Indiana-Michigan Power has reached a settlement that will cause base electric rates to drop by close to 6%.

The rate would drop for Indiana residential customers under the settlement, approved by the Indiana Utility Regulatory Commission. It also represents a reduction of nearly $95 million in operating revenues. The decrease will come in two phases, one of which goes into effect now.

The other increase, the larger of the two, goes into effect in January.

Phase One will lower bills about $1.48 for average residents that use 1,000 killowatt hours, and Phase Two would lower the same bill nearly $8.

I&M still has plans to invest more than $350 million in the state’s infrastructure and continue other upgrades.