How Indy's rising electricity bills stack up
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The average Marion County electric bill has gone up by more than 25% over the past five years.
Why it matters: More than 500,000 Indy-area AES customers will find out this month whether their bills will get even higher as a rate hike requested one year ago nears the decision deadline.
By the numbers: Marion County residents spent an estimated average of $126 per month on their home electric bills in April, per an Axios analysis of data collected and shared by climate newsroom Heatmap News.
- That's up about 10% from the average $115 per month spent last April, and up about 27% since April 2021.
Zoom out: Nationwide, Americans spent an average estimated $158 per month on home electricity last year, up 24% from 2022.
- Nantucket County, Massachusetts, ($296) had the highest estimated average monthly electric bills in the continental U.S. in 2025.
- Vanderburgh County had the most expensive power in Indiana, at an average of $188 per month.
State of play: Tensions over rising energy bills and power-hungry AI data centers have emerged as a key political issue in the Hoosier state.
- Earlier this year, the Indiana Office of Utility Consumer Counselor launched an investigation into the affordability of energy bills charged by the state's five largest investor-owned utilities.
- Lowering energy costs was among the top priorities for Gov. Mike Braun and both Democratic caucuses and House Republicans this year.
Zoom in: AES filed a regulatory rate review in June 2025 to increase costs for Indianapolis-area customers by 13.5%.
- The company said the increase is needed to cover operational expenditures and investments to improve service reliability.
Yes, but: A proposed settlement filed in October would lessen 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.
Between the lines: In addition to the city and AES, parties listed as in agreement with the settlement are Walmart, Rolls-Royce Corp. and the AES Indiana Industrial Group, which includes Allison Transmission, Eli Lilly and Co., Indiana University, Ingredion, Marathon Petroleum and Messer LLC.
- Kroger was not a party to the settlement but participated in negotiations and has voiced no opposition.
The other side: The Indiana Office of Utility Consumer Counselor, ratepayer advocacy group Citizens Action Coalition and others stand against the settlement.
- They argued that Hoosiers are already stretched too thin and instead propose a reduction to current base rates.
What's next: The Indiana Utility Regulatory Commission deadline to make a final decision in the case is June 24.