I&M rates in Indiana, Michigan lowered thanks to tax cut

Indiana Michigan Power customers will benefit from recent federal tax cuts now that regulatory commissions in Indiana and Michigan have incorporated the savings into their bills.

The Michigan Public Service Commission (MPSC) approved bill credits this week totaling $8.7 million, a savings of $3.64 per month for a typical residential customer who uses 1,000 kiloWatt hours of energy per month.

Indiana customers, meanwhile, are seeing a savings of about $85 million as a result of savings approved earlier this year as part of I&M’s Building the Future plan. The tax cut was one the factors that enabled I&M to reduce its rate request from more than $250 million to less than $100 million.

In Michigan, the reduction approved this week will credit customers for the impact of the tax cut from Sept. 1 going forward. In September, Michigan customers will receive pro-rated bills, and the full amount of the credit will show up in October statements. Two additional adjustments of lesser amounts will be determined later, I&M said.