Indiana regulators question energy companies on costs and data centers
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Hoosiers won't see utility rate increases from the sale of AES to an investor group, according to a company spokesperson.
Why it matters: AES Indiana serves more than 500,000 Indianapolis-area residents and they're already bracing for an upcoming increase (if a settlement between AES and the city of Indianapolis gains regulatory approval).
Catch up quick: AES has agreed to be purchased by a group of investors, including a subsidiary of BlackRock.
What they're saying: "No cost related to this transaction will be recovered from ratepayers," AES Indiana President Brandi Davis-Handy said.
- Davis-Handy told commissioners that Global Infrastructure Partners and EQT, the groups leading the acquisition, will be a resource "as we approach this new moment in, not only in our in our industry, but in our state history, to make sure that we are doing everything that we can to grow responsibly and maintain affordability for our customers."
Reality check: If it goes through, the deal won't close until late this year or early 2027.
State of play: The energy company took questions on Tuesday at an investigative hearing of the Indiana Utility Regulatory Commission.
- The commission called for the state's five largest electric investor-owned utilities — AES, CenterPoint Energy, Duke Energy, Indiana Michigan Power Company and NIPSCO — to present on how they charge customers and what they're doing for energy affordability.
- The goal, according to the IURC, is to find short- and long-term solutions for skyrocketing energy costs burdening Hoosiers.
The big picture: With the AI explosion driving rapid data center expansion, the resulting energy demand is raising concerns about supply — and who will pay the bills.
- The companies were largely in tune in their answers about the impact data centers will have on other customers — they won't.
- Davis-Handy said that any costs associated with their rising demand will be charged to the centers and the additional volume could drive costs down.
Between the lines: Each company highlighted steps it's taking to keep energy affordable for customers, but IURC Chairman Andy Zay told reporters they need to do more, saying Hoosiers have lost trust in the industry.
- "They deserve credit and some acknowledgement for [what they do]," he said. "But I think we're at a point now where, collectively, we all need to do a little better."
What's next: The IURC will hold a series of public listening sessions starting Thursday in La Porte, with additional sessions scheduled statewide over the next month.
- Any formal or informal actions will likely come after, Zay said.
- "I'm looking forward to going and meeting Hoosiers where they are," he told reporters Tuesday. "I want to see their bills. I want to understand what their questions are, what their concerns are."