In my years in the Statehouse, I saw firsthand how critical long-term planning and responsible investment in strong, reliable infrastructure are to keeping our state’s economic engine running.
The recent announcement that Global Infrastructure Partners and EQT have agreed to acquire AES Corp., including AES Indiana, has sparked conversation across Indianapolis. While a deal of this scale naturally raises questions, it also represents a significant development for our state that deserves careful consideration.
This deal is good for Indianapolis. While AES Indiana has a storied legacy, it has struggled to keep pace with evolving expectations, and this transaction offers a chance to prioritize the consistency and communication that ratepayers deserve. It also underscores how we can attract serious infrastructure investment on the global stage to power our growing needs.
Fueled by advanced manufacturing and data centers, our energy demand is accelerating, and our infrastructure must keep pace. Meanwhile, our neighbors are keeping a close watch on their energy bills as the basic need of keeping the lights on becomes less affordable.
If we want to reach our goals of energy affordability and economic growth in the coming decade, we’ll need significant upgrades to our energy grid. Demand is rising, and Indiana’s commitment to growth, from new businesses to expanding neighborhoods, requires modern, resilient energy systems.
That’s why this new partnership is important. It brings access to capital and expertise that can help meet that new demand, positioning Indianapolis to strengthen grid reliability, prepare for emerging industries and keep energy costs as affordable and stable as possible for families and small businesses alike today and in the future. These kinds of investments must be approached thoughtfully, with a focus on long-term outcomes rather than short-term gains.
GIP and EQT are not short-term investors. They specialize in owning and operating long-term, stable infrastructure assets around the world.
Their portfolio includes major energy pipelines across Texas and other parts of the U.S., as well as global transportation and logistics assets, paving the way for significant domestic energy growth. In the electric utility space, GIP recently closed an investment in ALLETE, the parent company of Minnesota Power, further demonstrating its commitment to regulated energy systems.
These experiences suggest familiarity with complex infrastructure, though their approach in Indiana will need to be evaluated over time. The common thread across these investments is a focus on reliability and long-term performance. Whether that approach translates effectively to the needs of Indiana ratepayers remains an important question.
There is, of course, the matter of oversight, with many asking what role the state should play. While private transactions like this move forward independently, strong, transparent regulation remains essential.
After decades of working on utility policy, I know how important it is that regulators remain focused on protecting ratepayers while allowing responsible investment to move forward. It is heartening to see that the utility will remain locally managed and maintain commitments to the workforce and communities it serves.
To AES’s incoming partners: Deep community investment isn’t optional in Indianapolis. It’s the price of admission, and it’s also an opportunity. Get involved, stay involved and earn the trust of the communities you serve.
This investment is more than a transaction; it reflects Indiana’s growing momentum and aspirational future — but we have high expectations and trust will take time to build. The “new AES” must have laser focus on growing and maintaining the reliable and affordable energy infrastructure our communities and region deserve.
By capturing this spirit and momentum, when combined with strong oversight and meaningful community partnerships, we can help power our next generation of growth.
Jim Merritt, a Republican, is a former state senator from Indianapolis.
This article originally appeared on Indianapolis Star: Why the AES sale is good for Indianapolis | Opinion
Reporting by Jim Merritt, Opinion Contributor / Indianapolis Star
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