Indiana Michigan Power is proposing a rate reduction they say could save its Indiana customers approximately $59 million in 2027.

Under the plan, a residential customer using 1,000 kilowatt-hours of electricity per month would save an estimated $100 annually. The utility is also proposing to freeze residential rates for three consecutive years.

I&M attributes the proposed reduction to growing electricity demand and increased revenue from large customers, including data centers. The company said rates for its Indiana customers have already been reduced twice during the first six months of 2026.

The proposal requires approval from the Indiana Utility Regulatory Commission. I&M anticipates a decision in June 2027, with savings expected to appear on customers’ bills beginning that summer.

I&M President and Chief Operating Officer Maryam Brown said the plan would allow customers to benefit from Indiana’s economic growth while the utility continues investing in system reliability.

Gov. Mike Braun praised the proposal, saying economic growth should not come at the expense of existing utility customers.

South Bend Regional Chamber President and CEO Jeff Rea said the proposed reduction would provide greater affordability and certainty for businesses and households. REAL Services President and CEO Karla Mapes said lower and more predictable bills could help financially struggling families remain stable and securely housed.