Indiana Michigan Power is planning a rate reduction that Indiana customers will start to see on their bills in summer 2027.
The plan includes $59 million in bill reductions in 2027, which would result in an extra $100 a year for customers using 1,000 kWh a month in energy. It also includes a three-year rate freeze.
“As Indiana continues to experience unprecedented growth, we are taking action to help our customers benefit from that growth through lower costs, enhanced value and continued investments to strengthen our system,” said Maryam Brown, I&M president and chief operating officer, in a press release. “We are proud to join forces with state leaders to advance economic development and make energy more affordable – while continuing to provide system reliability upgrades.”
The utility said a decision by the Indiana Utility Regulatory Commission is expected in June 2027.
“Indiana Michigan Power’s proposal shows what’s possible when we create the right environment for investment while keeping Hoosier families front and center,” Gov. Mike Braun said. “Lower utility bills, long-term rate certainty and continued investment in our electric system are exactly the kinds of results we want to deliver for Indiana.”
I&M said the plan is possible because of an increase in consumer power demand and a jump in large customer revenue. Data centers were included in those projections.
I&M already reduced Indiana rates twice in the first six months of 2026. Michigan customers received lower bills in July.
“Our customers expect us to look for every opportunity to make energy costs more reasonable while still delivering reliable power and that’s what this reduced rate (this summer) reflects,” said Katie Runkle, I&M’s vice president of external affairs and customer experience, in a press release. “We will keep working to make sure customers see those benefits through lower costs on their bills whenever possible.”
Fort Wayne-based I&M's 2,000 employees serve more than 600,000 customers in Indiana and Michigan. Its power generation includes 2,278 MW of nuclear in Michigan, 450 MW of wind from Indiana, 22 MW from water and 35 MW of solar in both states. The company also uses 1,497 MW of coal-fired power. It is part of American Electric Power, which has 5.6 million customers in 11 states.
