The parties to a $71 million rate increase for AES Indiana gathered Thursday for the first meeting in a controversial reconsideration and rehearing that is scheduled to stretch into the springtime.

The utility serves more than 500,000 customers in the Indianapolis metropolitan area.

Attorneys for AES Indiana, the Indiana Office of Consumer Counselor, ratepayer advocacy group Citizens Action Coalition, the city of Indianapolis and several industrial customers agreed to a procedural schedule that includes a one-day hearing in early March.

State utility regulators approved the increase in June, on a vote of 3-1. Gov. Mike Braun denounced the move and directed Utility Consumer Counselor Abby Gray to file for review.

Fired regulator Andy Zay has said the Indiana Utility Regulatory Commission was poised to deny the request until he was dismissed and another commissioner resigned. The reconstituted IURC voted to reconsider the case earlier this month, in a 3-1 tally.

The $71 million increase will hit customers in two phases, despite the pending dispute.

The first phase — worth less than $1 monthly for an average household using 1,000 kilowatt hours of electricity per month — took effect July 27, according to IURC spokesman Ben Gavelek.

The second phase is scheduled to hit in January. It’s worth an estimated $8.50 monthly for the average household, per AES Indiana.

“Rates go into effect, even with an appeal pending, unless a request to stay the rates is made to the appellate court, and (are) subject to refund if the court eventually determines to overturn the Commission’s order,” Gavelek wrote. “The OUCC did not request that the rate increase be stayed pending their request for reconsideration and their notice of appeal.”

Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.