AES Indiana's Rate Fight Could Reset Indiana Manufacturing Power Costs Statewide

Daniel BurkePublished every day

AES Indiana Treasurer Dustin Illyes told the Indiana Utility Regulatory Commission that cutting the utility's 9.5% authorized return on equity further would damage "the perception of the regulatory environment of Indiana" for every utility in the state. The reopened case (Cause No. 46258) is limited to two new developments: the BlackRock-led consortium's pending $33 billion purchase of parent AES Corp, and Google's planned data center in Monrovia. Citizens Action Coalition's Ben Inskeep says AES signed Google site agreements before and during the case without correcting testimony that denied an imminent large-load customer.

AES Indiana's 9.5% rate already sits below AEP Indiana Michigan Power's 9.85% and NIPSCO's recently settled 9.75-9.8% range. A statewide ROE investigation is running at the same time, and Chairman Anthony Swinger wants it finished before the 2027 session. Responsive testimony is due January 12, with a hearing set for March if the case doesn't settle.

Impact

AES Indiana's 9.5% ROE already sits below AEP's Indiana Michigan Power (9.85%) and NIPSCO's recently settled 9.75-9.8% range, a cost-of-capital gap other utilities can exploit in the next capital cycle, and this case is running concurrent with a statewide ROE investigation IURC Chairman Anthony Swinger wants wrapped before the 2027 legislative session, meaning the outcome here could reset every Indiana utility's authorized profit. There's also an unresolved legitimacy question: Gov. Braun's $625,000 settlement with fired Commissioner Andy Zay closed the legal challenge to his IURC reshaping without a court ruling on whether the removals were lawful.

Watch

Other parties' responsive testimony is due January 12, 2027, with a hearing set for March 2027 if the case doesn't settle.

For the huddle

If AES already has the lowest authorized ROE among Indiana's investor-owned utilities and the commission cuts it further, does that credit pressure show up in our power contracts before the Monrovia data center's promised $1-$6/month residential savings ever materializes?

A deeper cut could push AES toward another credit downgrade, and Moody's already flagged the utility's cash-flow-to-debt ratio as strained by data center capital spending, so watch whether that cost pressure shows up in your contract renewal before any promised residential savings from the Google deal ever appear.

Sources

AES Indiana makes case to keep profit margin despite state’s rate increase rethink - WTHI-TV · wthitv.com

Earlier coverage

From the brief, November 11, 2026

AES Indiana's Rate Fight Could Reset Indiana Manufacturing Power Costs Statewide
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Astemo Invests $11 Million in Muncie HEV Manifold Line
NIPSCO Settlements Cut Gas Efficiency Programs for 800,000 Customers
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The whole day’s brief →

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