Indiana Michigan Power and data centers

Large-load tariff and rules

Status

Large-load tariff or rules approved (2025-02-19)

Tariff

Industrial Power tariff (I.P.) large load settlement

Docket

Cause No. 46097, Indiana Utility Regulatory Commission

What it says

The IURC approved a joint settlement amending I&M's Industrial Power tariff for large loads with one modification: any mutually agreed reduction of more than 20% of contracted peak capacity needs IURC approval; cost allocation was deferred. (Utility Dive)

Source excerpt

“It applies to new or expanded facilities with contract capacity of at least 70 MW or 150 MW aggregated across a company.”

Rate case: I&M filed a proposed base rate reduction in 2026 that it says is enabled by revenue from large customers including data centers; the IURC ruling is expected by June 2027. (WVPE)

Official forecasts of data center load

• According to the IURC's decision as reported by Utility Dive, I&M expects peak load in Indiana to rise from 2,800 MW to more than 7,000 MW by 2030. (Utility Dive, 2025-02-20)
  Source excerpt

  “Driven by new large loads, I&M expects peak load in Indiana will jump to more than 7,000 MW by 2030 from 2,800 MW, according to the IURC’s decision.”

What sources say about customer bills

Sources warning that other customers’ costs could rise

• Ben Inskeep, Citizens Action Coalition (October 2024, before the settlement): Before the settlement, a Citizens Action Coalition representative warned that residents could pay for new generation serving data centers, raising bills for decades. (WBOI, 2024-10-16)
  Source excerpt

  “Inskeep said residents would have to pay for those plants — driving up their energy bills for decades, with no guarantee these data centers would stick around.”

• PJM independent market monitor (Monitoring Analytics), PJM-wide finding: The PJM market monitor says data center load additions have raised costs that will be paid through May 2028 and may raise transmission, energy and capacity costs for other customers across the PJM region. (Utility Dive, 2026-03-12)
  Source excerpt

  “Large data center load additions have already had a significant and irreversible impact that will be paid through May of 2028 and will have additional significant impacts on other customers as a result of higher transmission costs, higher energy market prices and higher capacity market prices,”

Sources saying customers are protected, or bills are lower than they would be

• Indiana Michigan Power: I&M says the approved terms will ensure costs to serve large-load customers are recovered from them and not passed on to existing customers. (American Electric Power / Indiana Michigan Power, 2025-02-19)
  Source excerpt

  “This will ensure the costs to serve these large load customers are reasonably recovered from them, and not passed on to existing customers.”

• Indiana Michigan Power: I&M says its proposed base rate reduction, made possible by revenue from large customers including data centers, would save the average residential customer about $100 a year (pending IURC approval). (WVPE, 2026-08-26)
  Source excerpt

  “The plan would reduce bills by $79 million a year, saving the average residential customer about $100 a year.”

These are statements by regulators, utilities, advocates and researchers about this utility or its region. They are not a prediction of any customer’s bill, which depends on rates, usage and regulator decisions.

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