# EDGAR Filing Document

**Accession Number:** 0000728391
**File Stem:** 0000728391-25-000065
**Filing Date:** 2025-11
**Character Count:** 210644
**Document Hash:** 8216adbf326b02e944162c1407a56b08
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000728391-25-000065.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0000728391-25-000065

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 68

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IPALCO ENTERPRISES, INC.
- **CENTRAL INDEX KEY:** 0000728391
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 351575582
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08644
- **FILM NUMBER:** 251449392

**BUSINESS ADDRESS:**
- **STREET 1:** ONE MONUMENT CIRCLE
- **STREET 2:** PO BOX 1595
- **CITY:** INDIANAPOLIS
- **STATE:** IN
- **ZIP:** 46204
- **BUSINESS PHONE:** 3172618261

**MAIL ADDRESS:**
- **STREET 1:** ONE MONUMENT CIRCLE
- **STREET 2:** P.O. BOX 1595
- **CITY:** INDIANAPOLIS
- **STATE:** IN
- **ZIP:** 46204

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IPALCO ENTERPRISES INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? cik0000728391-20250930

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

______________________________________________________________________________________________

**FORM 10-Q** 

(Mark One)

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the Quarterly Period Ended September 30, 2025** 

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Commission File Number** 1-8644

**IPALCO ENTERPRISES, INC.** 

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Indiana** | **35-1575582** |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S Employer Identification No.)** |
| **One Monument Circle** | |
| **Indianapolis, Indiana** | **46204** |
| **(Address of principal executive offices)** | **(Zip code)** |
| **Registrant's telephone number, including area code:** | **(317)-261-8261** |

---

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** |
| **<u>Title of Each Class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of Each Exchange on Which Registered</u>** |
| **N/A** | **N/A** | **N/A** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

(The registrant is a voluntary filer. The registrant has filed all applicable reports under Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months.)

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer Accelerated filer Non-accelerated filer Smaller Reporting company Emerging growth company <br> ☐ ☐ ☒ ☐ ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

------

At November 4, 2025, 108,907,318 shares of IPALCO Enterprises, Inc. common stock were outstanding, of which 89,685,177 shares were owned by AES U.S. Investments, Inc. and 19,222,141 shares were owned by CDP Infrastructures Fund L.P., a wholly-owned subsidiary of La Caisse de dépôt et placement du Québec.

------

**IPALCO ENTERPRISES, INC.**

**QUARTERLY REPORT ON FORM 10-Q** 

**For Quarter Ended September 30, 2025** 

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **<u>Item No.</u>** | | **<u>Page No.</u>** |
|  | **GLOSSARY OF TERMS** | <u>[4](#i59b9770c216c48b2adb0c04e7c013839_10)</u> |
|  | **FORWARD-LOOKING STATEMENTS** | <u>[5](#i59b9770c216c48b2adb0c04e7c013839_13)</u> |
|  | **PART I - FINANCIAL INFORMATION** |  |
| 1. | Financial Statements (Unaudited) |  |
|  | Condensed Consolidated Statements of Operations | <u>[7](#i59b9770c216c48b2adb0c04e7c013839_22)</u> |
|  | Condensed Consolidated Statements of Comprehensive Income | <u>[8](#i59b9770c216c48b2adb0c04e7c013839_25)</u> |
|  | Condensed Consolidated Balance Sheets | <u>[9](#i59b9770c216c48b2adb0c04e7c013839_31)</u> |
|  | Condensed Consolidated Statements of Cash Flows | <u>[10](#i59b9770c216c48b2adb0c04e7c013839_37)</u> |
|  | Condensed Consolidated Statements of Changes in Equity | <u>[11](#i59b9770c216c48b2adb0c04e7c013839_40)</u> |
|  | Notes to Condensed Consolidated Financial Statements | <u>[12](#i59b9770c216c48b2adb0c04e7c013839_46)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 1 - Overview and Summary of Significant Accounting Policies | <u>[12](#i59b9770c216c48b2adb0c04e7c013839_49)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 2 - Regulatory Matters | <u>[18](#i59b9770c216c48b2adb0c04e7c013839_52)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 3 - Fair Value | <u>[19](#i59b9770c216c48b2adb0c04e7c013839_55)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 4 - Derivative Instruments and Hedging Activities | <u>[21](#i59b9770c216c48b2adb0c04e7c013839_58)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 5 - Debt | <u>[22](#i59b9770c216c48b2adb0c04e7c013839_61)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 6 - Income Taxes | <u>[23](#i59b9770c216c48b2adb0c04e7c013839_67)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 7 - Benefit Plans | 24 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 8 - Equity | <u>[24](#i59b9770c216c48b2adb0c04e7c013839_73)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 9 - Commitments and Contingencies | 25 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 10 - Business Segments | <u>[25](#i59b9770c216c48b2adb0c04e7c013839_79)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 11 - Revenue | <u>[27](#i59b9770c216c48b2adb0c04e7c013839_82)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 12 - Leases | <u>[28](#i59b9770c216c48b2adb0c04e7c013839_85)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Note 13 - Subsequent Events | <u>[29](#i59b9770c216c48b2adb0c04e7c013839_88)</u> |
| 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | <u>[30](#i59b9770c216c48b2adb0c04e7c013839_91)</u> |
|  | Executive Summary | <u>[30](#i59b9770c216c48b2adb0c04e7c013839_94)</u> |
|  | Results of Operations | <u>[31](#i59b9770c216c48b2adb0c04e7c013839_97)</u> |
|  | Key Trends and Uncertainties | <u>[37](#i59b9770c216c48b2adb0c04e7c013839_100)</u> |
|  | Capital Resources and Liquidity | <u>[46](#i59b9770c216c48b2adb0c04e7c013839_103)</u> |
|  | Critical Accounting Policies and Estimates | <u>[49](#i59b9770c216c48b2adb0c04e7c013839_106)</u> |
| 3. | Quantitative and Qualitative Disclosure About Market Risk | <u>[50](#i59b9770c216c48b2adb0c04e7c013839_109)</u> |
| 4. | Controls and Procedures | <u>[50](#i59b9770c216c48b2adb0c04e7c013839_112)</u> |
|  | **PART II - OTHER INFORMATION** |  |
| 1. | Legal Proceedings | <u>[50](#i59b9770c216c48b2adb0c04e7c013839_118)</u> |
| 1A. | Risk Factors | <u>[50](#i59b9770c216c48b2adb0c04e7c013839_121)</u> |
| 2. | Unregistered Sales of Equity Securities and Use of Proceeds | <u>[51](#i59b9770c216c48b2adb0c04e7c013839_124)</u> |
| 3. | Defaults Upon Senior Securities | <u>[51](#i59b9770c216c48b2adb0c04e7c013839_127)</u> |
| 4. | Mine Safety Disclosures | <u>[51](#i59b9770c216c48b2adb0c04e7c013839_130)</u> |
| 5. | Other Information | <u>[51](#i59b9770c216c48b2adb0c04e7c013839_133)</u> |
| 6. | Exhibits | <u>[51](#i59b9770c216c48b2adb0c04e7c013839_136)</u> |
|  | **SIGNATURES** | <u>[52](#i59b9770c216c48b2adb0c04e7c013839_139)</u> |

---

------

---

| | |
|:---|:---|
| **GLOSSARY OF TERMS** | **GLOSSARY OF TERMS** |
| The following is a list of frequently used terms, abbreviations or acronyms that are found in this Form 10-Q: | The following is a list of frequently used terms, abbreviations or acronyms that are found in this Form 10-Q: |
| 2024 Form 10-K | IPALCO's Annual Report on Form 10-K for the year ended December 31, 2024, as amended |
| 2024 Base Rate Order | The order issued in April 2024 by the IURC authorizing AES Indiana to, among other things, increase its basic rates and charges by $71 million annually |
| 2030 IPALCO Notes | $475 million of 4.25% IPALCO Enterprises, Inc. Senior Secured Notes due May 1, 2030 |
| 2034 IPALCO Notes | $400 million of 5.75% IPALCO Enterprises, Inc. Senior Secured Notes due April 1, 2034 |
| $400 million Term Loan Agreement | $400 million AES Indiana Term Loan Agreement, dated as of August 14, 2024 |
| ACE | Affordable Clean Energy |
| AES | The AES Corporation |
| AES Indiana | Indianapolis Power & Light Company and its consolidated subsidiaries, which does business as AES Indiana |
| AES Indiana Credit Agreement | $500 million AES Indiana Amended and Restated Credit Agreement, dated as of March 25, 2025 |
| AES U.S. Investments | AES U.S. Investments, Inc. |
| AFUDC | Allowance for Funds Used During Construction |
| AOCI | Accumulated Other Comprehensive Income |
| ARO | Asset Retirement Obligation |
| ASC | Accounting Standards Codification |
| ASU | Accounting Standards Update |
| BESS | Battery Energy Storage System |
| CAA | U.S. Clean Air Act |
| CCGT | Combined Cycle Gas Turbine |
| CCR | Coal Combustion Residuals |
| CDPQ | CDP Infrastructures Fund L.P., a wholly-owned subsidiary of La Caisse de dépôt et placement du Québec  |
| CO2 | Carbon Dioxide |
| CPCN | Certificate of Public Convenience and Necessity |
| CPP | Clean Power Plan |
| CWA | U.S. Clean Water Act |
| ECCRA | Environmental Compliance Cost Recovery Adjustment |
| EGUs | Electrical Generating Units |
| EPA | U.S. Environmental Protection Agency |
| FAC | Fuel Adjustment Clause |
| FASB | Financial Accounting Standards Board |
| FERC | Federal Energy Regulatory Commission |
| Financial Statements | Unaudited Condensed Consolidated Financial Statements of IPALCO in *"Item 1. Financial Statements"* included in Part I – Financial Information of this Form 10-Q |
| FTRs | Financial Transmission Rights |
| GAAP | Generally Accepted Accounting Principles in the United States |
| GHG | Greenhouse Gas |
| HLBV | Hypothetical Liquidation Book Value |
| IDEM | Indiana Department of Environmental Management |
| IPALCO | IPALCO Enterprises, Inc. and its consolidated subsidiaries |
| IPL | Indianapolis Power & Light Company and its consolidated subsidiaries, which does business as AES Indiana |
| IRA | Inflation Reduction Act of 2022 |
| IRP | Integrated Resource Plan |
| ITC | Investment Tax Credit |
| IURC | Indiana Utility Regulatory Commission |

---

------

---

| | |
|:---|:---|
| kWh | Kilowatt hours |
| MATS | Mercury and Air Toxics Standards |
| MISO | Midcontinent Independent System Operator, Inc. |
| MW | Megawatts |
| MWh | Megawatt hours |
| NOx | Nitrogen Oxide |
| NPDES | National Pollutant Discharge Elimination System |
| NSPS | New Source Performance Standards |
| OUCC | Indiana Office of Utility Consumer Counselor |
| Pension Plans | Employees' Retirement Plan of AES Indiana and Supplemental Retirement Plan of AES Indiana  |
| PTC | Production Tax Credit |
| SEC | United States Securities and Exchange Commission |
| SIP | State Implementation Plan |
| SO2 | Sulfur Dioxide |
| TDSIC | Transmission, Distribution, and Storage System Improvement Charge |
| U.S. | United States of America |
| VEBA | Voluntary Employees' Beneficiary Association |
| VIE | Variable Interest Entity |

---

Throughout this document, the terms *"*IPALCO,*" "*the Company,*" "*we,*" "*us,*"* and *"*our*"* refer to IPALCO Enterprises, Inc. and its consolidated subsidiaries. The term "IPALCO Enterprises, Inc." refers only to the parent holding company, IPALCO Enterprises, Inc, excluding its subsidiaries.

**FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q includes *"forward-looking statements"* within the meaning of the Private Securities Litigation Reform Act of 1995 including, in particular, the statements about our plans, strategies and prospects under the heading *"Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations"* in Part I – Financial Information of this Form 10-Q. Forward-looking statements express an expectation or belief and contain a projection, plan or assumption with regard to, among other things, our future revenue, income, expenses or capital structure. Such statements of future events or performance are not guarantees of future performance and involve estimates, assumptions and uncertainties. The words "could," "may," "predict," "anticipate," "would," "believe," "estimate," "expect," "forecast," "project," "objective," "intend," "continue," "should," "plan," and similar expressions, or the negatives thereof, are intended to identify forward-looking statements unless the context requires otherwise.

Some important factors that could cause our actual results or outcomes to differ materially from those discussed in the forward-looking statements include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impacts of weather on retail sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• growth in our service territory and changes in retail demand and demographic patterns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• weather-related damage to our electrical system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commodity and other input costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performance of our suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transmission, distribution and generation system reliability and capacity, including natural gas pipeline system and supply constraints;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory actions and outcomes, including, but not limited to, the review and approval of our rates and charges by the IURC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• federal and state legislation and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our credit ratings or the credit ratings of AES;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in the value of pension plan assets, fluctuations in pension plan expenses and our ability to fund defined benefit pension plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in financial or regulatory accounting policies;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental and climate change matters, including costs of compliance with, and liabilities related to, current and future environmental and climate change laws and requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest rates and the use of interest rate hedges, inflation rates and other costs of capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of subsidiaries to pay dividends or distributions to IPALCO Enterprises, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• level of creditworthiness of counterparties to contracts and transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• labor strikes or other workforce factors, including the ability to attract and retain key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• facility or equipment maintenance, repairs and capital expenditures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant delays or unanticipated cost increases associated with construction or other projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• local economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs and effects of legal and administrative proceedings, audits, settlements, investigations and claims and the ultimate disposition of litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• industry restructuring, deregulation and competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• issues related to our participation in MISO, including the cost associated with membership, our continued ability to recover costs incurred, and the risk of default of other MISO participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in tax laws and the effects of our tax strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the use of derivative contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product development, technology changes, and changes in prices of products and technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cyber-attacks, information security breaches or information system failures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• catastrophic events such as fires, explosions, terrorist acts, acts of war, pandemics, or the future outbreak of any other highly infectious or contagious disease, or natural disasters such as floods, earthquakes, tornadoes, severe winds, ice or snowstorms, droughts, or other similar occurrences, including as a result of climate change; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risks and other factors discussed in this report and other IPALCO filings with the SEC.

Forward-looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.

All of the above factors are difficult to predict, contain uncertainties that may materially affect actual results, and many are beyond our control. See *"Item 1A. Risk Factors"* in IPALCO's 2024 Annual Report on Form 10-K and the *"Management's Discussion and Analysis of Financial Condition and Results of Operations"* section in IPALCO's 2024 Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the quarter ended March 31, and June 30, 2025 and this Quarterly Report on Form 10-Q for a more detailed discussion of the foregoing and certain other factors that could cause actual results to differ materially from those reflected in any forward-looking statements. These risks may also be specifically described in our other Quarterly Reports on Form 10-Q in *"Part II - Item 1A. Risk Factors"*, Current Reports on Form 8-K and other documents that we may file from time to time with the SEC.

**SOURCES OF OTHER INFORMATION**

We encourage investors, the media, our customers and others interested in the Company to review the information we post at *www.aesindiana.com*. None of the information on our website is incorporated into, or deemed to be a part of, this Quarterly Report on Form 10-Q or in any other report or document we file with the SEC, and any reference to our website is intended to be an inactive textual reference only.

Our SEC filings are available to the public from the SEC's website at *www.sec.gov*.

------

**PART I – FINANCIAL INFORMATION**

***ITEM 1. FINANCIAL STATEMENTS***

---

| | | | | |
|:---|:---|:---|:---|:---|
| **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** |
| **Condensed Consolidated Statements of Operations** | **Condensed Consolidated Statements of Operations** | **Condensed Consolidated Statements of Operations** | **Condensed Consolidated Statements of Operations** | **Condensed Consolidated Statements of Operations** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** |
| **REVENUE** | $529344 | $449171 | $1445728 | $1254566 |
| **OPERATING COSTS AND EXPENSES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fuel | 138017 | 96103 | 344499 | 276661 |
| &nbsp;&nbsp;&nbsp;Power purchased | 38604 | 31100 | 105373 | 113836 |
| &nbsp;&nbsp;&nbsp;Operation and maintenance | 135041 | 125849 | 419957 | 350309 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 93239 | 85493 | 271313 | 248846 |
| &nbsp;&nbsp;&nbsp;Taxes other than income taxes | 6262 | 6130 | 19565 | 20572 |
| &nbsp;&nbsp;Other, net |  | (115) | (164) | 1422 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 411163 | 344560 | 1160543 | 1011646 |
| **OPERATING INCOME** | 118181 | 104611 | 285185 | 242920 |
| **OTHER (EXPENSE) / INCOME, NET:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds used during construction | 622 | 1485 | 2023 | 3585 |
| &nbsp;&nbsp;&nbsp;Interest expense | (42211) | (44198) | (132794) | (131681) |
| &nbsp;&nbsp;&nbsp;Other (expense) / income, net | (210) | 484 | (1146) | (266) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (41799) | (42229) | (131917) | (128362) |
| **INCOME BEFORE INCOME TAX** | 76382 | 62382 | 153268 | 114558 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 20368 | 8314 | 62943 | 24833 |
| **NET INCOME** | 56014 | 54068 | 90325 | 89725 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to noncontrolling interests | (7715) | (872) | (103296) | (24171) |
| **NET INCOME ATTRIBUTABLE TO COMMON STOCK** | $63729 | $54940 | $193621 | $113896 |
| See Notes to Condensed Consolidated Financial Statements. | See Notes to Condensed Consolidated Financial Statements. | See Notes to Condensed Consolidated Financial Statements. | See Notes to Condensed Consolidated Financial Statements. | See Notes to Condensed Consolidated Financial Statements. |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** |
| **Condensed Consolidated Statements of Comprehensive Income** | **Condensed Consolidated Statements of Comprehensive Income** | **Condensed Consolidated Statements of Comprehensive Income** | **Condensed Consolidated Statements of Comprehensive Income** | **Condensed Consolidated Statements of Comprehensive Income** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** |
| **NET INCOME** | $56014 | $54068 | $90325 | $89725 |
| **Derivative activity:** |  |  |  |  |
| Change in derivative fair value, net of income tax effect of $0, $0, $0 and $(2193), for each respective period  |  |  |  | 6626 |
| Reclassification to earnings, net of income tax effect of $144, $144, $432 and $36, for each respective period  | (434) | (434) | (1302) | (108) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in fair value of derivatives | (434) | (434) | (1302) | 6518 |
| **Other comprehensive (loss) / income**  | (434) | (434) | (1302) | 6518 |
| **Comprehensive income** | 55580 | 53634 | 89023 | 96243 |
| Less: comprehensive loss attributable to noncontrolling interests  | (7715) | (872) | (103296) | (24171) |
| **COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCK** | $63295 | $54506 | $192319 | $120414 |

---

See Notes to Condensed Consolidated Financial Statements.

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| | | |
|:---|:---|:---|
| **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** |
| **Condensed Consolidated Balance Sheets** | **Condensed Consolidated Balance Sheets** | **Condensed Consolidated Balance Sheets** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** |
| **ASSETS** |  |  |
| **CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $72180 | $26647 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses of $16,477 and $29,798, respectively | 304611 | 313078 |
| &nbsp;&nbsp;&nbsp;Inventories | 80919 | 99935 |
| &nbsp;&nbsp;&nbsp;Regulatory assets, current | 107098 | 134328 |
| &nbsp;&nbsp;&nbsp;Taxes receivable | 14705 | 9401 |
| &nbsp;&nbsp;Derivative assets, current | 2972 | 1526 |
| &nbsp;&nbsp;&nbsp;Prepayments and other current assets | 35220 | 24561 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 617705 | 609476 |
| **NON-CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net of accumulated depreciation of $3,223,010 and $3,071,167, respectively | 5804911 | 5461243 |
| &nbsp;&nbsp;&nbsp;Intangible assets - net | 285980 | 232210 |
| &nbsp;&nbsp;&nbsp;Regulatory assets, non-current | 625383 | 619029 |
| &nbsp;&nbsp;&nbsp;Pension plan assets | 24346 | 24941 |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 209500 | 192126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other non-current assets | 6950120 | 6529549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $7567825 | $7139025 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;Short-term debt and current portion of long-term debt (see Notes 5 and 12) | $115056 | $539841 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 331402 | 271235 |
| &nbsp;&nbsp;&nbsp;Accrued taxes | 31611 | 26253 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 78674 | 43388 |
| &nbsp;&nbsp;&nbsp;Customer deposits | 12424 | 11892 |
| &nbsp;&nbsp;&nbsp;Regulatory liabilities, current | 21315 | 11915 |
| &nbsp;&nbsp;Asset retirement obligations, current | 44537 | 32161 |
| &nbsp;&nbsp;&nbsp;Accrued and other current liabilities | 26527 | 26231 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 661546 | 962916 |
| **NON-CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;Long-term debt (see Notes 5 and 12) | 3912863 | 3642587 |
| &nbsp;&nbsp;&nbsp;Deferred income tax liabilities | 434826 | 380758 |
| &nbsp;&nbsp;&nbsp;Regulatory liabilities, non-current | 290370 | 404021 |
| &nbsp;&nbsp;&nbsp;Accrued other postretirement benefits | 3008 | 2834 |
| &nbsp;&nbsp;Asset retirement obligations, non-current | 422996 | 346299 |
| &nbsp;&nbsp;&nbsp;Other non-current liabilities | 8064 | 8499 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-current liabilities | 5072127 | 4784998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 5733673 | 5747914 |
| **COMMITMENTS AND CONTINGENCIES (see Note 9)** |  |  |
| **REDEEMABLE STOCK OF SUBSIDIARIES** |  | 38145 |
| **EQUITY:** |  |  |
| Common shareholders' equity |  |  |
| Common stock (no par value, 290,000,000 shares authorized; 108,907,318 shares issued and outstanding at September 30, 2025 and December 31, 2024) |  |  |
| &nbsp;&nbsp;&nbsp; Paid in capital | 1653815 | 1247090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 34076 | 35378 |
| &nbsp;&nbsp;&nbsp; Retained earnings |  | 2067 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total common shareholders' equity | 1687891 | 1284535 |
| &nbsp;&nbsp;Noncontrolling interests | 146261 | 68431 |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity** | 1834152 | 1352966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES, REDEEMABLE STOCK OF SUBSIDIARIES AND EQUITY** | $7567825 | $7139025 |
| See Notes to Condensed Consolidated Financial Statements. | See Notes to Condensed Consolidated Financial Statements. | See Notes to Condensed Consolidated Financial Statements. |

