AES Indiana Rate Increase: The Double Hit

The IURC voted 3-1 to approve a $71 million annual base rate increase for AES Indiana, with phased increases beginning this July and again in January 2027. The residential headline is roughly $5 per month, but it sits on top of a $9.52-per-month fuel adjustment charge already running through August 2026. Combined residential exposure: approximately $14.52 per month. Industrial accounts see this flow through demand charges and the fuel adjustment rider at an entirely different scale. Do not scale from the residential number. Model your own facility's exposure.

Governor Braun replaced IURC Chair Andy Zay following the vote and installed Anthony Swinger. Swinger is currently recused from approximately 20 active dockets, including any AES rehearing, due to prior work at the Office of Utility Consumer Counselor. The OUCC's rehearing petition is due July 7. That is the next window in which the approved rate structure can change.

The 2030 base rate freeze does not cover fuel adjustment charges or TDSIC infrastructure cost-recovery filings, both are explicitly excluded. AES's next TDSIC filing is deferred to 2028, not frozen. A second cost wave is already queued.