AES Indiana Rate Increase July 2026: The Double Hit Indiana Manufacturers Need to Model Now

The IURC approved a $71 million AES Indiana base rate increase, and it stacks directly on top of a $9.52-per-month fuel adjustment charge already running through August 2026. For manufacturers in AES territory, that is two simultaneous cost increases hitting the same billing cycle this July. Meanwhile, all five Indiana investor-owned utilities are raising rates at the same time, and the regulatory body managing that repricing is operating without a seated chair on its most consequential active dockets.

Five developments today.

Two More Developments

Michelin Consolidates BFGoodrich Production Into Fort Wayne. Michelin is moving nearly all BFGoodrich tire production to its Fort Wayne facility. Allen County locked in a $157 million abatement in January 2026, six months before Alabama knew the deal was in play. For manufacturers competing for skilled tire and rubber labor in the Fort Wayne MSA, Michelin's hiring ramp begins in 2027. Benchmark your wage and retention plans against Michelin's published Fort Wayne rates now, not after the ramp starts.

Jasper Rubber Products: 345 Jobs at Risk in Dubois County. Jasper Rubber Products, a 345-employee rubber molding facility operating within the First Brands supply chain, is searching for a buyer. The obstacles to a clean sale: a $286 million federal tariff lien in bankruptcy and an active criminal case in Manhattan. If you source rubber or TPE components through the First Brands supply chain, ask your Tier 1 suppliers directly whether backup sourcing is in place.

Questions for Your Morning Huddle

Q: Does the AES Indiana 2030 base rate freeze protect manufacturers from future rate increases?
A: No. The freeze applies to base rates only. Fuel adjustment charges and TDSIC infrastructure cost-recovery filings are explicitly excluded. AES's next TDSIC filing is deferred to 2028, not frozen, and fuel adjustment charges are already running above the base rate on their own.

Q: How is the data center buildout affecting Indiana manufacturers' electric bills?
A: Indiana has not created dedicated rate classes requiring data centers to fund their own grid infrastructure, unlike Ohio and Virginia. Data center load is being absorbed through the existing rate structure, spreading the infrastructure cost across all ratepayers, including industrial accounts.

Q: What should AES Indiana manufacturers do before the July 7 OUCC rehearing deadline?
A: Update your energy cost model to reflect both the base rate increase and the fuel adjustment charge stacked together. The OUCC's rehearing petition is due July 7, that is the next window in which the approved rate structure can change. Model your demand charge and fuel adjustment rider exposure separately; do not scale from the residential headline number.