Indiana Michigan Power slashes rate hike request nearly in half in agreement with state utility counselor

INDIANAPOLIS — Indiana Michigan Power reached agreement with the Indiana Office of Utility Consumer Counselor and other organizations to lower its pending rate hike request by nearly half.

The deal now must meet the approval of the Indiana Utility Regulatory Commission.

Under the settlement, I&M’s overall rate request of $116.4 million was reduced to $56.9 million plus $4.9 million in rider revenues (a line-item mechanism on bills that tracks specific costs), totaling $61.8 million. The settlement between I&M, the Indiana Office of Utility Consumer and additional parties was filed with the Indiana Utility Regulatory Commission on Wednesday. The commission may approve, modify, or deny any settlement, according to the counselor's office. Settling parties are now required to file testimony showing the agreement is in the public interest.

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Among consumer benefits noted by the Office of Utility Consumer Counselor were:

• • I&M monthly residential customer charge, which does not vary based on power usage, will be $15. The charge was set at $15 in I&M’s last rate case, then reduced to $14.79 under the repeal of the state’s Utility Receipts Tax. In the current rate case, I&M had proposed raising the charge to $17.50.