At a time when many Hoosiers are worried about rising energy costs, Indiana Michigan Power (I&M), an American Electric Power (AEP) company, announced today that it will file to reduce base rates — the largest portion of most bills — as part of a comprehensive Customer Benefits Plan.
This rate decrease is made possible by the load growth and increased revenue it is experiencing from large customers including data centers. The Customer Benefits Plan also includes protections against future increases and strategic investments to further improve reliability. Full details will be outlined in I&M’s next base rate case filing to the Indiana Utility Regulatory Commission this summer.
The Customer Benefits Plan includes:
- Rate Reduction — lowers the current base rate, which is the largest portion of most bills.
- Benefits Bank— a tool that will be used to stabilize customers’ rates by providing a buffer against future cost increases.
- Reliability Improvements — strategic investments in modern infrastructure and technology designed to improve grid performance, resulting in fewer and shorter outages, building on a 32% improvement in reliability over the past five years.
“Our priority is to keep rates as low as possible while delivering reliable power and growing our communities,” said Steve Baker, I&M’s President and Chief Operating Officer. “We know customers are concerned about affordability and the impact of data-center growth on rates. The fact that we can reduce rates while continuing to invest in the infrastructure and technology that supports reliability, is evidence that growth in I&M’s service territory is benefiting all customers.”
As a regulated utility, I&M is required to file proposed rates and customer programs with the Indiana Utility Regulatory Commission. Additional details of the Customer Benefits Plan and opportunities for public input will be shared closer to the filing date this summer.
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Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and its approximately 2,000 employees serve more than 600,000 customers. More than 85% of its energy delivered in 2024 was emission-free. I&M has at its availability various sources of generation including 2,278 MW of nuclear generation in Michigan, 450 MW of purchased wind generation from Indiana, more than 22 MW of hydro generation in both states and approximately 35 MW of large-scale solar generation in both states. The company’s generation portfolio also includes 1,497 MW of coal-fueled generation.
At American Electric Power, based in Columbus, Ohio, we understand that our customers and communities depend on safe, reliable and affordable power. Our nearly 17,000 employees operate and maintain more than 40,000 miles of transmission lines, the nation's largest electric transmission system, and more than 225,000 miles of distribution lines to deliver power to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with nearly 29,000 megawatts of diverse generating capacity, including approximately 6,100 megawatts of renewable energy. AEP is investing $43 billion over the next five years to make the electric grid cleaner and more reliable. We are on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and have a goal to achieve net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.
MEDIA CONTACT:
Stephanny Smith
Director of Communications and Engagement
(260) 409-4292
slsmith2@aep.com