Beginning in March, AES Indiana customers will see cheaper bills

Indianapolis, Indiana – Clients of AES Indiana will receive a discount.

The utility company’s request for a reduction in its fuel adjustment charge was granted on Monday by the Indiana Utilities Regulatory Commission (FAC).

According to AES, the reduction is equivalent to $6.58 per 1,000 kWh, or around 4% of the base rate. Customers will see the change on their March, April, and May invoices. It will take effect for the March billing month.

Some AES Indiana customers should feel relieved after being shocked by large bills in December and January. Other viewers claimed the rates were double or triple what they were used to seeing.

AES asked for a 19% rise in the FAC last year, but the IURC ultimately granted a 12% increase that became effective in September. The hike was attributed by the utility to rising natural gas and coal prices.

To account for fluctuations in energy prices, utilities are permitted to ask for a change in the fuel adjustment charge (FAC) every quarter. Companies may seek for an increase or decrease in response to gasoline costs in both directions.

Earlier last month, Duke Energy requested a reduction in its FAC. That followed a different, lesser reduction that became effective in January.