INDIANAPOLIS (WISH) — The Indianapolis Department of Public Works said Wednesday night it has successfully negotiated a settlement with electricity utility AES Indiana that will save taxpayers millions and prevent a base rate increase until 2030.
Public Works in a news release said its intervention in AES Indiana’s recent rate case has resulted in significant cost savings for the city and its residents. The settlement locks in rates at nearly half of what AES Indiana originally sought, providing financial relief amid anticipated fiscal challenges.
Public Works Director Todd Wilson said in a statement in the release, “Because of this intervention from the city, AES will not be able to raise rates for many years. Our team went to bat on behalf of taxpayers, and the result is a win for the community.”
The settlement terms include a 50% reduction in the proposed rate increase for street lighting, and ensures that AES Indiana cannot seek a base rate case increase before Jan. 1, 2030. Additionally, residential fixed monthly charges will remain unchanged at the current Indiana Utility Regulatory Commission-approved levels.
The agreement also stipulates that approximately $40 million in uncollectible accounts expenses and $7 million in forgone late fees, related to AES Indiana’s customer information billing system issues, will not be recovered from residents.
The latest settlement followed a similar successful effort by Public Works two years ago, where a settlement in a previous AES Indiana rate case also resulted in substantial savings for the city.
News 8 reached out Wednesday night for a response from AES Indiana but did not immediately hear back.
The Indianapolis Department of Public Works says it has successfully negotiated a settlement with AES Indiana that will save taxpayers millions of dollars and prevent a base electricity rate increase until 2030.
