IURC Approves $71 Million Rate Increase for AES Indiana

INDIANAPOLIS — People in Indianapolis are set to see higher electric bills after state regulators approved a rate increase for AES Indiana.

The Indiana Utility Regulatory Commission approved a $71 million base rate increase for the utility, which serves more than 530,000 customers across central Indiana. The approved hike represents about 37% of what AES originally requested.

AES says a household using about 1,000 kilowatt-hours (kWh) a month will pay under $5 more per month. New rates will be implemented in two phases, starting this July with the second phase starting in January 2027.

Customers are expected to see less than a $10 increase per month within the next year. No additional base rate increases can happen before 2030. AES Indiana also agreed to delay system upgrade charges until at least 2028 to ease near-term cost pressures on families.

A different fuel adjustment adds another $9.52 a month through August due to higher fuel costs.

“For more than a decade, AES Indiana has maintained some of the lowest rates in the state through disciplined planning and a focus on efficiency,” said Brandi Davis-Handy, President of AES Indiana. “We appreciate our state leaders prioritizing affordability, and we will continue to work every day to provide affordable and reliable electric service for our customers.”

However, Indiana Governor Mike Braun said he’s disappointed by the IURC’s approval, as families are already dealing with rising expenses