Indiana Michigan Power (I&M), a subsidiary of American Electric Power (AEP), today filed documents with  the Michigan Public Service Commission (MPSC) to apply an interim rate increase of $16 million annually, effective Jan. 1, 2012, while the Commission considers the company’s rate filing submitted in July.

Michigan statute allows utilities to adjust rates on an interim basis 180 days after filing a general rate case if a final decision on the original filing has not yet been reached.

 “I&M understands the impact that utility rate increases have on our customers. We are also aware that our customers expect and deserve safe, reliable service,” says I&M President and Chief Operating Officer, Paul Chodak III. “I&M’s job is to keep the lights on and that includes collecting sufficient revenue to be able to maintain the system so that it remains reliable.”

Under the proposed interim rates, a typical residential using 1,000 kilowatt-hours of electricity each month could see an increase of about six dollars on monthly billing statements. The interim increase will appear as a surcharge on billing statements until a final decision is reached on the company’s rate filing.

The filing that I&M submitted in July supports the need for an additional $24.5 million in annual revenue; an increase of 9.72 percent over current rates.

I&M serves over 128,000 customers in southwest Michigan and is currently the lowest cost electric provider among investor-owned utilitles in Michigan. I&M rates are currently 32 percent lower than the state average. Should I&M’s rate case be approved in its entirety, rates for I&M customers will still be 23 percent lower than the current state average.