AES wants to raise prices. How much will your bill go up?

INDIANAPOLIS — AES Indiana is seeking a rate increase.

On Tuesday, the utility company that provides power to the Indianapolis area announced it filed a petition with the Indiana Utility Regulatory Commission (IURC) for a rate review. The requested rate increase, if approved, would be implemented in two phases with a 7.5% increase in quarter two of 2026 and a roughly 6% increase in January 2027.

So, how much would this raise customers’ bills?

For a residential customer using 1,000 kilowatt-hours per month (around the average customer’s usage), a 13.5% total increase would add an additional $21 per month to their bill.

However, this isn’t the only increase customers should expect to see on their bills. In addition to the requested rate increase, AES Indiana customers will see a 6% bill increase in 2026 due to projects already approved — such as the Pike County Battery Energy Storage System, Petersburg Energy Center and grid improvements scheduled to be completed throughout next year.

“When is enough, enough?” asked Kerwin Olson, executive director of the Citizens Action Coalition. “Indianapolis ratepayers can’t afford what they’re paying today, let alone be forced to pay more. Something has to give.”

AES contends, however, that even if this rate increase is approved, the utility provider still anticipates retaining the “lowest rates of any investor-owned utility in Indiana.”

“We understand that any change in rates can create hardships for our customers,” said Brandi Davis-Handy, president of AES Indiana. “We are committed to working diligently to manage costs responsibly.”

AES said the increase is necessary to address rising operational costs along with future investments, such as vegetation management, storm restoration and technology to enhance grid resiliency.

The utility provider boasted that since December 2023, AES Indiana’s electric grid has avoided more than 117,000 outages thanks to new technology implemented into its grid. This number includes 39,400 avoided outages during the severe storms that rocked central Indiana on April 2.

“The cost to deliver the essential service our customers depend on continues to rise,” said Davis-Handy. “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 longer-term value to our 532,000 customers.”

Olson said that Citizens Action Coalition has only just begun to review the “voluminous” rate review filing.

“We will diligently review the filing and work tirelessly in this case to do all that we can to protect AES ratepayers from monopoly greed,” Olson said.

The IURC ultimately will determine whether or not to grant the rate request, including potentially granting a rate increase at a lower amount. Customers will have a chance to weigh in during the review process, which typically lasts 10-12 months.

More information about AES Indiana’s rate review, along with a bill calculator to determine what each customers’ potential rate increase would be, can be found on their website.

Residents can weigh in by contacting the Indiana Office of Utility Consumer Counselor, who represent ratepayer interests in cases that go before the IURC. Contact information is found here.