Customers of Central Indiana electric utility AES Indiana can expect a temporary increase in their bills this summer. The change will result in a net increase of $9.52 for customers using 1,000 kilowatt-hours per month from June through August.
The increase is for a Fuel Adjustment Clause proceeding, or FAC, which is a billing component that accounts for changing fuel costs versus what the company projected. There are several billing components beyond a utility’s base rate.
Utilities predict how much they expect fuel to cost, and these predictions are factored into electric bills. That fuel can cost more or less than expected, so the utility can attempt to recover those losses from customers through a quarterly case with the state…