Michigan Regulator Approves $36 Million Revenue Hike for Indiana Michigan Power’s Electric Services

The Michigan Public Service Commission authorized a settlement agreement, allowing Indiana Michigan Power Co. to raise electric rates by $36.4 million per year, about 38 percent lower than the utility’s request, according to a Jan. 23 news release. The new rates, which take effect on Feb. 1, will increase monthly residential bills by about 15 percent.

The revision authorizes a 9.86 percent rate of return on common equity. The company agreed not to file its next rate case before 2022 or request an effective date for new rates before 2023.

The agreement includes the launch of “IM Plugged IN,” an electric vehicle pilot program that provides rebates for workplace, multi-unit dwelling, and fleet incentives, as well as interstate DC fast charging infrastructure.

A new distributed generation tariff will compensate solar customers for power exported to the grid based on the utility’s supply costs, including transmission. The settlement does not change the fixed service charges for any customer class. Further, the utility agreed to withdraw its residential local demand charge, residential declining block rate, voluntary residential and general service demand charge pilot, and EZ Bill proposals.

Indiana Michigan Power is a subsidiary of American Electric Power Company Inc.