‘Counting pennies’: Customers, lawmakers alarmed by AES request to raise prices

By Kyra Howard, TheStatehouseFile.com

Power company AES of Indiana filed a petition with the Indiana Utility Regulatory Commission in June asking for a rate increase. The request prompted negative responses from community members, organizations and local politicians. 

“If new rates are approved, AES Indiana residential customers using 1,000 kWh per month will see an increase of approximately $17 per month or around 13% compared to current base rates. The proposed rate increase will vary among business customers depending on rate class and usage,” said Kelly Young, AES spokesperson, in an email to The Statehouse File. 

There has been some dispute about if $17 is an accurate estimate. A report from the Citizens Action Coalition claims the increase will be closer to $23 per month. 

No matter where the number falls, any increase is upsetting to some customers and lawmakers.

Rep. Cherrish Pryor, D-Indianapolis, and members of the Indiana Black Legislative Caucus sent a letter urging the chair of the regulatory commission to deny the increase request. 

“When so many Hoosiers are already struggling to make ends meet and put food on the table for their families, it is outrageous that AES is proposing a 13.2% rate hike,” Pryor said in a press release. 

Indianapolis resident Loki Cinaed echoed Pryor’s point. 

“I am a single parent who is not receiving child support,” said Cinaed. “My income is stretched thin as it is.” 

In an attempt to keep his family’s home at a comfortable temperature and minimize cost, Cinaed put cardboard over some windows and closed off unused rooms. 

“It didn’t help too much with the bill. The bill was still high,” said Cinaed. “I actually had to go to the [township] trustee and get help for my most recent electric bill because for the two months, it was about $900. They had to help me get caught up so that I don’t get disconnected.

“I was there for three hours because there were so many people needing help.”  

He added he does not see the benefits consumers are supposed to receive from rate increases. He and his daughters were without power for 14 hours after a storm this summer. The Citizens Action Coalition emphasized this concern too, stating an AES increase in 2020 for upgrades should allow quicker outage repairs. 

“The homeowners and renters that are paying these high electric bills aren’t their priority. We never have been,” said Cinaed. “I just feel they’re trying to make a profit. They’re not really looking to actually make things more efficient for us. They’re in it for the money. And this is why I personally feel that utilities should not be privatized. They should be public.”

Young said the price increase would enhance safety and reliability and improve overall customer experience. 

She added the company is appreciative of customers for sharing their thoughts openly. 

The Indiana Office of Utility Consumer Counselor (OUCC) will hold a public hearing at 6 p.m. Oct. 2 at New Augusta Public Academy North Auditorium, 6450 Rodebaugh Road, Indianapolis. 

Cinaed said he would like to attend the hearing, but between work, lack of reliable transportation and childcare costs, it is difficult to get to important meetings like this. In the meantime, he has shared information about the rate increase request on Facebook. 

The OUCC is also accepting written comments until Oct. 6. 

Although Cinaed is grateful representatives and community members are speaking up, he worries their voices will be drowned out. He is concerned for himself and all Indiana residents who currently face rent increases and inflation.

“Where are people going to find that extra money when they’re already counting pennies?” said Cinaed.