AES Indiana Rate Rehearing: Phase 2 Hits in January Either Way

Parties to AES Indiana's $71 million rate increase met Thursday for the first session of a reconsideration and rehearing now scheduled for a one-day hearing in early March 2027. AES, the OUCC, Citizens Action Coalition, the City of Indianapolis, Eli Lilly, Allison Transmission, and Marathon Petroleum are all at the table.

The detail that is not getting enough attention: embedded in the original settlement is a rate-freeze commitment. AES Indiana agreed to file no new base rate case until at least 2030 and no new TDSIC plan before 2028. If the IURC restructures or rolls back the $71 million increase at the March hearing, AES faces a multi-year capital funding gap precisely as it tries to integrate 820 megawatts of planned battery storage by 2032 and absorb new large-load data center customers.

Phase 1 already took effect July 27. Phase 2 hits in January, the OUCC did not seek a stay. For industrial customers, that translates to roughly a 3 to 4% rate impact on top of Phase 1. Industrial parties like Allison Transmission and Marathon Petroleum could independently pursue a stay, watch the docket. The constitutional overhang from fired Commissioner Andy Zay's $625,000 settlement remains live and could extend this proceeding well past March.

If your facility is in AES Indiana territory, model your industrial rate exposure before January.