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Community groups press regulators on AES rate increase as data-center growth fuels local opposition

October 14, 2025 | Indianapolis City, Marion County, Indiana


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Community groups press regulators on AES rate increase as data-center growth fuels local opposition
Kelly Hammond, with Citizens Action Coalition, told a neighborhood gathering that AES Indiana has proposed a large rate increase and that the regulatory process remains open until regulators issue a final decision in the spring.

"AES wants a big old rate increase," Hammond said, describing a sequence of public field hearings and subsequent filings by intervening parties and regulators.

Hammond said roughly 89 people testified in opposition across four field hearings and that the Indiana Utility Regulatory Commission (IURC) reported an unusually large public record for this case. She also said the state Office of Utility Consumer Counselor recommended against granting AES a rate increase and, in its filing, recommended a decrease.

The local turnout, Hammond said, prompted community groups and some city-county council members to press regulators to reject or scale back the increase. "The Commission said we've gotten a lot of comments. No recent case has produced as many as this AES rate increase," Hammond said.

Hammond cautioned that the next procedural stage is an evidentiary hearing, where lawyers and expert witnesses will be questioned before regulators make a final ruling. She said Citizens Action Coalition and its legal team will participate and that the case could proceed through hearings into November and a final decision in spring.

Hammond also discussed separate but related energy concerns tied to an interest in new data centers in and near Indianapolis. She said large data centers require substantial, continuous electricity and that the build-out could prompt new gas-fired generation or extending the life of existing coal plants; that in turn could raise rates and increase local pollution.

"These big data centers need so much energy that we're gonna see a lot of gas plants pop up across the state," Hammond said, arguing that the projects can change long-term energy planning and local air and water quality outcomes.

Community members at the meeting described recent local organizing against specific data-center proposals, including a widely publicized rezoning fight in Franklin Township where a company withdrew a rezoning petition after councilors and residents opposed it. Hammond said the withdrawal shows the potential impact of sustained public pressure.

A neighborhood representative from Martindale-Brightwood said residents there have mobilized in opposition to a proposed data center at a former Sherman Drive site; 1 Voice for Martindale-Brightwood has sent letters to elected officials and demanded inclusive public meetings after learning of limited outreach by the company.

Kim Boyd, founder and president of the Hope Team, introduced the speakers and encouraged continued public involvement, noting state and local events where residents could learn more about energy and insurance enrollment.

The Citizens Action Coalition presentation did not announce any new regulatory filings beyond what is already part of the public docket. Hammond said regulators will consider filings from several parties, including consumer advocates, large commercial intervenors, and the utility itself before issuing a final order.

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Scribe from Workplace AI
Scribe from Workplace AI