Your electric rate is about to go up. Indiana Michigan Power says it’s reached a settlement with the Michigan Public Service Commission regarding the utility’s request to raise rates by 19% to earn it another $58.5 million per year. I&M spokesperson Tracy Warner tells WSJM News the MPSC has instead told the company it can increase rates to earn another $36.4 million, a 37% cut to what the utility had been seeking.
“For a customer who uses 1,000 kilowatt hours of electricity a month, the impact will be about 80 cents a day,” Warner said.
Warner says the increase is to help pay for an ongoing improvement project around the region.
“Our poles and wires that are the oldest and most in need of updating will be replaced. We’ll be working on proactively trimming trees.”
Warner says the goal is to reduce the frequency and length of outages. The increased rate takes effect on February 1. It affects I&M customers in Michigan only. It works out to a rate increase of about 12%.