Indiana Michigan Power’s planned rate hike will raise roughly half of what had been proposed.
On Friday, the electric utility company announced the $116.4 million rate request has been reduced to $56.9 million under a settlement on its “Powering Our Future” plan.
There will be an additional $4.9 million in money from so-called rider revenues which reflect expenses in the customer’s bill.
The proposed increase will roll out in two phases beginning in mid-2024 and then an additional increase in January 2025. The total increase will be 5.2 percent, down from the original 6.8 percent proposed this past summer.
As part of the settlement, I&M will donate $400,000 to the Indiana Community Action Association to help low-income customers, limit the days of the week on which customers can be disconnected for non-payment and limit the fixed service charge at $15 a month.
According to the company in a written statement, the agreement allows I&M to continue to enhance reliability by upgrading its aging infrastructure and its customer information system. That includes the replacement of more than 2,800 poles and replacing 240 miles of power lines.
The City of Fort Wayne and Walmart Corporation were among the organizations and municipalities that agreed to the settlement.
