FORT
WAYNE, Ind., Feb. 19,
2025 /PRNewswire/ -- Indiana Michigan Power
(I&M), an American Electric Power (Nasdaq: AEP) company, has
received the Indiana Utility Regulatory Commission's (IURC) recent
order regarding its large load tariff settlement filed in late
2024. The term "large load" refers to customers who require a
substantial amount of energy to operate and maintain their
operations, primarily including data centers and large industrial
customers.
The joint settlement with the Indiana Office of Utility Consumer
Counselor (OUCC), Amazon Web Services (AWS), Microsoft, Google, the
Data Center Coalition (DCC) and the Citizens Action Coalition (CAC)
reinforces I&M's commitment to providing reliable and
affordable service for all customers and allows for the company to
pursue opportunities that support the continued economic growth of
the communities it serves.
The IURC order approved the terms of the joint settlement, with
one modification, and requires new large load customers, including
data centers, to make long-term financial commitments proportional
to their size. This will ensure the costs to serve these large load
customers are reasonably recovered from them, and not passed on to
existing customers. These investments will also support ongoing
grid modernization for the benefit of all customers with enhanced
reliability.
The modification to the settlement agreement in the approved
order states that any reduction of more than 20% of a large load
customer's contracted peak capacity, that is mutually agreed upon
between I&M and the large load customer, must be submitted to
the IURC for its review and approval before becoming effective.
This modification allows for increased transparency and Commission
oversight of any significant changes to a large load customer's
commitment and any associated impacts of such changes.
"I&M is committed to providing all customers with the best
service possible, while doing our part to help grow the communities
they call home," said Steve Baker,
I&M president and chief operating officer. "This is an exciting
time for our region, and we look to lead the way with innovative
solutions that support a growing energy demand while still ensuring
our existing customers have reliable and affordable power."
The order approved by the IURC recognizes the increased energy
needs of large load customers and highlights additional commitments
these customers must meet when establishing electric service. These
new requirements are critical to balancing the interest of the new
customers with the interest of I&M's existing customers. The
new structure will enable I&M to optimize its existing and
future investments in generation and transmission facilities to
serve these new large loads in a way that is expected to improve
the affordability of energy costs for all customers over time.
In 2024, AWS announced an $11
billion investment in a data center campus just west of
New Carlisle, Ind. that will
create at least 1,000 jobs. Google later announced a $2 billion data center in Fort Wayne. These investments are among the
largest economic development projects in the state of Indiana and bring significant benefits to
local communities.
I&M is currently in conversations with additional large load
customers, who have also expressed interest in locating in the
northeast Indiana region.
Indiana Michigan Power (I&M) is headquartered in
Fort Wayne, and its approximately
2,000 employees serve more than 600,000 customers. More than 85% of
its energy delivered in 2023 was emission-free. I&M has at its
availability various sources of generation including 2,278 MW of
nuclear generation in Michigan,
450 MW of purchased wind generation from Indiana, more than 22 MW of hydro generation
in both states and approximately 35 MW of large-scale solar
generation in both states. The company's generation portfolio also
includes 1,497 MW of coal fueled generation.
About American Electric Power (AEP)
Our team at
American Electric Power is committed to improving our customers'
lives with reliable, affordable power. We are investing
$54 billion from 2025 through 2029 to
enhance service for customers and support the growing energy needs
of our communities. Our nearly 16,000 employees operate and
maintain the nation's largest electric transmission system with
40,000 line miles, along with more than 225,000 miles of
distribution lines to deliver energy to 5.6 million customers in 11
states. AEP also is one of the nation's largest electricity
producers with approximately 29,000 megawatts of diverse generating
capacity. We are focused on safety and operational excellence,
creating value for our stakeholders and bringing opportunity to our
service territory through economic development and community
engagement. Our family of companies includes AEP Ohio, AEP Texas,
Appalachian Power (in Virginia and
West Virginia), AEP Appalachian
Power (in Tennessee), Indiana
Michigan Power, Kentucky Power, Public Service Company of
Oklahoma, and Southwestern
Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. AEP is
headquartered in Columbus, Ohio.
For more information, visit aep.com.
News releases and other information about I&M are available
at IndianaMichiganPower.com
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SOURCE Indiana Michigan Power
