AES Indiana wants you to pay $23+ more per month on your electric bill!

In June 2023, AES Indiana filed a new base rate case before the Indiana Utility Regulatory Commission (IURC). AES claims this case will result in a bill hike of $17.49/month, but according to our math, it will be a hike of $23+/month.


down power linesIn March 2020, the Indiana Utility Regulatory Commission approved AES's request to hike customer bills by $1.2 billion to upgrade its transmission and distribution grid, setting the stage for seven straight years of rate increases to pay for the improvements. Those increases are in addition to this new request. And now, there are concerns and questions about AES's quality of service when in late June and early July 2023, power to 80,000 AES customers was knocked out, and nearly 4,000 of those customers were without power for 5 whole days.


If AES has been using that money to improve the grid, why were so many customers without power for so long?


What are they doing with the $1.2 billion? AES does NOT deserve another massive rate increase.


AES-Indiana monthly billsIn Cause Number 45911, AES is asking the IURC for permission to hike rates by over $23 per month so they can raise their annual operating revenues by $134.2 million, and significantly increase their profit margin.





In this case, AES wants to:

  • Increase their authorized return on equity (profit) from 9.99% to 10.6%
  • Increase the monthly fixed charge for most customers to $25 per month, a 49% increase. This would give AES the highest monthly fixed charge of any investor-owned monopoly utility in Indiana, by far.
  • Increase the fixed charge for low usage customers (those using 325 kilowatt hours or less per month) by 34% to $16.50.
  • Use their newly installed smart meters to remotely disconnect residential customers.
  • Increase household reconnection fees from $44 to $51 ($64 to $80 for Sunday reconnections).
  • Force Hoosier households to pay higher rates to subsidize lower rates for large commercial and industrial customers.
  • Force customers to pay for the $5 million they're planning to spend on consultants and lawyers to help them argue for this rate increase.





AES wants to hike your monthly fixed charge by almost 50%.

As part of this rate hike, AES wants to hike your monthly fixed charge from $16.75 to $25. The monthly fixed charge is the amount you pay regardless of how much energy you use. 

AES also wants to continue using declining block rates, which reward customers using more energy with lower rates.

High fixed charges  and declining block rates disproportionately impact low- and fixed-income households (seniors, people with disabilities and other vulnerable populations). They also penalize households that conserve energy and make their homes more energy efficient.





AES Base Rates Comparison

for a customer using 1,000 kilowatt hours of electricity per month 

   Current Bill   Proposed Bill 
   Charges & Rates   Total Bill   Charges & Rates   Total Bill 
 Fixed Charge:  $16.75 $16.75 $25.00 $25.00
 First 500 kW hours: 
$0.104854 $52.43 $0.129954 $64.98
 Each kW over 500 hours: 
$0.089389 $44.69 $0.114489 $57.24
   Total:  $113.87  Total:  $147.22
   Increase:  $33.35

This is the core of your electric bill - what you are charged for fixed costs and usage fees. This part of your electric bill makes up about 90% of your current total AES bill. 



Trackers: the other 10% of your AES bill not included in "base rates."

These trackers, also called “riders,” are currently included in your AES bill, added to the average bill you see above. AES wants to include most of the amounts they’re currently collecting through trackers into “base rates” going forward. Then they want to file for new amounts to be collected through these trackers shortly after the IURC approves the new base rates. Except for the DSM tracker, how much the trackers will be on your monthly bill is unknown to everyone but AES.


 For the average customer using 1000 kilowatt hours (kWh) of electricity per month.  Current Trackers Proposed Trackers
  Charge per kWh Total Avg. Bill Charge per kWh Total Avg. Bill
Fuel Cost Adjustment (FAC)  $0.002863 $2.86 ??? ???
Regional Transmission Organization (RTO)  $0.000278 $0.28 ??? ???
Capacity Adjustment (CAP) 
$0.001886 $1.89 ??? ???
Demand-Side Management Adjustment (DSMA) 
$0.004519 $4.52 $0.002734 $2.73
Environmental Compliance Cost Recovery Adjustment (ECCRA)  $0.000723 $0.72 ??? ???
Transmission, Distribution, and Storage (TDSIC)  $0.003514 $3.51 ??? ???
Off-System Sales Margin Sharing (OSS)  -$0.001346  -$1.35  ??? ???
Total:  $12.44  Total:  $2.73+?



Total AES Bill Comparison, Including Trackers:

 1000 kWh Current Bill Proposed Bill
   Charges & Rates   Total Bill   Charges & Rates   Total Bill 
Monthly Fixed Charge:  $16.75 $16.75 $25.00 $25.00
Base Rates per kWh:  $0.097 $97.12 $0.122 $122.22
Trackers per kWh:  $0.012 $12.44 ??? $2.73+?
  Total:  $126.31 Total:   $149.96+? 



Campaign Tools

Take Action:

Speak out at the upcoming public field hearing!


We send out a huge THANK YOU to all the people who testified at the first public field hearing!



Tell the Office of Utility Consumer Counselor (OUCC) to oppose AES's rate hike! Make sure to reference Cause Number 45911 in your comments!





Help us fight the hike!



Hoosier households need relief, AES does not.

Significant increases in the cost of energy, food, health care, utilities, and other necessities force Hoosiers to make tough decisions daily. Meanwhile, AES continues to report strong financial performance and dividend payouts, or the amount they pay shareholders out of its profits. AES is financially healthy.


CAC is exceptionally disappointed that AES is proposing absolutely nothing to assist vulnerable households with affording their monthly electric bills. AES has the highest disconnection rate in Indiana, and Indianapolis residents face increasing energy and housing insecurity. 


indiana disconnections sep22 to mar23



And while AES is proposing absolutely nothing to help vulnerable residents, the utility is proposing a new “economic development” discount rate to large commercial and industrial customers. 



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