INDIANAPOLIS — Opposition to the AES Indiana rate settlement has grown significantly among Indianapolis City-County Councilors, with 23 of 25 now opposing the proposal.
The bipartisan opposition represents a notable increase from the 16 councilors who previously voiced opposition to AES Indiana's rate hike plans.
"In a bipartisan effort to support Indianapolis residents, 23 of 25 Councilors signed letters opposing AES Indiana's proposed rate increase. The Council stands together in calling for a fair and transparent process," the council posted on X Tuesday.
AES Indiana has reached a partial settlement in its regulatory rate review that reduces the proposed increase from approximately $21 to $10 per month for residential customers over two years.
The Indiana Utility Regulatory Commission (IURC) must still approve the agreement. If approved, customers using 1,000 kWh monthly would see a $10 increase by 2027 – averaging 3.35% annually over two years.
One councilor who spoke with WRTV said they don't think the city should be negotiating on something that nearly all legislators from the body did not agree with, noting that last week the councilors signed a special resolution calling on AES to withdraw the rate increase entirely.
WRTV was told the city's role was focused on negotiating streetlight rates, not residential rates.
In an emailed statement, Mayor Joe Hogsett had this to say on Indy DPW's intervention on streetlight rates:
“I applaud the Indianapolis Department of Public Works for its work to secure a settlement that will ensure millions of dollars in savings for taxpayers over the next several years. Taxpayers want their dollars to go toward the functions of government that matter to them most, like maintaining our streets and roads. These cost savings on city streetlights mean more dollars can be dedicated elsewhere in the city’s operating budget going forward.”
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According to AES, the settlement addresses rising costs for fuel, equipment, materials and labor, plus grid modernization investments to reduce outages and improve service.
Consumer advocates oppose deal
The Citizens Action Coalition (CAC) is urging the IURC to reject the settlement, calling it an "unfair and unbalanced deal."
CAC argues residential customers would bear disproportionate rate increases of 6.51%, while large commercial and industrial customers would see smaller increases of 3.19% to 4.12%.
"We will vigorously oppose this unfair and unaffordable deal," said Kerwin Olson, CAC's executive director. "Hoosiers have had enough with AES Indiana's poor service, soaring bills, and backroom deals."
CAC also criticized the settlement for inadequately addressing billing system problems since November 2023, which left tens of thousands without proper bills.
"For over a decade, AES Indiana has consistently ranked among the lowest residential rates in the state," said Brandi Davis-Handy, AES Indiana president. She noted the company's operations and maintenance costs have remained flat for five years.
Mayor Hogsett released this statement on the residential rate change request from AES:
“While I am encouraged that AES Indiana has taken some steps to lessen the burden on residential customers, like not increasing fixed monthly charges and revising their rate change request, it is of the utmost importance that electric costs remain affordable for all in our city.”
Under the agreement, AES Indiana commits to not implementing new base rates until January 2030. A final IURC decision is expected in late spring 2026.
