Understanding fuel charges

Important information about your upcoming AES Indiana bill

On June 15, 2023, AES Indiana filed its quarterly Fuel Adjustment Charge (FAC) with the Indiana Utility Regulatory Commission (IURC). The FAC filing reflects expected falling fuel prices which will lower a typical residential customer bill by nearly $6.00 per month.

For a typical residential customer using 1,000 kWh of power, you will see a decrease on your monthly bill of 5% or nearly $6.00. Beginning with the August 31 meter reads, this will be reflected on September, October and November bills. This is the third consecutive rate decrease AES Indiana has filed with the Indiana Utility Regulatory Commission (IURC) in 2023.

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 and continue to impact customers' bills. Please note that AES Indiana does not profit from these higher fuel charges.

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.

What does the fuel adjustment charge mean for me?The price of fuel rises and decreases throughout the year. When it fluctuates, so do our rates. We use fuel to make electricity for you. That’s why you’ll see higher or lower bill prices throughout the year. When the price of fuel goes up, so do our costs. And when fuel prices go down, our prices go down, too.

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 will open October 2, 2023 and be accepted through May 20, 2024 at 5:00 PM Eastern Time 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.