FORT WAYNE, Ind., Nov. 17, 2021 /PRNewswire/ -- Indiana
Michigan Power (I&M), an American Electric Power (Nasdaq: AEP)
company, has filed with the Indiana Utility Regulatory
Commission (IURC) a rate settlement agreement that will reduce base
rates for Hoosier residential customers while enhancing
reliability.
Under the settlement, I&M will reduce its base rates for
Indiana residential customers by
about 5% over two phases, with a slight decrease of about 1% in
May 2022 and an additional, larger
decrease in January 2023. At the same
time, I&M will continue to increase its investments for
enhancing reliability by upgrading aging infrastructure in
Indiana. As part of I&M's
Powering the Next plan, I&M will invest more than $350 million in reliability and grid resiliency
improvements to the electric distribution system.
"Indiana Michigan Power constantly strives to serve customers
with safe, reliable and affordable power," said Steve Baker, president and chief operating
officer of I&M. "I&M's plan will pave the way for I&M's
transition to renewable energy, enhance reliability and make our
service more affordable. We are pleased to collaborate with the
Indiana Office of Utility Consumer Counselor (OUCC) and a number of
other groups to reach an agreement that best serves customers by
lowering their base rates while supporting I&M's program to
sustain and enhance service."
Although I&M originally requested an increase in rates, the
company has the ability to decrease its base rates as a result of a
separate settlement agreement reached in September, after the
original rate case was filed. That agreement removes the Unit 2
portion of I&M's coal-fueled generation plant in Rockport from customer rates, beginning in
January 2023.
I&M and nine stakeholder groups representing various
customer interests agreed to the terms of the settlement agreement,
which is subject to approval by the IURC.
Enhancing reliability with investment of more than
$350 million
The settlement agreement preserves I&M's plans to enhance
reliability of service to our customers by updating and replacing
aging infrastructure. The rate agreement will support I&M's
plans to continue strengthening the electric grid in Indiana to reduce the number and duration of
power outages. Specific Indiana
plans include:
- Replacing more than 2,500 poles and replacing 120 miles of
power lines.
- Upgrading 16 substations.
- Inspecting and maintaining vegetation along 4,000 line miles.
Vegetation is the No. 1 cause of customer outages.
These enhancements will build on projects approved in previous
I&M rate reviews, which have resulted in reduced
vegetation-related and equipment-related outages.
Improved Customer Experience
I&M will enhance the customers' experience by continuing to
replace older-technology meters with new smart meters. Smart meters
provide I&M insight into the distribution system to detect any
issues or outages on the system and respond in a more efficient
manner.
The new smart meters also enable customers to gain more control
over their energy use by using the I&M website to monitor their
energy usage. I&M will also be rolling out a number of
new optional programs that customers can choose from based on their
individual preferences.
Learn more about smart meters at
IndianaMichiganPower.com/SmartMeters.
Deploying New Technologies
I&M will add new technology, including artificial
intelligence, robotic process automations and other tools to
enhance the reliability of the energy delivery system. More
"self-healing" grid technology will be installed to detect power
outages and automatically re-route electricity to customers,
enabling I&M to respond quicker if an outage occurs and detect
potential safety risks.
"The new rate agreement will help I&M continue to make
progress toward building the grid of the future," Baker said. "The
agreement is a win-win for our customers, empowering them to better
control their costs and energy use while benefitting from
investments to enhance reliability with a more resilient grid."
Expanding Green Energy
The plan will also support I&M's continued transition from
coal-fueled generation to renewable energy sources by providing
customers with cost savings associated with removing half of
I&M's coal-fired generating capacity from customer rates.
I&M is already a leader in green energy, building Indiana's first utility owned-and-operated
solar farm. I&M now operates five solar farms in the two states
we serve. The most recent, the St. Joseph Solar Farm, generates up
to 20 megawatts of energy. Together, I&M's nuclear, solar, wind
and hydro generation resulted in 85% of the energy I&M
generated in 2020 being emission-free.
I&M expects to make announcements regarding its plans to
continue to add renewable energy generation in the coming
months.
I&M, Stakeholders Agree to Terms
I&M worked with nine groups representing various consumer
interests to reach the settlement agreement in the current rate
case. In addition to I&M and the Indiana Office of Utility
Consumer Counselor, other groups approving the settlement agreement
were:
I&M Industrial Group; Citizens Action Coalition of
Indiana, Inc. ("CAC"); the City of
Auburn Electric Department; the City of
Muncie; Joint Municipals (collectively the City of Fort Wayne, the City of Marion, Marion
Municipal Utilities and the City of South
Bend); the Kroger Company; Wabash Valley Power Association;
and Walmart Inc.
The IURC is expected to conduct a hearing next month to review
the settlement agreement, with a final ruling expected in 2022.
Indiana Michigan Power (I&M) is headquartered in
Fort Wayne, and its approximately
2,100 employees serve more than 600,000 customers. More than 85% of
its energy delivered in 2020 was emission-free. I&M has
at its availability various sources of generation including 2,278
MW of nuclear generation in Michigan, 450 MW of purchased wind generation
from Indiana, more than 22 MW of
hydro generation in both states and approximately 35 MW of
large-scale solar generation in both states. The company's
generation portfolio also includes 2,20 MW of coal-fueled
generation in Indiana.
American Electric Power, based in Columbus, Ohio, is powering a cleaner,
brighter energy future for its customers and communities. AEP's
approximately 16,700 employees operate and maintain the nation's
largest electricity transmission system and more than 224,000 miles
of distribution lines to safely deliver reliable and affordable
power to 5.5 million regulated customers in 11 states. AEP also is
one of the nation's largest electricity producers with
approximately 30,000 megawatts of diverse generating capacity,
including more than 5,600 megawatts of renewable energy. The
company's plans include growing its renewable 2 generation
portfolio to approximately 50% of total capacity by 2030. AEP is on
track to reach an 80% reduction in carbon dioxide emissions from
2000 levels by 2030 and has committed to achieving net zero by
2050. AEP is recognized consistently for its focus on
sustainability, community engagement, and diversity, equity and
inclusion. AEP's family of companies includes utilities AEP Ohio,
AEP Texas, Appalachian Power (in Virginia and West
Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky
Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. For more
information, visit aep.com.
News releases and other information about I&M are available
at IndianaMichiganPower.com
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SOURCE Indiana Michigan Power