MAY 2024 UPDATE: The settlement agreement was approved with one exception: it was modified to remove the inclusion of $2.6 million in I&M investment in EV fast chargers. I&M can still invest in EV fast chargers if they want, but they can't charge their customers for them.

DECEMBER 2023 UPDATE: CAC joined the settlement reached in this rate case. We believe the proposed settlement (available here as a PDF download) reflects a positive outcome for customers that may not have been achieved through litigation. If approved by the IURC, the settlement will establish a lower rate of return on equity, or profit, than I&M was asking for, and will allow a much smaller increase to the monthly fixed customer charge than what I&M wanted.

If approved by the IURC, the Settlement Agreement would:

• Allow I&M’s annual revenue requirement to increase from about $1.711 billion to $1.773 billion in 2025, an increase of $61.8 million (3.61%). This increase in revenue requirement is about 47% less than the $116.4 million (6.8%) increase originally requested by I&M.

• Allow an authorized return on equity (profit) of 9.85%. This small increase in ROE is 81% less than the increase originally requested by I&M.

• Increase the monthly fixed charge from $14.79 to $15.00, a 1.4% increase. This small increase in the fixed charge is 92% less than the increase originally requested by I&M.

• Remove $6 million from rates as a negotiated compromise of contested operating expense issues including items challenged in CAC’s testimony, such as industry trade association memberships.

• Limits the amount I&M can spend on analyzing whether to file for a license extension for the DC Cook nuclear power plant to $5 million prior to I&M submitting its 2024 Integrated Resource Plan. This means I&M will need to demonstrate that relicensing makes sense for its customers and give stakeholders the opportunity to propose other options before it spends a lot of money pursuing nuclear relicensing.

• Allow for an $8.47/month (5.2%) increase in a residential bill for 1,000 kWh of usage by January 1, 2025. This residential bill increase is 43% less than the increase originally requested by I&M. The monthly bill for a residential customer using 1,000 kWh of electricity would increase from $162.16 currently to $166.56 in mid-2024 and then to $170.63 in January 2025.

• Approves I&M’s proposals regarding a new customer information system that it plans to have fully rolled out by the end of 2026.

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

While 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.  

I&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 

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.

Total I&M Bill Comparison, Including Trackers: