The Indiana Office of Utility Consumer Counselor is telling regulators to deny AES Indiana's $192.9 million rate increase request and instead cut current rates by $21.2 million.
The OUCC filed testimony Tuesday with the Indiana Utility Regulatory Commission after reviewing AES Indiana's case for three months. Eleven OUCC witnesses testified against the utility's proposal.
"AES Indiana has not demonstrated sufficient evidence for an increase in this rate case," said Indiana Utility Consumer Counselor Abby Gray, who was appointed to lead the office by Gov. Mike Braun on Sept. 3. The utility filed this request less than 14 months after receiving approval for its last rate increase in April 2024.
The OUCC is recommending several changes to benefit customers:
Customer service charges: Reduce monthly charges for most residential customers from $17 to $11.25, instead of AES Indiana's proposed increase to $20.
Profit margins: Lower AES Indiana's authorized return on equity to 8.5%, down from the current 9.9%. The utility is seeking an increase to 10.7%.
Staffing costs: Eliminate rate recovery for 105 vacant positions, which the OUCC calls "phantom hires."
Operations: Reduce the utility's proposed expenses for depreciation, operations and maintenance while keeping vegetation management costs at current levels.
The OUCC received more than 6,700 written comments from consumers opposing the rate increase. The Indiana Utility Regulatory Commission held four public hearings in Marion County in August, where 89 AES customers spoke against the proposal.
AES Indiana's rebuttal testimony is due October 7. An evidentiary hearing is scheduled to begin November 3, where attorneys can cross-examine witnesses.
AES gave the following statement:
AES Indiana takes seriously its responsibility to provide safe, reliable, and cost-effective electric service to more than 530,000 customers in Central Indiana. We deeply value customer feedback, and as part of the regulatory process, we are reviewing the OUCC and other intervenors’ testimony filed yesterday regarding the proposed rate review. The existing rate review framework with the Indiana Utility Regulatory Commission ensures transparency around the Company’s investments. AES Indiana will file its rebuttal testimony on October 9, in which we intend to address the concerns raised in the OUCC and intervenor testimony. When we filed our case earlier this year, we included evidence that demonstrated the need for continued prudent investments. These investments allow us to build a reliable and resilient electric system that delivers long-term value to more than 530,000 customers while preserving our position as one of the lowest rates of any investor-owned utility in Indiana.
The IURC is expected to make a final decision in spring 2026.
The OUCC is posting case updates online.
