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Phantom Energy may be Costing You Big $$$

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FORT WAYNE, Ind. (Oct. 2025) – What looks like a powered-down home may still be costing you money. Utility company Indiana Michigan Power is urging customers to beware of so-called phantom energy — the electricity consumed by devices and appliances that are plugged in but not actively in use.

What is Phantom Energy?

Also known as “vampire load” or “standby power,” phantom energy is the small yet continuous power draw from electronics when they appear switched off but remain plugged in. According to recent studies, this hidden drain can account for 5% to 10% of a household’s total energy use.  For example, smart TVs in standby mode have been measured drawing up to 40 watts.

Why It Matters

  • Even a few watts of wasted power, when multiplied across dozens of devices in a home and across thousands of homes in a region, adds up — in dollars paid and environmental impact.

  • For consumers, the cost can reach tens or hundreds of dollars per year. One estimate: if phantom loads represent 5% of average household energy use (the U.S. average ~10,791 kWh/year), the annual cost might be $90–$180 or more depending on local rates.

  • For utilities and the grid, wasted standby power means avoidable demand, increased infrastructure strain and extra emissions from power generation.

I&M’s Tips to Fight Back

I&M recommends multiple practical steps to reduce phantom energy:

  • Unplug small electronics when not in use — phone chargers, game consoles, etc.

  • Use advanced power strips or smart plugs that cut power flow when devices aren’t active.

  • Replace old or inefficient appliances with ENERGY STAR® models that draw very little standby power.

  • For customers equipped with smart meters, I&M says they should regularly review their Weekly Energy Update reports in their account — helping spot unusual usage patterns.

Smart Meters & Usage Tracking

I&M’s rollout of smart meters enables customers to monitor energy usage in 15-minute increments, often through the online account portal or mobile app. By reviewing detailed usage data, households can identify when devices may be drawing power unnecessarily — for example, during “off hours” when everything should be asleep.

Real-World Impact & Consumer Example

  • According to the U.S. Dept. of Energy and other sources, phantom loads can add up to 10% of home electricity use, which translates to significant cost over time.

  • One scenario: A typical home might have 40 devices drawing even a small standby wattage each; combined, that could lead to hundreds of extra kilowatt-hours per year.

  • While each device’s draw might be modest, the cumulative effect is real — and preventable.

Why Many Homes Let It Slide

  • Many consumers assume that “off” means “zero power,” but that isn’t always true — especially for devices with standby modes, remote-control capability, network connection or digital displays.

  • Unplugging everything manually can be inconvenient, so tools like smart plugs or power strips that shut off groups of devices are often more practical.

  • Some devices continue to draw minimal power by design (for memory retention, remote access, clock displays), so complete elimination may require new equipment or changing habits.

What to Do Today

  • Walk through your home and identify devices that stay plugged in continuously but are rarely used.

  • For each: Ask “Does this need to be plugged in all the time?” If the answer is no, unplug it or plug it into a switchable strip.

  • If you have a smart meter through I&M, log into your account and review the Weekly Energy Update. Does usage drop during known “quiet” periods (overnight, work hours)? If not, investigate what could be drawing power.

  • Consider investing in smart plugs (especially for entertainment systems) or advanced power strips with auto shut-off features.

  • When replacing major appliances, look for models with low standby power draw (check specs for standby watts) and buy ENERGY STAR rated when available.


Bottom Line

Phantom energy may not be the most visible component of your utility bill — but it can be a silent drain on your wallet and on the environment. With thousands of homes under I&M’s service area, the combined savings from reducing standby power could be substantial. The good news? Simple adjustments + smart monitoring can make a real difference.

For I&M customers, checking your smart-meter data, unplugging unused chargers, and using switchable power strips are easy steps you can take today. Over time, those small actions add up — both in dollars saved and carbon emissions reduced.

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