Your electric bill might go up again if AES Indiana gets approval to raise rates.
The company is asking for permission from the Indiana Utility Regulatory Commission to charge about $21 more per month for the typical residential customer.
The estimated increase is based on a customer using 1,000 kilowatt hours. AES has an online bill calculator where you can see what the increase would look like for you.
If approved, AES would raise rates in two phases: first by 7.5% and then 6%. But rate increase cases can take up to a year to make it through the regulatory commission, so the company doesn’t expect customers to be affected until spring 2026.
By the time the full increase would go into effect, your bill could be about 20% more expensive. That’s because customers will see another 6% increase by the end of 2026 for projects AES has already gotten approval for, including a battery storage project in Pike County.
In an email to customers, AES said it’s looking to raise rates to provide more reliable service and address rising costs for material and labor.
“Just like many businesses, our costs have gone up,” the email said, “and this allows us to continue delivering the value and service you expect and deserve.”
You can give feedback to the regulatory commission on the rate increase case.
This is the second time in two years that AES has asked to raise rates. The utility company got permission in 2024 to increase rates by about $9.
It also comes about three months after AES told Mirror Indy it had resolved problems with a new billing system that left thousands of customers with issues such as not receiving a bill and withdrawing the same payment multiple times.
Customers might also see a price hike as AES looks to build new fossil fuel generators. One of those generators could serve a proposed data center in Franklin Township.
AES has more than 500,000 residential and business customers covering Indianapolis and parts of surrounding counties.
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Mirror Indy reporter Tyler Fenwick covers housing and labor. Contact him at 317-766-1406 or tyler.fenwick@mirrorindy.org. Follow him on X @ty_fenwick and Bluesky @tyfenwick.bsky.social.
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