Hoosier electric customers could be in line for a little relief on their power bills later this year. On Tuesday, Feb. 24, 2026, Indiana Michigan Power said it will file this summer with the Indiana Utility Regulatory Commission to reduce the base portion of electric rates for customers across Indiana.
The utility said the move is part of a new Customer Benefits Plan that is meant to lower the largest portion of most bills, build in protections against future increases and keep money flowing toward reliability upgrades.
"Our priority is to keep rates as low as possible while delivering reliable power and growing our communities," said Steve Baker, I&M's President and Chief Operating Officer, in a press release via Indiana Michigan Power. The company said it will file a formal base rate case with the commission this summer and will share details and opportunities for public input as the docket is posted.
Local coverage noted that I&M described the base rate as the largest slice of a typical customer's bill and said the proposed cut is possible because revenue has grown from large customers, including data centers. As reported by WSBT, the utility framed the plan as one piece of a broader effort to keep bills more stable over time.
What I&M's Customer Benefits Plan Would Do
I&M says the plan rests on three main parts. First is a rate reduction that would lower the current base rate. Second is a so-called "Benefits Bank" that is intended to help shield customers from future cost spikes. Third is a set of targeted investments aimed at improving grid reliability.
As reported by WNDU, the company pointed to about a 32% improvement in reliability over the past five years as part of its argument for continuing to invest in the system even while trimming base rates.
Regulatory Next Steps
Because I&M is a regulated utility, any change to base rates has to go through the Indiana Utility Regulatory Commission. The commission will review evidence, hold hearings and ultimately decide whether to approve, modify or reject any settlement that comes out of the case.
According to the Indiana Office of Utility Consumer Counselor, I&M's most recent base rate review resulted in a settlement that the commission approved in May 2024, and public comments and field hearings were part of that process.
I&M said the upcoming filing will spell out the size of the reduction, how the Benefits Bank would work and which reliability projects the company would pursue. In its Indiana Michigan Power news release, the company said it will announce opportunities for customers to weigh in once the formal case is filed with the commission.
What customers ultimately pay will depend on the commission's review and on any settlement between I&M, the Indiana Office of Utility Consumer Counselor and other intervenors, and settlements are common in utility rate cases. Customers will be able to track the case and learn how to submit comments through the Indiana Office of Utility Consumer Counselor and the Indiana Utility Regulatory Commission once I&M posts its filing and docket number.
