I&M, state officials make pending agreement on future electricity prices - WANE
I&M, state officials make pending agreement on future electricity prices | WANE 15
FORT WAYNE, Ind. (WANE) — A pending agreement between Indiana Michigan Power (I&M) and state officials would set price increases for the next two years among other actions.
The settlement between I&M and the Indiana Office of Utility Consumer Counselor (OUCC) slashed I&M’s overall rate request from $116.4 million to $61.8 million, including $4.9 million in rider revenues.
The rate increases will occur in two phases over the next two years, according to I&M.
In the first phase, a typical customer using 1,000 kilowatt hours of electricity would pay $166.36 per month, an increase of $4.20, effective in mid-2024. In the second phase, a typical customer would pay an additional $4.27 beginning in January 2025, resulting in a bill of $170.63 and a total increase of 5.2%.
“I appreciate the efforts of the OUCC’s legal and technical staff in building a strong case and negotiating a fair resolution,” said Indiana Utility Consumer Counselor Bill fine. “It will significantly mitigate the impact on customer bills while ensuring the utility has the revenues needed to provide reliable and resilient service.”
I&M also agreed to the following stipulations in the pending settlement:
- Donate $400,000 to the Indiana Community Action Association to help low-income customers, and the donation will not be included in customer rates
- Limit which days service can be disconnected for nonpayment
- The fixed service charge for residential customers will be $15 per month
The settlement also approved a pilot program that would allow a limited number of customers to pre-pay their electric bills.
According to I&M, the settlement will allow the company to continue investments for enhancing reliability by upgrading aging infrastructure in Indiana, including upgrading 15 substations and replacing more than 2,800 poles and 240 miles of power lines.
“I&M is pleased to reach an agreement that will serve our customers well with enhanced reliability and updated technologies while further controlling costs,” said Steve Baker, I&M president and chief operating officer.
The Indiana Utility Regulatory Commission is expected to review the settlement, with a final ruling expected in mid-2024.
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