Electric bills across central Indiana are creeping up again. Thousands of AES Indiana customers will see a small, temporary bump starting with June statements. For a household using about 1,000 kilowatt-hours a month, the company and regulators say a new fuel-adjustment charge will add roughly $3.98 per month and push the net increase to about $9.52 from June through August. AES and state officials characterize the change as a short-term true-up to recover higher fuel and market costs from this winter.
Commission approves temporary fuel charge
The Indiana Utility Regulatory Commission reviewed AES’s filing and signed off on a new fuel-adjustment factor that will be applied to upcoming bills. In its order, the commission concluded AES “made every reasonable effort” to acquire fuel and serve customers at reasonable cost, and said the approved factor becomes effective for the first full billing month after the order was issued, according to the Indiana Utility Regulatory Commission. The order also directs AES to submit tariffs and applicable rate schedules to the commission’s Energy Division before the change shows up on customer bills.
What’s changing on your bill
AES says the fuel adjustment clause, or FAC, is updated quarterly and that beginning with June bills customers will see an increase driven by that tracker. A new charge of $3.98 per month for a 1,000 kWh customer will be in effect June through August, which translates to a net bump of about $9.52 for that usage level, according to WFYI Public Media.
The FAC is one of several billing components, sometimes called “trackers,” that operate outside basic base-rate reviews and can raise or lower monthly bills between formal rate cases. It is the part of the bill that tends to move more quickly when fuel or market prices spike.
Storms and fuel prices pushed costs higher
Company filings and regulator notes point to Winter Storm Fern (Jan. 23–27) as a key driver. During that stretch, extreme cold and higher demand pushed up fuel and market prices that AES is now recovering through the FAC.
The federal Emergency declaration for the January storm is cited in the record as part of the backdrop for the true-up, according to the Federal Register. Separate data showing a jump in coal-fired generation and other fuel costs during the event are also referenced, based on figures from the U.S. Energy Information Administration.
Trackers, rate cases and consumer pushback
Consumer advocates warn that trackers like the FAC can cause surprise bill increases outside a full rate case, a complaint that has surfaced repeatedly at recent public hearings. Kerwin Olson of the Citizens Action Coalition has criticized such mechanisms, according to WFYI Public Media.
By contrast, the state Office of Utility Consumer Counselor did not oppose the FAC filing in the case record, as summarized by the Indiana Office of Utility Consumer Counselor. That combination of trackers plus pending base-rate litigation is why some customers are seeing multiple, overlapping changes on bills this year.
Help and what to watch next
AES says it is expanding customer outreach, offering Levelized Billing and payment-plan options, and providing targeted communications to LIHEAP-eligible customers to reduce surprises, with those support programs detailed on the utility’s customer pages. The wider base-rate review that could produce a longer-term change to bills remains pending, and regulators are expected to rule on the broader rate case later this month, according to Axios Indianapolis. For program details, see the billing options listed by AES Indiana.
If you are worried about your bill, check AES Indiana’s account tools and the company’s customer support options early, and watch for communications from the utility and the commission about any further rate activity this summer. Regulators say the FAC change is temporary, but customers who track usage closely or rely on fixed budgets should expect small increases on June, July and August statements.
