News release from Indiana Michigan Power:
I&M disappointed by IURC decision
Emphasizes reliability commitment(May 9, 2015) – Indiana Michigan Power, an operating unit of American Electric Power (NYSE: AEP), re-emphasizes its commitment to provide safe, reliable power in the wake of a regulatory order denying I&M’s plan to boost its infrastructure critical to serving its customers. Although the Indiana Utility Regulatory Commission turned down I&M’s Reliability Enhancement Program on Friday because it wanted more detailed information, the commission did not challenge the need for I&M to update its infrastructure.
“I&M stands prepared to work with the IURC and other stakeholders to support the regulatory process to enable the IURC to approve this program so that we can continue to provide reliable service to our customers,” said Paul Chodak III, I&M President and Chief Operating Officer. “Indiana lawmakers served our customers well when they adopted a law (Senate Enrolled Act 560, adopted in 2013) that established a process specifically aimed at offering electric utilities a method to update aging electric grid infrastructure. We believe our Reliability Enhancement Program filing met the requirements of the law, and were surprised by the order since most of the plan was supported by the parties in the case.”
Although I&M is disappointed with the IURC’s decision, the company respects the regulatory and legal process, and will continue to pursue approval of a Reliability Enhancement Program. After the Indiana Court of Appeals recently overturned the commission’s previous approval of another utility’s infrastructure plan, I&M recognizes that the interpretation of the law is somewhat uncertain.
I&M firmly believes its proposed projects, which include several new substations important for the community, are reasonable and necessary to assure customers are served reliably. The company is studying the commission’s ruling and weighing options.
Regardless of the next step, I&M is as committed as ever to serving its customers as their hometown energy provider.
“The Reliability Enhancement Program is all about our customers – updating the equipment that serves them with an ample supply of energy at rates well below state and national averages,” Chodak said. “The initial rejection of our plan simply redoubles our commitment to demonstrate to state regulators that our plan was well conceived and would be well managed. I&M remains committed to proactively updating our infrastructure and continuing our mission to provide safe, reliable power to our customers.”
“Reliability depends on sound infrastructure, and our aging electric grid needs updates,” Chodak said. “The Reliability Enhancement Program would allow I&M to more proactively update the aging infrastructure – in many cases, solving problems before they occur.”
About Indiana Michigan Power
Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and serves more than 582,000 customers in Michigan and Indiana. It operates 3,595 MW of coal-fired generation in Indiana, 2,110 MW of nuclear generation in Michigan and 22 MW of hydro generation in both states. The company also provides its customers 450 MW of purchased wind generation. I&M is a unit of American Electric Power (NYSE: AEP), which is one of the largest electric utilities in the United States, delivering electricity to more than 5.3 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extrahigh voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas.AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.
Additional information about I&M is available at IndianaMichiganPower.com.
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