Indiana Regulators Approved $71 Million Rate Increase

Indianapolis business owners should prepare for rising utility costs as AES Indiana implements a two-stage rate hike.

Updated on Sept. 29, 2026 in Utilities

Bold flat-color editorial illustration of a high-voltage electrical transformer, conveying the structural scale of regional utility policy and regulatory review. — The Indiana Utility Regulatory Commission is revisiting a $71 million rate hike for AES Indiana as business owners await a March 2027 rehearing. AI Illustration. Upload story photo >

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Should utility companies be allowed to raise rates before a formal appeal is decided?

In June 2026, the Indiana Utility Regulatory Commission authorized a $71 million rate increase for AES Indiana, which serves over 500,000 customers. The implementation is split into two phases, with the second stage scheduled for January 2027.

Why it matters

The increase follows intense scrutiny from Governor Mike Braun, leading the commission to reconsider the case despite the ongoing collection of funds. Business owners face significant uncertainty as the process remains subject to a pending rehearing scheduled for March 2027.

The $71 million rate increase impacts over 500,000 customers, with monthly costs for a 1,000 kilowatt-hour user rising by $1 in the first phase and an estimated $8.50 in the second. The original commission vote for this increase passed 3-1.

The players

AES Indiana

A major utility provider serving over 500,000 customers in the Indianapolis area.

Indiana Utility Regulatory Commission

The state agency responsible for overseeing utility rates and industry regulation.

Mike Braun

The Governor of Indiana who publicly criticized the rate increase leading to the commission review.

The details

AES Indiana is rolling out the approved rate hike in two distinct phases to manage the transition for its local customer base. While the first phase took effect in July 2026, the commission is now revisiting the entire case following executive-level criticism. Stakeholders are currently preparing for a one-day rehearing in March 2027, though no stay was requested to pause current billing.

The Indiana Utility Regulatory Commission approved the rate increase in June 2026.
The first phase of the rate increase took effect on July 27, 2026.
The second phase of the rate increase is scheduled to begin in January 2027.
A one-day rehearing is scheduled for early March 2027.
The reconsideration process is expected to conclude in spring 2027.

Market Landscape

This dispute over utility pricing follows the standard procedural framework established by Indiana utility rate-making procedural rules. It remains a notable example of how executive-level scrutiny can force a regulatory body to reopen settled rate cases.

Business operators should factor the projected $8.50 monthly increase per 1,000 kilowatt-hours into their 2027 budget planning. Keep a close watch on the March 2027 rehearing, as any decision to overturn the order could result in credits or refunds for your utility account.

The takeaway

Operational costs for Indianapolis businesses will increase in early 2027, but the pending rehearing introduces potential for volatility in those charges. Operators should track the spring 2027 regulatory proceedings to determine if they need to adjust their projections for potential refunds.