AES Indiana receives IURC approval to adjust base rates

The IURC order approved an overall customer rate increase of approximately 3.7% over two years. This is lower than the 4.7% increase agreed to by the settling parties in October 2025.  

The 3.7% increase will be implemented in two phases – phase one in July 2026, and phase two in January 2027. For residential customers using 1,000 kWh/month, we anticipate each phase will increase bills by less than $5/month per phase. We are still calculating the specific impact to customers. 

In their order, the IURC made the following modifications to the proposed settlement agreement: 

• Lowered the return AES Indiana can earn on infrastructure investments from 9.75% to 9.5%  

• Reduced funding for vegetation management (tree trimming) to $25.2 million, down from $36.6 million agreed to in October 2025 

The original request was for a 10% increase in rates. The increase that was approved was a 3.7% increase in rates. 

The increase supports continued investment in maintaining and improving the electric system customers rely on every day. These investments help ensure safe, reliable service and support long-term system stability while keeping AES Indiana among the lowest-cost utilities in the state.

Yes, you may have seen a recent change related to our Fuel Adjustment Charge (FAC), which reflects the actual cost of fuel used to generate power and is updated regularly (up or down) based on market conditions. The IURC rate order is different. It covers longer-term investments in our system, like maintaining reliability, upgrading infrastructure, and supporting the state’s energy goals. While both can affect your bill, the FAC is a quarterly pass-through of changing fuel costs, while the rate order reflects the cost of keeping the electric system safe, reliable, and ready for the future.

No. AES Indiana filed its request based on a detailed assessment of the investments and operating needs required to serve customers reliably. The Commission has now made its determination, prioritizing affordability considerations, and we will continue working to provide affordable and reliable service for our customers. Part of the approval includes an overall reduction in tree trimming costs, which will result in an 8-year tree-trimming cycle moving forward, up from the current 5-year cycle.  

The most immediate impact will be lengthening our tree-trimming cycle. We will continue prioritizing safety and reliability and will make investment decisions that best support our customers and system over the long term.

The order provides greater certainty for customers by establishing: 

• No additional base rate increase before 2030 

• A delay of any new Transmission, Distribution, and Storage Improvement Charge (TDSIC) filing until at least 2028

Yes. Separate from this order, customer bills may still be influenced by changes in fuel costs and previously approved investments.

AES Indiana remains committed to supporting customers with tools and resources, including: 

• Flexible payment options and levelized billing 

• Energy efficiency programs and rebates 

• No-cost energy assessments 

• Bill assistance programs 

• Tools that provide real-time insights into energy usage 

We’ve made significant investments to strengthen infrastructure, speed up storm recovery, and avoid outages. For example: 

• During our most recent Level III storm on April 2, 2025, our upgrades helped avoid 39,400 customer outages. 

• During Hurricane Helene in 2024, we avoided close to 30,000 additional outages through smart grid technologies.

Vegetation, like overgrown trees, is the leading cause of outages accounting for approximately 30% of service interruptions. Rising costs and expanded tree trimming programs are necessary to protect reliability. 

We understand customers count on us to keep costs as low as possible and increasing bills can be a financial challenge for our customers. For more information, visit aesindiana.com/payment-assistance.

No. AES Indiana invests over $2 million annually in charitable contributions in Central Indiana funded by AES Indiana shareholder dollars. AES Indiana does not pass on the cost of its community investments or advertising to customers.

No. Additional cost recovery for servicing these customers is not included in AES Indiana’s current rate proposal, and potential large-load customers’ future service is not reflected in the proposed rates. Once large-load customers commit to locating in AES Indiana’s service area and a plan is developed, AES Indiana will seek necessary approvals from the IURC for transmission projects, generation projects, and appropriate rate treatment. This process will include stakeholder input and regulatory oversight.

No. And this rate review does not include any large-load customers like data centers. AES Indiana is obligated to serve all customers in its service territory and sets rates based on a Cost-of-Service methodology. This ensures all customers, including large-load data centers, pay their fair share. The additional usage from large-load data centers can provide a larger base over which to recover the company’s fixed costs of providing electric service.