AES Indiana's Rate Increase Is Stacking Three Cost Layers Simultaneously

The IURC approved a $9.52 per month Fuel Adjustment Clause surcharge on May 27 to recover Winter Storm Fern costs. AES filed a second FAC request on June 12, an additional $8.04 per month, targeted for September through November 2026, with an August hearing expected. The June 24 IURC ruling on AES's $193 million base rate request lands on top of both. Three separate cost layers, one utility, one month. The structural exposure buried under the surcharge math: AES Indiana's generation mix is shifting toward natural gas post-Petersburg coal-to-gas conversion, which means future FAC exposure will track gas price volatility more directly than coal did. Quantify your kilowatt-hour exposure against the June 24 ruling before it lands. The pending BlackRock-led transaction involving AES Corp. is also worth tracking, the June 24 ruling sets rate structure for a potentially changing ownership entity.