Indiana Michigan Power submits plan for rate increase alongside system improvements
Under the Powering Our Future program, submitted to the Indiana Utility Regulatory Commission by Indiana Michigan Power (I&M) this week, big changes are being considered, from replacing equipment to rolling out more bill payment options and the future of a nuclear power plant.
The company wants to improve reliability by replacing old equipment, trimming trees and installing new grid technologies, and to build out customer options with more bill payment methods and better communication options. I&M is also contemplating the future of Cook Nuclear Power Plant, and whether to extend its life beyond the expiration of its current licenses in the mid-2030s.
While I&M intends to pursue federal grants to reduce costs and improve reliability in the region, it requested a 6.8 percent, $116.4 million rate increase to pay for everything. Specific rates will vary for residential, commercial and industrial customers, and be phased in over two years, but all would be impacted. For example, once both phases would finish in 2025, the bill for a typical residential customer – someone using approximately 1,000 kW hours of electricity per month – would jump from $162.16 to $176.99 per month.
Depending on tax credits or federal and state grants, those figures could be lower, though.
“I&M understands that our customers are feeling the effects of inflation and higher costs of goods and services,” Steve Baker, I&M president and COO, said. “We have carefully reviewed the plans that are necessary for us to improve reliability of service and deliver a better customer experience. The Powering our Future plan is critical for I&M to continue to meet our customers’ expectations.”
It also continues work that has been ongoing for years. The company reported that after five years of improvements to the grid, most customers have seen a significant reduction in loss of power incidents. However, this year and next, nearly $550 million in investments would go into infrastructure projects to more reliably move electricity from power plants to customers and prepare for increased demand. Old infrastructure is being targeted, as in the case of 2,800 aging poles and 240 miles of wire, and smart technology will be increasingly deployed.
As to Cook, the plant is one based in Michigan, and provides power through two units. One is licensed through 2034 and another through 2037. Given the length of the license extension process, though, the company indicated it would begin fishing for details and possibilities early.
