SOUTH BEND, Ind. -- Indiana Michigan Power announced it's advancing what they say is one of the nation's largest rate reduction plans for Hoosier customers.

I&M says the plan will deliver savings and stability for customers.

Approximately $59 million in 2027 bill reductions are expected to help residential customers in Indiana using 1,000 kWh a month save approximately $100 per year.

The plan also proposed to freeze all residential rates on their monthly bill for three consecutive years.

“As Indiana continues to experience unprecedented growth, we are taking action to help our customers benefit from that growth through lower costs, enhanced value and continued investments to strengthen our system,” said Maryam S. Brown, I&M president and chief operating officer. “We are proud to join forces with state leaders to advance economic development and make energy more affordable – while continuing to provide system reliability upgrades.”

The I&M plan filed with the Indiana Utility Regulatory Commission also seeks a 5 percent reduction in base rates for residential customers and a proposed 2 percent base-rate reduction for commercial customers.

“Today’s filing by Indiana Michigan Power is great news for South Bend families,” said South Bend Mayor James Mueller. “Reducing the base electricity rate and freezing rates for residential customers, while also investing in major reliability upgrades, demonstrates the power of growth and getting more for less. I thank AEP and Governor Braun for their hard work to get this much-needed relief for our residents.”

I&M has also committed to investing almost $1 billion in reliability improvements across its service area.

The proposed plans require approval from the IURC.

A commission decision is expected by June 2027, with customer savings expected to begin appearing on monthly bills in summer 2027.