Indiana residents who receive their electricity from AES may see an increase in their bills this summer. The increase is due to a fuel adjustment charge, which is adjusted four times per year. For a household using 1,000 kilowatt hours of electricity, AES estimates the bill will increase by $9.52, or about 7.3%.
Fuel Adjustment Charge
The fuel adjustment charge is a fee that can go up and down throughout the year. AES and other utility companies must get permission from the Indiana Utility Regulatory Commission to change the fees. In this case, the fuel adjustment charge is increasing due to higher-than-expected natural gas prices during a winter storm in January.
AES filed a request with the regulatory commission in March to increase the fuel adjustment charge. The commission approved the request, which will result in the increased bills for AES customers. It’s worth noting that the fuel adjustment charge doesn’t always increase. The two most recent changes were estimated decreases of 4.2% and 2.6%, which brought the final bill down slightly.
Original reporting: Mirror Indy — read the source article.
