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    Understanding fuel charges

    Street lights in downtown indianapolis indiana Understanding fuel charges

    Important information about your upcoming AES Indiana bill

    AES Indiana recently shared an update regarding the Fuel Adjustment Charge impacting customer bills. This increase, due to rising fuel costs and market conditions, is 12 percent. An AES Indiana customer, using 1,000 kWh of electricity, will see a monthly increase of approximately $15. This increase went into effect with the September billing period, which began with August 30 meter reads (for some billing cycles, this may include usage days as early as July 29). This will be reflected in your AES Indiana bill.

    Natural gas and coal are among the fuels AES Indiana uses to generate electricity. Prices for these fuels have increased substantially over the past year. As a result of this higher charge, our customers’ bills are expected to increase roughly 12 percent. Please note that AES Indiana does not profit from these higher fuel charges.

    We recognize rising prices may present challenges, and we have resources and assistance available to help you through this period.

     

    What is a fuel adjustment charge  and how does it work?

    The cost to provide reliable service to our customers is increasing and is driven by the rising market cost of fuel. The Fuel Adjustment Charge is not new. It is the amount utilities apply on bills based on the varying price of fuel and purchased power costs. These costs are filed quarterly to the Indiana Utility Regulatory Commission and can fluctuate — up and down — based on the cost of fuel. These costs are passed through to customers on a dollar-for-dollar basis in the FAC and do not include a profit for AES Indiana. 

    AES Indiana has helped mitigate the rate impact by spreading recovery of certain reconciling fuel costs over a longer period.  Our priority is to provide you with affordable energy that is reliable and sustainable. We understand that bill increases can be a financial challenge, and we are here to help.

     

    Ways to save Minimizing the impact on customer bills is a priority for AES Indiana. Customers are encouraged to manage usage and cost by utilizing our energy-efficiency programs, including:

    • Home energy reports: Use this web-based tool to receive detailed, personalized information about how to manage your electricity usage, including charts, graphs, and tips.
    • Weatherization and in-home energy assessment: Customers who meet income requirements can receive FREE in-home energy assessments and home upgrades that can help decrease your energy bills and increase your comfort.
    • Energy savings kit: Answer 10 quick questions to receive a free energy savings kit filled with easy-to-install, money-saving products and tips delivered right to your home.

    Check out all the ways AES Indiana can help you manage your energy costs. For current rebates, incentives, and additional questions, visit AESIndiana.com/WaysToSave.

     

    Payment assistance for residential customers

    If you are have trouble paying your bills, one of these programs can help:

    • Budget billing allows customers to pay the same amount for 11 months and then settle the difference on the 12th month.
    • Payment extensions can be requested online at AESIndiana.com or by calling the automated system at 317-261-8222. Preferred Bill Date is offered for AES Indiana customers who want a due date that best matches their paydays.

     

    Other available resources

    • AES Indiana cares about its customers and offers The Power of Change to help income-qualified customers with a one-time grant to assist with electric bill payments when financial challenges occur. The goal is to offer customers a hand-up during a time of need. Visit for more information.
    • Applications open October 1, 2022, for Low Income Home Energy Assistance Program (LIHEAP). EAP is a federally funded program through the U.S. Department of Health and Human Services (HHS) called the Low-Income Home Energy Assistance Program (LIHEAP).
    • Customers are encouraged to contact their local Community Action Agency or dial 211 for utility bill payment assistance or to get help finding lower-cost options.

    FAQs about the FAC rate increase

    What is the rate increase and when does it go into effect?

    The typical AES Indiana customer, one using 1,000 kWh of electricity, will see a monthly increase of $15 due to the increase in our Fuel Adjustment Charge (FAC). This increase went into effect with the September billing period, which began with August 30 meter reads (for some billing cycles, this may include usage days as early as July 29). This will be reflected in your AES Indiana bill.

    What is a Fuel Adjustment Charge?

    The cost to provide reliable service to our customers is increasing and is driven by the rising market cost of fuel. The Fuel Adjustment Charge (FAC) is the amount utilities apply on bills based on the varying price of fuel and purchased power costs. These costs are filed quarterly to the Indiana Utility Regulatory Commission and can fluctuate — up and down — based on the cost of fuel.

    Does AES Indiana profit from this rate increase?

    The Fuel Adjustment charge is a pass through to customers on a dollar-for-dollar basis and does not include a profit for AES Indiana.

    Why is my bill so high when I’m not doing anything differently?

    The cost to provide reliable service to our customers is increasing and is driven by many factors, including the rising market cost of fuel. Global demand and tight fuel supplies, as well as labor shortages are also impacting the cost of the power we produce. This is not a permanent rate increase.

    If I pay for Green Power, why am I charged the Fuel Adjustment charge?

    Customers who opt-in to Green Power pay a small premium in addition to AES Indiana's standard, regulated rate. This premium pays for certified renewable energy credits that offset the environmental impact of electric production from fossil fuels. Your participation in Green Power shows support for further development of renewable energy sources, which will in turn help accelerate the amount of renewable energy coming onto the grid and reduce our reliance on fossil-fueled power for all customers.

    What if I can’t afford to pay my bill?

    We understand that bill increases can be a financial challenge, and we are here to help. AES Indiana offers several resources to help customers manage costs:

    • Budget Billing allows customers to pay the same amount for 11 months and then settle the difference on the 12th month.

    • Payment Extensions can be requested online at AESIndiana.com or by calling the automated system at 317.261.8222. Preferred Bill Date is offered for AES Indiana customers who want a due date that best matches their paydays.

    • AES Indiana cares about its customers and offers The Power of Change to help income-qualified customers with a one-time grant to assist with electric bill payments when financial challenges occur. The goal is to offer customers a hand-up during a time of need. Visit aesindiana.com/power-change for more information.

     

    There are also community resources that can be helpful:

    • The Low Income Home Energy Assistance Program (LIHEAP) is a federally-funded program that offers assistance. Applications open October 1, 2022

    • Dial 211 or contact your local Community Action Agency for utility bill payment assistance or to get help finding lower-cost options.

    When will my rates go down?

    The Fuel Adjustment Charge is filed quarterly to the Indiana Utility Regulatory Commission (IURC) and can fluctuate — up and down — based on the cost of fuel. The next filing will be made to the IURC in September 2022 and will impact rates December, January, and February. We do not know what that rate will be at this point.

    Are there ways I can save on my bill?

    Minimizing the impact on customer bills is a priority for AES Indiana. Customers are encouraged to manage usage and cost by utilizing our energy-efficiency programs including the following:

    • Home Energy Reports: Use this web-based tool to receive detailed, personalized information about how to manage your electricity usage, including charts, graphs, and tips.

    • Weatherization and In-Home Energy Assessment: Customers who meet income requirements can receive FREE in-home energy assessments and home upgrades that can help decrease your energy bills and increase your comfort.

    • Energy Savings Kit: Answer 10 quick questions to receive a free energy savings kit filled with easy-to-install, money-saving products and tips delivered right to your home.

    Check out all the ways AES Indiana can help you manage your energy costs. For current rebates, incentives, and additional questions, visit Ways To Save.

    Why does AES Indiana sponsor so many events when customer bills are increasing?

    AES Indiana and its people are dedicated to making a difference in the communities where we live and serve. AES Indiana makes significant investments in Central Indiana in the areas of arts and culture, education, economic development, environment, customer needs, and diversity equity and inclusion. AES Indiana does not pass on the cost of its community investments or advertising to customers.

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