Power company AES Indiana has submitted a petition for a rate increase. If approved, its customers will see their bills increase by $21 on average over 2026. Photo from Google Maps.

News Release

INDIANAPOLIS — AES Indiana, a subsidiary of The AES Corporation, filed a petition for a regulatory rate review with the Indiana Utility Regulatory Commission for a roughly $21 rate increase.

If approved by the IURC, AES Indiana anticipates to remain among the lowest rates of any investor-owned utility in Indiana. AES Indiana serves more than 532,000 residential, commercial and industrial customers in and around Indianapolis in an area of 528 square miles.

“For more than a century, AES Indiana has reliably served the needs of customers across Central Indiana,” said Brandi Davis-Handy, president of AES Indiana. “Today, in 2025, the cost to deliver the essential service our customers depend on continues to rise. The rate review process ensures transparency around the investments we’re making to build a more resilient energy future and demonstrates our commitment to delivering long-term value to our 532,000 customers.”

Davis-Handy added, “We understand that any change in rates can create hardships for our customers, and we are committed to working diligently to manage costs responsibly.”

Next steps include a thorough regulatory process where public input in the request can be made. If approved by the IURC, customers can anticipate new rates will be implemented in two phases: 7.5% in Q2 of 2026, and about 6% in January 2027. A residential customer using 1,000 kWh per month will see a total increase of about 13.5% or up to $21 per month.

In addition to this requested rate review, AES Indiana customers will see a 6% bill increase in 2026 compared to bills in 2025 due to approved projects, such as the Pike County Battery Energy Storage System, Petersburg Energy Center and grid improvements forecasted to be complete through 2026.

AES Indiana customers can plan ahead and use the bill calculator on aesindiana.com/rate-review to estimate their new bill based on expected electricity usage and new base rates. Customers will be able to calculate their new rate in both phases of implementation as well as the total effect of the rate base increase.

The IURC will review the request and solicit input from various stakeholder groups and customers. On average, the process takes approximately 10-12 months for the IURC to evaluate the case and reach a decision.

To learn more about the regulatory rate review, visit aesindiana.com/rate-review.