FORT WAYNE, Ind. – Indiana Michigan Power and organizations representing I&M customers have reached agreement on details of an upcoming raise in rates.

The settlement with the Indiana Office of Utility Consumer Counselor (OUCC) and other organizations
and municipalities is pending before the Indiana Utility Regulatory Commission (IURC).

Under the settlement, I&M’s overall rate request of $116.4 million was reduced to $56.9 million plus $4.9 million in rider revenues, totaling $61.8 million.

The increase will occur in two phases. In the first phase, a typical residential customer using 1,000
kilowatt hours of electricity would pay $166.36 per month, an increase of $4.20, effective in mid-2024.

In the second phase, a typical resident would pay an additional $4.27 beginning in January 2025,
resulting in a bill of $170.63 and a total increase of 5.2%.

Find additional details on the settlement below:

I&M also agreed to:
• Donate $400,000 to the Indiana Community Action Association to help low-income customers.
The donation will not be included in customer rates.
• Limit which days service can be disconnected for nonpayment.
• The fixed service charge for residential customers will be $15 per month.

“I&M is pleased to reach an agreement that will serve our customers well with enhanced reliability and updated technologies while further controlling costs,” said Steve Baker, I&M president and chief operating officer. “We appreciate working with the organizations that are party to the rate review to reach a middle ground that will enable I&M to better serve customers’ energy needs.”

Enhancing reliability
Under the settlement agreement, I&M will continue to enhance reliability of service with technology and
updates to aging infrastructure. Specific Indiana plans include:
• Replacing more than 2,800 poles and replacing 240 miles of power lines.
• Upgrading 15 substations.
• Inspecting and maintaining trees and other vegetation along more than 5,000 line miles.
Vegetation is the No. 1 cause of customer outages.
• Installing more “self-healing” grid technology to detect power outages and automatically re-route
electricity to customers.

Customer Information System
I&M’s Powering Our Future plan includes a multi-year project to implement new customer information
system that will enable I&M to meet customers’ expectations by providing a modern platform to communicate through texts, e-mail, smart-phone apps and the company’s website. This system will allow I&M to offer customers additional programs and position I&M to serve its customers as new technologies and customer expectations continue to evolve.

Cook Nuclear Plant
Under the settlement, I&M can spend up to $5 million to take the initial step in determining whether to
seek approval for a 20-year license extension of the Cook Nuclear Plant, which is capable of powering
more than 1.5 million typical homes. Its two units that separately generate power are licensed through
2034 and 2037, respectively. Though those dates are over a decade away, the process for extending
the license of a nuclear plant is lengthy and requires much advance work. The possibility of a Cook license extension will be included in I&M’s 2024 Integrated Resource Plan, which will examine how I&M will meet customers’ future energy needs.

New Payment Option
The settlement agreement approves a pilot program that allows a limited number of customers to prepay their electric bills, much like pre-paid cell phones. Up to 2,300 customers will be able to participate
in PowerPay, a program that will offer a choice of when and how to pay their electric bills, providing the
opportunity to make payments that are more in line with their cash flow. PowerPay is designed to help
customers avoid larger-than-expected bills by receiving daily updates on usage and related costs.
I&M has agreed to meet with the OUCC, a government agency, and the Citizens Action Coalition
(CAC), a customer advocacy organization, before launching the pilot and again a year after the
program launches to review details. The plan could be expanded to more customers after the two-year
pilot concludes.

Other Settlement Terms
• I&M agreed no customers will be disconnected for nonpayment on Fridays, Saturdays, Sundays
and key holidays.
• I&M has agreed to invite the CAC, City of Fort Wayne, OUCC, and any other interested
stakeholder to participate in a stakeholder process in advance of the I&M’s future Electric
Vehicle filing to accept feedback on what is important to different stakeholders.
• I&M has agreed to work with the CAC and other interested stakeholders on potential updates to
I&M’s interconnection procedures in Indiana to facilitate distributed generation such as solar
panels and wind turbines while ensuring the safety and reliability of the energy distribution
system and compliance with Indiana law and regulation.
• I&M agreed that if the utility moves forward with an innovative broadband program in Delaware
and Grant counties, the costs of the program will not be included in customer rates. I&M is
considering offering Internet service providers the ability to use I&M’s broadband infrastructure
needed for electrical equipment to greatly expand internet service in the two counties.

The IURC is expected to review the settlement agreement, with a final ruling expected in mid-2024.