Legislators oppose AES Indiana's rate hike
A letter signed by seven state legislators has been filed with the Commission (IURC), opposing AES Indiana's petition to increase electric utility rates. The legislators include Rep. John Bartlett, Sen. Jean Breaux, Sen. Andrea Hunley, Rep. Gregory Porter, Rep. Cherrish Pryor, Rep. Robin Shackleford, and Rep. Vanessa Summers.
The letter highlights several key concerns, the first being the significant impact of the proposed rate increase on lower-income ratepayers and those living in older, less energy-efficient homes. The legislators argue that the focus should be on ensuring that all ratepayers are not overburdened with utility costs, rather than meeting earnings projections for shareholders.
The letter accuses AES Indiana of misleading the public about the actual impact of the rate increase, relying on analysis published by the Citizens Action Coalition (CAC). It states that the utility's calculations significantly understate the bill impacts, claiming that an actual residential bill for 1,000 kWh of usage will increase by 18.7% per month, which is 35% higher than AES Indiana's estimates. According to the CAC, the bill impact analysis outlined in AES Indiana’s case-in-chief utilizes rate calculations that are not current and understate the actual impact on customers.
The letter also criticizes AES Indiana's proposal for one of the highest monthly fixed charges in the country—a $25.00 monthly service charge for larger consumers (>325 kWh/month). According to the legislators, such fixed fees discourage energy efficiency and limit homeowners' ability to save money through solar generation.
Finally, the letter strongly opposes AES Indiana's plan to recover its costs for association dues from ratepayers. The legislators argue that some of these associations work against the interests of ratepayers. The letter doesn’t specify which associations are the target of this criticism, however, at least one of these legislators has accepted more than $500 in campaign contributions from the Indiana Energy Association. The letter concludes by asking that AES Indiana's request to increase rates and fees be denied.