(FORT WAYNE) - State regulators have approved a deal between Google and Indiana Michigan Power aimed at reducing strain on the electric grid tied to a Fort Wayne data center.
The Indiana Utility Regulatory Commission signed off Wednesday on the agreement, which allows the two companies to coordinate power use during periods of high demand.
Under the deal, Google will reduce its electricity usage at times when the grid is under strain and will share some clean energy capacity with the system. In return, Indiana Michigan Power will offer discounted electric rates to Google when it cuts back usage.
Neither company released detailed terms of the agreement.
Indiana Michigan Power says the arrangement is designed to avoid the need for additional grid upgrades that would otherwise be paid for by customers. The utility also says the deal is expected to help lower electric rates by offsetting costs through Google's usage.
In a statement, Indiana Michigan Power says the agreement will help maintain reliability while managing growing demand, adding that shifting energy use away from peak hours can reduce overall system costs and deliver savings to customers.