AES rate hike could mean higher food prices at favorite restaurants

SPEEDWAY, Ind. — The Indiana Utility Regulatory Commission is holding its second public meeting Thursday night to allow Indianapolis residents to speak on AES Indiana’s proposed rate hike.

The price hike would not only affect households but also businesses. Dawson’s on Main is a popular restaurant in Speedway, but now their main concern is their current electric bill and what’s to come.

“12% is a monster rate hike,” said Tony Hill, owner of Dawson’s on Main.

Hill is one of many business owners not pleased about the proposed rate hike coming from AES. Over the last two months, Hill has paid $4,300 in June and $4,600 in July for his electricity. Just last year, Hill was paying $3,100 and $3,500 during those same months. That increase is a cost he doesn’t want to pass on to his customers.

“If I did 12% in a year, and then I turned around next year and did 12% again the following year, my customers would go crazy,” Hill said.

The restaurant has been in business for close to 20 years, and paying to keep the lights on is getting more expensive.

AES is proposing a rate hike that would happen in two phases. A 7.5% increase in the second quarter of 2026, and a 6% increase in January 2027. A public meeting was held on Monday and AES spoke with FOX59/CBS4. They said that the increase would come out to $21 extra each month.

“That’s going to be for an average customer,” said Mallory Duncan, communications strategist with AES. “That is a calculation based on 1,000 kWh per month usage. And that’s about average for an AES customer.”

To compare how much more businesses would have to sell just to cover that cost, Hill said he’d have to sell about 350 tenderloins just to cover his electric bill, and that still wouldn’t cover all of his costs. He sees businesses having to make tough decisions about raising prices or closing their doors.

“At some point, the restaurants are going to have to make a decision,” Hill said. “Do I raise my prices? Or do I just shut the doors? And I’m telling you, that’s coming. A lot of small businesses that haven’t been in the business for a long time are going to realize that.”

AES said they’re seeking to raise rates due to the rising costs of materials, labor and infrastructure. The utility commission is expected to make its decision on the rate proposal early next year.