Hoosiers Could See Energy Bills Rise

AARP Indiana and other consumer advocates are opposing a proposed electricity rate increase by AES Indiana, which serves the Indianapolis area.

In mid-October, as part of an ongoing rate case under review by regulators, AES announced a partial settlement agreement with the city of Indianapolis and local businesses. The company agreed to reduce its initial rate increase request by more than half — so that over a two-year period, a residential customer using 1,000 kilowatt hours per month would see a $10 increase. AES’ original proposal would have increased monthly bills for residential customers up to $21 per month.

AES argues the rate hike is needed to address the rising costs of fuel, equipment, materials and labor, as well as to cover investments in new technologies.

The Indiana Office of Utility Consumer Counselor, which advocates for customers, is urging regulators to deny AES’ rate increase request. The state agency says that the settlement agreement shows AES’ initial request was inflated and unnecessary. The agency says its analysis shows AES should reduce current base rates by $21.2 million.

The Indiana Utility Regulatory Commission is expected to make a decision by June 24. Go to aarp.org/inutilities to learn more.