OUCC Requests Reconsideration of AES Electric Rate Hike
INDIANAPOLIS — The Indiana Office of Utility Consumer Counselor, the state agency that advocates for ratepayers, has petitioned for a recent AES rate increase worth $71 million to be reconsidered.
The OUCC has requested in its petition that the latest AES Indiana rate increase, approved on June 16, be reconsidered and that a rehearing be held. The $71 million rate increase is around 37% of the total the utility originally requested.
The rate increase was approved last month as AES Indiana revealed that homes using 1,000 kilowatt-hours per month will not pay more than $5 additional dollars per month. The announcement comes after the commission approved a $71 million annual revenue increase, less than the $90 million in the partial settlement, leading to a “lower overall impact for customers.”
Residential customers are expected to see less than a $10 monthly increase within the next year, with no additional base rate increase before 2030. AES Indiana announced that the new rates will be introduced in two phases, with the first being implemented in July and phase two rates being enacted in January 2027.
AES Indiana provides electric service to more than 530,000 customers throughout central Indiana.
The utility company said it would not delay any future Transmission, Distribution, and Storage Improvement Charge filing until at least 2028 to “reduce near-term cost pressure while maintaining a path for future system investments.”
In a statement that was released on Tuesday, the OUCC also contended that the Indiana Utility Regulatory Commission “erred” in its approval of the settlement agreement involving AES Indiana, industrial customers, Walmart and the City of Indianapolis.
The petition called for “special attention to essential affordability,” which it said included reducing utility shareholder profits, confirming that ratepayers are not directly liable for rate case expenses and other “unreasonable expenses.”
“Affordability is my utmost priority, and I believe the IURC needs to reexamine its position on things like shareholder profit and rate case expense,” said Indiana Utility Consumer Counselor Abby Gray. “Hoosiers should not be paying for expensive attorneys and other unreasonable expenses so that shareholders can pad their pockets. Ratepayers have been tightening their belts for years; it’s time for utilities to do the same.”
Indiana Gov. Mike Braun said the OUCC filed the petition at his request.
“Affordability for Hoosiers is my top priority. At my request, the Office of the Utility Consumer Counselor today filed a petition for a rehearing of the recent AES rate case,” Braun said. “Hoosier families work hard to make every dollar count, and utility companies must start doing the same.”
The IURC has been mired in controversies in recent months as Braun and other officials have sought solutions from utilities to bring lower bills for ratepayers. On June 22, Braun announced Anthony Swinger as the new chairman of the IURC, replacing Andy Zay. Before being replaced, Zay had been in the role since January.
When the AES rate increase was initially approved, Braun said he was “deeply disappointed” and indicated that he requested that the OUCC reconsider a rehearing of the case.
“Yesterday’s decision by the IURC to allow another rate increase by AES is unacceptable. When I appointed Abby Gray as the ratepayer advocate at the Office of Utility Consumer Counselor, I knew she would help me fight for Hoosiers,” Braun said on June 17. “I am calling on the Office of Utility Consumer Counselor to petition for a reconsideration and rehearing of this case. My priority is improving affordability for Hoosiers.”
An investigative inquiry was recently conducted to lead a deeper investigation into utility bill costs throughout Indiana. IURC previously hosted 10 public listening sessions across the state as multiple officials sought solutions from utilities to bring lower bills for ratepayers.
Following the conclusion of the inquiry, Braun confirmed he would personally review the IURC’s findings.
OUCC Requests Reconsideration of AES Electric Rate Hike was originally published on wibc.com
