I&M Receives IURC Approval for Oregon Clean Energy Center Purchase

Rhea-AI Summary

Indiana Michigan Power (AEP) received Indiana Utility Regulatory Commission approval on Nov 19, 2025 to acquire the 870 MW Oregon Clean Energy Center, a natural gas plant in Oregon, Ohio. Combined with FERC approval in October 2025, I&M expects to complete ownership transfer in March 2026. The plant is part of I&M's Future Ready plan to meet forecasted Indiana peak growth from ~2,800 MW (2024) to >7,000 MW by 2030 and to diversify the company's generation mix.

Positive

• Adds 870 MW natural gas generation capacity
• Secured regulatory approvals: IURC Nov 19, 2025 and FERC Oct 2025
• Targeted ownership transfer in March 2026
• Supports forecasted Indiana peak growth to >7,000 MW by 2030
• Aligns with AEP $72 billion investment plan for 2026–2030

Negative

• Oregon facility is natural gas‑fueled, increasing fossil fuel capacity
• Acquisition could reduce I&M's >85% emission‑free energy share in 2024

Insights

Utility M&A Analyst

I&M secured regulatory approvals to acquire an 870 MW gas plant, strengthening near-term capacity and diversification.

The acquisition of the Oregon Clean Energy Center adds 870 MW of natural gas‑fueled generation to I&M's portfolio and has received IURC and FERC approvals, clearing the path for ownership transfer expected in March 2026. This transaction increases firm, dispatchable capacity available to serve a materially larger forecast peak and fits inside I&M's stated Future Ready plan.

Key dependencies include the planned operational transfer from the current owners over the next few months and timely integration of the plant into I&M’s dispatch and maintenance processes. Regulatory approvals are already in place, but safe and efficient operational handover will determine near‑term reliability and cost outcomes.

Watch the ownership transfer completion in March 2026 and any filed updates on operational readiness, O&M agreements, and near‑term capital or integration costs. Also track the company's stated investment plan of $72 billion from 2026 through 2030 and the metric that > 85% of I&M’s 2024 energy delivered was emission‑free, which frames how the gas asset fits into overall resource mix.

FORT WAYNE, Ind., Nov. 19, 2025 /PRNewswire/ -- Indiana Michigan Power (I&M), an American Electric Power company, is taking another step to deliver reliable and affordable energy to meet the needs of its customers today and in the future. The Indiana Utility Regulatory Commission (IURC) approved the agreement between I&M, Indiana Office of Utility Consumer Counselor (OUCC), and consumer groups to acquire the Oregon Clean Energy Center, an existing 870 megawatt (MW) natural gas plant located in Oregon, Ohio.

The acquisition of the Oregon Clean Energy Center and its 870 MW of natural gas-fueled electric generation is one component of I&M's Future Ready plan, which outlines a comprehensive strategy to serve customers in a cost-effective, reliable manner as the demand for energy increases.

With today's IURC order, and the approval received by the Federal Energy Regulatory Commission (FERC) in October, I&M now has secured the necessary regulatory approvals to complete the acquisition of the Oregon facility. Over the next few months, I&M will work with the current owners of the Oregon facility to transfer ownership and operations of the facility in a safe and efficient manner. I&M expects to take ownership of the Oregon facility in March 2026.

"The Oregon Clean Energy Center is an important opportunity to further diversify I&M's current generation portfolio, acquire dependable generation, and position us for future growth to the benefit of all our customers," said Steve Baker, I&M president and chief operating officer.

I&M is currently navigating an unprecedented time in its history. As the company looks ahead, power demand is expected to more than double the Indiana peak from approximately 2,800 MW in 2024 to more than 7,000 MW in the 2030 timeframe. The rapid growth in energy demand provides an opportunity for I&M to reshape the way it serves current customers and those the company will serve decades into the future.

The Oregon facility will provide a stable source of power to meet the continuous operational requirements of our existing customers and new customers coming on to the I&M system. I&M's current generation portfolio incorporates a diverse mix of resources, including solar, wind, nuclear, coal and hydroelectric units. The company's vision for the future is to implement a comprehensive approach to providing a reliable, resilient, and stable electric power system that customers can access affordably.

"Demand is growing and we're planning for it, not waiting for it," Baker said. "We're forecasting this growth and investing now in the generation and infrastructure needed to meet it. Our long-term planning strategy means we stay ahead of demand rather than reacting to it. This approach leads to more price stability and reliability for all of I&M's customers."

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 2024 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.

American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We expect to invest $72 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 17,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 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 30,000 megawatts of diverse owned and contracted 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, West Virginia and 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 American Electric Power

FAQ

What did AEP announce about the Oregon Clean Energy Center on Nov 19, 2025?

I&M received IURC approval on Nov 19, 2025 to acquire the 870 MW Oregon Clean Energy Center.

When will AEP/I&M take ownership of the Oregon facility (AEP)?

I&M expects to take ownership of the Oregon facility in March 2026.

Has the Oregon Clean Energy Center acquisition received federal approval for AEP?

Yes; the company secured FERC approval in October 2025 before the IURC order.

How much capacity does the Oregon Clean Energy Center add to AEP/I&M?

The acquisition adds 870 MW of natural gas‑fueled electric generation capacity.

How does the Oregon purchase relate to I&M's demand forecast (AEP)?

I&M cites the plant as part of its Future Ready plan to meet projected Indiana peak growth from ~2,800 MW (2024) to >7,000 MW by 2030.

Will the Oregon acquisition affect AEP’s capital spending plans?

AEP is planning to invest $72 billion from 2026–2030, and the Oregon purchase is described as part of I&M’s Future Ready investments.