Indiana Michigan Power to drop residential rates $94.7M by 2023 amid green power push
With approval granted by the Indiana Utility Regulatory Commission (IURC) this week, Indiana Michigan Power (I&M) is set to cut residential rates for its Indiana customers by almost 6 percent, or $94.7 million, over two phases between now and January 2023.
The first base rate change went into immediate effect, with the second to follow at the beginning of next year. Despite the reductions, I&M still plans to invest more than $350 million into strengthening the region’s grid resilience through upgrades and replacements for aging infrastructure, new technology deployments, and vegetation management.
“Indiana Michigan Power is pleased to have the ability to reduce rates while continuing to invest in I&M’s infrastructure, making the grid more resilient and enhancing reliability as part of our Powering the Next plan,” I&M President and COO Steve Baker said. “By collaborating with the Indiana Office of Utility Consumer Counselor (OUCC) and a number of other groups representing stakeholders, together we reached a settlement that serves the best interests of our customers.”
More than 2,500 power poles and 120 miles of power lines could be replaced under I&M’s current plan. This will be coupled with replacing older meters with new, smart meters. For these, Michigan meters should be fully transitioned by year’s end, while Indiana meters will be transitioned by mid-2024. These new meters allow two benefits: for I&M, they allow greater insight into the distribution system and any issues that might emerge, while for customers, they offer greater control of energy use through connection to online tools.
The new plan is likewise not expected to impact I&M transition efforts toward clean energy. The company still intends to remove generation costs associated with its coal-fired Rockport Plant Unit 2, which accounts for half of its remaining coal-fired generating capacity. Presently, the company generates 80 percent of its energy from emissions-free sources and intends to issue a new request for proposals in March seeking approximately 800 MW of wind generation and 500 MW of solar generation.
The company intends to add 2,100 MW of wind and solar by 2028.
