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State utility regulators approve agreement to provide lower rate hikes for AES Indiana

By Violet Comber-Wilen

Posted April 18, 2024

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The utility originally requested an increase that would raise customers' bills by more than $17 per month. The approved settlement agreement will increase customers' utility bills by just over $9 per month. (Courtesy of AES Indiana)

A major Indiana utility’s rates will not increase as much as originally requested following a settlement agreement Wednesday. The uncontested settlement agreement has been in the works since late last year.

The Indiana Utility Regulatory Commission approved this agreement, which was made between AES Indiana, the Citizens Action Coalition of Indiana, the city of Indianapolis, and companies like Eli Lilly and Walmart.

AES Indiana said these increases are intended to fund projects that will make the electric grid stronger and more resilient, providing new jobs and economic growth.

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In a statement, the company said it understands the “significant impact” utility bills have on consumers and that it “strives to minimize” these costs.

The order approving the agreement also creates specific protections for consumers when disconnected remotely for non-payment. This includes not disconnecting service on weekends, certain holidays and certain protections for low-income households and medically fragile Hoosiers.

The Indiana Office of the Utility Consumer Counselor said it is appreciative of the settlement, as it lowers prices for consumers and allows AES to continue improving its services.

Violet is our daily news reporter. Contact her at vcomberwilen@wfyi.org or follow her on Twitter at @ComberWilen.