Settlement reached in I&M electric rate case
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Fort Wayne-based Indiana Michigan Power (I&M) has reached a settlement with the Indiana Office of Utility Consumer Counselor and others regarding a proposed electric rate increase.
The office said Thursday that, pending approval from the Indiana Utility Regulatory Commission, the utility’s requested increase of $116.4 million has been reduced by nearly half.
I&M first announced its rate increase request in August. Under terms of the settlement the rate request has been reduced to $56.9 million, plus $4.9 million rider revenues for a total of $61.8 million.
If approved, the rate increase will occur in two phases, the utility said.
The first phase would see a typical residential customer paying $166.36 per month, an increase of $4.20, beginning mid-2024. The second phase would see an additional $4.27 beginning in January 2025.
Additionally, I&M has agreed to donate $400,000 to the Indiana Community Action Association to help low-income customers, limit which days service can be disconnected for nonpayment, and set the fixed service charge for residential customers at $15 per month, instead of the $17.50 figure proposed in the original request.
“This agreement is the result of many hours of negotiations among the wide range of parties in this case.” Indiana Utility Consumer Counselor Bill Fine said in a news release. “It will significantly mitigate the impact on customer bills while ensuring the utility has the revenues needed to provide reliable and resilient service.”
Testimony on the settlement is expected to be filed with the IURC on Jan. 9, and the commission is expected to issue an order next summer.