AES Indiana says electric bills will increase around 12% beginning Sept. 1

INDIANAPOLIS — AES Indiana says that due to an increase in fuel prices, customers will see their bills go up by about 12% beginning September 1 through November.

The company says prices for natural gas and coal "have increased substantially over the past year" and that AES Indiana will not profit from the higher bills.

Customers who use 1,000 kWh of electricity will see an increase of $15.78 due to the increase, which comes from the Fuel Adjustment Charge, or FAC.

"The Fuel Adjustment Charge is not new. It is the amount utilities apply on bills based on the varying price of fuel and purchased power costs. These costs are filed quarterly to the Indiana Utility Regulatory Commission and can fluctuate — up and down — based on the cost of fuel," AES said in an email to customers. "These costs are passed through to customers on a dollar-for-dollar basis in the FAC and do not include a profit for AES Indiana. AES Indiana has helped mitigate the rate impact by spreading recovery of certain reconciling fuel costs over a longer period."

Q&A from AES Indiana

What is the rate increase and when does it go into effect?

AES Indiana customers using 1,000 kWh of electricity will see a monthly increase of $15.78 or approximately 12% beginning September 1 due to the increase in our Fuel Adjustment Charge (FAC). While this rate increase is not permanent, it will impact customers September, October, and November 2022.

What is a Fuel Adjustment Charge?

The Fuel Adjustment Charge (FAC) is the amount utilities apply on bills based on the varying price of fuel and purchased power costs. This increase is temporary. These costs are filed quarterly to the Indiana Utility Regulatory Commission and can fluctuate — up and down — based on the cost of fuel.

Does AES Indiana profit from this rate increase?

The Fuel Adjustment charge is a pass through to customers on a dollar-for-dollar basis and does not include a profit for AES Indiana.

Why is my bill so high when I’m not doing anything differently?

The cost to provide reliable service to our customers is increasing and is driven by many factors, including the rising market cost of fuel. Global demand and tight fuel supplies, as well as labor shortages are also impacting the cost of the power we produce. This is not a permanent rate increase.

What if I can’t afford to pay my bill?

AES Indiana offers several resources to help customers manage costs:

o Budget Billing allows customers to pay the same amount for 11 months and then settle the difference on the 12th month.

o Payment Extensions can be requested online at AESIndiana.com or by calling the automated system at 317.261.8222. Preferred Bill Date is offered for AES Indiana customers who want a due date that best matches their paydays.

o AES Indiana cares about its customers and offers The Power of Change to help income-qualified customers with a one-time grant to assist with electric bill payments when financial challenges occur. The goal is to offer customers a hand-up during a time of need. Visit aesindiana.com/power-change for more information.

There are also community resources that can be helpful:

• The Low Income Home Energy Assistance Program (LIHEAP) is a federally-funded program that offers assistance. Applications open October 1, 2022
• Dial 211 or contact your local Community Action Agency for utility bill payment assistance or to get help finding lower-cost options.
  

When will my rates go down?

The Fuel Adjustment Charge is filed quarterly to the Indiana Utility Regulatory Commission (IURC) and can fluctuate — up and down — based on the cost of fuel. The next filing will be made to the IURC in September 2022 and will impact rates December, January, and February. We do not know what that rate will be at this point.

Why does AES Indiana sponsor so many events when customer bills are increasing?

AES Indiana and its people are dedicated to making a difference in the communities where we live and serve. AES Indiana makes significant investments in Central Indiana in the areas of arts and culture, education, economic development, environment, customer needs, and diversity equity and inclusion. AES Indiana does not pass on the cost of its community investments or advertising to customers.