FORT
WAYNE, Ind., Nov. 22,
2024 /PRNewswire/ -- Indiana Michigan Power
(I&M), an American Electric Power (Nasdaq: AEP) company, has
filed a joint settlement with the Indiana Office of Utility
Consumer Counselor (OUCC), Amazon Web Services (AWS), Microsoft,
Google, the Data Center Coalition (DCC), and the Citizens Action
Coalition (CAC). This settlement is the result of a collaborative
negotiation process that supports I&M's ability to provide the
best service possible for all customers and allows the company to
continue pursuing opportunities that support the economic growth of
its communities. It also addresses power demand increases with the
recently announced data centers locating in northeast Indiana, as well as potential future large
load customers, while ensuring reliable and affordable service for
all customers.
The settlement will require new large load customers, including
data centers, to make long-term financial commitments proportional
to their size to ensure the costs to serve these customers are
reasonably recovered from the customer, and not passed on to
existing customers. These investments will support the ongoing grid
modernization for the benefit of all customers.
Data centers provide the digital infrastructure enabling the
applications, technologies, and services that have become central
to our daily lives and modern economy—everything from banking and
medical care to online education and entertainment. The growing
demand for digital services can require a significant amount of
electricity around the clock to operate. To serve this increased
power demand, I&M is required to invest in additional
generation, as well as new transmission facilities to meet customer
needs and maintain a safe and reliable grid for all customers.
In April, AWS announced an $11
billion investment in a data center campus just west of
New Carlisle, Ind. that will
create at least 1,000 jobs and Google announced a $2 billion data center in Fort Wayne. These investments are among the
largest economic development projects in the state of Indiana and bring significant benefits to
surrounding communities.
"AWS is excited to be expanding our operations in Indiana and be part of the state's growing
tech sector. We have recently announced an $11 billion investment that will create numerous
well-paying jobs and significantly contribute to the state's
economy," said Brandon Oyer, Head of
Energy & Water for the Americas, AWS. "Through continued
partnership with I&M, this agreement supports the ongoing
investment to modernize the local electric grid for the benefit of
all ratepayers and ensure that costs to support data center growth
are not passed along to other customers."
I&M is currently in conversations with additional data
center customers, who have also expressed an interest in locating
in the northeast Indiana
region.
The settlement filed with the Indiana Utility Regulatory
Commission (IURC) recognizes the energy needs of new large
customers and proposes additional commitments that these customers
must meet when establishing electric service. These new
requirements are important to balance the interest of the new
customers with the interest of I&M's existing customers. The
new structure will enable I&M to optimize its existing and
future investments to serve these new large loads in a way that is
expected to reduce energy rates for all customers over time. In
addition, the settlement ensures that such net new investments will
be reasonably recovered from these large load customers.
"I&M looks forward to working with some of the leading
technology companies in the world that have chosen to locate in
northeast Indiana. It is an
exciting time for our region and I&M is committed to doing our
part to support these customers as they bring investments and jobs
to Indiana. I&M has the responsibility to serve the new
customers, while also protecting existing customers, including
residential, small business and those within other industries, from
impacts related to necessary infrastructure improvements required
to serve these customers," said Steve
Baker, I&M president and chief operating officer.
Protecting the interests of all customers was an important
consideration of all parties that participated in the settlement
agreement, including the OUCC and CAC.
"Data centers will play a critical role in Indiana's future economic development in the
years to come, while requiring substantial increases in power
generation and transmission infrastructure," said Indiana Utility
Consumer Counselor Bill Fine. "The terms in this agreement will
ensure a balanced approach as those investments are made,
protecting residential, commercial, and industrial customers from
bearing the costs of new infrastructure necessary to serve new,
large-volume customers."
"As ratepayer advocates since 1974, Citizens Action Coalition
takes very seriously our role as watchdogs for utility consumers,"
said Kerwin Olson, CAC Executive
Director. "This settlement includes significant protections for
I&M ratepayers as these large new loads come online in
Indiana and provides for increased
transparency into the energy needs and impacts of these new
customers. Additionally, the contribution to INCAA will enable
meaningful assistance and support for low-income Hoosiers in
managing their monthly energy bills, including weatherization
services to make homes more efficient, healthier, and safer."
To further demonstrate the commitment of supporting the local
communities, the companies that are signatories to this joint
settlement—AWS, Microsoft, and Google—have each agreed to provide
an annual contribution of $500,000
for five years to the Indiana Community Action Association, which
provides various programs to support low-income Hoosiers once those
companies begin taking service in the I&M service
territory.
"Since breaking ground on our campus in Fort Wayne, Google has been committed to being
part of Indiana's economic future
and supporting communities across the state to thrive for the long
term. The inclusion of community support in this settlement builds
on that commitment. We are building a strong partnership with
Indiana Michigan Power and look forward to working together to
explore opportunities for us to invest in new solutions, like
grid-enhancing technologies, that will strengthen energy
infrastructure for all Indiana
customers," said Amanda Peterson
Corio, Global Head of Energy at Google.
About Indiana Michigan Power (I&M)
Indiana
Michigan Power (I&M) is headquartered in Fort Wayne, and its approximately 2,000
employees serve more than 600,000 customers. More than 85% of its
energy delivered in 2023 was emission-free. I&M has at
its availability various sources of generation including 2,278 MW
of nuclear generation in Michigan,
450 MW of purchased wind generation from Indiana, more than 22 MW of hydro generation
in both states and approximately 35 MW of large-scale solar
generation in both states. The company's generation portfolio also
includes 1,497 MW of coal-fueled generation.
About American Electric Power (AEP)
Our team at
American Electric Power (Nasdaq: AEP) is committed to improving our
customers' lives with reliable, affordable power. We are investing
$54 billion from 2025 through 2029 to
enhance service for customers and support the growing energy needs
of our communities. Our nearly 16,000 employees operate and
maintain the nation's largest electric transmission system with
40,000 line miles, along with more than 225,000 miles of
distribution lines to deliver energy to 5.6 million customers in 11
states. AEP also is one of the nation's largest electricity
producers with approximately 29,000 megawatts of diverse generating
capacity. We are focused on safety and operational excellence,
creating value for our stakeholders and bringing opportunity to our
service territory through economic development and community
engagement. Our family of companies includes AEP Ohio, AEP Texas,
Appalachian Power (in Virginia,
West Virginia and Tennessee), Indiana Michigan Power, Kentucky
Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. AEP is
headquartered in Columbus, Ohio.
For more information, visit aep.com.
News releases and other information about I&M
are available at IndianaMichiganPower.com
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SOURCE Indiana Michigan Power