---

------

---

| | | |
|:---|:---|:---|
| **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** |
| **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** |
| | **2025** | **2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net income | $90325 | $89725 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 271313 | 248846 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing costs and debt discounts | 2803 | 2735 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes and investment tax credit adjustments - net | 51847 | 8072 |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds used during construction | (2023) | (3585) |
| &nbsp;&nbsp;&nbsp;Loss on asset disposal |  | 1422 |
| &nbsp;&nbsp;&nbsp;Tax credit transfer proceeds allocated to noncontrolling interest | 133010 |  |
| Change in certain assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 12028 | (69259) |
| &nbsp;&nbsp;&nbsp;Inventories | 11732 | 16845 |
| &nbsp;&nbsp;&nbsp;Prepayments and other current assets | (10539) | 819 |
| &nbsp;&nbsp;&nbsp;Current regulatory assets and liabilities | 31624 | (53530) |
| &nbsp;&nbsp;&nbsp;Non-current regulatory assets and liabilities | 569 | (65759) |
| &nbsp;&nbsp;&nbsp;Accounts payable | 37603 | (52219) |
| &nbsp;&nbsp;&nbsp;Accrued and other current liabilities | 3472 | (11292) |
| &nbsp;&nbsp;&nbsp;Accrued taxes payable/receivable | (538) | 26944 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 35286 | 50174 |
| &nbsp;&nbsp;&nbsp;Pension and other postretirement benefit assets and liabilities | 768 | 1840 |
| &nbsp;&nbsp;&nbsp;Other non-current liabilities | (18339) | 5173 |
| &nbsp;&nbsp;&nbsp;Other | (4799) | (5707) |
| Net cash provided by operating activities | 646142 | 191244 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| Capital expenditures | (547963) | (727152) |
| Project development costs | (1728) | (3164) |
| Acquisitions | (77640) | (48368) |
| Cost of removal payments | (23052) | (26080) |
| Net cash used in investing activities | (650383) | (804764) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| Borrowings under revolving credit facilities | 440000 | 570000 |
| Repayments under revolving credit facilities | (515000) | (675000) |
| Short-term borrowings |  | 300000 |
| Short-term borrowings from affiliate |  | 92000 |
| Repayments of short-term borrowings | (400000) | (392000) |
| Long-term borrowings | 350000 | 1050000 |
| Repayments of long-term borrowings | (40000) | (405000) |
| Distributions to shareholders | (199044) | (110146) |
| Equity contributions from shareholders | 410000 | 150000 |
| Distributions to noncontrolling interests | (140220) | (2459) |
| Sales to noncontrolling interests | 149942 | 46935 |
| Payments for financing fees | (5659) | (14173) |
| Proceeds received from termination of interest rate swaps |  | 23114 |
| Other | (245) | (22) |
| Net cash provided by financing activities | 49774 | 633249 |
| Net change in cash, cash equivalents and restricted cash | 45533 | 19729 |
| Cash, cash equivalents and restricted cash at beginning of period | 26652 | 28584 |
| Cash, cash equivalents and restricted cash at end of period | $72185 | $48313 |
| Supplemental disclosures of cash flow information: |  |  |
| Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;Interest (net of amount capitalized) | $92550 | $78842 |
| &nbsp;&nbsp;&nbsp;Income taxes | $15400 | $— |
| Non-cash investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Accruals for capital expenditures | $175170 | $162662 |
| &nbsp;&nbsp;&nbsp;Changes to right-of-use assets - finance leases | $14151 | $72066 |
| Non-cash financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Changes to financing lease liabilities | $(13102) | $(69089) |
| &nbsp;&nbsp;&nbsp;Noncash contributions from noncontrolling interests | $133010 | $— |
| See Notes to Condensed Consolidated Financial Statements. | See Notes to Condensed Consolidated Financial Statements. | See Notes to Condensed Consolidated Financial Statements. |

---

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** | **IPALCO ENTERPRISES, INC. and SUBSIDIARIES** |
| **Condensed Consolidated Statements of Changes in Equity** | **Condensed Consolidated Statements of Changes in Equity** | **Condensed Consolidated Statements of Changes in Equity** | **Condensed Consolidated Statements of Changes in Equity** | **Condensed Consolidated Statements of Changes in Equity** | **Condensed Consolidated Statements of Changes in Equity** | **Condensed Consolidated Statements of Changes in Equity** | **Condensed Consolidated Statements of Changes in Equity** | **Condensed Consolidated Statements of Changes in Equity** |
| **For the Three and Nine Months Ended September 30, 2025 and 2024** | **For the Three and Nine Months Ended September 30, 2025 and 2024** | **For the Three and Nine Months Ended September 30, 2025 and 2024** | **For the Three and Nine Months Ended September 30, 2025 and 2024** | **For the Three and Nine Months Ended September 30, 2025 and 2024** | **For the Three and Nine Months Ended September 30, 2025 and 2024** | **For the Three and Nine Months Ended September 30, 2025 and 2024** | **For the Three and Nine Months Ended September 30, 2025 and 2024** | **For the Three and Nine Months Ended September 30, 2025 and 2024** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Common Shareholders' Equity** | **Common Shareholders' Equity** | **Common Shareholders' Equity** | **Common Shareholders' Equity** | **Common Shareholders' Equity** | **Common Shareholders' Equity** | | |
| | **Common Stock** | **Common Stock** | | | | | | |
| **(in Thousands)** | **Outstanding Shares** | **Amount** |<br>**Paid in<br>Capital** |<br>**Accumulated**<br>**Other Comprehensive Income / (loss)** |<br>**Retained Earnings** |<br>**Total Common Shareholders' Equity** | **Noncontrolling Interests** | **Redeemable Stock of Subsidiaries** |
| **2025** |  |  |  |  |  |  |  |  |
| **Beginning Balance** | 108907 | $— | $1247090 | $35378 | $2067 | $1284535 | $68431 | $38145 |
| Net income / (loss) |  |  |  |  | 101143 | 101143 | (82595) |  |
| Other comprehensive loss |  |  |  | (434) |  | (434) |  |  |
| Distributions to shareholders |  |  |  |  | (95312) | (95312) |  |  |
| Sales to noncontrolling interests |  |  |  |  |  |  | 150191 |  |
| Distributions to noncontrolling interests |  |  |  |  |  |  | (326) |  |
| Reclassification of redeemable stock of subsidiaries to noncontrolling interests  |  |  |  |  |  |  | 38145 | (38145) |
| Other |  |  | 35 |  |  | 35 |  |  |
| **Balance at March 31, 2025** | 108907 | $— | $1247125 | $34944 | $7898 | $1289967 | $173846 | $— |
| Net income / (loss) |  |  |  |  | 28749 | 28749 | (12986) |  |
| Other comprehensive loss |  |  |  | (434) |  | (434) |  |  |
| Distributions to shareholders |  |  |  |  | (30817) | (30817) |  |  |
| Distributions to noncontrolling interests |  |  |  |  |  |  | (135289) |  |
| Contributions from shareholders |  |  | 410000 |  |  | 410000 |  |  |
| Contributions from noncontrolling interests |  |  |  |  |  |  | 133010 |  |
| Other |  |  | 20 |  |  | 20 |  |  |
| **Balance at June 30, 2025** | 108907 | $— | $1657145 | $34510 | $5830 | $1697485 | $158581 | $— |
| Net income / (loss) |  |  |  |  | 63729 | 63729 | (7715) |  |
| Other comprehensive loss |  |  |  | (434) |  | (434) |  |  |
| Distributions to shareholders<sup>(1)</sup>  |  |  | (3356) |  | (69559) | (72915) |  |  |
| Distributions to noncontrolling interests |  |  |  |  |  |  | (4605) |  |
| Other |  |  | 26 |  |  | 26 |  |  |
| **Balance at September 30, 2025** | 108907 | $— | $1653815 | $34076 | $— | $1687891 | $146261 | $— |
| **2024** |  |  |  |  |  |  |  |  |
| **Beginning Balance** | 108907 | $— | $1021992 | $29294 | $25182 | $1076468 | $53254 | $— |
| Net income / (loss) |  |  |  |  | 17162 | 17162 | (2552) |  |
| Other comprehensive income |  |  |  | 7386 |  | 7386 |  |  |
| Distributions to shareholders |  |  |  |  | (26720) | (26720) |  |  |
| Distributions to noncontrolling interests |  |  |  |  |  |  | (52) |  |
| Other |  |  | 26 |  |  | 26 |  |  |
| **Balance at March 31, 2024** | 108907 | $— | $1022018 | $36680 | $15624 | $1074322 | $50650 | $— |
| Net income / (loss) |  |  |  |  | 41794 | 41794 | (20747) |  |
| Other comprehensive loss |  |  |  | (434) |  | (434) |  |  |
| Distributions to shareholders |  |  |  |  | (30374) | (30374) |  |  |
| Sales to noncontrolling interests |  |  |  |  |  |  | 46935 |  |
| Distributions to noncontrolling interests |  |  |  |  |  |  | (623) |  |
| Contributions from shareholders |  |  | 150000 |  |  | 150000 |  |  |
| Other |  |  | 29 |  |  | 29 |  |  |
| **Balance at June 30, 2024** | 108907 | $— | $1172047 | $36246 | $27044 | $1235337 | $76215 | $— |
| Net income |  |  |  |  | 54940 | 54940 | (872) |  |
| Other comprehensive loss |  |  |  | (434) |  | (434) |  |  |
| Distributions to shareholders |  |  |  |  | (53052) | (53052) |  |  |
| Distributions to noncontrolling interests |  |  |  |  |  |  | (1784) |  |
| Other |  |  | 11 |  |  | 11 |  |  |
| **Balance at September 30, 2024** | 108907 | $— | $1172058 | $35812 | $28932 | $1236802 | $73559 | $— |
| <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. | <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. | <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. | <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. | <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. | <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. | <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. | <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. | <sup>(1)</sup> IPALCO made return of capital payments of $3.4 million and $0.0 million during the nine months ended September 30, 2025 and 2024, respectively, for the portion of current year distributions to shareholders in excess of current year net income. |

---

See Notes to Condensed Consolidated Financial Statements.

