5/15/2017
I&M Seeks Base Rate Regulatory Review of Building the Future Plan

FORT WAYNE, Ind. – Indiana Michigan Power (I&M), an operating unit of American Electric Power (NYSE: AEP), is asking the Michigan Public Service Commission to approve I&M’s Building the Future proposal in a review of base rates, the first requested since 2011.

The Building the Future plan calls for investments to enhance customer reliability and service by reducing outages, as well as maintaining the emission-free Cook Nuclear Plant as the anchor of I&M’s generation fleet for many years to come. Building the Future would also help diminish I&M’s No. 1 source of customer outages – trees and other vegetation – by accelerating trimming and clearing near power lines. The systematic trimming is within accepted industry guidelines and a major step in addressing the issue.

I&M’s proposal also includes an important new economic incentive to help attract and retain a wide array of new business and industry to I&M’s service area in Michigan, as well as eliminating a fee for customers who use a credit card to pay their bill.

“I&M’s goal is to improve reliability, reduce outages and provide adequate resources while being mindful of the cost impacts on our customers,” said Toby Thomas, President and Chief Operating Officer of I&M. “The reality is that much of our system is decades old, and we need to serve our communities by renovating aging equipment and modernizing the delivery system to meet customers’ expectations into the future.”

Though I&M began the Life Cycle Management project at Cook six years ago, the $1.2 billion project has not yet been reflected in Michigan rates. The project will enable Cook’s two units to continue operating through their extended license lives of 2034 and 2037, respectively. New rates would also reflect the cost of upgrades and modifications required by the Nuclear Regulatory Commission as well as enhanced cyber security.

The Building the Future plan includes systematically updating I&M’s aging energy delivery system, using stronger poles and wires as well as expanded technology to make the system more resilient to weather events and reduce the impact of weather-related outages. Over five years, I&M expects to replace more than 2,000 poles, more than 50 miles of overhead lines and more than 20 miles of underground lines in southwest Michigan.

I&M seeks to keep its rates at levels that are reasonable and compare favorably to other utilities. I&M is asking the Michigan Public Service Commission to approve a rate that would be less than an additional $1 a day for a residential customer using 1,000 kilowatt hours of electricity per month. The overall increase would be about $51.7 million, or about 17 percent.

Much has changed in the areas of technology, generation and more since I&M filed its last rate case six years ago. I&M is Building the Future by updating several financial factors to more accurately reflect today’s costs:

• Though much of a customer’s electric bill goes toward fixed costs such as poles and transformers and wires, I&M’s fixed charge for residential customers is just $7.25, below state average. I&M is proposing an increase in the service charge to $18 to more fairly and accurately reflect true costs.

• I&M proposes a fixed charge of $9 for low-income and senior-citizens customers – half of the regular residential fixed charge.

 • Advances in technology increasingly give customers the capability to better measure and control their electric use with advanced new smart meters. These meters also can help identify the precise location of outages much faster. To prepare for the future deployment of new metering technology, I&M proposes to adjust the timing of the retirement of the older metering technology.

• As the nation moves more rapidly toward renewables, I&M will be Building the Future by preparing for transition away from coal-fueled plants. I&M proposes to adjust the depreciation of Unit 1 of its Rockport plant to prepare for its eventual retirement; the sooner depreciation costs are adjusted, the less impact on customers.

Other highlights of the plan include:

• Offering a new rate to qualifying industrial and commercial users of energy to help attract and keep businesses and industries in southwest Michigan. In addition to helping develop the economies of the areas where they are located, new and growing businesses assist state and local governments by bringing in additional tax revenues. They also help other I&M customers by spreading the company’s fixed costs over a larger customer base.

• As part of I&M’s ongoing commitment to enhance our interactions with customers, I&M proposes to eliminate the fee for charging a bill payment on a credit card. Customers are also encouraged to sign up for electronic billing and payment options at www.IndianaMichiganPower.com/account.

Customers can learn more about Building the Future and the regulatory rate review process at www.IndianaMichiganPower.com/BuildingTheFutureMichigan.

# # #

Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and its 2,450 employees serve more than 589,000 customers. More than half of its generation is emission-free, including 2,160 MW of nuclear generation in Michigan, 450 MW of purchased wind generation from Indiana, 22 MW of hydro generation in both states and approximately 15 MW of large-scale solar generation in both states. The company’s generation portfolio also includes 2,600 MW of coal-fueled generation in Indiana.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity and custom energy solutions to nearly 5.4 million customers in 11 states. AEP owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP also operates 224,000 miles of distribution lines. AEP ranks among the nation’s largest generators of electricity, owning approximately 26,000 megawatts of generating capacity in the U.S. AEP supplies 3,200 megawatts of renewable energy to customers. AEP’s utility units operate as 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 and east Texas). AEP’s headquarters are in Columbus, Ohio.

