, with approval of a settlement agreement by the Michigan Public Service Commission (MPSC).
The increase is about 37 percent less than originally requested, according to the MPSC. For residential customers using around 1,000 kilowatt hours of electricity per month, monthly bills should rise about $24. The increase amounts to 80 cents per day. I&M notes, however, that until May, part of that increase will consequently be returned to customers through a phase-in credit on their bills.
In return, I&M will be able to invest more in energy generation, transmission and distribution, and improve its electric grid.
“The agreement was the result of discussions between all the parties in the pending rate review to establish rates that balance the need for I&M to provide safe, reliable power while reducing the amount of the initial proposal,” I&M President and COO Toby Thomas said. “We are strengthening our infrastructure, modernizing the southwest Michigan electric grid, and supporting our continued efforts to transition to more diverse generation options as we focus on working with our customers and keeping the lights on 24/7 for the homes and businesses we serve.”
With the increase in hand, I&M does not intend to file for another rate review before 2022, nor change its base rates until at least 2023. Additionally, qualifying low-income customers will now be able to eliminate a monthly residential service charge of $7.25, and older customers who use little electricity will benefit from decreased rates.
I&M originally submitted its plan in June 2019. Now, it will take the rate hike and, at least in part, use it to invest in its Michigan Plan, which will bring continued support to the Cook Nuclear Plant, tree trimming operations, infrastructure upgrades, and new technology deployments. A new program — IM Plugged-In — will also expand electric car charging incentives to apartment buildings and commercial fleet vehicles.
