I&M introduces rate reduction request to state regulators

IIB - After several months of planning, Indiana Michigan Power has submitted a filing with the Indiana Utility Regulatory Commission seeking to reduce its base electric rates in 2027 for the majority of its customers.

The Fort Wayne-based utility said Wednesday that the plan would result in about $59 million in bill reductions next year, saving the average residential customer about $100 annually. The proposal would also freeze all rates for residential customers for three years.

I&M first detailed plans for the rate reduction request in February. The utility said at the time the move was being made possible because of the load growth and increased revenue it is receiving from large customers, including data centers.

The filing noted that the rate reduction would not be applied to large-load customers.

“As Indiana continues to experience unprecedented growth, we are taking action to help our customers benefit from that growth through lower costs, enhanced value and continued investments to strengthen our system,” I&M President and Chief Operating Officer Maryam Brown said in a news release. “We are proud to join forces with state leaders to advance economic development and make energy more affordable – while continuing to provide system reliability upgrades.”

I&M said it expects a decision from the IURC on the plan in June 2027. If the approval goes through, customers can expect to see savings reflected on their monthly bills starting in summer 2027, according to the utility.

Indiana Michigan Power provides electric service to about 486,000 retail customers in northern and east-central Indiana as well as 133,000 customers in southwest Michigan, the filing states. Its service area encompasses 3,200 square miles across 24 Indiana counties.

The rate reduction proposal drew praise from Indiana Gov. Mike Braun, who has called on all of Indiana’s electric utility providers to lower rates for Hoosiers.

South Bend Mayor James Mueller issued a statement Wednesday, saying the filing is great news for South Bend families.

“Reducing the base electricity rate and freezing rates for residential customers, while also investing in major reliability upgrades, demonstrates the power of growth and getting more for less,” Mueller said.

Earlier this year, I&M received approval to lower a monthly charge related to how it manages and sells energy in the regional power market. That change was expected to decrease the average residential customer’s monthly bill by $6.

Indiana Michigan Power employs about 2,000 people across its entire footprint in Indiana and Michigan.