------

**IPALCO ENTERPRISES, INC. and SUBSIDIARIES**

**Notes to Condensed Consolidated Financial Statements**

**For the Three and Nine Months Ended September 30, 2025 and 2024**

**(Unaudited)**

**1. OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

IPALCO is a holding company incorporated under the laws of the state of Indiana. IPALCO is owned by AES U.S. Investments (82.35%) and CDPQ (17.65%). AES U.S. Investments is owned by AES U.S. Holdings, LLC (85%) and CDPQ (15%). IPALCO owns all of the outstanding common stock of IPL, which does business as AES Indiana. Substantially all of IPALCO's business consists of generating, transmitting, distributing and selling of electric energy conducted through its principal subsidiary, AES Indiana. AES Indiana was incorporated under the laws of the state of Indiana in 1926. AES Indiana has approximately 529,000 retail customers in the city of Indianapolis and neighboring cities, towns and communities, and adjacent rural areas all within the state of Indiana. AES Indiana has an exclusive right to provide electric service to those customers.

AES Indiana owns and operates four generating stations, all within the state of Indiana. The first station, Petersburg, consists of two coal-fired units. AES Indiana plans to convert these two coal units to natural gas in 2026. The second station, Harding Street, consists of three natural gas-fired boilers and steam turbines and uses natural gas and fuel oil to power five combustion turbines. In addition, AES Indiana operates a 20 MW battery energy storage unit at this location, which provides frequency response. The third station, Eagle Valley, is a CCGT natural gas plant. The fourth station, Georgetown, is a peaking station that uses natural gas to power combustion turbines. As of September 30, 2025, AES Indiana's net electric generation capacity at these generating stations for winter is 3,070 MW and net summer capacity is 2,925 MW.

AES Indiana also owns and operates three renewable energy projects, including a 195 MW solar project located in Clinton County, Indiana (the *"*Hardy Hills Solar Project*"*), which achieved full commercial operations in May 2024, a 106 MW wind facility located in Benton County, Indiana (the *"*Hoosier Wind Project*"*), which was acquired in February 2024 and a 200 MW (800 MWh) battery energy storage project located in Pike County, Indiana (the "Pike County BESS Project'), which construction was completed and commenced operations in March 2025. See Note 2, "*Regulatory Matters - IRP Filings and Replacement Generation - Pike County BESS Project"* and Note 2, *"Regulatory Matters - IRP Filings and Replacement Generation"* to IPALCO's 2024 Form 10-K for further information.

In August 2023, AES Indiana, through a wholly-owned subsidiary, completed the acquisition of Petersburg Energy Center, LLC, including the development of a 250 MW solar and 45 MW (180 MWh) energy storage facility (the "Petersburg Energy Center Project*"*). The Petersburg Energy Center Project is expected to be placed in service in December 2025.

On May 16, 2025, AES Indiana, through a wholly-owned subsidiary, completed the acquisition of Crossvine Solar 1, LLC, including the development of 85 MW of solar and 85 MW (340 MWh) of energy storage which is expected to be placed in service in mid-2027.

For further discussion about AES Indiana's plans for wind, solar, and battery energy storage projects, please see Note 2, *"Regulatory Matters - IRP Filings and Replacement Generation"* to IPALCO's 2024 Form 10-K.

**Consolidation**

The accompanying Financial Statements include the accounts of IPALCO Enterprises, Inc., AES Indiana and Mid-America Capital Resources, Inc., a non-regulated wholly-owned subsidiary of IPALCO. Furthermore, VIEs in which the Company has an ownership interest and is the primary beneficiary, thus controlling the VIE, have been consolidated. All significant intercompany amounts have been eliminated in consolidation.

IPALCO consolidates the results of AES Indiana subsidiaries that qualify as VIEs. AES Indiana is the primary beneficiary and controls the most significant activities of these VIEs. At September 30, 2025 and December 31, 2024, the assets of these VIEs were approximately $1,435.7 million and $1,169.3 million, primarily consisting of property, plant and equipment, construction work in progress and other non-current assets. At September 30, 2025 and December 31, 2024, the liabilities of these VIEs were approximately $205.6 million and $180.5 million, primarily consisting of finance leases and accounts payable.

------

**Interim Financial Presentation**

The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial information and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, comprehensive income, changes in equity, and cash flows. The results of operations for the three months ended September 30, 2025 are not necessarily indicative of expected results for the year ending December 31, 2025. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2024 audited consolidated financial statements and notes thereto, which are included in IPALCO's 2024 Form 10-K.

**Use of Management Estimates**

The preparation of financial statements in conformity with GAAP requires that management make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The reported amounts of revenue and expenses during the reporting period may also be affected by the estimates and assumptions management is required to make. Actual results may differ from those estimates. Significant items subject to such estimates and assumptions include: recognition of revenue including unbilled revenue; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to AROs and employee benefits.

**Cash, Cash Equivalents and Restricted Cash**

The following table provides a summary of cash, cash equivalents and restricted cash amounts reported within the Condensed Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows:

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** |
| **Cash, cash equivalents and restricted cash** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $72180 | $26647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Restricted cash (included in Prepayments and other current assets) | 5 | 5 |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cash, cash equivalents and restricted cash** | $72185 | $26652 |

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**Accounts Receivable and Allowance for Credit Losses**

The following table summarizes our accounts receivable balances at September 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** |
| **Accounts receivable, net** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Customer receivables | $198152 | $207353 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unbilled revenue | 85952 | 90731 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amounts due from related parties | 9211 | 6461 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | 27773 | 38331 |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | (16477) | (29798) |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total accounts receivable, net** | $304611 | $313078 |

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------

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the periods indicated:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|<br>**$ in Thousands** | **2025** | **2024** |
| Allowance for credit losses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning balance | $29798 | $2283 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current period provision | 22718 | 14018 |
| &nbsp;&nbsp;&nbsp;&nbsp; Write-offs charged against allowance | (36395) | (577) |
| &nbsp;&nbsp;&nbsp;&nbsp; Recoveries | 356 | 1363 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ending Balance | $16477 | $17087 |

---

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions are expected to impact the collectability, as applicable, of our receivables balance. Amounts are written off when reasonable collections efforts have been exhausted. Beginning in 2024 and continuing into 2025, the current period provision and allowance for credit losses has increased due to a temporary pause of customer disconnections and certain collection efforts and write-off processes after the implementation of AES Indiana's customer billing system upgrade in the fourth quarter of 2023. This has resulted in higher past due customer receivables. AES Indiana reinstituted the customer disconnections process and write-off process in March 2025, and third-party collection efforts were reinstituted in the third quarter of 2025.

**Inventories**

The following table summarizes our inventory balances at September 30, 2025 and December 31, 2024:

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| | | |
|:---|:---|:---|
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** |
| **Inventories** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fuel | $30490 | $50842 |
| &nbsp;&nbsp;&nbsp;&nbsp; Materials and supplies, net | 50429 | 49093 |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total inventories** | $80919 | $99935 |

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**ARO**

AES Indiana's ARO liabilities relate primarily to environmental issues involving asbestos-containing materials, ash ponds, landfills and miscellaneous contaminants associated with its generating plants, transmission system and distribution system. The following is a roll forward of the ARO legal liabilities for the nine months ended September 30, 2025 and 2024, respectively:

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| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** |
| **Balance as of January 1** | $378460 | $249930 |
| &nbsp;&nbsp;&nbsp;Liabilities incurred | 1515 | 8864 |
| &nbsp;&nbsp;&nbsp;Liabilities settled | (17314) | (3202) |
| &nbsp;&nbsp;&nbsp;Revisions to cash flow and timing estimates | 91996 | 81714 |
| &nbsp;&nbsp;&nbsp;Accretion expense | 12876 | 9244 |
| **Balance as of September 30** | $467533 | $346550 |
| Less: ARO liabilities, current | 44537 | 26384 |
| **ARO liabilities, non-current** | $422996 | $320166 |

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ARO liabilities incurred primarily relate to decommissioning costs for AES Indiana's renewable projects, including liabilities incurred through acquisition of the Hoosier Wind Project. AES Indiana recorded revisions to its ARO liabilities during these two periods primarily to reflect revisions to cash flow estimates due to increases in closure costs and groundwater treatment measures for ash ponds and landfills. For the nine months ended September 30, 2025, revisions were primarily associated with updates to Harding Street's Corrective Measures Assessment related to ash ponds and groundwater treatment. For the nine months ended September 30, 2024, revisions were primarily associated with a revised decommissioning study for AES Indiana. As of September 30, 2025 and December 31, 2024, AES Indiana did not have any assets that are legally restricted for settling its ARO liabilities. For further information, see Note 4, "*ARO"* to IPALCO's 2024 Form 10-K.

