INDIANAPOLIS — The Indiana Utility Regulatory Commission (IURC) has approved an undisclosed settlement agreement with AES Indiana that significantly reduces their requested rate increase.
The agreement, which was approved Wednesday, April 17, reduces AES Indiana's annual revenue increase from $134 million to $71 million.
“We appreciate the Commission’s approval of this agreement and the efforts of all the parties that worked diligently to achieve this outcome,” Indiana Utility Consumer Counselor Bill Fine said. “The newly approved agreement will mitigate the customer rate impact while ensuring AES Indiana has the revenues needed to provide service as required under Indiana law.”
AES Indiana originally requested to raise the average monthly residential electric bill for 1,000 kilowatt hours by $17.49. The newly agreed-upon rate will set the increase to just $9.36.
According to a release from the IURC, all parties also agreed to:
- Raise the monthly residential customer charge for most customers from $16.75 to $17.00, instead of the $25.00 charge AES Indiana had proposed.
- Establish an authorized return on equity of 9.90%. The utility had requested a 10.6% authorization in its initial request.
- Reduce depreciation expenses along with various operation and maintenance expenses.
- Create specific protections for consumers when disconnected remotely for non-payment.
The agreement comes on the heels of Duke Energy requesting to raise customer's bills by 16%.