I&M sets interim ratesPublished 10:45pm Wednesday, January 4, 2012
Indiana Michigan Power (I&M) has received notice from the Michigan Public Service Commission (MPSC) that its Nov. 21 proposal to set interim rates met requirements for implementation.
I&M had begun recovering $16 million in annual revenue Sunday until a final order from the Commission is received on the company’s rate case filed in July.
Michigan Public Act 286 permits a utility to self-implement rates if the MPSC has not issued an order within 180 days of a completed application.
“Exercising this option is important for I&M to fulfill its foremost commitment to our customers, that of keeping the lights on,” says Paul Chodak III, president and chief operating officer for Indiana Michigan Power.
“Adjusting rates until an order is received on our rate filing will help us continue to deliver safe, reliable electric service to over 128,000 customers in southwest Michigan.”
Under interim rates, a typical residential customer using 1,000 kilowatt-hours of electricity per month would see an increase of about $6. The majority of residential customers (65 percent) use 1,000 kilowatt-hours or less every month.
The interim rate increase will appear as a surcharge on customer billing statements until a final order on the rate case is received by the MPSC, which could be on or before July 1.
The rate case filing proposes an increase of $24.5 million in annual revenue; an overall increase of 9.72 percent over current rates, which would result in an increase of about $9 for a residential customer using 1,000 kilowatt-hours per month.
I&M is the lowest cost electric provider among investor-owned utilities in Michigan with rates that are 32 percent lower than the state average.
Should the rate case be approved in its entirety, rates for I&M customers will be 23 percent lower than the state average.