Indiana’s large electric utilities did not change base rates on October 1, 2026. The most recent decision is the Indiana Utility Regulatory Commission’s (IURC) June 17, 2026 order for AES Indiana, which is being phased in.
This article covers AES Indiana, which serves about 490,000 homes and businesses around Indianapolis, and summarizes the status of the state’s other investor-owned utilities. Those five utilities serve about 80% of Indiana’s residential customers.
Quick Summary
| Item | Utility | Date | Residential impact |
|---|---|---|---|
| Base rates, phase 1 | AES Indiana | July 2026 | Less than $5 a month at 1,000 kWh |
| Base rates, phase 2 | AES Indiana | January 2027 | Less than $5 a month at 1,000 kWh |
| Base rates | Duke, NIPSCO, CenterPoint | Approved in 2025 | Not detailed here |
| Base rates | Indiana Michigan Power | Set in 2024 | Not detailed here |
| October 1, 2026 | All | n/a | No base rate change found |
Per-phase figures are from AES Indiana’s June 17, 2026 news release. Mirror Indy reported the two-phase total as about $9.50 a month.
What the IURC Approved for AES Indiana
- Amount: $71 million a year, on a 3-1 vote. AES first asked for $193 million, then agreed to a $91 million settlement. The state’s consumer counselor had recommended a $21 million reduction.
- Overall change: AES describes it as 3.7% over two years, against a 10% request.
- Return: the commission lowered the authorized return from 9.75% to 9.5%.
- Tree trimming: the budget was cut to $25.2 million from $36.6 million.
- Freeze: no further base rate increases before 2030.
The bill impact. AES Indiana’s news release on the order says a residential customer using 1,000 kWh will see less than $5 a month in July 2026 and less than $5 more in January 2027, “less than $10 monthly increase by 2027.” Mirror Indy reported the total as about $9.50 a month, against the $21 AES first asked for.
Not final yet. Governor Mike Braun asked for the order to be reconsidered, and the state’s consumer counselor had until July 7, 2026 to file. Indiana Public Media reported in September that the order was under reconsideration, and a later headline said the review would stretch into 2027. The phase 1 rates are in bills in the meantime.
A separate charge at the same time. Mirror Indy noted a temporary fuel adjustment of $9.52 a month at 1,000 kWh that ran through August 2026. That is not part of the base rate increase.
Why Bills Move Without a Rate Case
Indiana utilities recover many costs through trackers that change outside base rate cases:
- Fuel adjustment clause, updated every three to six months.
- TDSIC, a tracker for transmission, distribution and storage projects.
- Demand side management for efficiency programs.
- Sales tax. Indiana applies its 7% sales tax to utility bills.
Fixed monthly charges range from $11 at CenterPoint to $17 at AES Indiana, according to Indiana Public Media.
What Changes Next: Three-Year Rate Cycles
House Enrolled Act 1002, approved in March 2026, moves utilities to three-year base rate cycles and ties their allowed returns partly to affordability and outage restoration. Duke Energy Indiana, which has the most customers, must file by mid-December. The others follow on a set schedule.
What This Means for Homeowners With Solar
We did not verify each utility’s current solar tariff for this article. Ask your utility how exported energy is credited, since that rate drives payback more than the price of the system.
Our solar payback guide shows how the retail rate and the export credit change the math.
What to Check on Your Bill
- The customer charge.
- The energy charge per kWh, and whether the July 2026 change appears.
- Tracker lines, especially fuel.
- Sales tax.
For help sorting the lines on your bill, see our guide to reading your electric bill.
Limitations
We did not open the IURC order. Bill figures come from AES’s news release and Mirror Indy. We did not find the outcome or schedule of the reconsideration, and we did not research the 2025 Duke, NIPSCO and CenterPoint orders in detail.
Sources
- Indiana Capital Chronicle, “State regulators approve $71M increase for AES, less than utility originally sought,” June 17, 2026
- AES Indiana, “AES Indiana Receives IURC Approval to Adjust Base Rates,” June 17, 2026
- Mirror Indy, “How AES Indiana rate increase will impact your electric bill”
- AES Indiana, rate review page
- Indiana Public Media, “Here’s what goes into your electricity bill and what could change,” Sept. 14, 2026
Frequently asked questions
Did Indiana electric rates change on October 1, 2026?
We found no base rate change on that date. AES Indiana's first phase took effect in July 2026 and its second is set for January 2027. Trackers such as the fuel adjustment change on their own schedules.
How much did AES Indiana rates go up?
Regulators approved $71 million, about 3.7% over two years. AES says that is less than $5 a month per phase for a customer using 1,000 kWh, and less than $10 in total by 2027.
Can AES Indiana raise base rates again soon?
AES says there will be no further base rate increases before 2030. Trackers can still change bills.
