Consumer office seeks lower Indiana Michigan Power rate hike

FORT WAYNE, Ind. (AP) - Indiana's state consumer advocate says Indiana Michigan Power's proposed electricity rate increase be slashed by more than half.

The Office of Utility Consumer Counselor is recommending that the state utility commission approve $125 million in additional annual revenue for Indiana Michigan rather than its requested $263 million. The consumer office says the utility's proposal would unfairly raise rates for customers using little electricity.

Indiana Michigan's request would increase rates by 39 percent for households using 250 kilowatt-hours a month, while those using 1,000 kilowatt-hours would see a 20 percent increase.

The company says its rate increase is aimed at reducing outages with better tree management and diversifying energy-generation sources.

A state utility commission hearing is scheduled for January.

The company has about 460,000 customers in northern and northeastern Indiana.