Gov. Mike Braun is not done with Indiana’s latest electric rate hike. On Friday, he asked state utility regulators to rehear the Indiana Utility Regulatory Commission’s order approving a $71 million rate increase for AES Indiana customers, following a split commission vote and months of public testimony and formal filings in the case.
Commission approved $71 million increase
The Indiana Utility Regulatory Commission voted 3-1 to authorize roughly $71 million in new annual revenue for AES Indiana, a far cry from the utility’s original $193 million request but still a noticeable bump for many households. The order came after extended hearings, written testimony and a settlement process that pared back the company’s initial ask, and it sets phased rate changes to begin this summer and continue into early 2027, according to Indiana Public Radio.
Braun demands rehearing
Braun’s office has formally asked the commission to reopen and reconsider the order, effectively calling for a rehearing. In public remarks, the governor cast the ruling as out of step with his focus on affordability for residents, as reported by Inside INdiana Business.
Appointments and political stakes
The order passed with votes from Commissioners Andy Zay, David Veleta and David Ziegner, while Commissioner Bob Deig dissented and one member recused himself, according to reporting on the final vote. Braun appointed Andy Zay as IURC chair in late 2025, a move that drew early side-eye from some consumer advocates ahead of this contentious rate case, according to Axios.
What a rehearing could change
Under commission procedure, parties have 20 days after a final order to file a petition for rehearing. The IURC can uphold, modify or reverse the order, or reopen the record to take additional evidence, and a petition is automatically deemed denied if the commission does not act within 60 days, according to the IURC’s procedural rules. A rehearing would give intervenors and ratepayer advocates another formal shot to press objections or present new evidence into the administrative record, potentially altering or slowing down how the rate increases roll out.
Consumer advocates push back
Indiana’s utility consumer counselor has criticized the order, arguing it signs off on a substantial profit margin for shareholders while leaving customers to shoulder fees and expert costs, per reporting in the Indiana Capital Chronicle. Advocacy groups have said regulators should lean harder on affordability and have questioned portions of the evidence AES submitted to justify higher rates.
What customers will see on their bills
AES says it plans to phase in the increase to soften the initial hit, estimating that a typical residential customer using 1,000 kilowatt-hours per month would see less than $5 more per month under the phased approach. The company laid out that estimate in filings and public statements about the case, and the first round of new rates is slated for July 2026, with a second adjustment scheduled for January 2027, according to AES Indiana.
What to watch next
The next few days will reveal whether Braun or other parties follow through with formal petitions for rehearing. If they do, the commission must accept responses from intervenors and then decide whether to reopen the record or revise the order. With the IURC’s procedural window relatively tight, any rehearing request would shove this rate case right back into the spotlight and could delay or reshape how the increases hit customers’ bills, according to the commission’s rulebook.