**AFUDC**

AES Indiana capitalizes an allowance for the net cost of funds (interest on borrowed funds and a reasonable rate of return on equity funds) used for construction purposes during the period of construction with a corresponding credit to income. AFUDC equity and AFUDC debt were as follows for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| **$ in thousands** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| AFUDC equity | $622 | $1485 | $2023 | $3585 |
| AFUDC debt | $8932 | $7436 | $25348 | $19123 |

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**Intangible Assets**

Finite-lived intangible assets primarily include capitalized software and project development intangible assets amortized over their useful lives. The following table presents information related to the Company's intangible assets, including the gross amount capitalized and related amortization:

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| | | |
|:---|:---|:---|
|<br>**$ in thousands** | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Capitalized software | $290581 | $280020 |
| Project development intangible assets | 145821 | 83149 |
| Other | 809 | 797 |
| Less: Accumulated amortization | (151231) | (131756) |
| Intangible assets - net | $285980 | $232210 |
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2024** |
| Amortization expense | $7419 | $6729 |
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| Amortization expense | $21319 | $20458 |

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**Accumulated Other Comprehensive Income**

The amounts reclassified out of AOCI by component during the three and nine months ended September 30, 2025 and 2024 are as follows (in Thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Details about AOCI components** | **Affected line item in the Condensed Consolidated Statements of Operations** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| **Details about AOCI components** | **Affected line item in the Condensed Consolidated Statements of Operations** | **2025** | **2024** | **2025** | **2024** |
| Net (gains) / losses on cash flow hedges  | Interest expense | $(578) | $(578) | $(1734) | $(144) |
|  | Income tax effect | 144 | 144 | 432 | 36 |
| Total reclassifications for the period, net of income taxes |  | $(434) | $(434) | $(1302) | $(108) |

---

See Note 4, "*Derivative Instruments and Hedging Activities - Cash Flow Hedges*" for further information on the changes in the components of AOCI.

**Tax Credit Transferability**

During the nine months ended September 30, 2025, Pike County Energy Storage JV, LLC executed an agreement to transfer ITCs directly to a third party for $133.0 million. This amount was allocated to noncontrolling interest and treated as a capital contribution from the noncontrolling interest holder with no income tax benefit recorded by the Company. The Pike County BESS Project received and distributed to the noncontrolling interest holder, cash proceeds from these tax credit transfers of $45.2 million and $133.0 million during the three and nine months ended September 30, 2025.

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**New Accounting Pronouncements Adopted in 2025**

The Company assessed accounting pronouncements adopted in 2025 and determined that they were not applicable or did not have a material impact on the Company's Financial Statements.

**New Accounting Pronouncements Issued But Not Yet Effective**

The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company's Financial Statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company's Financial Statements.

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| | | | |
|:---|:---|:---|:---|
| **ASU Number and Name** | **Description** | **Date of Adoption** | **Effect on the Financial Statements upon adoption** |
| 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures | The amendments in this Update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. Furthermore, companies are required to disclose a disaggregated amount of income taxes paid at a federal, state, and foreign level as well as a breakdown of income taxes paid in a jurisdiction that comprises 5% of a company's total income taxes paid. Lastly, this ASU requires that companies disclose income (loss) from continuing operations before income tax at a domestic and foreign level and that companies disclose income tax expense from continuing operations on a federal, state, and foreign level. | The amendments in this Update are effective for fiscal years beginning after December 15, 2024. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. This ASU only affects annual disclosures, which will be provided when the amendment becomes effective. |
| 2024-03: Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) | The amendments in this Update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments require that at each interim and annual reporting period an entity:<br>1. Disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (DD&A) (or other amounts of depletion expense) included in each relevant expense caption. A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of the expense categories listed in (a)–(e).<br>2. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements.<br>3. Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.<br>4. Disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. | The date for each amendment in this Update is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. This ASU only affects disclosures, which will be provided when the amendment becomes effective. |
| 2025-06: Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software | The amendments in this Update remove all references to prescriptive and sequential software development stages (referred to as "project stages") throughout Subtopic 350-40. Therefore, an entity is required to start capitalizing software costs when both of the following occur:<br>1. Management has authorized and committed to funding the software project.<br>2. It is probable that the project will be completed and the software will be used to perform the function intended.<br>In evaluating the probable-to-complete recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software. The two factors to consider in determining whether there is significant development uncertainty are whether: <br>1. The software being developed has technological innovations or novel, unique, or unproven functions or features, and the uncertainty related to those technological innovations, functions, or features, if identified, has not been resolved through coding and testing.<br>2. The entity has determined what it needs the software to do (for example, functions or features), including whether the entity has identified or continues to substantially revise the software's significant performance requirements. | The amendments in this Update are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |

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**2. REGULATORY MATTERS**

**Regulatory Rate Review**

On April 17, 2024, the IURC issued an order (the "2024 Base Rate Order") approving the Stipulation and Settlement Agreement that AES Indiana entered into on November 22, 2023, with the OUCC and the other intervening parties in AES Indiana's base rate case filing. Among other matters and consistent with the Stipulation and Settlement Agreement, the 2024 Base Rate Order approves an increase in AES Indiana's total annual operating revenue of $71 million for AES Indiana's electric service and provides a return on common equity of 9.9% and cost of long-term debt of 4.90% on a rate base of approximately $3.5 billion. Updated customer rates and charges became effective on May 9, 2024.

On June 3, 2025, AES Indiana filed a petition with the IURC for authority to increase its basic rates and charges to cover the rising operational costs and needs associated with continuing to serve its customers safely and reliably. The factors leading to AES Indiana's base rate increase request include inflationary impacts on operations and maintenance expenses and continued investments in generation, transmission and distribution assets. AES Indiana is also seeking recovery of increased costs to support its vegetation management plan, storm restoration costs and technology to enhance resiliency and reliability. On October 15, 2025, AES Indiana entered into a Stipulation and Settlement Agreement (the "Settlement") with most parties in AES Indiana's pending regulatory rate review at the IURC. This Settlement provides for updated base rates for electric services in AES Indiana's territory and is subject, and conditioned upon, approval by the IURC. Among other things, the Settlement proposes an increase in AES Indiana's revenue of $90.7 million and provides a return on common equity of 9.75% and cost of long-term debt of 5.34%, on a rate base of approximately $5.5 billion for AES Indiana's 2027 electric service base rates. AES Indiana expects to receive an order from the IURC during the second quarter of 2026. The partial settlement agreement also includes a commitment to not implement additional base rate increases, following the implementation of new base rates under the Settlement, until at least January of 2030 and to not start a second TDSIC Plan before January of 2028.

**DSM**

AES Indiana filed a petition with the IURC on May 31, 2024 asking for approval of a two-year DSM plan for the 2025-2026 program years. On January 8, 2025, the IURC approved a two-year DSM plan for AES Indiana through 2026. The approval included cost recovery of programs as well as financial incentives, depending on the level of success of the programs. The order also approved recovery of lost revenue, consistent with the provisions of the settlement agreement.

**IRP Filings and Replacement Generation**

*2025 IRP*

In January 2025, AES Indiana initiated its 2025 IRP process with external stakeholders. Public advisory meetings for the 2025 IRP took place in January, July, September and October of 2025. On October 31, 2025, AES Indiana filed its 2025 IRP with the IURC, which describes AES Indiana's Preferred Resource Portfolio for meeting generation capacity needs for serving AES Indiana's retail customers over the next several years. The Preferred Resource Portfolio is AES Indiana's reasonable least cost option and provides a reliable and flexible generation mix for customers.

*Pike County BESS Project*

In June 2023, AES Indiana, through a wholly-owned subsidiary, executed an agreement for the construction of the 200 MW (800 MWh) Pike County BESS Project to be developed at the AES Indiana Petersburg Plant site in Pike County, Indiana. On July 19, 2023, AES Indiana filed a petition and case-in-chief with the IURC seeking approval for a Clean Energy Project and associated timely cost recovery under Indiana Code for this project. A hearing for this case was held in October 2023, and IURC approval was received on January 17, 2024. In March 2025, the Pike County BESS Project was placed in service. Upon the project being placed in service, the Company recognized $80.7 million of earnings from tax attributes using the HLBV method.

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*Crossvine Project*

On August 1, 2024, AES Indiana executed an agreement for the acquisition of a development stage solar and BESS project to be developed in Dubois County, Indiana. AES Indiana plans to build 85 MW of solar and 85 MW (340 MWh) of energy storage which is expected to be placed in service in mid-2027. AES Indiana filed a petition and case-in-chief with the IURC in August 2024, seeking a CPCN for this project, and IURC approval was received on April 9, 2025. On May 16, 2025, AES Indiana closed on the agreement for the acquisition of Crossvine Solar 1, LLC. This transaction was accounted for as an asset acquisition of a variable interest entity that did not meet the definition of a business; therefore, the identifiable assets and liabilities were recorded at their fair values. Total net assets of $77.6 million were recorded on the accompanying Condensed Consolidated Balance Sheets associated with the transaction, primarily consisting of a project development intangible asset valued at $63.5 million and construction work in progress (see Note 1, *"Overview and Summary of Significant Accounting Policies - Intangible Assets"* for further information).

**3. FAIR VALUE**

The fair value of current financial assets and liabilities approximate their reported carrying amounts. The estimated fair values of the Company's assets and liabilities have been determined using available market information. Because these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 5, "*Fair Value"* to IPALCO's 2024 Form 10-K.

**Financial Assets**

*VEBA Assets*

IPALCO has VEBA investments that are to be used to fund certain employee postretirement health care benefit plans. These assets are primarily comprised of open-ended mutual funds, which are valued using the net assets value per unit. These investments are recorded at fair value within "*Other non-current assets"* on the accompanying Condensed Consolidated Balance Sheets and classified as equity securities. All changes to fair value on the VEBA investments are included in income in the period that the changes occur. These changes to fair value were not material for the periods covered by this report. Any unrealized gains or losses are recorded in "*Other (expense) / income, net"* on the accompanying Condensed Consolidated Statements of Operations.

*FTRs*

In connection with AES Indiana's participation in MISO, in the second quarter of each year AES Indiana is granted financial instruments that can be converted into cash or FTRs based on AES Indiana's forecasted peak load for the period. FTRs are used in the MISO market to hedge AES Indiana's exposure to congestion charges, which result from constraints on the transmission system. AES Indiana's FTRs are valued at the cleared auction prices for FTRs in MISO's annual auction. Because of the infrequent nature of this valuation, the fair value assigned to the FTRs is considered a Level 3 input under the fair value hierarchy required by ASC 820. An offsetting regulatory liability has been recorded as these revenue or costs will be flowed through to customers through the FAC. As such, there is no impact on our Condensed Consolidated Statements of Operations.

