AES Indiana announced that the Indiana Utility Regulatory Commission (IURC) has approved the company’s increase of base rate prices for customers across the state on June 17.

The IURC is an administrative agency that hears evidence in utility cases and issues decisions based on that evidence. The commission also provides information on Indiana utilities and the regulatory process to lawmakers, state agencies, the executive branch and the public.

The Commission approved a $71 million annual revenue increase which, according to the IURC, is meant to lower the overall impact on Hoosier customers.

“For more than a decade, AES Indiana has maintained some of the lowest rates in the state through disciplined planning and a focus on efficiency,” said Brandi Davis-Handy, president of AES Indiana. “We applied the same approach here by working closely with stakeholders to make balanced decisions that keep the system reliable, limit customer impact, and align with the state’s energy pillars. We appreciate our state leaders prioritizing affordability, and we will continue to work every day to provide affordable and reliable electric service for our customers.”

According to a press release from AES, residential customers using 1,000 kilowatt-hours (kWh) per month are expected to see an increase of less than $10 monthly increase by 2027 with no additional base rate increase before 2030.

New rates will be implemented in two phases. Phase one rates will be implemented in July 2026 and phase two rates will be implemented in January 2027.

According to AES’s Indiana Bill Calculator, residential, single-family dwellings using 1,000kWh have the following estimated increase:

Phase I Increase

$ 11.77

Phase II Increase

$ 9.24

Total Cumulative Increase

$ 21.01

The Indiana Utility Regulatory Commission (Commission) is an administrative agency that hears evidence in cases filed before it and makes decisions based on the evidence presented in those cases. The Commission also serves as a resource to the legislature, executive branch, state agencies, and the public by providing information regarding Indiana’s utilities and the regulatory process.

Indiana Governor Mike Braun and Indiana Utility Consumer Counselor Abby Gray issued the following joint statement on June 18 following the decision by the IURC to approve the rate increase:

“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.  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,” Braun said.

Other local officials have also released statements challenging the necessity of this increase during a statewide affordability push.

“Monopoly utility companies continue to raise prices and pass along costs for fuel and other services to consumers. It’s not sustainable, and we are hopeful state lawmakers will take up these issues in the coming legislative session so Hoosiers don’t have to choose between paying to keep the lights on and other basic needs,” Megan Robertson, executive director for Indiana Conservation Voters, said.

According to AES, this rate increase will help maintain reliable service during storms and extreme weather, strengthen infrastructure and grid modernization.

As part of the agreement, AES Indiana agreed to not implement rates for another base rate increase before 2030. Additionally, AES Indiana agreed to delay any future Transmission, Distribution, and Storage Improvement Charge (TDSIC) filing until at least 2028.