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    Understanding fuel charges

    Street lights in downtown indianapolis indiana
    Understanding fuel charges

    Important information about your upcoming AES Indiana bill

    On September 15, 2023, AES Indiana filed its quarterly Fuel Adjustment Charge (FAC) with the Indiana Utility Regulatory Commission (IURC). The FAC filing reflects a rise in fuel prices which will increase a residential customer bill by $6.46 per month.

    The monthly bill for a residential customer using 1,000 kWh will see an increase of 5.83% or $6.46 per month due to an increase in the FAC. This increase goes into effect for the December billing period, which will begin with the November 30 meter reads and will be in effect for customers’ December, January and February bills.

    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 driven by the market price of fuel. The Fuel Adjustment Charge is not new. It is the amount utilities apply to 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 cost of fuel used to provide reliable service to our customers is driven by the market price of fuel. The market price of fuel rises and decreases throughout the year. When it fluctuates, so do our costs and our rates. We use fuel to make electricity for you. That’s why you’ll see higher or lower rates throughout the year. When the price of fuel goes up, so do our costs. And when fuel prices go down, our costs 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 the Power of Change page for more information.
    • Applications opened on 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.

    FAQs about the FAC rate increase

    What is a Fuel Adjustment Charge?

    The cost of fuel used to provide reliable service to our customers is driven by the market price 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. When the price of fuel goes up, so do our costs. And when fuel prices go down, our costs go down, too.

    Does AES Indiana profit from a Fuel Adjustment Charge increase?

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

    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.

     

    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. The application date for LIHEAP opened October 2, 2023 and closes May 20, 2024 at 5:00 PM Eastern Time.

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

    Why do my rates change every few months?

    The Fuel Adjustment Charge is filed quarterly to the Indiana Utility Regulatory Commission (IURC) and can fluctuate — up or down — based on the cost of fuel.

    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.

    When was the most recent Fuel Adjustment Charge (FAC)?

    Prior to the December 2023 FAC adjustment, customers experienced an FAC decrease of 5% or nearly $6 per month, which impacted their September, October and November bills.

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