In June, we wrote about the $71 million rate increase approved for AES Indiana. A lot has happened since. State regulators have now agreed to take a second look at that decision.
Here’s what changed, what it means for your bill right now, and how long this is likely to take.
What Happened
- June 17: The Indiana Utility Regulatory Commission (IURC) approved a $71 million annual increase for AES Indiana on a 3–1 vote. AES had originally asked for about $193 million.
- July 7: The state’s consumer advocate, the Office of Utility Consumer Counselor (OUCC), asked the IURC to reconsider. It argued the decision didn’t fully weigh affordability and objected to items like storm costs, more than 100 vacant payroll positions, and the profit rate AES was allowed to earn. The Citizens Action Coalition, a consumer group, filed its own petition.
- Over the summer: The commission itself changed. The commissioner who chaired the June vote was removed as chair and later dismissed, another commissioner who voted yes resigned, and two new commissioners joined.
- Early September: The reconstituted IURC voted 3–1 to reconsider the case. It also agreed to look at two developments that came after the original record closed: Google’s planned data center in Monrovia and the pending BlackRock-led acquisition of AES Indiana’s parent company. Regulators said both could affect AES Indiana’s revenues, investment needs, finances and cost of equity.
- September 17: The parties agreed on a schedule that includes a hearing in early March 2027.
What It Means for Your Bill Right Now
This is the part that’s easy to miss: reconsideration doesn’t pause the increase.
- Phase one took effect July 27.
- Phase two is still scheduled for January 2027, even while the case is pending. The OUCC didn’t ask regulators to put the increase on hold during the review.
After the hearing, the IURC can uphold, modify, clarify, reopen or reverse its June order. There’s no guarantee the outcome changes, and if it does, the details of any adjustment would come later.
In short: plan for the January increase, and watch for a decision sometime after the March hearing.
Why This Case Matters Beyond AES
This case is a window into a bigger question across our region: who pays for the growth in electricity demand? Large new loads like data centers are reshaping utility planning and costs everywhere, from Indiana’s grid to the PJM grid serving Ohio and Northern Kentucky. How regulators handle that here could shape Indianapolis-area bills for years.
It’s also happening alongside Indiana’s new utility affordability law, HEA 1002, which moves utilities to multi-year rate plans starting in 2030.
What You Can Do
Budget for January. Assume the second phase arrives on schedule.
Track your usage, not just your rate. AES offers online tools that show how and when you use electricity. Cutting peak-hour usage helps no matter how the case ends.
Look at the long-term picture. Rate cases, fuel adjustments and grid costs will keep moving. Solar works differently. Every kilowatt-hour your panels produce and your home uses is one you don’t buy from AES, whatever the rate turns out to be.
For AES customers, the best solar systems are sized so most of the power gets used at home, because Indiana’s EDG rules credit excess solar at well below retail. A home battery can help you use more of your own solar in the evening and keep essentials running during outages.
Thinking About Solar in Central Indiana?
Icon Solar has helped homeowners across Ohio, Kentucky and Indiana go solar since 2009, including throughout the Indianapolis area. We’ll use your actual AES bills to show realistic savings, based on how EDG credits work and how much of your solar you’d use at home. No hype, no pressure.
Learn more about solar in Indianapolis, Carmel, Fishers and Greenwood, read our guide to how to pay for solar, or request your free quote. You can also call us at (866) 396-4266.
Frequently Asked Questions
Is the AES Indiana rate increase being reconsidered?
Yes. In early September 2026, the IURC voted 3–1 to reconsider its June approval of a $71 million AES Indiana rate increase. It also agreed to review the effects of Google’s planned Monrovia data center and the pending acquisition of AES Indiana’s parent company.
Will my AES Indiana bill still go up in January?
As of now, yes. Phase one took effect July 27, 2026, and phase two is still scheduled for January 2027. The increase wasn’t put on hold during the review.
When will the IURC make a decision on the AES rehearing?
The schedule includes a one-day hearing in early March 2027. A decision would come after that, so the review is expected to stretch into spring 2027.
Could the AES Indiana rate increase be reversed?
It’s possible but not guaranteed. After rehearing, the IURC can uphold, modify, clarify, reopen or reverse its original order.
Can solar help with rising AES Indiana bills?
Solar reduces how much electricity you buy from the utility. For AES customers, systems sized so most solar is used at home deliver the best value, since excess solar is credited at well below retail under Indiana’s EDG rules.
