FORT WAYNE, Ind. (AP) — Michigan regulators this week approved a rate increase for Indiana Michigan Power, though one significantly smaller than initially sought by the utility.
The Michigan Public Service Commission approved an agreement Thursday allowing the Fort Wayne-based company to boost its Michigan customers’ rates by a total of $36.4 million annually — about 38 percent lower than the proposed $58.5 million increase.
According to the commission, a customer who uses 500 kilowatt hours of electricity a month will see an increase of $12.14, or about 15%.
The utility agreed not to change base rates until 2023 at the earliest.
Indiana Michigan Power said the increase allows it to invest in energy generation, transmission and distribution to upgrade the southwestern Michigan electric grid and improve reliability.
The new rates take effect Feb. 1.
The utility serves roughly 600,000 customers in Indiana and Michigan.