Indiana Michigan Power invests $200 million in local infrastructure
As a result of the recent continuation in the partnership, AEP I&M have chosen to increase the previous $110 million funding from local banks to $200 million.
The transaction will be used to boost aging transmission and distribution infrastructure as well as continue the Cook Nuclear Plant life cycle management program.
A unique beneficiary of this deal is sustainable energy. A portion of the $200 million will be used to construct four emission-free solar generation facilities across the Indiana and Michigan service territory.
“I&M has been pleased with the outcome of this financing strategy and the economic benefit it has in the communities where we provide service,” said Paul Chodak, I&M’s President and Chief Operating Officer. “We look forward to our continued relationship with local banks as we invest in the infrastructure needed to provide our customers with reliable electricity.”
Michigan and Indiana will see 11 banks with more than 395 branches participate in the financing agreement with the giants PNC Financial Services and Fifth Third Bancorp serving as the agent banks. Other banks include:
- Chemical Financial Corporation
- Centier Bank
- 1st Source Corporation
- First Merchants Corporation
- Lake City Bank
- Old National Bancorp
- MutualFirst Financial, Inc.
- Salin Bancshares, Inc.
- STAR Financial Group, Inc.
This unique investment differs from the traditional method of investments in infrastructure as it heavily relies on local banks. More traditionally, larger projects are limited to larger financial institutions with experience. This demonstrates the commitment I&M has to the evolution of economic development.