Pending AES regulatory rate review and customer impact

For more than 100 years, the residents and business-owners here in Central Indiana have trusted our local utility to power the important needs of your daily lives. While AES Indiana changed its name two years ago, the professionals working behind the scenes to serve customers have remained the same.

As members of the AES Indiana Advisory Board, we have a unique opportunity to see what goes into “keeping the lights on” while also keeping costs as affordable as possible for customers. We also see how AES Indiana has navigated the energy transition in a way that incorporates cleaner fuels. In 2025, AES Indiana is on a path to be the first investor-owned utility in the state to transition to zero coal.

Recently, AES Indiana filed a regulatory rate review petition with the Indiana Utility Regulatory Commission (IURC) to cover completed reliability investments, rising operational costs, and customer service investments. As the Advisory Board, we help hold the utility accountable to the community and in doing so, we see the opportunities and challenges of running an electric utility and support AES Indiana’s rate review.

Unlike most companies that can raise their rates as they deem appropriate, a rate case is the way utilities change their pricing. For regulated utilities, the IURC reviews each pricing change and determines if the utilities’ costs are prudent and, if so, a new rate is granted.

To their credit, AES Indiana has consistently offered the lowest rates of any investor-owned utility in Indiana.  And like all of Indiana’s utilities and businesses, when the cost to provide service increases, base rate increases are necessary to keep pace with the increasing costs of resources. AES Indiana’s rate request is in line with other Indiana utilities' requests, demonstrating the cost of providing efficient, reliable electricity today.

Pending approval from the IURC, a residential customer using 1,000 kWh a month will see a $17, or approximately 13%, increase beginning the summer of 2024. AES Indiana’s residential rates are on track to continue to remain below both the state and national averages. By comparison, other Indiana residents’ electric rates are up to 8%, 27% and even 32% higher than AES customers.

As with all companies that are focused on operating and serving customers at their best, AES Indiana is using the challenges of this summer’s storm experiences to evolve and improve, and to continue to serve the needs of customers in reliable and sustainable ways.

As part of its petition, the IURC held two public hearings to gather input from AES customers. Additionally, AES hosted four customer open house events for customers to receive information and ask questions.

We know cost increases are rarely welcome, but we wholeheartedly appreciate the utility professionals who work every hour of every day to power our needs and improve our community by providing safe and reliable energy solutions. We encourage you to visit aesindiana.com/rate-review to learn more about the Rate Review.

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AES Indiana Advisory Board

Dan Elsner

Juan Gonzalez

Jim Morris

Sam Odle

Joyce Rogers