Indianapolis Power & Light Co. is seeking regulatory approval to revise its previous rate hike request to pass along federal tax savings to the company's 490,000 customers.

The AES Corp. subsidiary plans to lower its requested rate increase by nearly $30 million as a result of the recently signed Tax Cuts and Jobs Act, which decreases the corporate income tax rate to 21% from 35%.

In December 2017, the utility filed an application with the Indiana Utility Regulatory Commission requesting a rate increase to accommodate the cost of replacing coal generation with a natural gas plant. Average residential customers using 1,000 kWh monthly would have experienced an increase of just under $14 per month on their bills.

With the revised rate proposal, typical residential consumers will pay about $2.50 less than previously expected. The new rates will take effect in the first quarter of 2019, subject to approval by the commission.