AES wants customers to pay $84M for new billing system causing problems for thousands

When Kristin Gaither logged into her bank account to pay bills, she couldn’t understand what she saw: Despite just being paid, only a couple hundred dollars remained.

“Where did all my money go just two days after payday?” the Beech Grove resident wondered.

The answer: AES Indiana, her electric utility.

The company had withdrawn Gaither’s monthly bill from her account — not once, but 10 times. In total, AES erroneously took nearly $1,000 from her account in early February.

Gaither is not alone.

Thousands of AES Indiana customers have experienced issues with their bills since the utility upgraded its customer interface system several months ago. The company said only about 10% of ratepayers are impacted. But for a utility that serves more than half a million Hoosiers, that means as many as 50,000 customers across Central Indiana could be facing billing errors and headaches.

And for many customers, these problems are not small chunks of change: It’s hundreds of dollars, if not more, in excessive charges and missing payments.

Meanwhile, AES Indiana is asking state regulators for the OK to charge customers $84 million to pay for the new billing system creating all the problems.

“We recognize the challenges and understand that some customers have had less than ideal experiences with this upgrade and for that, we apologize,” the utility said in comments provided to IndyStar. “We take all customer issues seriously and are working to resolve any issues customers have encountered.”

The issues began after AES Indiana upgraded its system November. The previous system was 25 years old and could not easily integrate with newer technologies, AES Indiana spokeswoman Kelly Young said.

The utility spent two years developing and testing the new software. Once stabilized, the new system will allow AES Indiana to “simplify and elevate the customer experience,” Young said. That includes more flexible payment choices, easier ways to manage accounts and more options to start and stop service.

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Yet many customers said they're having anything but an improved experience.

For Gaither, the utility has yet to return the more than $900 it shouldn’t have withdrawn more than two weeks ago. On top of that, she said, AES is trying to charge her a fee for the refund.

Christi Waggoner, another customer, said she continues to have new charges show up on her account every couple weeks, but has no clue why. She said she hasn’t received an actual bill explaining the expenses in a few months.

Customer Katie Johnson saw her bill more than triple overnight, even though she has actually reduced her energy usage compared to previous years. She can't understand why.

With customer Mark Bohnert, AES Indiana claims he hasn’t paid his bill for a few months. He said his bank statement says otherwise.

“I’ve run into a brick wall and don’t know what to do,” said Bohnert, a customer for more than 25 years of the company formerly known as Indianapolis Power and Light. “We always pay our bills on time and we’ve never had trouble before, until they changed their software.”

Customers continue to have all different issues, but each of these individuals have one thing in common: They've spent countless hours on the phone — and on hold — trying to get their issues sorted out, they told IndyStar.

Still, none of them have yet to receive a resolution.

Gaither, who has now disputed the nine erroneous charges through her bank, said she has other bills to pay and is worried about incurring late fees or overdrafting her account.

“This is not right because we don’t have a choice in the utility that we use,” she said.

The Indiana Utility Regulatory Commission said it has received roughly 70 complaints from AES Indiana customers since October, just before the upgrades. Several people — customers and consumer advocates alike — say they'd like to see the IURC hold AES Indiana accountable for these issues.

“If there are this many challenges and such a variety of challenges, where are the regulators?” said Kerwin Olson, executive director of Citizens Action Coalition, a consumer advocacy group.

Olson said he expects some bumps in the road with a software upgrade of this size, “but this also is different because it’s a public utility and it’s their responsibility to take care of customers and provide an essential service.”

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The IURC told IndyStar the commission takes its job “very seriously” to ensure utilities provide reliable service, which includes accurate billing. But the regulatory agency said it cannot comment further at this time.

That’s because AES Indiana is currently seeking cost recovery for the billing upgrades in a pending rate case. The utility initially sought $94 million for its AES Customer Ecosystem Project but agreed to lower that to $84 million in the settlement agreement for the rate case.

In other words, AES Indiana wants customers to pay $84 million for the new-and-improved system.

The utility said it was prepared to encounter challenges as part of the large and complex upgrade, but acknowledged that fixes are taking longer than anticipated.

AES Indiana said it has increased the tools and support available for customers. That includes an expanded website to address concerns and a direct line specifically for customers with billing issues. The company also said it will not disconnect customers for non-payment during this time and will not charge late fees.

“We have teams working around the clock on solutions,” Young said. The utility ultimately feels the upgrades will benefit its customers.

Many customers aren’t convinced, however. Some upset ratepayers are pulling out of autopay and paperless billing — essentially ceasing use of the new system. Gaither said she was advised to do that by one of the customer service representatives she spoke with.

Young said the utility encourage customers to remain within the systems and for anyone experiencing issues to call in for personalized assistance.

AES Indiana has developed a new dedicated Customer Service number specifically for customers with billing issues that need resolved (317-261-2085) and is open Monday through Friday from 8 a.m. to 5 p.m. The utility also continues to update a dedicated webpage at aesindiana.com/system-upgrade with information and FAQs for our customers to get additional answers.

Call IndyStar reporter Sarah Bowman at 317-444-6129 or email at sarah.bowman@indystar.com. Follow her on Twitter and Facebook: @IndyStarSarah. Connect with IndyStar’s environmental reporters: Join The Scrub on Facebook.

IndyStar's environmental reporting project is made possible through the generous support of the nonprofit Nina Mason Pulliam Charitable Trust.

This article originally appeared on Indianapolis Star: Thousands of AES Indiana customers face billing problems