Indiana Michigan Power (I&M) customers in Michigan who purchase or lease a plug-in electric vehicle (PEV) may take advantage of special off-peak pricing and reimbursement of up to $2,500 toward the installation of a home charging station.
I&M, a subsidiary of American Electric Power (NYSE: AEP), recently received approval from utility regulators on its proposal to help customers offset the cost of installing home charging stations and take advantage of lower rates by recharging their cars when overall demand for electricity is lower. I&M is the first of AEP’s operating companies, and the third electric utility doing business in the state of Michigan, to address the needs of future PEV owners.
“American Electric Power strongly supports the wide-spread adoption of plug-in vehicle technology. In addition, we advocate for a modern electricity system capable of meeting the demands of a 21st century economy to ensure a sustainable and successful energy future,” said Michael G. Morris, AEP chairman, president and chief executive officer.
General Motors announced earlier this year that Michigan is one of six initial launch markets for the Chevrolet Volt. Representatives from I&M have been part of a multifaceted task force working with auto manufacturers, electric utilities and state officials to make sure that a streamlined process exists for consumers who decide to buy a PEV.
“I&M is committed to making electric transportation a success through our readiness to support the market,” said I&M President and Chief Operating Officer Paul Chodak III. “ We are doing more than developing rate options and incentive plans. We are working with auto manufacturers and dealers to facilitate a smooth, positive customer experience. More importantly, we will continually evaluate the readiness of our electric delivery infrastructure to support the introduction of PEVs in our service territory as consumers begin to realize the environmental and economic benefits of electric transportation. Serving all our customers with reliable electric service is one of our top priorities.”
The reimbursement of up to $2,500 for home charging stations is available to the first 250 qualifying I&M customers residing within the Michigan service area. The charging station and associated electrical wiring must be installed by a licensed professional.
I&M is also extending its time-of-use rate program to all qualifying PEV owners who wish to take advantage of lower off-peak rates. Time-of-use pricing is available to all I&M customers, but conditions of the program were revised to make it possible for PEV owners to have a dedicated circuit in their home for charging a PEV on a time-of-use rate. The off-peak rate is 3.9 cents per kilowatt-hour. Charging during on-peak hours will cost 14.1 cents per kilowatt-hour. On-peak hours are defined as 7 a.m. to 9 p.m., local time, Monday through Friday. Weekday evenings after 9 p.m. and weekends are considered to be off-peak hours. I&M’s base rate for electricity in Michigan is 8.5 cents per kilowatt-hour.
“Clearly, this provides an incentive for PEV owners to recharge PEV batteries at night and on weekends. Being aware of the off-peak hours can help PEV owners realize a true benefit to owning an electric vehicle,” noted Chodak.
To be eligible for the PEV incentives, customers must receive service from I&M and own or lease a PEV that is registered in the State of Michigan.
Customers who are thinking about purchasing a PEV may get more information about electric utility incentives and special pricing by talking to their auto dealership or by calling I&M at 1-800-311-6424.