Advocate wants I&M rate hike stopped

FORT WAYNE, Ind. (AP) - Indiana's state advocate for utility consumers has recommended that Indiana Michigan Power receive only one-eighth of the rate hike it is seeking.

The Indiana Utility Regulatory Commission is considering a request that I&M says would increase a typical bill by just over 22 percent. The utility says the request would produce about $174 million in new annual operating revenue, but the Indiana Office of Utility Consumer Counselor wants that capped at $22 million.

Consumer counselor David Stippler says the utility hasn't demonstrated the need for such a large increase on its nearly 460,000 customers in northern Indiana.

I&M spokesman David Mayne tells The Journal Gazette ( http://bit.ly/JIzGR1 ) the utility has spent $440 million on its system since its last rate increase and deserves a fair recovery on that investment.