I&M plans electric rate increase
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Fort Wayne-based Indiana Michigan Power is seeking to raise electricity rates through its “Powering Our Future” plan recently submitted to the Indiana Utility Regulatory Commission. If approved, the utility would raise rates for the typical residential customer by nearly $15 per month.
I&M is requesting a 6.8% rate increase, which would generate $116.4 million. The funding raised through the plan will be used to address aging infrastructure, enhance reliability, and make the utility’s system more resilient to weather events, according to an I&M news release.
The utility noted the derecho windstorms that hit the Fort Wayne area in 2012 and 2022, the latter of which resulted in 41,000 customers losing power, with service taking four days to be restored.
“I&M understands that our customers are feeling the effects of inflation and higher costs of goods and services,” I&M President and Chief Operating Officer Steve Baker said. “We have carefully reviewed the plans that are necessary for us to improve reliability of service and deliver a better customer experience. The Powering our Future plan is critical for I&M to continue to meet our customers’ expectations.”
I&M said the new rates would vary for residential, commercial and industrial customers. The increase would be phased in over two years, with the first taking place in mid-2024 and the second in early 2025.
When fully implemented, the average residential customer using 1,000 kilowatt-hours of electricity per month would see their bill go from $162.16 to $176.99, according to the utility.
The “Powering Our Future” plan also seeks to provide residential customers with more bill payment options, use technology to improve access to account information and shorten customer service call times, and pursue federal grants to reduce costs.
A timeline for the IURC’s review of the proposed rate increase was not provided.
You can learn more about the plan by clicking here.