The Michigan Public Service Commission has directed Indiana Michigan Power to file a proposal that examines the cost allocation methods and rate design method it uses to set rates for electric customers (Case No. U-17698). The proposal must meet two conditions:  (1) it must be consistent with the cost of providing service; and (2) it must explore different methods for the allocation of production, transmission, distribution, and customer-related costs and overall rate design, based on cost of service, that support affordable and competitive electric rates for all customer classes. The proposal must be filed on or before December 15, 2014. After filing its proposal, Indiana Michigan Power must provide notice to its customers outlining its proposed cost allocation method and rate design method.

The PSC has also directed DTE (Case No. U-17689) and Consumers Energy (Case No. U-17688) to file similar proposals. These filings are required by legislation enacted by Michigan in June 2014 (Public Act 169 of 2014).