AES Indiana, an electric utility company formerly known as Indianapolis Power & Light Co., has proposed a settlement agreement that would result in a modest increase in monthly rates for residential customers while implementing measures to safeguard consumers and enhance operational efficiency. The proposed rate increase of approximately 7.3% would translate to a monthly increase of $9.52 for the average residential customer using 1,000 kilowatt-hours of electricity per month. This revised proposal represents a significant reduction from the initial increase of 13% that was proposed in June.

The proposed rate increase is primarily driven by rising operational costs associated with maintaining and upgrading the company’s infrastructure, including tree trimming and other essential maintenance activities. Additionally, the proposed increase would support ongoing investments in grid modernization and reliability enhancements.

The proposed settlement agreement has been signed by various consumer groups and a wide range of large customers. However, it still requires approval from the Indiana Utility Regulatory Commission (IURC). The IURC is scheduled to review the agreement next month and is expected to issue a ruling in early 2024. If approved, the new rates would go into effect starting next summer.

AES Indiana serves approximately 500,000 customers in central Indiana and is a subsidiary of AES Corporation, headquartered in Arlington, Virginia.