The Michigan Public Service Commission (MPSC), on Feb.15, issued an order approving a settlement agreement that authorizes Indiana Michigan Power (I&M) to increase revenue electric rates by $14,644,416 annually, effective with the next full cycle of billings. The amount represents an increase of 5.88 percent over the rates set in I&M’s last rate case.
According to the most recent rate comparison among regulated utilities in Michigan published by the MPSC, I&M residential customers will continue to pay the lowest rates in the state with bills that are 33 percent lower than the state average. A monthly bill for a residential consumer using an average of 1,000 kilowatt-hours per month will be $91.46 after the new rates go into effect in April – an increase of 12 cents per day over rates that were set in 2010.
The authorized revenue adjustment is lower than the interim adjustment of $16 million that went into effect on January 1, 2012, which is currently reflected as a surcharge on billing statements. I&M will reconcile the difference of $1, 355,584 to its customers through a separate filing to be submitted to the MPSC within 90 days.
Indiana Michigan Power, Michigan Public Service Commission staff and Metal Technologies, Inc. participated in the settlement.