AES Indiana Files for $193M Rate Increase, The Demand Behind It Is Cancellation-Prone

AES Indiana has filed for a 10.1% rate increase, $193 million annually, and is requesting a 10.7% return on equity. The utility is citing hyperscaler data center demand to justify the infrastructure spend. That demand has already shown it can evaporate: Google withdrew a $1 billion Indianapolis data center rezoning proposal in September 2025. AEP Ohio watched its large load interconnection queue contract from roughly 30 gigawatts to 13 gigawatts after it required stronger financial commitments from large load customers, a signal that a meaningful share of the original demand was speculative. The IURC is now studying that same model, and its 2026 annual report could restructure how manufacturers are billed alongside data center customers, potentially redefining your cost structure across multiple rate classes. One more layer: AES Indiana's parent is being taken private in a $33.4 billion BlackRock-led deal. The Citizens Action Coalition has argued that transaction changes the incentive structure behind the 10.7% return on equity request. Whether the IURC weighs that in its review is an open question worth watching closely.