Indiana power provider proposes $59 million rate cut for state, says data centers and other large customers are driving increased revenue — move could potentially save residential users $100 annually

Indiana Michigan Power, or I&M, which serves over half a million residential customers across the two states, said that it’s planning to cut rates for residential customers in Indiana. According to the company, it’s planning “one of the nation’s largest base rate reduction plans,” with the total bill reduction saving Hoosiers approximately $59 million in electric bills by 2027. This translates to about $100 per year for each home that uses around 1,000 kWh monthly. Aside from that, I&M wants to freeze rates for the next three years, offering its customers a measure of stability as data centers are forecasted to use 20% of U.S. power by 2035.

The plan is still under consideration by the Indiana Utility Regulatory Commission (IURC), with a decision expected by June 2027, with residents seeing savings by the summer of that year. This also isn’t the first time the state has seen electricity rate cuts in recent months. I&M has already reduced its rates twice in the first half of 2026, offering some users much-needed relief from rising electricity costs brought about by the massive demand from AI data centers.