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**Recurring Fair Value Measurements**

The fair value of assets and liabilities at September 30, 2025 and December 31, 2024 measured on a recurring basis and the respective category within the fair value hierarchy for IPALCO was determined as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Fair Value as of September 30, 2025** | **Fair Value as of September 30, 2025** | **Fair Value as of September 30, 2025** | **Fair Value as of September 30, 2025** | **Fair Value as of December 31, 2024** | **Fair Value as of December 31, 2024** | **Fair Value as of December 31, 2024** | **Fair Value as of December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** |
| **Financial assets:** | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;VEBA investments: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Money market funds | $105 | $— | $— | $105 | $86 | $— | $— | $86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mutual funds | 4166 |  |  | 4166 | 3947 |  |  | 3947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total VEBA investments | 4271 |  |  | 4271 | 4033 |  |  | 4033 |
| &nbsp;&nbsp;&nbsp;&nbsp;FTRs |  |  | 2972 | 2972 |  |  | 1526 | 1526 |
| **Total financial assets measured at fair value** | $4271 | $— | $2972 | $7243 | $4033 | $— | $1526 | $5559 |

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The following table presents a roll forward of financial instruments, measured at fair value on a recurring basis, classified as Level 3 in the fair value hierarchy (note, amounts in this table indicate carrying values, which approximate fair values):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** |
| Beginning Balance | $4304 | $3968 | $1526 | $1388 |
| Issuances |  |  | 4718 | 3811 |
| Settlements | (1332) | (1151) | (3272) | (2382) |
| Ending Balance | $2972 | $2817 | $2972 | $2817 |

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**Financial Instruments not Measured at Fair Value in the Condensed Consolidated Balance Sheets**

*Debt*

The fair value of our outstanding fixed-rate debt has been determined on the basis of the quoted market prices of the specific securities issued and outstanding. In certain circumstances, the market for such securities was inactive and therefore the valuation was adjusted to consider changes in market spreads for similar securities. Accordingly, the purpose of this disclosure is not to approximate the value on the basis of how the debt might be refinanced.

The following table shows the face value and the fair value of fixed-rate and variable-rate indebtedness (Level 2) for the periods ending:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Face Value** | **Fair Value** | **Face Value** | **Fair Value** |
| | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** |
| Fixed-rate | $3948800 | $3838582 | $3638800 | $3404473 |
| Variable-rate | 25000 | 25000 | 500000 | 500000 |
| **Total indebtedness** | $3973800 | $3863582 | $4138800 | $3904473 |

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The difference between the face value and the carrying value of this indebtedness consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unamortized deferred financing costs of $37.2 million and $34.7 million at September 30, 2025 and December 31, 2024, respectively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unamortized discounts of $10.4 million and $9.4 million at September 30, 2025 and December 31, 2024, respectively.

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**4. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES**

For further information on the Company's derivative and hedge accounting policies, see Note 1, "*Overview and Summary of Significant Accounting Policies - Financial Derivatives"* and Note 6, "*Derivative Instruments and Hedging Activities"* to IPALCO's 2024 Form 10-K.

At September 30, 2025**,** AES Indiana's outstanding derivative instruments were as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Commodity** | **Accounting Treatment**  | **Unit** | **Notional <br>(in thousands)** | **Sales <br>(in thousands)** | **Net Notional <br>(in thousands)** |
| FTRs | Not Designated | MWh | 5,644 |  | 5,644 |

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**Cash Flow Hedges**

As part of our risk management processes, we identify the relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. The fair values of cash flow hedges are determined by current public market prices. The change in the fair value of a hedging instrument is recorded in AOCI and amounts deferred are reclassified to earnings in the same income statement line as the hedged item in the period in which it settles.

IPALCO's three forward-starting interest rate swaps with a combined notional value of $400.0 million were terminated for total cash proceeds of $23.1 million in conjunction with the issuance of the 2034 IPALCO Notes in March 2024. AOCI of $95.4 million associated with the interest rate swaps through the date of the termination is currently being amortized into interest expense over the 10-year life of the 2034 IPALCO Notes. IPALCO previously de-designated three forward-starting interest rate swaps used to hedge the interest risk associated with refinancing the IPALCO 2020 maturities. AOCL of $72.3 million was frozen at the date of de-designation, which is currently being amortized into interest expense over the remaining life of the 2030 IPALCO Notes.

The following table provides information on gains or losses recognized in AOCI for the cash flow hedges for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Interest Rate Hedges for the Three Months Ended September 30,** | **Interest Rate Hedges for the Three Months Ended September 30,** | **Interest Rate Hedges for the Nine Months Ended September 30,** | **Interest Rate Hedges for the Nine Months Ended September 30,** |
|<br>$ in thousands (net of tax) | **2025** | **2024** | **2025** | **2024** |
| Beginning accumulated derivative gain  | $34510 | $36246 | $35378 | $29294 |
| Net gains associated with current period hedging transactions |  |  |  | 6626 |
| Net (gains) / losses reclassified to interest expense, net of tax | (434) | (434) | (1302) | (108) |
| Ending accumulated derivative gain in AOCI | $34076 | $35812 | $34076 | $35812 |
| Net gain expected to be reclassified to earnings in the next twelve months | 1737 |  |  |  |

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**Derivatives Not Designated as Hedge**

AES Indiana's FTRs do not qualify for hedge accounting or the normal purchases and sales exceptions under ASC 815. Accordingly, FTRs are recorded at fair value using the income approach when acquired and subsequently amortized over the annual period as they are used. When applicable, IPALCO has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. As of September 30, 2025 and December 31, 2024, IPALCO did not have any offsetting positions.

The following table summarizes the fair value, balance sheet classification and hedging designation of IPALCO's derivative instruments (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Commodity** | **Hedging Designation** | **Balance sheet classification** | **September 30, 2025** | **December 31, 2024** |
| FTRs | Not a Cash Flow Hedge | Derivative assets, current | $2972 | $1526 |

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**5. DEBT**

**Long-Term Debt**

The following table presents our long-term debt:

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| | | | |
|:---|:---|:---|:---|
| | | **September 30,** | **December 31,** |
|<br>**Series** |<br>**Due** | **2025** | **2024** |
|  |  | ***(In Thousands)*** | ***(In Thousands)*** |
| **AES Indiana first mortgage bonds:** | **AES Indiana first mortgage bonds:** |  |  |
| 0.65% <sup>(1)</sup> | August 2025 | $— | $40000 |
| 0.75% <sup>(2)</sup> | April 2026 | 30000 | 30000 |
| 0.95% <sup>(2)</sup> | April 2026 | 60000 | 60000 |
| 1.40% <sup>(1)</sup> | August 2029 | 55000 | 55000 |
| 5.65% | December 2032 | 350000 | 350000 |
| 6.60% | January 2034 | 100000 | 100000 |
| 5.05% | August 2035 | 350000 |  |
| 6.05% | October 2036 | 158800 | 158800 |
| 6.60% | June 2037 | 165000 | 165000 |
| 4.875% | November 2041 | 140000 | 140000 |
| 4.65% | June 2043 | 170000 | 170000 |
| 4.50% | June 2044 | 130000 | 130000 |
| 4.70% | September 2045 | 260000 | 260000 |
| 4.05% | May 2046 | 350000 | 350000 |
| 4.875% | November 2048 | 105000 | 105000 |
| 5.70% | April 2054 | 650000 | 650000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized discount – net |  | (9103) | (8093) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs |  | (28041) | (25469) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total AES Indiana first mortgage bonds** | &nbsp;&nbsp;&nbsp;&nbsp;**Total AES Indiana first mortgage bonds** | **3036656** | **2730238** |
| **Total long-term debt – AES Indiana** | **Total long-term debt – AES Indiana** | **3036656** | **2730238** |
| **Long-term debt – IPALCO:** | **Long-term debt – IPALCO:** |  |  |
| 4.25% Senior Secured Notes | May 2030 | 475000 | 475000 |
| 5.75% Senior Secured Notes | April 2034 | 400000 | 400000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized discount – net |  | (1270) | (1331) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs |  | (7655) | (8279) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total long-term debt – IPALCO** | &nbsp;&nbsp;&nbsp;&nbsp;**Total long-term debt – IPALCO** | **866075** | **865390** |
| **Total consolidated IPALCO long-term debt** | **Total consolidated IPALCO long-term debt** | **3902731** | **3595628** |
| Less: current portion of long-term debt |  | **89853** | **39910** |
| **Net consolidated IPALCO long-term debt** <sup>(3)</sup> |  | $**3812878** | $**3555718** |

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(1)First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority.

(2)First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. The notes have a final maturity date of December 31, 2038, but are subject to a mandatory put in April 2026.

(3)Excludes $0.2 million and $0.2 million (current) and $100.0 million and $86.9 million (non-current) finance lease liabilities included in the respective short and long-term debt line items on the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively. See Note 12, "*Leases*" for further information.

**Line of Credit**

AES Indiana entered into a third amendment and restatement of its $500 million revolving Credit Agreement on March 25, 2025 with a syndicate of bank lenders. The AES Indiana Credit Agreement is an unsecured committed line of credit to be used: (i) to finance capital expenditures; (ii) to refinance certain existing indebtedness, (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on March 25, 2030, and bears interest at variable rates as described in the agreement. It includes an uncommitted $200 million accordion feature to provide AES Indiana with an option to request an increase in the size of the facility at any time prior to March 25, 2029, subject to approval by the lenders. The AES Indiana Credit Agreement also includes two one-year

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extension options, allowing AES Indiana to extend the maturity date subject to approval by the lenders. As of September 30, 2025 and December 31, 2024, AES Indiana had $25.0 million and $100.0 million in outstanding borrowings on the committed AES Indiana Credit Agreement, respectively.

**Significant Transactions**

*AES Indiana First Mortgage Bonds and AES Indiana Term Loan*

In August 2025, AES Indiana issued $350 million aggregate principal amount of first mortgage bonds, 5.05% Series, due August 2035, pursuant to Rule 144A and Regulation S under the Securities Act. The net proceeds from this offering of approximately $345.2 million, after deducting the initial purchasers' discounts and fees and expenses for the offering, were used to repay the remaining $300 million of the $400 million Term Loan Agreement, outstanding borrowings on the Credit Agreement and for general corporate purposes.

In August 2024, AES Indiana entered into an unsecured $400 million 364-day term loan agreement, which was drawn in two tranches. AES Indiana drew $300 million at closing and drew the remaining $100 million in October 2024, with the proceeds being used for general corporate purposes. In June 2025, AES Indiana redeemed $100 million of the $400 million Term Loan Agreement, with the remaining $300 million redeemed in August 2025.

**6. INCOME TAXES**

IPALCO's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective combined state and federal income tax rates were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Effective tax rate | 26.7% | 13.3% | 41.1% | 21.7% |

---

The year-to-date rate is different from the combined federal and state statutory rate of 24.9% primarily due to the impact of taxes on noncontrolling interest in subsidiaries and the net tax expense related to the amortization of allowance for equity funds used during construction, which is partially offset by the flowthrough of the net tax benefit related to the reversal of excess deferred taxes and investment tax credits of AES Indiana.

