Indiana Michigan Power (I&M), part of American Electric Power, has received approval from the Indiana Utility Regulatory Commission (IURC) for its large load tariff settlement.
The settlement, filed in late 2024, involves key stakeholders Amazon Web Services (AWS), Microsoft, Google and the Data Center Coalition.
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The IURC’s order approves the joint settlement with a modification, requiring new large-load customers, including data centres, to make long-term financial commitments.
This ensures that the costs of serving these customers are recovered from them, preventing cost burdens on existing customers.
The settlement supports ongoing grid modernisation, enhancing reliability for all customers.
The modification mandates that any reduction exceeding 20% in a large load customer’s contracted peak capacity must be reviewed and approved by the IURC.
This ensures transparency and oversight of significant changes in customer commitments and their impacts.
I&M president and chief operating officer Baker said: “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 acknowledges the increased energy demands of large-load customers and establishes additional commitments for them.
This structure aims to balance the interests of new and existing customers, optimising I&M’s investments in generation and transmission facilities.
In 2024, AWS announced an $11bn investment in a data centre campus in New Carlisle, Indiana, creating 1,000 jobs.
Google followed the suit with a $2bn data centre in Fort Wayne. These projects are among Indiana’s largest economic developments, benefiting local communities.
I&M is in discussions with other potential large-load customers interested in northeast Indiana.
The company’s generation portfolio contains 2,278MW of nuclear, 450MW of wind, more than 22MW of hydro, 35MW of solar and 1,497MW of coal-fuelled generation.
