IURC Schedules Two Public Hearings in AES Rate Case 

FOR IMMEDIATE RELEASE:  August 8, 2023

Contact: Ben Inskeep, Program Director (317) 735-7741, Kerwin Olson, Executive Director (317) 735-7727

INDIANAPOLIS – Citizens Action Coalition has confirmed that AES Indiana has been mischaracterizing the bill impact its customers would realize if the increase in its recently filed electric rate case is approved. AES Indiana’s rate case is filed at the Indiana Utility Regulatory Commission (“IURC”) as Cause No. 45911. 

AES Indiana claimed that its rate case, filed in June 2023, would increase a residential electric bill for 1,000 kWh of usage by $17.49, or 13.2%, compared to “current” rates. However, when CAC tried to verify AES Indiana’s calculations using the utility’s current rates, it revealed a much higher rate increase. Compared to the rates in effect in June 2023, a residential bill for 1,000 kWh of usage will actually increase by $23.65 (18.7%) per month, or 35% higher than AES Indiana has been telling its customers.

AES Indiana confirmed to CAC on August 7th that its estimated bill impact calculations were not actually based on comparing its proposed rates to the rates it currently charges customers, but rather to higher rates that it charged customers in 2022 when energy prices soared. As a result of its failure to base its estimated bill impacts on current, lower rates, the utility significantly understates bill impacts of this currently pending rate case to customers. 

“It is inexcusable that AES Indiana is being less than forthcoming about how much this proposed rate increase is going to cost families in Indianapolis,” said Kerwin Olson, Executive Director of CAC. “This is all about the utility trying to increase revenues and profits while keeping the public in the dark about just how much their bills are going to go up.” 

AES Indiana’s email to its customers and webpage discussing its rate increase proposal include a bill calculator allowing customers to estimate their bill impact. However, these AES resources contain this misleading characterization on customer bill impacts, leading to customers not being aware of the potential bill increase at stake in this case.

“Customers should not use AES Indiana’s bill calculator tool, which will severely underestimate how much your bill will actually go up if AES Indiana’s rate increase is approved,” said CAC Program Director Ben Inskeep. “AES is understandably trying to cast its exorbitant rate increase in the best possible light, but misleading Hoosier families like this is inexcusable.”

Customers will have the opportunity to speak out against AES Indiana’s proposed rate increase at either of the two field hearings scheduled by the Indiana Utility Regulatory Commission. The first public field hearing will be held at 6:00 p.m. on August 24th in Clowes Auditorium at the Indianapolis Public Library. The second public field hearing will be held at 6:00 p.m. on October 2nd at New Augusta Public Academy North.

More information on the AES rate case can be found on CAC’s website here.

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