AES Indiana files motion asking IURC to pause decision in pending case

By KARA KENNEY
WISH-TV | wishtv.com

AES Indiana filed a motion Wednesday, Aug. 12, asking the Indiana Utility Regulatory Commission (IURC) to pause any decisions related to its rate case.

The motion is in direct response to former IURC Commissioner Andy Zay’s lawsuit against Governor Braun alleging he was unlawfully removed from the IURC and accusing the Governor’s office of trying to influence the IURC’s vote in the AES rate case.

“This is unprecedented,” said Kerwin Olson, executive director at the Citizens Action Coalition, a consumer advocacy group. “The motion is implying that should the commission further penalize AES or adjust downward that rate case, they imply strongly that they intend to litigate.”

The IURC is the state panel that regulates utilities including electric, water, and natural gas.

Former IURC Commissioner Andy Zay’s lawsuit asks for Zay to be reinstated and for newly appointed commissioner Josh Bain to be removed from the IURC. On July 7, the Office of Utility Consumer Counselor (OUCC) and Citizens Action Coalition filed petitions for reconsideration and rehearing in the AES Indiana rate case.

The reconsideration petitions are still pending before the IURC.

In its motion filed last Wednesday, AES Indiana is asking the IURC not to take any action on the case if Bain participates as a member of the Commission and Zay does not.

“AES is correct in saying this process appears to be a little funky, pointing to the pleading from former Commissioner Zay, and should the commission act with this new commission that was put in place specifically to issue a new order in this case, that’s problematic and probably not fair, and brings the whole process into question,” said Olson.

In June 2026, the IURC approved a $71 million rate increase for AES Indiana in a 3-1 vote. The decision splits the residential bill increase into two phases: a minor change of under $1 per month starting in July 2026, followed by an estimated $8.50 per month increase in January 2027. Olson said this entire situation could mean delayed relief for ratepayers.

“The you know the chaos right now before the commission may unfortunately impact ratepayers in a negative fashion,” said Olson.  “It’s ratepayers, it’s taxpayers that are sort of stuck in the middle here, and potentially might face a worse outcome as a result of this.”

Indiana’s I-Team reached out to AES Indiana for comment on its motion.

“AES Indiana will continue to follow the established regulatory framework, including all pending litigation, and participate in that process as we remain focused on delivering safe, reliable, and affordable service for our more than 530,000 customers across Central Indiana,” read a statement from AES Indiana.

AES Indiana also points out in its motion that the IURC should be an impartial fact-finding body.

Olson said the legislature needs to reevaluate how IURC commissioners are currently appointed by the Governor in Indiana.

“It’s time we really try to create a process that is more fair to customers, more transparent to customers, and one that the public has some confidence in right now,” said Olson. “Because I think right now, public confidence in the regulatory process is at an all-time low.

He’s calling on the Indiana legislature to act. “We’re one of only four states where either those who regulate our utilities are not directly elected by the public or confirmed by one or both chambers of the General Assembly,” said Olson.

Olson said the legislature also needs to look at laws impacting affordability and utility rates.

Rep. Carey Hamilton, D-Indianapolis, agrees.

“There’s a false narrative being perpetrated that the IURC can dictate utility policy, and they can’t,” said Hamilton. “They are just there to be the judge of the laws we put in place as a legislature.”

Hamilton is calling on the Governor to put pressure on the legislature to change laws related to utilities.

“It is up to him to be a leader and say to his party that’s in control, it’s time for us to reverse some of those policies we’ve put in place that are leading to skyrocketing rates across Indiana,” said Hamilton. “Voters need to understand what their legislators support when it comes to utility policy, because that’s where the rubber hits the road. It’s not with the IURC.”

Hamilton also says the allegations in Zay’s lawsuit against the Governor could help AES increase rates.

“If the Governor is putting political pressure on this judicial body, that will give the ability of an entity like AES, an investor-owned utility, to go to the courts and say this isn’t acceptable,” said Hamilton. “There can’t be political pressure on this process. That’s illegal, which could result ultimately in a higher utility rate for ratepayers, that’s very dangerous territory that the governor is in right now.”

The IURC has not yet responded to requests for comment.

This story was originally published by WISH-TV at wishtv.com/news/local-news/aes-indiana-urc-rate-case.