AES Indiana reaches partial settlement in Regulatory Rate Review reducing proposed increase by more than half

October 16, 2025

INDIANAPOLIS – AES Indiana, a subsidiary of The AES Corporation (NYSE: AES), announces the filing of a settlement agreement in its current rate review proceeding with the Indiana Utility Regulatory Commission (IURC). The agreement comes as a result of a collaborative process with customers and reduces the overall rate request by more than half, ensuring the increase remains in line with inflation. If approved, AES Indiana anticipates remaining among the lowest rates of any investor-owned utility in Indiana.

The current rate review request addresses the rising cost of generating and delivering reliable energy including the rising cost of fuel, equipment, materials, and labor. Additionally, the request covers investments in technologies to modernize the grid, reduce outages, and improve service.

If the current plan is approved by the IURC, a residential customer using 1,000 kWh per month will see a $10 increase.  This rate adjustment averages 3.35 percent annually over a 2-year period.

The partial settlement agreement filed this week outlines AES Indiana’s plan to reduce its overall rate request. Among these changes, AES Indiana has agreed to not implement new base rates until January 1, 2030 after this current rate request is implemented.

“For over a decade, AES Indiana has consistently ranked among the lowest residential rates in the state, and that's not by chance. Despite rising costs, we have been disciplined in our planning through measures like our operations and maintenance costs holding flat for the past five years,” said Brandi Davis-Handy, President of AES Indiana.

“We have a deep commitment to operating efficiently and keeping rates as low as possible. Throughout this process, we’ve listened to stakeholder feedback and evaluated tradeoffs we will make for future investments while minimizing the financial impact of delivering safe and reliable electric service.”

More information on the regulatory rate review and to calculate your potential bill impact using the proposed settlement, visit aesindiana.com/rate-review.

 

Unrelated to this regulatory rate review, AES Indiana’s rates are also impacted by changes in fuel costs and previously approved projects.

 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements include declarations regarding management's intents, beliefs and current expectations and typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "forecast," "target," "will," "would," "intend," "believe," "project," "estimate," "plan," “seek” and similar words. Such forward-looking statements include, but are not limited to, statements with respect to return on and recovery of costs and expenses, the making of regulatory applications and filings, timing of hearings and approvals, strategic objectives, management’s expectations, and other anticipated matters in connection with the settlement and its effects, including those on AES Indiana’s financial performance and condition. Forward-looking statements are not intended to be a guarantee of future results but instead constitute AES Indiana’s current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding timing of events, accurate projections of market conditions and regulatory rates, future interest rates, commodity prices, and continued normal levels of operating performance and electricity volume, as well as achievements of planned productivity improvements and growth investments at expected rates of return.

  

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties, and other factors. Important factors that could affect actual results are discussed in IPALCO Enterprises, Inc.’s (“IPALCO”), filings with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks discussed under Item 1A: “Risk Factors” and Item 7: "Management’s Discussion & Analysis" in IPALCO’s 2024 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read IPALCO’s filings to learn more about the risk factors associated with IPALCO’s businesses. IPALCO and AES Indiana undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law. Any security holder who desires copies of IPALCO’s periodic reports filed with the SEC may obtain copies (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, IPALCO Enterprises, Inc., One Monument Circle, Indianapolis, IN 46204. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. Copies of the periodic reports may also be obtained by visiting AES Indiana’s website at www.aesindiana.com.

 

About AES Indiana 
AES Indiana, an AES Company, provides retail electric service to more than 530,000 residential, commercial and industrial customers in Indianapolis, as well as portions of other Central Indiana communities surrounding Marion County. During its long history, AES Indiana has supplied its customers with some of the lowest-cost, most reliable power in the country. For more information about the company, please connect with AES Indiana on X, Facebook and LinkedIn. For more information about how AES Indiana is accelerating the future of energy, visit aesindiana.com.