(FORT WAYNE) - Indiana Michigan Power says customers could soon see lower electric bills after the utility announced plans to reduce base rates -- the largest portion of most monthly charges.
The company said the proposed decrease is driven by increased electricity demand and revenue from large industrial customers, including data centers. Full details will be included in a formal rate filing with the Indiana Utility Regulatory Commission later this summer.
I&M serves 24 counties in Indiana and six in Michigan. Company leaders say the plan is designed to keep rates as low as possible while maintaining reliable service and supporting community growth.
The proposal includes continued investments in grid improvements aimed at reducing outages, along with the creation of a "Benefits Bank" intended to stabilize rates and cushion future cost increases.
Electric demand is expected to rise as major data centers -- including facilities associated with Google in Fort Wayne and Amazon near South Bend -- come online. State leaders have said they want those large users to shoulder most of the costs for new power generation needed to support the growth.
Consumer advocates note that many Hoosiers have seen significant increases in electric bills over the past year, with some estimates showing monthly costs rising by about $30 between mid-2024 and mid-2025.
Regulators will review the proposal before any rate changes take effect.