AES reaches tentative settlement over price hike proposal

AES Indiana has reached a tentative settlement with the City of Indianapolis over the utility company's proposal to raise prices on electricity.

AES proposed a price increase in June, citing an increased cost of materials, labor and infrastructure. The proposal would have raised many customers’ electrical bills by over 13%.

A new settlement filed with the city Wednesday has terms that would cut the new proposed increase in half, and AES would not be able to raise prices until 2030.

Other terms of the agreement would address AES’ faulty billing system to help customers who have been overcharged.

Several local groups oppose the settlement. The Indiana Office of Utility Consumer Counselor is sticking with its recommendation published in September, that AES should reduce prices instead of any kind of increase.

The nonprofit Citizens Action Coalition is also opposed, noting the public can make their voices heard with written testimony.

In a statement, Indiana Utility Consumer Counselor Abby Gray said "The settlement agreement filed by AES and other parties shows the utility’s initial request was inflated and unnecessary. The OUCC stands by its initial recommendations for a reduction from current rates and will oppose the utility’s settlement agreement."

This would be AES’ second price increase in two years. The utility company's most recent rate increase ended up raising revenue by 4.8% after being negotiated down from an initial proposal of 8.4%. The price increase increased AES' revenue by $71 million.

Arguments for and against the settlement will be presented at a hearing scheduled for early January.
 

Contact WFYI Digital Producer and Reporter Jeremy Reuben at jreuben@wfyi.org.