Agreement reached on I&M rates; hike may be lower than first proposed

Last July, the utility company filed a request for a 19.7 percent rate increase to generate an additional $263 million. The original proposal included an increase to the monthly residential charge from $7.30 to $18.00 and a number of other changes.

The Indiana Office of Utility Consumer Counselor, joined by South Bend, Fort Wayne and a number of other communities and organizations, opposed the proposed increases, citing the financial strain it could cause residents and the way it would disproportionately impact low-income residents.

The electric utility lowered its rate-hike proposal, asking for a 13 percent increase, in January after the federal tax reform passed.

Wednesday’s settlement agreement pares down the increase even more, resulting in a rate revenue increase of 7.3 percent. Residential customers will still see a $3.20 increase in their monthly fixed charge, bringing the current $7.30 monthly residential charge up to $10.50, and a total increase of $9.41 for the typical customer using 1,000 kilowatt hours per month.