I&M Says Data Center Growth Could Help Lower Residential Electric Rates
Indiana Michigan Power says growth from data centers and other technology companies is helping support a proposed 5% reduction in residential electric rates, which would save the average customer about $10 per month if regulators approve it. The utility also warned that Fort Wayne's proposed moratorium on new data centers could discourage investment and discussed a planned 75-mile transmission project in Northeast Indiana.
Indiana Michigan Power President and COO Maryam Brown said the utility’s latest rate filing would reduce residential electric rates by about 5%, or roughly $10 per month for the average customer. Brown attributed the proposed savings in part to increased electricity demand from data centers and other technology companies, saying those customers are paying for the power and infrastructure they use while helping offset costs for residential customers. The rate proposal still requires regulatory approval, with a decision expected by June 2027.
Brown also discussed I&M’s planned investments in distribution infrastructure, power generation and a proposed transmission line spanning about 75 miles across Northeast Indiana. The project’s route has not been finalized, with decisions expected by late 2026 or early 2027. She expressed concern that Fort Wayne City Council’s consideration of a moratorium on new data center development could send a negative signal to investors, while data center electricity consumption and the potential effect on residential customers remain central concerns.