All but two of Indianapolis’ 25 city-county councilors have signed letters to state utility leaders opposing a proposed settlement that city officials announced with AES Indiana to reduce the utility’s requested electricity rate hike.
Copies of essentially the same letter with the same signees were delivered on Tuesday to the consumer counselor at the Indiana Office of Utility Consumer Counselor, which acts on behalf of utility customers, and the Indiana Utility Regulatory Commission, which is tasked with making a determination on the rate hike.
“As elected representatives for the people of Marion County, we are deeply disappointed in the announced settlement, which is far too generous to AES Indiana and harmful to our constituents,” the letters read.
The signees include President Vop Osili and Vice President Ali Brown, both Democrats, and Minority Leader Brian Mowery, a Republican. The councilors who have not signed are Democrats Carlos Perkins and Leroy Robinson.
The proposed settlement, filed on Oct. 15 with the Indiana Utility Regulatory Commission, would reduce AES Indiana’s original rate-hike request for a $192.9 million base rate increase by 47%, to $102.3 million.
The Department of Public Works announced the proposed settlement on Oct. 15. The settlement has the support of several large power users, including Indiana University, Allison Transmission, Eli Lilly and Co., Rolls-Royce and Walmart.
The Indiana Office of Utility Consumer Counselor has since opposed the deal, saying AES should reduce rates, not raise them.
Ultimately, the IURC is expected to act on the rate hike request by spring 2026.
AES Indiana provides electricity to more than 532,000 residential, commercial and industrial customers in a 528-square-mile area in and around Indianapolis.
The signatures of Osili and several other councilors were originally missing from a letter released last week opposing the settlement. Councilor Jesse Brown wrote on social media that some names were missing from the list because several councilors were “taking a few days to disconnect” after completing the city budget last week.
Several more, including Osili, signed within the next few days.
AES Indiana said the settlement would reduce the original rate increase proposed in June from an estimated $21 per month for a typical home to $10 per month.
The councilors wrote that the proposed settlement would still “give AES Indiana a $90.7 million rate increase and a nearly 10% return on profit. If approved, residential customers would see their bills rise by about 6.5%, while large companies would see smaller increases of just 3% or 4%.”
In a statement Friday, Mayor Joe Hogsett indicated the settlement shift didn’t go far enough.
“While I am encouraged that AES Indiana has taken some steps to lessen the burden on residential customers, like not increasing fixed monthly charges and revising their rate change request, it is of the utmost importance that electric costs remain affordable for all in our city,” Hogsett said.
Ratepayer advocacy group Citizens Action Coalition also opposed the settlement.