Your AES bill will increase starting this summer.
The utility company got permission to raise rates in two phases: once in July and again in January 2027.
For a typical residential customer using 1,000 kilowatt hours of electricity, AES Indiana estimates that the total increase will be about $9.50 per month.
You can see how many kilowatt hours you’ve used by looking at your bill.
Consumer advocacy group Citizens Action Coalition estimates that bills will be about $23 more expensive compared to May 2025, the month before AES filed its petition to raise rates.
The increase will allow AES to earn about $71 million more per year. The company says it needs more money because of rising costs for material and labor.
The Indiana Regulatory Commission approved the increase June 17.
How did we get here?
The rate increase comes from an agreement AES made with the city of Indianapolis and some large companies, including Walmart and Eli Lilly.
Originally, AES wanted to increase rates by an estimated $21 for a customer using 1,000 kilowatt hours per month.
As part of the settlement, AES agreed to hold off on more rate increases until at least 2030. But rates can still change periodically because of something called “trackers,” which are fees that can go up and down throughout the year depending on usage.
Gov. Braun wants another hearing
Gov. Mike Braun criticized the commission’s ruling to raise rates for AES customers, calling it “unacceptable” in a statement.
Braun, a Republican, went on to remove regulatory commission chair Andy Zay, who voted to approve the increase. Zay left his state Senate seat earlier this year to take the position.
Braun appointed commissioner Anthony Swinger, who recused himself from the AES vote because he used to work for the Office of Utility Consumer Counselor. The office represents the public in rate cases.
Braun also asked the Office of Utility Consumer Counselor to file a petition for reconsideration of the case.
Indiana Utility Consumer Counselor Abby Gray said in a statement that her staff “will work diligently to make this filing.”
The filing is due by July 7.
Didn’t I just read about another AES increase?
Yes, but that one is different. And it isn’t permanent.
The company got permission earlier this month to charge more through August as part of an adjustment for the cost of fuel.
For a household using 1,000 kilowatt hours of electricity, AES estimated an increase of $9.52 per month.
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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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