News

Customers could pay higher AES rate before state could possibly reverse it

WFYI Public Media | By Zak Cassel

Published October 1, 2026 at 1:40 PM EDT

An AES Indiana worker repairs a power line in Frankfort Township in Marion County in September 2026.

The Indiana Utility Regulatory Commission has made a plan to review the rate increase for AES Indiana, but a decision on whether to reduce it will likely come after customers are paying the higher, full cost.

The five-member IURC announced Sept. 2 it would revisit the decision to let AES Indiana increase its rate. Now, in a Sept. 30 order, they announced the scope of new evidence and the schedule for that review.

"The evidence shall be limited to the Google Monrovia data center project and the Blackrock-backed consortium acquisition, and how each affect AES Indiana's revenues, investment needs, cost allocation, rates, and AES Indiana's overall business outlook, including finances, investment plans, business risks, and cost of equity," it read.

In March, AES Indiana announced its parent company, AES Corporation, would be acquired by multinational investors, including BlackRock.

The commission will rehear the case based on those two developments and reconsider whether the original decision adequately weighed affordability.

The commission approved that increase in June, which led to public outcry. Gov. Mike Braun also disapproved, subsequently replacing two commissioners who voted for the increase.

The state's utility consumer watchdog requested the commission reconsider the rate increase, because, it argued, the IURC didn't fully consider affordability. A second request argued the June decision didn't factor in two important developments: an announced acquisition of AES's parent company by BlackRock and other investors, and a Google data center project planned in Monrovia.

Before the June decision, AES and several business customers agreed to a settlement to reduce the amount of the utility's initial rate increase request. The IURC modified that settlement in June. Those parties will submit testimony and exhibits by Oct. 23.

The state's consumer watchdog, or the Office of Utility Consumer Counselor, and consumer advocacy group Citizens Action Coalition requested the commission reconsider the case. They weren't parties to the settlement and opposed it. They will submit testimony and exhibits by Jan. 12, 2027.

The settlement parties will then file rebuttals by Feb. 11.

If the review isn't settled, the IURC will hold a hearing on March 11 at the PNC Center in Indianapolis.

But customers can expect the new rates to be in full effect by then.

In the June decision, the commission approved the implementation of AES's new rates in two phases. The first phase began shortly afterward, while the second and final phase will come after the utility certifies certain financial metrics from 2026 with the commission, or by Jan. 1 — whichever is later.

"The Commission notes that the agreed procedural schedule extends beyond the implementation," said the September order.

Contact WFYI data journalist Zak Cassel at zcassel@wfyi.org