Tracy Warner
Indiana Michigan Power Communications
(260) 408-3420
tkwarner@aep.com

More From I&M

Mobile App Learn more

The Power is in Your Hands

Find Out How Save Money & Energy

Save Money & Energy

Sign Up Now Pay Online for Free with Paperless Billing

Pay Online for Free with Paperless Billing

Learn More Understanding Your Residential Bill

Understanding Your Residential Bill

Select your state:

×
Visit AEP.com
Use of this site constitutes acceptance of the AEP Terms and Conditions. View our Privacy Policy. © 1996-2015 American Electric Power. All Rights Reserved.

Privacy Policy

Privacy Policy for Indiana Michigan Power (I&M), a unit of American Electric Power (AEP)

Scope

This Privacy Policy applies only to IndianaMichiganPower.com and the Indiana Michigan Power customer mobile app (com.aep.customerapp.im). Other AEP websites and apps may be governed by their own privacy policies, appropriate to the uses and needs of each. Throughout the site or app, we may provide links to resources and sites that are not part of IndianaMichiganPower.com or the Indiana Michigan Power customer mobile app. This Privacy Policy does not apply to those resources and sites.

Consent

By using this site or app, you consent to the terms of this Privacy Policy. Whenever you submit information via this site or app, you agree to the collection, use, and disclosure of that information in accordance with this Privacy Policy.

Information Collected

  1. Passively collected information

    During your use of this site or app, we may collect anonymous information about your visit here through the use of server logs, cookies, scripts, tracking pixels and other Web traffic tracking systems. This information is aggregated and used to improve user experience through analysis of user activities. This information is never combined with any of the personally identifiable information you may provide in your use of the features of this site or app.
  2. Personally identifiable information

    On certain forms of this site or app, you may be asked to provide information about yourself or your account with us, either to identify yourself to us or to request a service from us. In each case, we will inform you what information is provided at your option and what information is required to complete the transaction or activity you are engaged in. If you are unwilling to provide this required information, you will be unable to complete the requested transaction.

Use and disclosure of information

The information you provide to us will be used to respond to requests you may make for services. Some or all of this information may be added to your permanent account record and may be used for research purposes.

In addition, we may use elements of this information in the following situations:

  1. We may transfer the information to I&M’s affiliates and subsidiaries, unless such transfer is prohibited by law;
  2. We may transfer the information as part of a merger, consolidation, acquisition, divestiture or other corporate restructuring (including bankruptcy);
  3. We may make the information available to third parties who are providing the product, service or information that you have requested (but not your password);
  4. We may make such information available to third parties who are providing services to I&M (for example, providing the information to third parties performing computer-related services for I&M);
  5. We may use the information to communicate with you about products and services that may be of interest to you.
  6. We may disclose the information if we form a good-faith belief that disclosure of such information is necessary to investigate, prevent, or take action regarding any illegal activities or regarding interference with the operation of our site or violation of its terms of use; or
  7. We may disclose the information if we believe that disclosure is required by law or regulation or in response to a subpoena or other order of a court or other governmental agency.

I&M uses Flurry Analytics Service (provided by Yahoo) in order to improve its mobile apps. Flurry’s privacy policy governs the use of this information.

Also, I&M reserves the right to share any aggregated information (i.e., non-personally identifiable information) with any third parties for any reason, unless prohibited by law.

We will not sell, rent or otherwise disclose the information we gather about you or your account to any third party, except as outlined in this Privacy Policy.

Security

I&M takes reasonable steps to protect your personally identifiable information as it is transferred to us, through the use of Web technologies such as the Secure Sockets Layer and others. However, no Internet transmission of information is ever completely secure or error-free. In particular, e-mail sent to or from I&M may not be secure.

How to Reach Us

If you would like to update your personally identifiable information or if you have questions about this privacy policy, please contact us.

Changes to This Policy

I&M reserves the right to change this Privacy Policy at any time. If this Privacy Policy changes, the revised policy will be posted to this site. Please review this Privacy Policy before you provide any personally identifiable information through this site. Use of our web site after the posting of a revised privacy policy constitutes your consent to the revised policy.

This policy was last revised on December 13, 2017.

Close ×

Sign Up For Alerts

Subscribing to I&M alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Loading video...

×
  • Log In
  • Register
  • 1-800-311-4634