FORT WAYNE, Ind. (WOWO) — Indiana Michigan Power says residential customers could see lower electric bills as the utility uses growth from data centers and other technology companies to help offset costs.
Maryam Brown, president and COO of I&M, joined Kayla Blakeslee on Fort Wayne’s Morning News to discuss the utility’s latest rate filing, data center development in Fort Wayne and a proposed 75-mile transmission project across Northeast Indiana.
I&M proposes rate reduction
Brown said I&M filed a request in August that would reduce base electric rates.
For the average residential customer, Brown said the proposal would mean a savings of approximately $10 per month, or more than $100 per year.
The proposed reduction still needs approval from regulators. Brown said I&M hopes to receive that approval by June 2027, which would allow customers to begin seeing the savings on their bills.
Brown described the filing as a historic rate case because, unlike the typical utility rate case that seeks higher rates, I&M is proposing to lower them.
Data centers factor into rate reduction
Brown said one of the primary reasons I&M can propose lower residential rates is the growth of technology companies and data centers in Indiana.
She said the utility is using that growth to provide benefits to both residential and commercial customers.
Brown also pushed back against the idea that a rate reduction means I&M is cutting back on investments in its electric system.
She said the utility plans significant investments in distribution infrastructure and new power plants while using the growth associated with data centers to benefit customers.
“Our electricity rates aren’t going up, they’re going down because we got the policy right,” Brown said.
I&M opposes Fort Wayne data center moratorium
Fort Wayne City Council is considering a moratorium on new data center development, an issue Brown said could send the wrong signal to potential investors.
Brown said Indiana, Fort Wayne and other policymakers have established what she believes is the right approach to managing growth and infrastructure.
She said residential customers are expected to benefit from the proposed 5% reduction in residential rates.
Brown warned that a moratorium could affect how investors view Fort Wayne and Indiana.
“I do worry about the signal that it sends on investment to any investors, whether you’re talking about data centers or any other development going on,” Brown said.
Brown says residential customers won’t subsidize data centers
One of the biggest concerns surrounding data center development is the amount of electricity the facilities consume and whether residential customers could ultimately be responsible for paying for the additional infrastructure needed to serve them.
Brown said I&M’s rate filing is designed to prevent that.
“Absolutely,” Brown said when asked whether residential customers would subsidize infrastructure or additional generation for data centers.
Brown said data centers are paying for the electricity and infrastructure they use, along with additional costs.
She said those payments are helping drive the proposed 5% reduction in residential rates.
“The data centers, they pay their fair share plus some,” Brown said.
75-mile transmission project still being developed
Brown also addressed a proposed transmission project that could stretch approximately 75 miles across Northeast Indiana.
She said the project is intended to improve the reliability of electricity throughout Indiana and benefit I&M customers.
However, the final route has not yet been determined.
Brown said I&M is currently talking with stakeholders about potential routes and expects to reach decisions by the end of 2026 or early 2027.
“We’re looking to get to some decisions either by the end of the year or the beginning of the next,” Brown said.
She emphasized communication with residents and other stakeholders as the project moves forward.
I&M: Goal is keeping bills down and lights on
Brown said the utility’s focus is maintaining reliable service while controlling costs for customers.
“We’re working hard to be able to support our customers in every way, keep their lights on and their bills down,” Brown said.
She encouraged customers with questions about the rate proposal, data centers or the transmission project to contact I&M or visit the utility’s website for additional information.