IPALCO's income tax expense for the nine months ended September 30, 2025, was calculated using the estimated annual effective income tax rate for 2025 of 28.0% on ordinary income. Management estimates the annual effective tax rate based on its forecast of annual pre-tax income or loss.

AES files federal and state income tax returns which consolidate IPALCO and its subsidiaries. Under a tax sharing agreement with AES, IPALCO is responsible for the income taxes associated with its own taxable income and records the provision for income taxes using a separate return method.

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**7. BENEFIT PLANS**

The following table presents the net periodic benefit cost of the Pension Plans combined:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
|  | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** |
| **Components of net periodic benefit cost:** |  |  |  |  |
| Service cost | $1065 | $1253 | $3195 | $3759 |
| Interest cost | 6891 | 6739 | 20673 | 20217 |
| Expected return on plan assets | (7758) | (7443) | (23274) | (22329) |
| Amortization of prior service cost | 585 | 475 | 1755 | 1425 |
| Amortization of actuarial loss | 1257 | 1207 | 3771 | 3621 |
| **Net periodic benefit cost** | $2040 | $2231 | $6120 | $6693 |

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The components of net periodic benefit cost other than service cost are included in *"Other (expense) / income, net"* in the Condensed Consolidated Statements of Operations.

In addition, AES Indiana provides postretirement health care benefits to certain active or retired employees and the spouses of certain active or retired employees. These postretirement health care benefits and the related unfunded obligation were not material to the Financial Statements in the periods covered by this report.

**8. EQUITY**

**Paid In Capital**

During 2025, AES U.S. Investments received equity capital contributions totaling $337.6 million, of which $287.0 million was contributed by AES U.S. Holdings, LLC and $50.6 million was contributed by CDPQ. IPALCO then received equity capital contributions totaling $410.0 million, of which $337.6 million was contributed by AES U.S. Investments and $72.4 million was contributed by CDPQ. IPALCO then made the same investments in AES Indiana. The proceeds from the equity contributions are intended primarily for funding needs related to AES Indiana's capital expenditure program. The capital contributions were made on a proportional share basis and, therefore, did not change CDPQ's or AES' ownership interests in IPALCO or AES U.S. Investments.

During 2024, AES U.S. Investments received equity capital contributions totaling $123.5 million, of which $105 million was contributed by AES U.S. Holdings, LLC and $18.5 million was contributed by CDPQ. IPALCO then received equity capital contributions totaling $150.0 million, of which $123.5 million was contributed by AES U.S. Investments and $26.5 million was contributed by CDPQ. IPALCO then made the same investments in AES Indiana. The proceeds from the equity contribution are intended primarily for funding needs related to AES Indiana's capital expenditure program. The capital contributions were made on a proportional share basis and, therefore, did not change CDPQ's or AES' ownership interests in IPALCO or AES U.S. Investments.

**Equity Transactions with Noncontrolling Interests**

On December 6, 2024, AES Indiana, through a wholly-owned subsidiary, sold a noncontrolling interest in the Pike County BESS Project to a tax equity investor. The tax equity investor has made total contributions of $188.3 million under the agreement, including $150.2 million contributed in March 2025. The redemption feature of the tax equity partnership agreement was contingent upon the underlying assets being placed in service by a guaranteed date. In March 2025, the Pike County BESS Project was placed in service, resulting in the expiration of the redemption feature. As a result, noncontrolling interest of $38.1 million was reclassified from Redeemable stock of subsidiaries to Noncontrolling interests on the Condensed Consolidated Balance Sheets.

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**9. COMMITMENTS AND CONTINGENCIES**

***Contingencies***

**Subsidiary Guarantees**

In connection with AES Indiana's renewable projects financed with a tax equity structure, AES Indiana has expressly undertaken limited obligations and commitments on behalf of certain of the Company's subsidiaries, which will only be effective upon the occurrence of future events, such as IRS recapture of tax credits, which is not expected to occur, and will be terminated upon the occurrence of future events. As of September 30, 2025, the maximum undiscounted potential exposure to tax equity financing related guarantees was $314.6 million.

**Legal Matters**

IPALCO and AES Indiana are involved in litigation arising in the normal course of business. We accrue for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. While the ultimate outcome of outstanding litigation cannot be predicted with certainty, management believes that final outcomes will not have a material adverse effect on IPALCO's results of operations, financial condition and cash flows. Accruals for legal loss contingencies were not material as of September 30, 2025 and December 31, 2024, respectively.

**Environmental Matters**

We are subject to various federal, state, regional and local environmental protection and health and safety laws and regulations governing, among other things, the generation, storage, handling, use, disposal and transportation of regulated materials, including CCR; the use and discharge of water used in generation boilers and for cooling purposes; the emission and discharge of hazardous and other materials, including GHGs, into the environment; climate change; and the health and safety of our employees. These laws and regulations often require a lengthy and complex process of obtaining and renewing permits and other governmental authorizations from federal, state and local agencies. Violation of these laws, regulations or permits can result in substantial fines, other sanctions, permit revocation and/or facility shutdowns. We cannot assure that we have been or will be at all times in full compliance with such laws, regulations and permits. Accruals for environmental contingencies were not material as of September 30, 2025 and December 31, 2024, respectively.

On March 23, 2021, the U.S. District Court for the Southern District of Indiana approved and entered a judicial consent decree among AES Indiana, the United States on behalf of the EPA, and the IDEM. The decree resolved allegations by EPA and IDEM that AES Indiana had violated the federal CAA at its Petersburg Station, which AES denies. Under the decree, AES Indiana agreed to certain emission limits and annual caps on NOx, SO2 and PM emissions at the four Units at the station; paid a civil penalty of $1.525 million; retired Units 1 and 2, spent $0.325 million on an environmentally beneficial project to preserve local, ecologically-significant lands (notice of completion of which was provided May 8, 2025 and confirmed satisfactory by IDEM on September 8, 2025); and will spend a total of $5 million on a further environmental mitigation project to build and operate a new, non-emitting source of generation at the site.

**10. BUSINESS SEGMENTS** 

IPALCO manages its business through one reportable operating segment, the Utility segment, led by our Chief Executive Officer and Chief Financial Officer, who, collectively, are the Chief Operating Decision Maker. The primary segment performance measures are income / (loss) before income tax and net income / (loss) as management has concluded that these measures best reflect the underlying business performance of IPALCO and are the most relevant measures considered in IPALCO's internal evaluation of the financial performance of its segment. The Utility segment is comprised of AES Indiana, a vertically integrated electric utility, with all other nonutility business activities aggregated separately. See Note 1, "*Overview and Summary of Significant Accounting Policies"* for further information on AES Indiana. The "Other" nonutility category primarily includes the 2030 IPALCO Notes, 2034 IPALCO Notes and related interest expense, cash and other immaterial balances. The accounting policies of the identified segment are consistent with those policies and procedures described in the summary of significant accounting policies. See Note 1, *"Overview and Summary of Significant Accounting Policies"* to IPALCO's 2024 Form 10-K for further information.

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The following table provides information about IPALCO's business segments (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** | **September 30, 2024** |
| | Utility | Other | Total | Utility | Other | Total |
| Revenue | $529344 | $— | $529344 | $449171 | $— | $449171 |
| Fuel | 138017 |  | 138017 | 96103 |  | 96103 |
| Power purchased | 38604 |  | 38604 | 31100 |  | 31100 |
| Operation and maintenance | 134885 | 156 | 135041 | 125352 | 497 | 125849 |
| Depreciation and amortization | 93239 |  | 93239 | 85493 |  | 85493 |
| Taxes other than income taxes | 6262 |  | 6262 | 6130 |  | 6130 |
| Allowance for equity funds used during construction | (622) |  | (622) | (1485) |  | (1485) |
| Interest expense | 31764 | 10447 | 42211 | 33745 | 10453 | 44198 |
| Other segment items <sup>(a)</sup> | 472 | (262) | 210 | (376) | (223) | (599) |
| Income / (loss) before income tax | 86723 | (10341) | 76382 | 73109 | (10727) | 62382 |
| Income tax expense / (benefit) | 23866 | (3498) | 20368 | 10410 | (2096) | 8314 |
| Net income / (loss) | $62857 | $(6843) | $56014 | $62699 | $(8631) | $54068 |
| Capital expenditures  | $251139 | $— | $251139 | $189282 | $— | $189282 |
|  | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** | **September 30, 2024** |
|  | Utility | Other | Total | Utility | Other | Total |
| Revenue | $1445728 | $— | $1445728 | $1254566 | $— | $1254566 |
| Fuel | 344499 |  | 344499 | 276661 |  | 276661 |
| Power purchased | 105373 |  | 105373 | 113836 |  | 113836 |
| Operation and maintenance | 419583 | 374 | 419957 | 349579 | 730 | 350309 |
| Depreciation and amortization | 271313 |  | 271313 | 248846 |  | 248846 |
| Taxes other than income taxes | 19565 |  | 19565 | 20572 |  | 20572 |
| Allowance for equity funds used during construction | (2023) |  | (2023) | (3585) |  | (3585) |
| Interest expense | 101452 | 31342 | 132794 | 99007 | 32674 | 131681 |
| Other segment items <sup>(a)</sup> | 1263 | (281) | 982 | 3592 | (1904) | 1688 |
| Income / (loss) before income tax | 184703 | (31435) | 153268 | 146058 | (31500) | 114558 |
| Income tax expense / (benefit) | 70652 | (7709) | 62943 | 30838 | (6005) | 24833 |
| Net income / (loss) | $114051 | $(23726) | $90325 | $115220 | $(25495) | 89725 |
| Capital expenditures  | $547963 | $— | $547963 | $727152 | $— | $727152 |
|  | **As of September 30, 2025** | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | Utility | Other | Total | Utility | Other | Total |
| Total assets | $7550107 | $17718 | $7567825 | $7123241 | $15784 | $7139025 |

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(a) Other segment items primarily includes other miscellaneous gains and losses in Other (expense) income, net.

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**11. REVENUE**

Revenue is primarily earned from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recorded net of any taxes assessed on and collected from customers, which are remitted to the governmental authorities. Please see Note 14, *"Revenue"* to IPALCO's 2024 Form 10-K for further discussion of our retail, wholesale and miscellaneous revenue.

