(This story was updated to add new information.)
Most Indianapolis City-County Council members say they oppose the proposed settlement to increase electric bills that Mayor Joe Hogsett’s administration helped negotiate with AES Indiana this week.
A bipartisan coalition of 16 councilors signed onto an Oct. 17 statement saying that AES, the electricity provider for more than 530,000 Central Indiana customers, should withdraw its newest proposal to increase household bills by about 6.5% by 2027. That rate hike could increase the monthly bill for residents using 1,000 kilowatt-hours of electricity by around $10.
Councilors are pushing backing on the Oct. 15 settlement with AES, which would more than cut in half the utility’s initial rate hike proposal from June. The parties who settled with AES include major public institutions like the city of Indianapolis and Indiana University as well as large employers including Eli Lilly and Company, Rolls-Royce Corp., Walmart and Marathon Petroleum Company.
While the Hogsett administration praised the agreement for potentially saving taxpayers millions of dollars, 11 City-County Council Democrats and five Republicans are rejecting that logic.
“Just last week, all 25 Councilors unanimously passed a resolution asking AES to withdraw its rate hike request,” Democratic Councilor Rena Allen said in the statement. “This settlement ignores the financial strain it places on families while giving corporations a break and rewarding a utility that continues to fall short on service.”
Notably absent from the opponents behind the statement, according to a City-County Council spokesperson, are two of the governing body’s top Democrats: President Vop Osili and Majority Leader Maggie Lewis. Democratic Council Vice President Ali Brown, however, did sign her name in opposition.
It’s unclear whether the nine councilors who didn’t sign on to this statement support the city’s settlement or withheld their stances for other reasons.
Aliya Wishner, a spokeswoman for Hogsett, said the city doesn’t have authority to intervene in the AES’ bid to raise rates on residents and businesses. She said the city could only negotiate lower rates for streetlights, which the Indianapolis Department of Public Works chose to do through the settlement.
“Taxpayers want their dollars to go toward the functions of government that matter to them most, like maintaining our streets and roads,” Hogsett said in a statement. “These cost savings on city streetlights mean more dollars can be dedicated elsewhere in the city’s operating budget going forward.”
As for the broader settlement, Hogsett said it is “of the utmost importance that electric costs remain affordable.”
The shifting political landscape around energy prices
The bipartisan pushback is significant as the politics around energy prices have become muddled, with more Republicans sounding allegations of corporate greed by companies like AES.
A new utility consumer counselor appointed by Republican Gov. Mike Braun, Abby Gray, said her office plans to file its formal opposition to the settlement in the coming weeks. She stood by her office’s September report urging the Indiana Utility Regulatory Commission to not only reject the rate increase but to slightly reduce AES’ current revenues.
Five of six council Republicans signed onto the statement condemning the settlement with AES, while 11 of 19 Democrats signed on. Councilor Jesse Brown, who opposes the deal, said on social media Friday that the councilors sent a similar opposition letter to Gray’s office for her consideration.
Councilors criticized the settlement for increasing electricity rates more for households than for businesses. The new agreement would raise rates by 6.5% for residential customers and 3-4% for commercial and industrial customers, according to the Citizens Action Coalition, an Indiana consumer advocate group that also opposes the settlement. The revised plan would earn AES about $90 million more in revenue, CAC found.
(AES said in an Oct. 16 statement that the rate increase would average 3.35% annually over a two-year period, putting the increase for households closer to 6.7%.)
All the councilors are urging the IURC to host another round of public hearings on the proposed settlement.
“We’ve heard from frustrated residents across the city who are fed up,” Mowery said in the statement. “Before the Indiana Utility Regulatory Commission acts, the public deserves a full and fair opportunity to be heard.”
AES Indiana President Brandi Davis-Handy said in an Oct. 16 statement that the settlement reflects the company’s “deep commitment to operating efficiently and keeping rates as low as possible.”
What happens next for the AES settlement
The IURC must still approve, deny or modify the new settlement agreement when evidentiary hearings begin in the coming months. A decision is expected by spring 2026.
Residents can submit written comments on the settlement agreement for the Office of the Utility Consumer Counselor’s consideration.
Full list of Indianapolis City-County Councilors who oppose the AES settlement
According to LaMar Holliday, a communications consultant for the City-County Council, here’s a breakdown of the 11 Democrats and five Republicans who signed the statement opposing the settlement:
Democrats
Republicans
Email Indianapolis City Hall Reporter Jordan Smith at JTsmith@gannett.com. Follow him on X: @jordantsmith09
This article originally appeared on Indianapolis Star: United against Hogsett administration, most Indianapolis councilors oppose AES deal
Reporting by Jordan Smith, Indianapolis Star / Indianapolis Star
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