AES Indiana seeks 13.5% rate hike to cover storm response, infrastructure and inflation
AES Indiana is requesting state approval for electricity rate hikes that will increase residential bills 13.5% by January 2027.
The increases, if approved, will be rolled out in two phases: a 7.5% hike in the second quarter of 2026 and a final 6% increase in January 2027.
The company says tree trimming and storm response, infrastructure investments, inflation and rising costs are driving these new rates. AES Indiana provides electricity service to Hoosiers mainly in Marion County with some parts of its territory stretching into surrounding counties.
The proposed rate hikes will generate about $193 million in annual revenue for AES, according to the utility's filing with the Indiana Utility Regulatory Commission.
'Today, in 2025, the cost to deliver the essential service our customers depend on continues to rise,' Brandi Davis-Handy, president of AES Indiana, wrote in a statement about the request. 'The rate review process ensures transparency around the investments we're making to build a more resilient energy future and demonstrates our commitment to delivering long-term value to our 532,000 customers.'
The regulatory process for the requested rate hike will take some time, but public hearings are expected to begin in August for customers to provide input to the IURC.
Kerwin Olson, executive director of consumer advocacy group Citizens Action Coalition, said AES customer bills are already going up substantially due to a 2020 rate increase, and this new decision is like pouring salt on the wounds of customers already struggling with expensive bills.
'I think this (rate request) was definitely more about Wall Street than getting power to Main Street,' Olson said.
The company is an investor-owned, for-profit utility. Its parent, AES Corporation, also operates in South America, Europe and Asia.
The rate hike request includes notable disparities between the burdens being asked of residential customers and those of industrial customers, who Olson said will see less of an increase on bills.
'That seems unfair, especially understanding the affordability crisis households are facing today,' Olson said, 'and there is nothing in the case related to assisting or helping low-income customers with bills.'
Davis-Handy, in the AES statement, said the company understands rate changes can create hardships for customers, and they 'are committed to working diligently to manage costs responsibly.'
The Indiana Office of Utility Consumer Counselor requested the IURC hold multiple public hearings before August 28 where customers can share their concerns 'due to the magnitude of AES Indiana's request,' according to documents filed with the regulator.
Multiple state lawmakers and Indianapolis City-County Council members also sent letters to the OUCC requesting multiple public hearings. The IURC has not made a ruling on if and when any public meetings will take place.
Olson said the CAC and OUCC websites will be updated when the meetings are announced.
IndyStar's environmental reporting project is made possible through the generous support of the nonprofit Nina Mason Pulliam Charitable Trust.
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