Indiana Michigan Power (I&M) has requested approval from the Indiana Utility Regulatory Commission (IURC) to acquire the Big Sandy Peaker Plant. The plant is a 318-megawatt (MW) natural gas existing combustion turbine generation facility located in Kenova, West Virginia.
The proposal to acquire the Big Sandy Peaker Plant is a component of I&M’s Future Ready plan, which details the resources needed to provide I&M customers with reliable and affordable energy today and into the future. The cost of the project will not impact I&M’s ability to request a reduction in base rates as well as a multi-year freeze of non-fuel rates for Indiana customers.
The filing is being made under I&M’s Expedited Generation Resource (EGR) Plan, which allows the company to seek timely and efficient resource approvals for projects that meet pre-established criteria. I&M’s EGR Plan received approval from the IURC in January 2026, positioning I&M to be more competitive in securing the generation resources necessary to meet its growing customer needs and maintain reliable and affordable service for all customers. The Big Sandy Peaker Plant is the first generation resource expected to be purchased using this process. The facility is distinct from the Big Sandy Power Plant in Louisa, Kentucky which is operated by Kentucky Power.
I&M anticipates a decision from the IURC in September 2026. Customers would benefit from the plant by the end of 2026 under this timeline.
“We are taking a customer-focused approach to secure the generation resources we need to be able to deliver affordable, dependable power across our service areas,” said Dave Lucas, I&M’s vice president of Generation Transformation, Strategy, and Growth. “Our communities are growing, so we’re moving quickly to bring facilities like the Big Sandy Peaker Plant into our portfolio, meet our customers’ needs and lower costs in every way we can.”
I&M is navigating an unprecedented time in history. As the company looks ahead, power demand is expected to more than double the Indiana peak from approximately 2,800 MW in 2024 to more than 7,000 MW in the 2030 timeframe. The rapid growth in energy demand provides an opportunity for I&M to reshape the way it serves current customers and those the company will serve decades into the future.
I&M’s generation portfolio incorporates a diverse mix of resources, including solar, wind, nuclear, natural gas, coal and hydroelectric units. The company’s vision for the future is to implement a comprehensive approach to providing a reliable, resilient, and stable electric power system that customers can access affordably.
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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 2024 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.
American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We expect to invest $72 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 17,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 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 32,000 megawatts of diverse owned and contracted 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.