AARP Indiana Challenges AES Rate Increase Impacting Low-Income Residents

Residents of Indianapolis voiced strong concerns during a recent City Council meeting regarding a proposed rate increase by AES Indiana, a utility company serving many in the area. The proposed adjustments could significantly impact households already struggling with rising costs of living.

Jason Tomsey, representing AARP Indiana, highlighted that many affected customers are on fixed or low incomes, making the anticipated monthly increase of approximately $21—14.3% for average residential users—particularly burdensome. A subsequent phase could add an additional $9.24, bringing the total increase to about 19.8%. Tomsey urged the commission to carefully consider the implications of these increases on residential customers, emphasizing that such hikes are excessive given the current economic climate.

Tomsey also raised concerns about AES's proposed capital additions for 2026, suggesting that these should be rigorously assessed for their cost-effectiveness and value to customers. He criticized the planned increase in the monthly fixed customer charge from $17 to $20, arguing that it complicates budgeting for families. Furthermore, he pointed out that the proposed return on equity for AES is significantly higher than the national average, which he deemed unfair to residential customers.

Lucas Warfield, a local resident and first-time homeowner, echoed these sentiments, sharing his personal struggles with high utility bills due to medical needs. He described the rate increase as excessive and driven by profit motives rather than improvements in service quality. Warfield expressed frustration that while residents are grappling with inflation and rising costs, AES appears focused on increasing profits.

Sharon Lepper, another Indianapolis resident, criticized the proposed rate hike as a "bad deal" for Hoosiers, questioning why a Virginia-based company would seek to raise rates without considering the financial strain on local customers.

The meeting underscored a growing concern among residents about utility costs and the need for the City Council to advocate for fair pricing that reflects the economic realities faced by many in the community. As discussions continue, the council's decisions will play a crucial role in shaping the financial landscape for Indianapolis households in the coming years.