Michigan AG Successfully Opposed Deal between Power Companies That Would Have Cost Customers $11.2 Million

APRIL 12, 2024

Michigan Attorney General Dana Nessel successfully advocated before the Michigan Public Service Commission (MPSC) to prevent $11.2 million in unreasonable costs resulting from what the AG’s office called a “sweetheart deal” between Indiana Michigan Power Company and its own affiliate power generators. In the order it issued, MPSC agreed with AG Nessel’s assessment that this deal would enable the power company to profit from supplying electricity to customers—rather than merely recover the cost it paid to acquire the power. In other words, by “purchasing [power] at inflated prices and passing those costs to ratepayers, they sought to use ratepayer money to enhance earnings” of the shareholders of the power company and the power generators—which are both owned by or affiliated with the same parent company, American Electric Power.