Indiana Michigan Power (I&M), an American Electric Power company, has received the Michigan Public Service Commission’s (MPSC) order regarding the Powering Our Future plan, which outlines I&M’s continued commitment to provide customers with reliable, safe and affordable service.
While a rate amount of $17.3 million was approved by the MPSC as per the order, revised rates based will go into effect July 15, 2024. For residential customers using 500 kWh per month, it will represent a rate increase of 4.13%. The rate change for other customer classes will be based on the tariff taken for service.
I&M will invest in infrastructure updates necessary to reliably deliver energy to customers’ homes and businesses while also preparing itself for the grid of the future.
The utility will prioritize infrastructure replacements including designated poles, wires and other equipment. I&M not only aims to replace over 400 poles in a year, through its pole replacement program, but will also rebuild lines, around 50 miles per year, and relocate off-road distribution lines closer to main roads to expedite restoration times.
I&M will also focus on grid modernization technology like Distribution Automation Circuit Reconfiguration (DACR), also known as self-healing technology, to help minimize outage durations for customers. Few additional efforts to increase reliability include I&M’s tree-trimming program, which enables trimming vegetation near overhead power lines every four years as compared to the current five-year cycle.
The order also provided I&M approval of critical capital investments to maintain existing power plants and renewable projects for its transition to cleaner energy resources. The transition to additional cleaner energy sources will support I&M’s and AEP’s target of achieving net zero CO2 emission by 2045.
I&M has been approved to take the initial step to seek approval for a 20-year license extension of the Cook Nuclear Plant, which is capable of powering more than 1.5 million average homes annually. Its two units separately generating power are licensed through 2034 and 2037, respectively.
The MPSC’s order directed I&M to make separate filings to address customer-owned generation, or Distributed Generation (DG), and a Transportation Electrification Plan, targeting the transition to electric vehicles for personal and public use. I&M plans to file both plans with the commission later in 2024.
