Indiana Michigan Power files rate case with IURC, works to reduce base rate for Hoosiers

SOUTH BEND, Ind. — It's called a base rate reduction plan and Indiana Michigan Power say it's one of the largest reduction plans in the nation.

In a time where everything is more expensive, I&M Power is looking to reduce your utility bill. To show their appreciation for their customers, Indiana Michigan Power Director of Communications and Engagement, Stephanny Smith, announced the utility company is filing a base rate reduction plan.

Smith says customers could soon see a five percent base rate reduction in less than a year.

"So, reducing the base rate, which if you look at your bill, that's usually the largest line item on your bill, so we're going to file to reduce that. Then, all of your other rates, we're going to freeze those, so those aren't going to go up and we're going to freeze those for the next three years," shared Smith.

But what does a utility company gain from reducing your monthly bill?

"We're doing this because we want to show that growth benefits everyone. As we're seeing growth through some of our larger customers like data centers coming into our area, we want to make sure that all of our customers benefit from that growth."

Data centers, the term is triggering for many, but Smith says they are paying their fair share. As a utility company, I&M Power has an obligation to provide power to all in their service territory. The question is, how do they do that responsibly?

"They pay for 100% of what they use and up to 80 percent of what they say they're going to need, even if they don't use the full amount," explained Smith.

Smith tells ABC57 this ensures data centers' energy costs don't get transferred to other I&M customers. This is something South Bend Chamber of Commerce President, Jeff Rea agrees with.

"There's been a fear factor in the community a little bit, like what happens with these data centers and who is paying for the upgrades, and am I going to have to pay for that and on my electric bill? I think this is a real reminder that those investments that are being made at places like that are really benefiting all of us."

I&M Power filed this rate case with the Indiana Utility Regulatory Commission on Wednesday. 

They say they expect a decision from the IURC about the plan in June 2027. 

The IURC has their own timeline which is about a 300-day process, according to Smith. Hoosiers will see a difference in their bills in late spring, early summer 2027.