Indiana Michigan Power (I&M), an American Electric Power (Nasdaq: AEP) company, has disclosed the final details of the Powering Our Future plan following the Indiana Utility Regulatory Commission (IURC) approval of a rate settlement agreement. 

Under the settlement, a rate amount of $56.9 million plus $4.9 million in rider revenues, totaling $61.8 million was approved by the IURC. The increase in base rates for Indiana residential customers will occur over two phases, the first effective mid-May and the second in January 2025.

“With the recent decision from the IURC, Indiana Michigan Power will continue its current work to provide safe, reliable power to our customers while increasing the resiliency of the grid for the future,” said Steve Baker, I&M president and chief operating officer. “Through continuous collaboration with a number of stakeholders, we collectively reached a settlement we feel serves the best interests of our customers.”

Enhancing Reliability and Updating Technology

I&M will continue to enhance reliability of service to customers by investing nearly $550 million in grid resiliency improvements. I&M plans to upgrade and replace aging infrastructure and add technology to reduce the duration and overall number of power outages.

Specific Indiana plans include replacing more than 2,800 poles and 240 miles of power lines, upgrading 15 substations and installing more “self-healing” grid technology to detect outages and automatically re-route electricity to improve outage times. I&M will also focus on inspecting and maintaining trees and other vegetation along more than 5,000 line miles.

Improved Customer Experience 

I&M will complete the deployment of Advanced Metering Infrastructure (AMI) to all Indiana retail customers who do not opt-out of the program by the end of 2024. Approximately 73% of Indiana customers currently have an AMI system, or smart meter installed. These systems offer customers more control over their energy use and bill, allowing daily usage monitoring and alerts when energy use is higher than normal.  Customers also benefit through improved customer service and real-time outage notifications.

In continued efforts to serve customers, I&M will introduce a multi-year project to implement a new customer information system. This modern platform will enable I&M to meet customers’ expectations by improving communication avenues through text, email, smart phone apps and the company’s website.

Focus on Clean Energy

I&M has been approved to take the initial step in determining whether to seek approval for a 20-year license extension of the Cook Nuclear Plant, which is capable of powering more than 1.5 million average homes. Its two units that separately generate power are licensed through 2034 and 2037, respectively.

The process for extending the license of a nuclear plant is extensive, requiring engineering studies, technical analysis and equipment inspection to prepare an application to extend the operating license. Further consideration of a Cook license extension will be included in I&M’s 2024 Integrated Resource Plan, which examines how I&M will meet customers’ future energy needs.

Additional Terms

• I&M has engaged with the Citizens Action Coalition (CAC), City of Fort Wayne, Indiana Office of Utility Consumer Counselor (OUCC) and any other interested stakeholders in advance of I&M’s future Electric Vehicle (EV) filing to accept stakeholder feedback.
• I&M has agreed to work with the CAC and other interested stakeholders on potential updates to I&M’s interconnection procedures in Indiana to facilitate distributed generation, including solar and wind, while ensuring the safety and reliability of the energy distribution system and compliance with Indiana law and regulation.
• The Commission order also approves additional terms that were mutually agreed to by parties that were part of the settlement in this proceeding.