AES Indiana Wants Rate Increase
INDIANAPOLIS–The utility company AES Indiana wants the state to allow a 13.5% rate increase over the next two years.
They made that request to help continue their efforts transitioning to wind, solar, and battery storage energies. If the request gets approved, there would be new increases coming in two phases. First, a 7.5% increase would take place in the second quarter of 2026. Then a 6% increase would happen in January 2027. That could amount up to about $21 more each month.
AES Indiana customers would also have to deal with a 6% increase in 2026 compared to bills in 2025 due to approved projects, such as the Pike County Battery Energy Storage System, Petersburg Energy Center, and grid improvements.
The Indiana Utility Regulatory Commission will review the request and will also get feedback from customers. That commission normally reaches a decision in anywhere from 10 to 12 months.
AES Indiana also says their electric grid has been upgraded in recent years with new equipment and technology that has proven successful. AES Indiana claims they have avoided more than 117,000 outages since December 2023. This includes more than 39,400 avoided outages during severe storms in Central Indiana on April 2, and close to 30,000 avoided outages during Hurricane Helene in 2024.
“For more than a century, AES Indiana has reliably served the needs of customers across Central Indiana,” said Brandi Davis-Handy, President of AES Indiana. “Today, in 2025, the cost to deliver the essential service our customers depend on continues to
rise. 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.”
Davis-Handy added, “We understand that any change in rates can create hardships for our customers, and we are committed to working diligently to manage costs responsibly.”
AES Indiana provides electric service to the city of Indianapolis.
