No, you're not hallucinating – AES wants to raise your rates again.

AES Indiana just requested to raise their rates on consumers. Again.

Last year, they raised rates for consumers by an average of $9.36 per month, although their original ask was $17.50. This year, they want an increase of 13.5%, but in reality is closer to 21% and will cost Hoosiers an extra $30 every month. If it feels like your utility bill is always growing, that’s because it is.

To some, $30 a month, or $360 dollars a year, may not seem like a lot. But what if your electricity bill rose $360 every year? In five years, you would see your bill grow by $1,800. Asking the Indiana Utility Regulatory Commission (IURC) to approve a rate increase shouldn’t become an annual tradition for utility companies across the state, including AES, and those additional monthly costs add up quickly. When coupled with inflation, high housing costs, increased grocery cost, higher medical bills and lagging growth in wages, this rate increase very well could be the straw that breaks the camel's back for residents in Marion County. And those who are living paycheck to paycheck, or on a fixed income, may be forced to sacrifice essentials like food or medication to cover that extra $30 month after month.

In 2020, AES was approved to use $1.2 billion from ratepayers to upgrade their system. Ratepayers are still in the process of paying for that, as the plan built in seven years of consecutive increases on top of other requests they have made separately. By the time the 21% hike would go into effect, you would really see an increase of 27% because of a 6% increase already approved to cover projects such as the Pike County battery storage facility.

It's honestly hard to keep track of how many times AES has raised their rates. Over the last decade, rates have increased by more than 34%. The pace at which prices are increasing is not sustainable for Hoosier families. Something eventually must give. In 2024, I filed an amendment to create a one-year moratorium on rate increases to help Hoosiers catch their breath. The Republican supermajority at the Statehouse struck this down.

Every time these rate hike requests are made, the justification has been a system or infrastructure improvement. However, even with the additional revenue, many pressing concerns about the services have gone unaddressed. After the increase in 2023 to “upgrade” systems, customers experienced issues such as charges on their account three times the normal size with no explanation, charges being withdrawn up to 10 times without immediate refund and completed payments being marked as missing. AES paused disconnections temporarily while they stabilized the billing system, but disconnections were recently resumed with many customers still facing billing issues.

Are consumers just supposed to helplessly accept that they must pay more and more for utilities every single year? Part of AES' justification for this most recent request was that they need to cover the cost of doing business due to inflation and rising costs. We all live in this economy. Hoosiers are facing the consequences of inflation and rising costs too. But the average person can’t demand money from others to cover our expenses. And because utilities are regulated monopolies, ratepayers don’t have a choice of providers. Which means, we are left footing the bill at the whim of stockholders who don’t have a connection to our communities.

If a $1.2 billion upgrade isn’t enough, and you have to ask for tens of millions of dollars every year and still not solve basic customer-service issues, how can any amount of money be enough? I was heartened to see Gov. Mike Braun express displeasure over this rate hike request. But ultimately, Gov. Braun and the last 20 years of Republican leadership are responsible for the high rates consumers find themselves paying today. If Gov. Braun wants to stand up for affordability, he should call on IURC to deny this outrageous request.

---

I wrote a letter alongside Indianapolis members of the Indiana Black Legislative Caucus to the Office of Utility Consumer Counselor (OUCC) requesting that multiple field hearings be held to allow the community to speak out on this rate hike request. We know there will be at least one public hearing but we are waiting on the date(s) to be announced. In the mean time, you can click the link here for more information about the case with the OUCC. For information about how to make your voice heard, see the infographic below.