I&M base rates set to decrease following IURC agreement
INDIANAPOLIS (Fort Wayne’s NBC) - An agreement between a state regulatory agency and Indiana Michigan Power means residential customers will see a decrease in base rates.
On Wednesday, the Indiana Utility Regulatory Commission (IURC) approved what will amount to a nearly $95 million decrease that will be implemented in two phases and completed by January 2023. It follows the recommendation of Indiana’s consumer counselor, who urged commissioners to reject I&M’s initial proposal, which included a rate increase that would have totaled $104 million. The counselor cited increases in 2018 and 2020 as part of the conclusion that another hike was unnecessary, but it was up to the commissioners to take the final actions.
Most customers will see a lowering of base rates by about six percent. The deal also maintains the current residential service charge of $15 per month.
I&M said the agreement will allow for the replacement of more than 2,500 poles and 120 miles of power lines, along with other improvements. The utility will continue to update older technology to modern “smart meters” across the network.
“We are very appreciative of the Commission’s approval of the rate case settlement agreement. It will reduce annual base rates by more than $94 million when fully implemented next year while holding the monthly residential customer charge at its current $15.00 level. The Indiana Office of Utility Consumer Counselor put considerable technical and legal resources into this case, while negotiating the agreement with a wide range of consumer parties, local governments, and I&M,” Indiana Utility Consumer Counselor Bill Fine said.
The complete order from the Indiana Utility Regulatory Commission is available online.
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