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I&M, Google Filing to Support Reliability Through Demand Response Structure

News Provided by PR Newswire2025-08-04

I&M, Google Filing to Support Reliability Through Demand Response Structure

[04-August-2025]

FORT WAYNE, Ind., Aug. 4, 2025 /PRNewswire/ -- Indiana Michigan Power (I&M), an American Electric Power (Nasdaq: AEP) company, recently filed a special, joint contract with Google, designed to support I&M's capacity needs through clean generation and use of a Demand Response structure. This special contract, which is the result of collaborative efforts between the two organizations, further supports I&M's ability to provide reliable and affordable service for all customers as communities continue to experience significant economic growth.

The contract filed with the Indiana Utilities Regulatory Commission (IURC) on July 30 outlines a custom Demand Response structure, aligning with Google's operating capabilities. By participating in this program, Google will leverage new capabilities that allow it to reduce or shift electricity demand to carry out non-urgent tasks during hours when the electric grid is under less stress.

This offering will be used to reduce I&M's peak load in times of high energy demand, similar to programs currently available to residential and commercial/industrial customers. As a large load customer, Google's participation in this program boosts Indiana Michigan Power's ability to manage electricity demand during peak times. This helps lower overall energy costs, delivering savings to all I&M customers.

"I&M is excited to partner with Google to enable demand response capabilities at their new data center in Fort Wayne, IN. As we add new large loads to our system, it is critical that we partner with our customers to effectively manage the generation and transmission resources necessary to serve them. Google's ability to leverage load flexibility will be a highly valuable tool to meet their future energy needs," said Steve Baker, president and chief operating officer of I&M.

Weather serves as a primary contributor for changing energy demand throughout the year. As energy usage increases, so does the need to balance the demand on the power grid. Demand Response programs target the reduction or shift in energy used by customers out of the peak timeframe. Typically, peak hours, or the time of day when energy use is the highest, are most common on weekdays during the late afternoon and evening timeframe.

"As AI growth accelerates, we recognize the need to expand our demand response toolkit and develop capabilities specifically for machine learning workloads. Working closely with I&M to include load flexibility as part of the overall supply plan, we can support future power needs even where power generation and transmission are constrained. We want to be thoughtful about how we can continue to be a good grid citizen and see this as a vital tool for enabling responsible data center growth," said Amanda Peterson Corio, Global Head of Data Center Energy, Google.

The contract represents a significant commitment by Google to support sustainability and affordability of I&M's electric service, while reducing operational impacts it may have on peak energy needs. If approved by the IURC, this agreement will reduce I&M's long-term generation requirements and financial commitments to benefit all I&M customers.

Google announced plans to build a $2 billion data center in Fort Wayne in April 2024. This investment is among the largest economic development projects in the state of Indiana, bringing significant benefits to local communities.

Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and its approximately 2,000 employees serve more than 600,000 customers. More than 85% of its energy delivered in 2023 was emission-free. I&M has at its availability various sources of generation including 2,278 MW of nuclear generation in Michigan, 450 MW of purchased wind generation from Indiana, more than 22 MW of hydro generation in both states and approximately 35 MW of large-scale solar generation in both states. The company's generation portfolio also includes 1,497 MW of coal fueled generation.

About American Electric Power (AEP)
Our team at American Electric Power is committed to improving our customers' lives with reliable, affordable power. We are investing $54 billion from 2025 through 2029 to enhance service for customers and support the growing energy needs of our communities. Our nearly 16,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 29,000 megawatts of diverse generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

News releases and other information about I&M are available at IndianaMichiganPower.com.