AES Indiana seeks higher base rates in latest rate review
AES Indiana filed for a regulatory rate review this week with the Indiana Utility Regulatory Commission (IURC), seeking to raise rates for the first time in five years to cover rising operational costs.
The AES Corporation subsidiary blamed inflationary impacts on operations and maintenance expenses, investments in reliability and resiliency improvements and enhancements to customers systems for the rate hike. If approved by the commission, that hike would see the average residential customers’ bills increase approximately $17 per month – a 13 percent jump.
Notably, though, AES Indiana currently has the lowest residential rates of all investor-owned utilities in the state.
“AES Indiana continues to focus on providing safe, reliable, and sustainable energy solutions, while balancing the need to keep energy costs reasonable,” Kristina Lund, AES Indiana president and CEO, said. “Through this rate review request, we are making meaningful changes and improvements that will provide significant benefits to our customers, including new technology offerings and investments in our infrastructure that will provide a better overall experience for our customers.”
Included in the new request is a request for recovery of increased costs to support vegetation management in AES Indiana’s service territory. Vegetation interference with overhead lines remains the top cause of power outages, according to the company.
As to the rate review, the process usually takes between 10-12 months. If approved, AES Indiana stated new rates would likely enter service during summer 2024.
