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Indianapolis leaders called on power company AES Indiana, formerly Indiana Power & Light, to withdraw its plan to raise rates. In an unanimous vote Monday night, the City County Council passed a resolution addressing the power company and also urged state leaders to do more to oppose the company’s request to raise rates, a second year in a row. Last year the state approved AES Indiana to increase rates and the company is currently in the middle of those approved increases.
If this year’s proposed rate increase is approved, it could cost families an additional $21 a month. The electric company has the highest profitability rate in the state of investor-utility companies – at more than 9% return on equity. If the new proposed rate increase is approved, that would push it to more than 10%.
Democrat councilor Jesse Brown also serves as the secretary of the Citizens Action Coalition. The group has spoken out against the rate increases.
“This resolution does not have the force of law behind it, but it importantly sends a message that the political leadership of Indianapolis stands opposed to out of state profiteers enriching themselves at the expense of our constituents,” Brown said.
He urged his colleagues to look at using municipal bonds to try and purchase AES Indiana and operate it as a cooperative. This after reports the power company may sell to private-equity company BlackRock’s subsidiary Global Infrastructures Partners.
Councilors also fear residents will face more hikes if the investment company were to acquire the power company. BlackRock is also in talks of purchasing data centers.
Democrat councilor Dan Boots called AES out right before the Monday vote. AES recently supported Google's bid to build a data center in Franklin Township, before the company withdrew the proposal.
“I find it quite outstanding that AES would think it’s reasonable to go for a rate increase in the middle of having a rate increase and then even supporting the Google data center, when they did not even have the capacity to support the center, and we all know somehow they would pass their costs on to us,” Boots said.
Keeping costs lower for consumers has drawn bipartisan support. Republican councilors Michael-Paul Hart and Josh Bain and Democrat Boots introduced the resolution. Several other councilors signed on as co-sponsors during the meeting. Hart said, after hearing from constituents, the council has to explore options – including the city potentially purchasing the local AES operations.
“There shouldn’t be the profits on the utility rates,” Hart said. “We got to do everything we can to try and keep those rates low for the people of Indianapolis.”
He agreed using municipal bonds to purchase the power company could be an option — something he said was explored in the early 2000s.
Democrat councilor Jared Evans said city leadership needs to further explore purchasing AES Indiana, but state officials also need to get involved in the issue.
“We’re going to try to do it. We can. I think at a local level, the state needs to take heed,” he said. “This isn’t just impacting cities. This is impacting everybody in this entire damn state, and it’s ridiculous.”
Last month, after gathering public feedback on AES Indiana’s proposed rate increase, the Indiana Office of Utility Consumer Counselor, who represents ratepayer interests, made its recommendation to deny the request and in addition called for AES Indiana to reduce its rates.
The power company had until October 7 to submit its rebuttal. There will be a hearing next month to look at evidence for AES’s claims it needs to raise the price.
The Indiana Utility Regulatory Commission is expected to make a final decision in spring 2026.
Contact Samantha at shorton@wfyi.org or on Signal at SamHorton.05.
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