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true true true

Indiana OKs I&M Rate Increase Less Than Half Utility Sought

By Associated Press

Posted March 15, 2020

The Indiana Statehouse.

The Indiana Statehouse. (Wikimedia Commons)

Indiana regulators have given Indiana Michigan Power approval for a rate increase that’s less than half the amount the utility had sought for its Hoosier customers.

The Fort Wayne-based utility said Thursday that the Indiana Utility Regulatory Commission had approved allowing I&M to increase electricity rates by 5.7% overall, for an increase totaling about $84 million. That amount is about 48% of I&M's original request.

A typical residential customer using 1,000 kilowatt-hours of electricity would pay about $10 more per month. I&M had requested a 11.75% rate hike for its Indiana customers that would have resulted in those customers paying about $21 a month more.

The newly-approved rate increase will be phased in until early next year, The Journal Gazette reported.

After the utility sought the increase last May, consumers and businesses raised concerns about I&M's need for another increase, coming after a hike approved in 2018 allowed it to raise rates 7.26% to help pay for replacing aging poles and wires and removing trees.

In August, the Indiana Office of Utility Consumer Counselor announced it was recommending denial of substantial portions of I&M's requested rate hike.

“I&M is a financially sound utility,” Consumer Counselor Bill Fine said in a statement then, adding that the utility's 2018 increase appeared to be sufficient to cover the company's needs.

I&M has more than 600,000 customers in Indiana and Michigan. Michigan regulators approved a separate rate increase in January.

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