INDIANAPOLIS — AES Indiana filed for a decrease in its quarterly Fuel Adjustment Charge with state regulators.
If approved by the Indiana Utility Regulatory Commission (IURC), the monthly bill for a typical residential customer using 1,000 kWh will decrease approximately 3% or $4.13 per month. The reduction would take effect with the March billing period, beginning with February 27, 2026 meter reads and lasting through May bills.
The decrease comes as market prices for natural gas have dropped, providing what AES Indiana calls "welcome relief" for customers during the winter months when energy usage typically increases.
"Affordability of electric service is especially critical during the winter months when extreme cold can drive more energy usage and higher bills," said Brandi Davis-Handy, President of AES Indiana. "This FAC decrease comes at the right time, providing some relief for customers as we head into winter."
How Fuel Charges Work
The Fuel Adjustment Charge reflects the varying market price of fuel and purchased power costs. These are pass-through costs that utilities use to cover fuel expenses, and AES Indiana does not mark up the cost of gas and electricity purchased on behalf of customers.
The charges are filed quarterly with the IURC and can fluctuate based on fuel market conditions. When natural gas prices drop, those decreases are reflected in customer bills.
Timing Amid Rate Controversy
The fuel charge reduction comes as AES Indiana faces ongoing opposition to a separate rate increase proposal. In October, 23 of 25 Indianapolis City-County Councilors opposed a settlement that would have increased residential rates by approximately $10 per month over two years.
Consumer advocates have also criticized AES Indiana for billing system problems that began in November 2023, leaving tens of thousands of customers without proper bills for months.
The fuel adjustment charge decrease is separate from the base rate case currently under review by regulators. A final IURC decision on the base rate increase is expected in late spring 2026.
