Indianapolis, Indiana – If the shift persists, AES consumers may experience higher bills by next summer.
On June 28, AES Indiana submitted a request for a rate review to the Indiana Utility Regulatory Commission. For a client utilizing 1,000 kWh per month, the proposed higher prices would add $17 to the typical residential bill, a 13% increase above the base rate currently in effect.
From March 2023, an AES request might result in a more than $23 monthly price reduction.
According to AES, the hike will assist pay for “rising operational costs” and enable it to keep providing its services to customers. The utility stated that since 2017, it has not requested a base rate increase.
The request also listed system improvements and “enhancements to customer systems” as additional causes, as well as the effect of inflation on operations and maintenance costs.
This is distinct from the fuel adjustment clause’s (FAC) quarterly pricing changes. AES and other utility providers have asked for rate modifications during the past two years as a result of fuel market volatility.
Based on market conditions, the FAC adjustments fluctuate, occasionally going higher and occasionally going down. The June 28 request from AES Indiana would not.
Starting in April, the typical Duke Energy bill will drop by $26 from March.
Customers who subscribed to the mailing list were informed that the IURC would likely hold a public field hearing on the request in September 2023. In April 2024, the IURC is anticipated to issue its decision about the request. AES expected the increased rates to go into effect in the summer of 2024.
Residents can see how the rate hike will affect their monthly statement using the bill calculator on the utility company’s website.
