Fuel adjustment would lower Indiana customer’s bills if approved
A fuel Adjustment Charge (FAC) filed by AES Indiana with the Indiana Utility Regulatory Commission would result in a 5 percent decrease in customer bills if approved.
A subsidiary of The AES Corporation, AES Indiana said the adjustment charge would be the third consecutive FAC decrease in customer bills. AES estimates that for a typical residential customer using 1,000 kWh, their monthly bill would decrease by nearly $6.00 per month. If approved the decrease would go into effect for the September billing period, beginning with August 31 meter reads, and reflected on customers’ September, October and November bills.
“In the last year our customers have been significantly impacted by the volatility of the energy market,” said Kristina Lund, President & CEO. “This decrease in fuel prices comes at the right time as we approach the summer months where usage tends to increase for customers.”
Between December 2022 and September 2023, the total FAC decrease is $37.37 or 25.23 percent. AES Indiana currently has the lowest residential rates for any investor-owned utility in the state.
Officials said the FAC is determined by the amount utilities pay for fuel based on market price and purchased power costs. Fuel charges are passed through to customers and not controlled by or marked up by AES Indiana. The costs of the fuel and electricity AES purchases for customers are filed quarterly with the IURC and can fluctuate based on what AES pays. As the market price for natural gas has dropped, the company said, the FAC will reflect those decreases in customer bills.
