Indiana Michigan Power Receives Order in Large Load Settlement

Rhea-AI Summary

Indiana Michigan Power (I&M), an American Electric Power (AEP) company, has received approval from the Indiana Utility Regulatory Commission (IURC) for its large load tariff settlement. The settlement, jointly filed with major tech companies and consumer advocacy groups, establishes new requirements for large energy consumers, particularly data centers.

The approved order requires new large load customers to make long-term financial commitments proportional to their size, ensuring costs are recovered from these customers rather than existing ones. A key modification requires IURC review for any reduction exceeding 20% of a large load customer's contracted peak capacity.

The settlement comes amid significant economic developments, including AWS's $11 billion data center investment near New Carlisle and Google's $2 billion facility in Fort Wayne. I&M, serving over 600,000 customers, delivered more than 85% emission-free energy in 2023 through its diverse generation portfolio including nuclear, wind, hydro, and solar sources.

Positive

• Secured major tech investments: AWS ($11B) and Google ($2B) data centers
• New tariff structure ensures costs from large customers won't impact existing customers
• 85% emission-free energy delivery in 2023
• Additional large load customers expressing interest in the region

Negative

• None.

News Market Reaction

+1.22%

1 alert

+1.22% News Effect

On the day this news was published, AEP gained 1.22%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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

FAQ

What are the terms of AEP's new large load tariff settlement in Indiana?

The settlement requires new large load customers to make long-term financial commitments proportional to their size, with any reduction over 20% of contracted peak capacity requiring IURC approval. This ensures costs are recovered from large customers rather than being passed to existing customers.

How much are AWS and Google investing in AEP's Indiana service area?

AWS is investing $11 billion in a data center campus near New Carlisle, creating 1,000 jobs, while Google is investing $2 billion in a Fort Wayne data center.

What percentage of Indiana Michigan Power's energy was emission-free in 2023?

More than 85% of I&M's delivered energy was emission-free in 2023.

What is the generation capacity of AEP's Indiana Michigan Power division?

I&M's generation portfolio includes 2,278 MW of nuclear, 450 MW of wind, 22 MW of hydro, 35 MW of solar, and 1,497 MW of coal-fueled generation.