A controversial $71 million rate increase for AES Indiana is now under a formal reconsideration and rehearing process, with the first meeting of involved parties held Thursday. This review is scheduled to extend into the springtime, even as AES Indiana customers in the Indianapolis metropolitan area have already begun to see the first phase of higher charges.
The utility, which serves more than 500,000 customers, initiated the rate increase in two phases despite the pending dispute. The first phase, which took effect on July 27, adds less than $1 monthly for an average household consuming 1,000 kilowatt hours of electricity per month, according to IURC spokesman Ben Gavelek. The second and more substantial phase is slated to begin in January, with AES Indiana estimating an approximate $8.50 monthly increase for the average household.
Attorneys representing various stakeholders gathered to establish a procedural schedule for the reconsideration. These parties include AES Indiana, the Indiana Office of Consumer Counselor (OUCC), the ratepayer advocacy group Citizens Action Coalition, the city of Indianapolis, and several industrial customers. Their agreed-upon schedule incorporates a one-day hearing, which is set for early March.
State utility regulators initially approved the $71 million increase in June through a 3-1 vote. However, the decision drew a swift response from Gov. Mike Braun, who publicly denounced the move and instructed Utility Consumer Counselor Abby Gray to file for a review. Subsequently, earlier this month, the Indiana Utility Regulatory Commission (IURC) voted 3-1 to reconsider the case.
Further adding to the controversy, fired regulator Andy Zay has asserted that the IURC was prepared to deny the rate increase request until his dismissal and the resignation of another commissioner. The reconstituted commission then proceeded with the reconsideration vote.
Regarding the timing of the rate changes amidst the review, IURC spokesman Ben Gavelek clarified the standard procedure. Gavelek stated that "Rates go into effect, even with an appeal pending, unless a request to stay the rates is made to the appellate court, and (are) subject to refund if the court eventually determines to overturn the Commission’s order." He further noted that the OUCC did not request that the rate increase be stayed during their request for reconsideration or their notice of appeal. Consequently, customers will continue to pay the increased rates while the review process unfolds, with the possibility of refunds if the Commission's initial order is ultimately overturned by a court.
