Indiana Michigan Power files Settlement agreement with Amazon, Google, Microsoft on large load interconnection rules, IURC schedules hearing for December 20

On November 22, 2024, in Indiana Utility Regulatory Commission (IURC) Case No. 46097, Indiana Michigan Power Co. (I&M) filed a proposed Settlement Agreement, written in collaboration with the Indiana Office of Utility Consumer Counselor (OUCC), Amazon Web Services (AWS), Microsoft, Google, the Data Center Coalition (DCC), and the Citizens Action Coalition (CAC). According to an I&M Press Release, the Settlement will require new large load customers with contract capacity of at least 70 MW, which includes large data centers, to make long-term financial commitments proportional to their size to ensure the costs to serve these customers are recovered from the applicable customer, and not passed on to existing customers. The revenue raised from the Agreement will fund grid modernization projects. If the Agreement is approved, I&M will seek to develop a “clean energy transition” tariff by October 2025 so large load customers can fund investments in carbon-free resources.

In April 2024, AWS announced an $11 billion investment in a data center campus just west of New Carlisle, IN, and Google announced a $2 billion data center in Fort Wayne. In June, Microsoft Indiana Governor Eric Holcomb (R) announced a $1 billion Microsoft data center planned in La Porte, IN. According to Utility Dive, I&M expects its peak load to double from current levels to 8,000 MW by 2030. Under the agreement, AWS, Microsoft and Google will each give $500,000 annually for five years to the Indiana Community Action Association, which funds a variety of low-income programs in Indiana.

On December 2, the IURC issued an Order scheduling an in-person hearing for December 20 at 9:30am, in Room 222 of the PNC Center, 101 West Washington Street, Indianapolis, IN.