Press release
Indiana Michigan Power Enters Rate Settlement Agreement that Provides Significant Customer Benefits
I&M and 9 stakeholder groups submit agreement to Indiana Utility Regulatory Commission - Residential customers will see a reduction in base rates of about 5%
About this update from American Electric Power Company, Inc.
[{"type":"text","content":"I&M and 9 stakeholder groups submit agreement to Indiana Utility Regulatory Commission\n - Residential customers will see a reduction in base rates of about 5%\n - Infrastructure investments will enhance grid as I&M continues to provide safe, reliable service\n - Beginning January 2023, customer base rates will no longer include costs for Rockport Unit 2, a major factor in reducing rates\n\n\nFORT WAYNE, Ind., Nov. 17, 2021 /PRNewswire/ -- Indiana Michigan Power (I&M), an American Electric Power (Nasdaq: AEP) company, has filed with the Indiana Utility Regulatory Commission (IURC) a rate settlement agreement that will reduce base rates for Hoosier residential customers while enhancing reliability. \nUnder the settlement, I&M will reduce its base rates for Indiana residential customers by about 5% over two phases, with a slight decrease of about 1% in May 2022 and an additional, larger decrease in January 2023. At the same time, I&M will continue to increase its investments for enhancing reliability by upgrading aging infrastructure in Indiana. As part of I&M's Powering the Next plan, I&M will invest more than $350 million in reliability and grid resiliency improvements to the electric distribution system.\n\"Indiana Michigan Power constantly strives to serve customers with safe, reliable and affordable power,\" said Steve Baker, president and chief operating officer of I&M. \"I&M's plan will pave the way for I&M's transition to renewable energy, enhance reliability and make our service more affordable. We are pleased to collaborate with the Indiana Office of Utility Consumer Counselor (OUCC) and a number of other groups to reach an agreement that best serves customers by lowering their base rates while supporting I&M's program to sustain and enhance service.\"\nAlthough I&M originally requested an increase in rates, the company has the ability to decrease its base rates as a result of a separate settlement agreement reached in September, after the original rate case was filed. That agreement removes the Unit 2 portion of I&M's coal-fueled generation plant in Rockport from customer rates, beginning in January 2023.\nI&M and nine stakeholder groups representing various customer interests agreed to the terms of the settlement agreement, which is subject to approval by the IURC.\nEnhancing reliability with investment of more than $3...