I&M wants you to pay $14+ more per month on your electric bill!

In August 2023, Indiana Michigan Power filed a new base rate case before the Indiana Utility Regulatory Commission (IURC). I&M wants to raise your bills by $14.83 a month so they can raise their annual operating revenues by $116.4 million and significantly increase their profit margin.


I&M is a subsidiary of American Electric Power (AEP), a utility with 5.6 million customers in 11 states. This is the fourth time in 6 years that I&M filed to raise your base rates, although we helped to get a rate decrease in their last case!


In this case - Cause Number 45933 - I&M wants to:

  • Increase their authorized return on equity (profit) from 9.78% to 10.5%
  • Increase the monthly fixed charge for most customers from $14.79 to $17.50 per month, an 18% increase
  • Force customers to pay $4 million in dues for industry trade association memberships, including the the Edison Electric Institute, Institute of Nuclear Power Operations, and the Nuclear Energy Institute. Industry trade associations are lobbying groups that advocate for the utilities' interests over customer interests.
  • I&M wants the IURC to pre-approve them to spend the following so they can charge customers for it in their next rate case (this is called "deferred accounting"):
    • $40 to $45 million to analyze whether to file for a license extension for the DC Cook nuclear power plant (Unit 1 is 48 years old, and Unit 2 is 45 years old, and they definitely should NOT have their licenses extended.)
    • $132 million on a new customer information system. $25 million is included in this request, and they're asking for pre-approval of the rest.





Your I&M bills have already increased almost 50% in the last decade

I&M-average-monthly-electric-billsWhile I&M bills increased 48% in the last 10 years, Hoosiers wages have not. I&M customers are not only coping with significant increases in the cost of energy, but also housing, healthcare, food, and other necessities.  


https://www.citact.org/sites/default/files/indiana-disconnections-sep22-mar23-11.pngI&M customers are already struggling to afford ever-increasing utility bills. I&M has the second-highest disconnection rate in Indiana and sends tens of thousands of disconnection notices every month, shutting off power to thousands of households who can’t afford their bills on a monthly basis.





I&M Base Rates Comparison

for a customer using 1,000 kilowatt hours of electricity per month 

   Current Bill   Proposed Bill 
   Charges & Rates   Total Bill   Charges & Rates   Total Bill 
 Fixed Charge:  $14.79 $14.79 $17.50 $17.50
 First 900 kW hours: 
$0.109800 $98.82 $0.122410 $110.17
 Each kW over 900 hours: 
$0.103180 $10.32 $0.115800 $11.58
   Total:  $123.93  Total:  $139.25
   Increase:  $15.32

This is the core of your electric bill - what you are charged for fixed costs and usage fees. This part of your electric bill makes up about 76% of your current total I&M bill. 



Trackers: the other 24% of your I&M bill not included in "base rates."

These trackers, also called “riders,” are currently included in your I&M bill, added to the base rates you see above. I&M wants to include many of the amounts they’re currently collecting through trackers into “base rates” going forward. Then they will to file for new amounts to be collected through these trackers after the IURC approves the new base rates. Where you see question marks below, how much those trackers will end up being on your monthly bill is unknown to everyone but I&M.


 For the average customer using 1000 kilowatt hours (kWh) of electricity per month.  Current Trackers Proposed Trackers
  Charge per kWh Total Avg. Bill Charge per kWh Total Avg. Bill
Fuel Cost Adjustment (FAC)   -$0.000129  -$0.13 ??? ???
Resource Adequacy Rider (RAR)     $0.002443    $2.44 ??? ???
Solar Power Rider (SPR) 
   $0.000203    $0.20  $0.000239 $0.24
Demand-Side Management (DSM) 
   $0.004296    $4.30  $0.002091 $2.09
Environmental Cost Rider (ECR)     $0.001889    $1.89  $0.001814 $1.81
Phase-In Rate Adjustment (PRA)   -$0.002915  -$2.92 ??? ???
Off-System Sales Margin Sharing  with PJM costs (OSS)     $0.032450     $32.45   $0.033597 $33.60
Total:    $38.24  Total:  $37.74+?



Total I&M Bill Comparison, Including Trackers:

 1000 kWh Current Bill Proposed Bill
   Charges & Rates   Total Bill   Charges & Rates   Total Bill 
Monthly Fixed Charge:  $14.79  $14.79 $17.50 $17.50
Base Rates per kWh:  $0.109 $109.14 $0.121 $121.75
Trackers per kWh:  $0.038 $38.24 ??? $37.74+?
  Total:  $162.17 Total:   $176.99+? 



Campaign Tools

Take Action:

Speak out at the upcoming public field hearings!



Tell the Office of Utility Consumer Counselor (OUCC) to oppose I&M's rate hike! Make sure to reference Cause Number 45933 in your comments.



Help us fight the hike!


I&M wants to hike your monthly fixed charge yet again!

Your fixed charge is the fee you pay every month regardless of how much energy you use. In this case, I&M wants to raise your monthly fixed charge from $14.79 to $17.50, an 18% increase.

I&M has already raised your fixed charge twice in the last 5 years:

  • From $7.80 to $10.50 in 2018
  • From $10.50 to $14.79 in 2020

Adding insult to injury, I&M also wants to continue using declining block rates, which reward customers using more energy with lower rates. 



High fixed charges and declining block rates disproportionately impact low- and fixed- income households, including seniors, people with disabilities, households with children, and other vulnerable populations. They also penalize houses that conserve energy and make their homes more energy efficient. 



Remote Disconnections and High Reconnection Fees

In this case, I&M wants to use their new smart meters to remotely disconnect residential customers. For these customers, I&M does not want to follow current IURC rules that require utilities to send customers a disconnection notice at least 3 days before shutting off service and attempt to make direct contact with the customer before shutting off their power. 


For customers without smart meters, I&M wants to dramatically increase reconnection fees: 

  • From $83 to $100 during regular business hours
  • From $93 to $131 on weekdays after business hours and Saturdays
  • From $177 to $267 for Sunday reconnections

Getting disconnected puts Hoosiers in difficult and dangerous positions. Forcing Hoosiers to pay extremely high reconnection fees makes it even harder for folks who are already struggling to regain access to essential electricity service. 




Current Campaigns

These are the issues of immediate importance we are working on right now.