AES Indiana seeks rate review to address rising operational costs and future investments

June 3, 2025

INDIANAPOLIS – AES Indiana, a subsidiary of The AES Corporation (NYSE: AES), filed a petition for a regulatory rate review with the Indiana Utility Regulatory Commission (IURC) to continue making necessary and prudent investments to best serve our customers with cost-effective and reliable electric service. If approved, AES Indiana anticipates to remain among the lowest rates of any investor-owned utility in Indiana.

AES Indiana continues to deliver on our commitment of safely, reliably and affordably serving our customers. Continued investments in our decade-long energy transition, including generation investments, such as wind, solar, and battery storage, are a major driver in this request to the IURC. Additionally, the company continues to invest in operations and maintenance costs, including vegetation management, storm restoration, and technology to enhance grid resiliency and reliability.  

AES Indiana’s electric grid has been upgraded in recent years with new equipment and technology that has proven successful. AES Indiana has avoided more than 117,000 outages since December 2023. This includes more than 39,400 avoided outages during severe storms in Central Indiana on April 2, and close to 30,000 avoided outages during Hurricane Helene in 2024.

“For more than a century, AES Indiana has reliably served the needs of customers across Central Indiana,” said Brandi Davis-Handy, President of AES Indiana. “Today, in 2025, the cost to deliver the essential service our customers depend on continues to rise. The rate review process ensures transparency around the investments we’re making to build a more resilient energy future and demonstrates our commitment to delivering long-term value to our 532,000 customers.”

Davis-Handy added, “We understand that any change in rates can create hardships for our customers, and we are committed to working diligently to manage costs responsibly.”

Next steps include a thorough regulatory process where public input in the request can be made. If approved by the IURC, customers can anticipate new rates will be implemented in two phases: 7.5% in Q2 of 2026, and about 6% in January 2027. A residential customer using 1,000 kWh per month will see a total increase of about 13.5% or up to $21 per month.

In addition to this requested rate review, AES Indiana customers will see a 6% bill increase in 2026 compared to bills in 2025 due to approved projects, such as the Pike County Battery Energy Storage System, Petersburg Energy Center and grid improvements forecasted to be complete through 2026.

AES Indiana customers are encouraged to plan ahead and use the bill calculator on aesindiana.com/rate-review to estimate their new bill based on expected electricity usage and new base rates. Customers will be able to calculate their new rate in both phases of implementation as well as the total effect of the rate base increase.

The IURC will review the request and solicit input from various stakeholder groups and customers. On average, the process takes approximately 10-12 months for the IURC to evaluate the case and reach a decision. To learn more about the regulatory rate review, visit aesindiana.com/rate-review.

###

About AES Indiana 
AES Indiana, an AES Company, provides retail electric service to more than 532,000 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.