Indiana Michigan Power (I&M), a subsidiary of American Electric Power (NYSE:AEP) today filed a base rate proposal with the Michigan Public Service Commission (MPSC) seeking an increase in annual revenue of $24.5 million, or about 9.72 percent of current annual revenue. Rates proposed in this filing are based on a projected 2012 cost of service and will not go into effect until 2012.

I&M’s current rate for residential service is 32% lower than the state average. Even after the proposed increase, I&M rates will still among the lowest in Michigan and 25% below the state average. If approved, a residential customer using 1,000 kilowatt-hours of electricity every month would see an increase of about $9.10 per month.

The filing shows that I&M’s current rates do not reflect the costs of providing electric service and that the requested dollars are necessary to maintain our ability to serve to I&M’s more than 128,000 customers in the state of Michigan.

Reflected in the filing are costs associated with the management of vegetation growing near distribution facilities which result in service interruptions to customers; dry cask storage for spent fuel at the Cook Nuclear Plant and projects that support operations for the two units at the plant over the course of their extended operating licenses; the installation of additional emissions controls for some of the company’s fossil-fueled units and depreciation adjustments associated with retiring some of its fossil-fueled power plants in the face of proposed environmental regulations.

I&M’s service territory is located in southwest Michigan serving communities located in Berrien, Cass, St. Joseph, Van Buren, Kalamazoo and Allegan counties. Within I&M’s service territory are approximately 936 miles of high voltage transmission facilities and more than 5,300 miles of distribution lines. I&M also provides wholesale electric service in Michigan to the Wabash Valley Power Authority and the municipalities of Niles, South Haven, Sturgis, Dowagiac and Paw Paw.

“The outcome of this case will have a clear impact on I&M’s ability to meet customers needs and expectations going forward,” said Paul Chodak III, president and chief operating officer of Indiana Michigan Power. “We are preparing to invest billions of dollars in providing cleaner energy resources and deliver safe, reliable and affordable service. The proposed rates will ensure I&M’s financial health as we make these investments.”

“I&M is acutely aware that our customers are challenged with circumstances present in today’s economy, so we do not make this proposal lightly,” said Chodak. “The men and women of I&M work hard to make sure that our customers receive the best value for the money spent on electricity. Even with the proposed increase, I&M will continue to be among the lowest cost providers in Michigan.”

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


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This policy was last revised on December 13, 2017.

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