Advocates prepare residents for AES rate hike fight

Axios

2 days ago

Now is the time for Indianapolis residents concerned about the looming AES Indiana rate hikes to speak up.
Why it matters: The utility company says its latest proposal would translate to a $21 monthly increase for a residential customer using 1,000 kWh.
Ratepayer advocacy group Citizens Action Coalition (CAC) warns that the real cost would be even higher, based on a recent analysis, and is urging customers to fight back.
According to a CAC assessment of U.S. Energy Information Administration data, the average AES Indiana residential customer uses approximately 896 kWh of electricity per month.
Threat level: According to CAC executive director Kerwin Olson, nearly half (49%) of AES customers in Indianapolis have been sent a disconnection notice through the first six months of 2025.
21,000 households have been disconnected and 43,000 customers were reported to collection agencies for delinquent utility bills, including 37,000 in June.
What they're saying:"That is a clear indication that folks cannot afford an essential human service that is necessary for folks to participate in society in a meaningful way," Olson said.
"We're not talking about streaming subscriptions. We're not talking about cable TV. We're not talking about Xbox. We're talking about electricity to keep the lights on, keep the milk fresh, take a hot shower, keep your house warm in the wintertime and cool in the summertime."
State of play: AES filed a regulatory rate review with the Indiana Utility Regulatory Commission in June to increase rates by 13.5% over the next year and a half.
If approved as is, the rate hike would roll out in two phases with the first being a 7.5% increase in April and the second a 6% increase in January 2027.
In addition, AES Indiana customers will see a 6% bill increase next year because of approved projects like the Pike County Battery Energy Storage System, the Petersburg Energy Center and grid improvements to be completed throughout 2026.
Zoom in: AES said the increase is needed to cover rising costs as the company makes investments in areas like vegetation management, storm restoration and technology to improve service reliability.
"The rate review process ensures transparency around the investments we're making to build a more resilient energy future and demonstrates our commitment to delivering long-term value to our 532,000 customers," AES Indiana president Brandi Davis-Handy said in a statement.
"We understand that any change in rates can create hardships for our customers, and we are committed to working diligently to manage costs responsibly."
Yes, but: CAC and frustrated customers at a recent town hall held by the nonprofit said the service they're already paying for isn't cutting it, and attempts to add efficiency have only led to more problems.
A common topic at the town hall was ongoing billing issues, caused by a system upgrade AES rolled out in late 2023, that resulted in customers being charged up to 10 times for the same monthly bill.
Attendees said they are also experiencing sticker shock as summer energy bills come in two or three times higher than what they paid in 2024, and are upset with slow restoration times after major storms.
What's next: Customers will have multiple opportunities to voice their opinions over the next few weeks.
The first of four public field hearings organized by the IURC to discuss the proposal starts at 6pm Monday at the Indianapolis Public Library's West Perry Branch.
The remaining hearings will take place 6pm Thursday at Southeast Community Services, 6pm Aug. 25 at New Augusta North Public Academy and 6pm Aug. 27 at The Fort Event Center at Fort Harrison State Park.
The Indiana Office of Utility Consumer Counselor is accepting written comments online through Sept. 2.
[email protected]; or faxed to [phone].
The deadline for the IURC order is March 30, 2026.