IURC Reconsiders AES Indiana Rate Case Amid Google Data Center and BlackRock Deal Developments

The Indiana Utility Regulatory Commission (IURC) has agreed to reconsider AES Indiana's rate case, which was approved in June for a $71 million increase. The decision comes after Citizens Action Coalition (CAC) requested a rehearing, citing significant changes that occurred after the evidentiary record had closed.

One of the developments involves Google's planned data center in Monrovia, Indiana. CAC claims AES downplayed the likelihood of a large data center entering its service territory during the rate case. However, it was later discovered that AES had entered into agreements with Google while the proceeding was still underway.

AES executed one agreement with Google more than a week before filing rebuttal testimony in the rate case and another nearly a month before the evidentiary hearing began. CAC argues that this could fundamentally change the costs and revenues AES considers when determining how much to charge different groups of customers.

The commission will also consider the proposed acquisition of AES Corporation by a consortium led by BlackRock, which CAC argues could affect AES Indiana's finances, risks, and the appropriate return. AES Indiana has stated that it respects the Commission's process and remains committed to being open, transparent, and responsive throughout these proceedings.

CAC Program Director Ben Inskeep said, 'This is an incredibly energy-intensive customer, going to be AES Indiana's largest customer, to my knowledge, by a significant margin.' He added, 'And so, it's going to be providing huge amounts of revenue to the utility but also imposing some very large additional costs.'