AES rate hikes hit struggling Hoosiers
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The cost of electricity in Indianapolis is climbing at a time when more than 40% of residents are struggling to cover their daily expenses.
Why it matters: AES Indiana getting the green light to raise rates twice in the past month is creating new costs for tens of thousands of Marion County households already living in poverty.
The latest: The Indiana Utility Regulatory Commission (IURC) approved a $71 million annual revenue increase for AES Indiana last week.
- That's down from the $193 million the company originally requested in June 2025, but it's still enough to add nearly $5 per month to the typical household's bill when phase one takes effect in July.
- That base-rate hike will be added to a separate temporary fuel adjustment increase of $9.52 per month for households using 1,000 kWh. The fuel adjustment for June-August is driven by higher natural gas costs resulting from Winter Storm Fern in January.
State of play: The average Marion County electric bill has already gone up more than 25% over the past five years, and more people are having trouble making ends meet.
- According to a new study from United Way, an estimated 38% of Hoosier households are below what the nonprofit calls the ALICE Threshold, meaning they don't have enough to afford basic needs like housing, food, health care or transportation.
Stunning stat: In Marion County, 41% of households fall under the ALICE Threshold, and more than 59,000 households are living in poverty.
Between the lines: Before the pair of approvals, customers hoped for lower bills after Gov. Mike Braun took aim at utility affordability in his State of the State address and supported legislation to manage electricity costs.
- Saving money was also a rallying cry of the new-look IURC, which earlier this year launched an unprecedented investigation into how the state's five largest investor-owned utilities were charging customers.
Yes, but: The IURC settlement approval handed down last week drew harsh criticism from Braun, the Indiana Office of Utility Consumer Counselor (OUCC), state Rep. Cherrish Pryor (D-Indianapolis) and others.
What they're saying: "It's the same old, same old. And from where I sit, this situation is a call for more policy from the Indiana General Assembly," Kerwin Olson, executive director of consumer advocacy organization Citizens Action Coalition, tells Axios.
- "We remain one of the very few states where our regulators are not directly elected by the public or confirmed by one or both chambers of the General Assembly. These regulators are effectively unaccountable for the public."
What's next: Braun has called for a rehearing of the case, and the OUCC has indicated a petition for rehearing will be filed.
The bottom line: "I know the public sometimes gets discouraged ... but don't lose faith," Olson says. "There's no question that ratepayers are being heard, and the time is now, so let's keep it going."