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State agency recommends denying AES Indiana's $193M rate request




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WRTV

WRTV Staff

September 10, 2025

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The Indiana Office of Utility Consumer Counselor is telling regulators to deny
AES Indiana's $192.9 million rate increase request and instead cut current
rates by $21.2 million.



The OUCC filed testimony Tuesday with the Indiana Utility Regulatory
Commission after reviewing AES Indiana's case for three months. Eleven OUCC
witnesses testified against the utility's proposal.



"AES Indiana has not demonstrated sufficient evidence for an increase in this
rate case," said Indiana Utility Consumer Counselor Abby Gray,who was appointed
to lead the office by Gov. Mike Braun on Sept. 3.
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The utility filed this request less than 14 months after receiving approval for
its last rate increase in April 2024.



The OUCC is recommending several changes to benefit customers:

Customer service charges: Reduce monthly charges for most residential
customers from $17 to $11.25, instead of AES Indiana's proposed increase to $20.



Profit margins: Lower AES Indiana's authorized return on equity to 8.5%, down
from the current 9.9%. The utility is seeking an increase to 10.7%.



Staffing costs: Eliminate rate recovery for 105 vacant positions, which the
OUCC calls "phantom hires."



Operations: Reduce the utility's proposed expenses for depreciation,
operations and maintenance while keeping vegetation management costs at current
levels.



The OUCC received more than 6,700 written comments from consumers opposing the
rate increase. The Indiana Utility Regulatory Commission held four public
hearings in Marion County in August, where 89 AES customers spoke against the
proposal.



AES Indiana's rebuttal testimony is due October 7. An evidentiary hearing is
scheduled to begin November 3, where attorneys can cross-examine witnesses.



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