Protect Consumers & Reject Higher Profits and Higher Rates

FOR IMMEDIATE RELEASE:  October 13, 2023

Contacts:

Ben Inskeep, Program Director (317) 735-7741, binskeep@citact.org

Kerwin Olson, Executive Director (317) 735-7727, kolson@citact.org 

INDIANAPOLIS – Citizens Action Coalition (“CAC”) filed the testimony of Ben Inskeep, CAC Program Director, on Thursday asking the Indiana Utility Regulatory Commission (“IURC”) to reject outright AES Indiana’s proposed rate increase, as well as lower the Company’s residential monthly fixed charge and its authorized return on equity, or profit margin that is included in AES Indiana’s rates. Mr. Inskeep concluded that AES Indiana’s proposed rate increase would impose an extraordinary additional financial burden on Indianapolis families who are already struggling to cope with an acute unaffordability crisis. The case is docketed before the IURC as Cause No. 45911. 

“AES Indiana has failed to adequately address the legislative mandate adopted by the General Assembly in 2023 through the passage of House Enrolled Act 1007 that affordability be considered when setting utility rates,” stated Mr. Inskeep. “Sadly, the Company has not offered any relief or programs in this rate case to meaningfully help residential customers with their unaffordable electric bills. AES Indiana ignores the needs of its residential customers and instead proposes lining the pockets of investors with additional profits, while jacking up charges and rates on Indianapolis households.”

Mr. Inskeep also recommended that the IURC:

• Reject AES Indiana’s request to increase its disconnection and reconnection charges and instead eliminate or reduce these burdensome charges that further hurt struggling households.

• Reduce or eliminate AES Indiana’s late payment charge.

• Reject AES Indiana’s request to force customers to pay for the Company’s expenses related to filing for a rate increase, like experts and lawyers; membership dues in trade associations and chambers of commerce; charitable and civic contributions; and coal ash disposal at coal mines.

• Establish a new Residential Economic Development Rider designed to encourage local economic development by promoting economic stability through bill discounts applied to qualifying residential customer bills.

• Direct AES Indiana to treat residential multi-family customers as a separate customer class with a lower customer charge given it likely costs the utility a lower amount to serve multi-family customers, and multi-family customers should see that reflected in their rates and bills.

• Direct AES Indiana to work with stakeholders to develop better programs and policies addressing the needs of customers who have a member of their household with a medical condition during power outages. 

Mr. Inskeep’s testimony also included an analysis of utility disconnections for nonpayment, finding that AES Indiana has far more disconnections than any other utility in the state and that the number of disconnections was much higher in 2021 and 2022 than prior years. Mr. Inskeep said, “AES Indiana should be prioritizing solutions that ensure all families can access essential electricity service instead of trying to make it easier to shut off power to its customers and economically destabilizing households with another rate hike.”   

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Testimony and other case-related documents are available upon request.