INDIANAPOLIS — 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.
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 that 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.
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.
