The Indiana Utility Regulatory Commission approved a rate settlement that allows Indiana Michigan Power Co. to increase rates by $96.8 million, or 7.26%.
The approved rate increase is well below the approximately $263 million, or 19.7%, increase originally sought by the American Electric Power Co. Inc. subsidiary in July 2017. In February 2018, Indiana Michigan Power reached a settlement agreement with other stakeholders to lower the company's proposed rate increase, as a result of the recent federal tax overhaul.
Under the approved rates, average residential customers who use 1,000 kWh monthly would see an increase of $9.41 on their monthly bills, including the proposed customer charge portion of the bill which is $10.50 per month. The rates will become partially effective in July and fully effective in early 2019.
Other parties in the settlement agreement include the Office of Utility Consumer Counselor, Indiana Community Action Association, Indiana Coalition for Human Services, City of South Bend, Sierra Club Hoosier Chapter, Citizens Action Coalition of Indiana, The Kroger Co., Wal-Mart Stores East LP, Sam's East Inc., City of Fort Wayne, 39 North Conservancy District, I&M Industrial Group, City of Marion, Marion Municipal Utilities and Muncie Sanitary District.
