Last year, we wrote about AES Indiana’s request for a two-phase rate increase. (Here’s that original post.) In April, we noted the case was still pending. Now there’s a decision.
On June 17, 2026, the Indiana Utility Regulatory Commission (IURC) voted 3–1 to approve a rate increase for AES Indiana, which serves more than 530,000 customers in Indianapolis and surrounding central Indiana communities. Here’s what it means for your bill.
What Was Approved
The IURC approved a $71 million annual increase in AES Indiana’s revenue. That’s well below what the utility first asked for:
| AES Indiana’s original request (June 2025) | $193 million |
| Earlier proposed settlement | about $90 million |
| State consumer advocate’s recommendation | a $21 million decrease |
| Approved June 17, 2026 | $71 million |
For a typical household using 1,000 kWh a month, AES says the increase will be less than $5 a month per phase, arriving in two steps:
- Phase one: July 2026
- Phase two: January 2027
That means a typical household could pay close to $10 more per month by early 2027 from base rates alone. That’s roughly half of the roughly $21 a month AES originally proposed.
AES also agreed not to put new base rates into effect from its next rate case before 2030.
A Separate Summer Charge to Watch
The base-rate increase isn’t the only change this summer. A separate, temporary fuel adjustment adds about $9.52 a month for a household using 1,000 kWh during June through August. It’s tied to higher natural gas costs during January’s Winter Storm Fern.
Fuel adjustments rise and fall over time, so that piece isn’t permanent. But this summer, many Indianapolis-area households will feel both changes at once.
Not Everyone Is Happy With the Decision
Gov. Mike Braun said he was “deeply disappointed” in the approval, and the day after the vote he called on the state’s consumer advocate to ask regulators to reconsider. The dissenting commissioner argued that the increases fall more heavily on residential customers than on businesses. Whether the decision gets revisited is still an open question, and we’ll keep an eye on it.
It also comes just after Indiana passed HEA 1002, a law focused on utility affordability. That law changes how future rate cases work, starting with multi-year plans in 2030, but this case was decided under the existing process.
What This Means If You’re Considering Solar
We just passed the longest day of the year, and summer is when solar produces the most. It’s also when air conditioning, and now higher rates, push bills up.
Here’s how solar fits for AES Indiana customers:
- Solar you use at home avoids buying electricity entirely. That shields those kilowatt-hours from base rates, fuel adjustments and future increases.
- Excess solar is credited under Indiana’s EDG program, at a rate well below what you pay for electricity. So the best systems are sized to your actual usage, with as much solar as possible used in your home. We explain how EDG works in our HEA 1002 post.
- A home battery can store midday solar for evening air conditioning instead of exporting it, and it keeps your essentials running during summer storm outages.
AES’s commitment to no new base rates before 2030 offers a few years of base-rate predictability, but fuel adjustments and other charges can still change. Solar is a 25-plus-year decision that doesn’t depend on any single rate case.
Get Real Numbers for Your Home
Icon Solar has helped homeowners across Ohio, Kentucky and Indiana go solar since 2009, including throughout central Indiana. We’ll use your actual AES bills to show what solar could save, based on how EDG credits work and how much of your solar you’d use at home.
Learn more about solar in Indianapolis, Carmel, Fishers and Greenwood, see how many solar panels your home may need, explore solar financing options, or request your free quote. You can also call us at (866) 396-4266.
Frequently Asked Questions
How much is the AES Indiana rate increase?
The IURC approved a $71 million annual revenue increase on June 17, 2026. AES says a typical household using 1,000 kWh a month will see an increase of less than $5 per month per phase, with two phases.
When does the AES Indiana rate increase take effect?
Phase one takes effect in July 2026, and phase two takes effect in January 2027.
Will AES Indiana raise base rates again soon?
AES agreed not to implement new base rates from its next rate case before 2030. Fuel adjustments and other charges can still change in the meantime.
Why is my AES Indiana bill higher this summer?
Besides the base-rate increase starting in July, a temporary fuel adjustment adds about $9.52 a month for a 1,000 kWh household from June through August, tied to higher natural gas costs during January’s Winter Storm Fern.
Does solar make sense for AES Indiana customers?
For many homes, yes, especially systems sized to match household usage so most solar power is used on-site. Excess solar is credited under Indiana’s EDG program at a rate below retail, and a battery can help use more of your own solar.
