The settlement supports ongoing grid modernisation, enhancing reliability for all customers.

Indiana Michigan Power (I&M), a subsidiary of American Electric Power, has secured approval from the Indiana Utility Regulatory Commission (IURC) for its large load tariff settlement. The agreement, submitted in late 2024, includes participation from major stakeholders such as Amazon Web Services (AWS), Microsoft, Google, and the Data Center Coalition.

The IURC’s decision endorses the joint settlement with an adjustment, requiring new large-load customers, such as data centers, to enter into extended financial commitments. This measure ensures that the expenses tied to serving these customers are covered by them, avoiding additional costs for existing users. The settlement also facilitates ongoing improvements to the power grid, boosting reliability for all I&M customers.

Under the modification, any reduction exceeding 20% in a large-load customer’s agreed-upon peak capacity requires IURC review and approval. This step promotes transparency and allows oversight of notable shifts in customer obligations and their effects on the system.

I&M president and chief operating officer Baker stated: “I&M is committed to providing all customers with the best service possible while doing our part to help grow the communities they call home. This is an exciting time for our region, and we look to lead the way with innovative solutions that support a growing energy demand while still ensuring our existing customers have reliable and affordable power.”

The IURC’s order recognizes the rising energy needs of large-load customers and sets forth specific obligations for them. This framework seeks to balance the needs of new and current customers while optimizing I&M’s investments in power generation and transmission infrastructure.

In 2024, AWS revealed plans for an $11 billion data center campus in New Carlisle, Indiana, expected to generate 1,000 jobs. Google also announced a $2 billion data center project in Fort Wayne. These initiatives rank among Indiana’s most significant economic developments, delivering benefits to local areas. I&M is currently engaging with other prospective large-load customers eyeing northeast Indiana.

The company’s energy portfolio includes 2,278MW from nuclear sources, 450MW from wind, over 22MW from hydroelectric power, 35MW from solar, and 1,497MW from coal-based generation. These resources support I&M’s efforts to meet increasing demand while maintaining service quality.

The settlement reflects a structured approach to accommodating industrial growth in the region, ensuring that infrastructure evolves to support both new investments and the needs of established customers. Through these efforts, I&M aims to foster economic progress in Indiana while upholding dependable and cost-effective electricity services.