AES customers file opposition to rate hike settlement
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Unexpected bill increases, lackluster service and budgets already stretched too thin by everyday expenses are among the reasons frustrated AES customers want the utility company's latest rate hike request rejected.
Why it matters: More than 500,000 Indianapolis-area residents could be just a few months away from another increase if a settlement between AES and the city of Indianapolis can withstand the latest wave of formal opposition.
Driving the news: The Indiana Office of Utility Consumer Counselor (OUCC) and ratepayer advocacy group Citizens Action Coalition (CAC) on Friday filed opposition testimony in the pending rate review case with the Indiana Utility Regulatory Commission.
- Alongside the OUCC testimony were more than 180 pages of comments from consumers who say they can't afford to pay more than what AES already collects each month.
What they're saying: "AES Indiana customers, including myself, already experienced a rate increase recently, and another so soon is unreasonable," wrote northside resident Christopher Hartley. "With no ability to choose another utility, residents like me are held captive to these increases."
- "Their corporate greed is going to devastate so many families," wrote resident Kerstin Brucki, who said her family won't be able to afford basic utilities if the increase is approved.
- "Electricity is a fundamental need in today's world, and companies like AES take advantage of that fact to attempt to sell out to companies like BlackRock and other investment firms which only help people with money, not necessarily the general public," wrote Sean Wilson, who has been a customer since 2009. "If this rate case is approved, it won't be fair to the citizens of Indianapolis."
Catch up quick: AES filed a regulatory rate review in June to increase rates for its Indianapolis-area customers by 13.5% over the next year and a half.
- A proposed settlement filed in October lessens the requested increase, so a customer using 1,000 kilowatt-hours per month would see their bill increase by about $10 instead of $21.
- According to AES, the settlement rate adjustment averages 3.35% annually over a two-year period.
- The deal also would prohibit AES from seeking another base rate increase before January 2030.
- The company said the increase is needed to cover rising costs as it makes investments to improve service reliability.
The other side: Standing against the settlement are the CAC, OCUU and some members of the Indianapolis City-County.
- In testimony filed Friday, CAC program director Ben Inskeep called the settlement "a profoundly unbalanced arrangement that benefits AES Indiana and the narrow interests of a small handful of some of its largest electricity users."
- Testimony from OUCC electric division director Brian Latham recommends a $21.2 million decrease from AES Indiana's current rates and expresses concern that the utility company is "not adequately addressing affordability or the need to improve its customer relations."
What's next: After the settling parties file rebuttals with the IURC by Jan. 9, the case has a settlement hearing on Jan. 28, where both sides will present testimony and have their witnesses examined.
- The IURC deadline to make a final decision is June 24, 2026.