Indianapolis Reaches Settlement with AES Indiana on Disputed Rate Hike
The City of Indianapolis has reached a settlement with AES Indiana, closing a months-long fight over the utility’s rate-increase request. City officials say the new agreement lowers monthly costs, delays future hikes, and protects taxpayers from charges linked to old billing system issues. The AES Indiana rate hike quickly became one of the most debated proposals of the year.
City Lowers the Cost of the Proposed Rate Increase
AES initially asked for a large rate increase, arguing it needed money to cover rising expenses and projected 2026 operational costs. That request would have raised a typical customer’s monthly bill by about $21.
However, after long negotiations, the city secured a plan that cuts the increase nearly in half. A customer who uses 1,000 kilowatt hours per month will now see a rise of around $10 by 2027.
In addition, the settlement lowers the city’s street-lighting costs, which will save millions in the coming years…