AES Indiana's revenue from contracts with customers was as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue from contracts with customers | $522250 | $441973 | $1425496 | $1233907 |

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The following table presents our revenue from contracts with customers and other revenue (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Retail Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Retail revenue from contracts with customers: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $205875 | $183757 | $588858 | $523625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Small commercial and industrial | 74727 | 66786 | 212196 | 190531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Large commercial and industrial | 192802 | 170657 | 513783 | 464185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Public lighting | 2644 | 3009 | 7935 | 8032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other <sup>(1)</sup> | 3020 | 3585 | 8932 | 8576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total retail revenue from contracts with customers | 479068 | 427794 | 1331704 | 1194949 |
| &nbsp;&nbsp;&nbsp;&nbsp; Alternative revenue programs | 6319 | 6482 | 17672 | 18457 |
| **Wholesale Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wholesale revenue from contracts with customers: | 41039 | 10183 | 86554 | 29503 |
| **Miscellaneous Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capacity revenue | 355 | 97 | 1200 | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transmission and other revenue | 1788 | 3898 | 6038 | 9357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total miscellaneous revenue from contracts with customers | 2143 | 3995 | 7238 | 9454 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other miscellaneous revenue <sup>(2)</sup> | 775 | 717 | 2560 | 2203 |
| **Total Revenue** | $529344 | $449171 | $1445728 | $1254566 |

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(1)Other retail revenue from contracts with customers includes miscellaneous charges to customers, including reconnection and late fee charges.

(2)Other miscellaneous revenue includes lease and other miscellaneous revenue not accounted for under ASC 606.

The balances of receivables from contracts with customers were as follows (in thousands):

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| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Receivables from contracts with customers | $288307 | $298984 |

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Payment terms for all receivables from contracts with customers typically do not extend beyond 30 days, unless a customer qualifies for payment extension. AES Indiana temporarily paused customer disconnections and certain collection efforts and write-off processes to support the implementation of AES Indiana's customer billing system upgrade in the fourth quarter of 2023. In the third quarter of 2024, AES Indiana began offering extended payment

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plans for customers who may need assistance in paying their past due bills. See Note 1, "*Overview and Summary of Significant Accounting Policies – Accounts Receivable and Allowance for Credit Losses*" for further information on AES Indiana's receivable balances.

**12. LEASES** 

**LESSEE**

The Company is the lessee under financing leases primarily for land. Right-of-use assets are long-term by nature. The following table summarizes the amounts recognized on the Condensed Consolidated Balance Sheets related to lease asset and liability balances as of the periods indicated (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Consolidated Balance Sheet Classification** | **September 30, 2025** | **December 31, 2024** |
| **Assets** | | | |
| &nbsp;&nbsp;&nbsp;Right-of-use assets — finance leases | Other non-current assets | $98214 | $86707 |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Finance lease liabilities (current) | Short-term debt and current portion of long-term debt | $203 | $217 |
| &nbsp;&nbsp;&nbsp;Finance lease liabilities (non-current) | Long-term debt | 99985 | 86869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total finance lease liabilities |  | $100188 | $87086 |

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The following table summarizes supplemental balance sheet information related to leases as of the periods indicated:

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| | | |
|:---|:---|:---|
| **Lease Term and Discount Rate** | **September 30, 2025** | **December 31, 2024** |
| Weighted-average remaining lease term — finance leases | 35 years | 36 years |
| Weighted-average discount rate — finance leases | 5.74% | 5.67% |

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Operating cash outflows from finance leases were $4.1 million and $3.4 million for the nine months ended September 30, 2025 and 2024, respectively.

The following table shows the future lease payments under finance leases together with the present value of the net lease payments as of September 30, 2025 for 2025 through 2029 and thereafter (in thousands):

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| | |
|:---|:---|
| | Finance Leases |
| 2025 | $585 |
| 2026 | 5012 |
| 2027 | 5205 |
| 2028 | 5498 |
| 2029 | 5608 |
| Thereafter | 241135 |
| Total | $263043 |
| Less: Imputed interest | (162855) |
| Present value of lease payments | $100188 |

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**LESSOR**

The Company is the lessor under operating leases for land, office space and operating equipment. Lease receipts from such contracts are recognized as operating lease revenue on a straight-line basis over the lease term whereas contingent rentals are recognized when earned.

The following table presents lease revenue from operating leases in which the Company is the lessor for the periods indicated (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Total lease revenue | $360 | $358 | $1192 | $1156 |

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The following table presents the underlying gross assets and accumulated depreciation of operating leases included in *Property, plant and equipment, net* for the periods indicated (in thousands):

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| | | |
|:---|:---|:---|
| **Property, Plant and Equipment, Net** | **September 30, 2025** | **December 31, 2024** |
| Gross assets | $8612 | $4387 |
| &nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | (3559) | (1426) |
| Net assets | $5053 | $2961 |

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The option to extend or terminate a lease is based on customary early termination provisions in the contract.

The following table shows the future lease receipts as of September 30, 2025 for the remainder of 2025 through 2029 and thereafter (in thousands):

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| | |
|:---|:---|
| | **Operating Leases** |
| 2025 | $170 |
| 2026 | 680 |
| 2027 | 683 |
| 2028 | 486 |
| 2029 | 449 |
| Thereafter | 679 |
| Total | $3147 |

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**13. SUBSEQUENT EVENTS**

On October 2, 2025, AES Indiana, through a wholly-owned subsidiary, sold a noncontrolling interest in the Petersburg Energy Center Project to a tax equity investor. The tax equity investor made an initial contribution under the tax equity partnership agreement totaling $53.0 million.

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***ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS***

The following discussion and analysis should be read in conjunction with the Financial Statements and the notes thereto included in *"Item 1. Financial Statements"* included in Part I – Financial Information of this Form 10-Q.

**FORWARD-LOOKING INFORMATION**

The following discussion may contain forward-looking statements regarding us, our business, prospects and our results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those described in *"Item 1A. Risk Factors"* and *"Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations"* in IPALCO's 2024 Form 10-K and subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the SEC that advise of the risks and uncertainties that may affect our business.

**OVERVIEW OF OUR BUSINESS**

IPALCO is a holding company incorporated under the laws of the state of Indiana. Our principal subsidiary is AES Indiana, a regulated electric utility operating in the state of Indiana. Substantially all of our business consists of the generation, transmission, distribution and sale of electric energy conducted through AES Indiana. Our business segments are "utility" and "other." For additional information regarding our business, see *"Item 1. Business"* of IPALCO's 2024 Form 10-K*.* 

**EXECUTIVE SUMMARY**

Compared with the same periods in the prior year, the results for the three months ended September 30, 2025 reflect higher income before income tax of $14.0 million, or 22.4%, as well as an increase in net income of $1.9 million, or 3.6%, and the results for the nine months ended September 30, 2025 reflect higher income before income tax of $38.7 million, or 33.8%, as well as an increase in net income of $0.6 million, or 0.7%, primarily due to factors including, but not limited to:

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| | | |
|:---|:---|:---|
|<br>$ in millions | **Three Months Ended**<br>**September 30,**<br>**2025 vs. 2024** | **Nine Months Ended**<br>**September 30,**<br>**2025 vs. 2024** |
| (Decrease) in retail margin, during the three months ended September 30, 2025, due to lower prices as result of the declining block rate structure. Increase in retail margin, during the nine months ended September 30, 2025, due to higher prices (primarily driven by the 2024 Base Rate Order, including the impact of certain riders now included in base rates) | $(5.9) | $50.0 |
| Increase in ECCRA rider revenue due to recovery of certain renewable project investments | 14.6 | 33.9 |
| Increase in retail margin due to higher volumes (primarily driven by weather) | 7.8 | 17.2 |
| Decrease due to higher contracted services expenses and higher materials and supplies inventory consumption, primarily due to higher planned generation maintenance and outage costs | (1.6) | (21.5) |
| Decrease due to lower TDSIC rider revenue (primarily driven by certain projects now being included in base rate retail margin after the 2024 Base Rate Order) |  | (18.2) |
| Decrease due to higher depreciation expense from additional assets placed in service; partially offset by lower regulatory asset amortization following the 2024 Base Rate Order. | (3.2) | (9.2) |
| Increase / (Decrease) due to lower / (higher) expected credit losses | 4.0 | (8.7) |
| Other | (1.7) | (4.8) |
| &nbsp;&nbsp;&nbsp;**Net change in income before income tax** | **14.0** | **38.7** |
| Net change in income tax expense due to higher pre-tax income, a decrease in the net tax benefit related to the reversal of excess deferred taxes of AES Indiana resulting from the 2024 Base Rate Order, and the tax effects associated with HLBV in the current period | (12.1) | (38.1) |
| &nbsp;&nbsp;&nbsp;**Net change in net income** | $**1.9** | $**0.6** |

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See "*Results of Operations*" below for further discussion.

**RESULTS OF OPERATIONS**

The electric utility business is affected by seasonal weather patterns throughout the year and, therefore, operating revenue and associated expenses are not generated evenly by month during the year.

**Statements of Operations Highlights**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|<br>$ in Thousands | **2025** | **2024** | **$ Change** | **% Change** | **2025** | **2024** | **$ Change** | **% Change** |
| **REVENUE** | $529344 | $449171 | $80173 | 17.8% | $1445728 | $1254566 | $191162 | 15.2% |
| **OPERATING COSTS AND EXPENSES:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fuel | 138017 | 96103 | 41914 | 43.6% | 344499 | 276661 | 67838 | 24.5% |
| &nbsp;&nbsp;&nbsp;Power purchased | 38604 | 31100 | 7504 | 24.1% | 105373 | 113836 | (8463) | (7.4)% |
| &nbsp;&nbsp;&nbsp;Operation and maintenance | 135041 | 125849 | 9192 | 7.3% | 419957 | 350309 | 69648 | 19.9% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 93239 | 85493 | 7746 | 9.1% | 271313 | 248846 | 22467 | 9.0% |
| &nbsp;&nbsp;&nbsp;Taxes other than income taxes | 6262 | 6130 | 132 | 2.2% | 19565 | 20572 | (1007) | (4.9)% |
| &nbsp;&nbsp;Other, net |  | (115) | 115 | (100.0)% | (164) | 1422 | (1586) | (111.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 411163 | 344560 | 66603 | 19.3% | 1160543 | 1011646 | 148897 | 14.7% |
| **OPERATING INCOME** | 118181 | 104611 | 13570 | 13.0% | 285185 | 242920 | 42265 | 17.4% |
| **OTHER (EXPENSE) / INCOME, NET:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds used during construction | 622 | 1485 | (863) | (58.1)% | 2023 | 3585 | (1562) | (43.6)% |
| &nbsp;&nbsp;&nbsp;Interest expense | (42211) | (44198) | 1987 | (4.5)% | (132794) | (131681) | (1113) | 0.8% |
| &nbsp;&nbsp;&nbsp;Other (expense) / income, net | (210) | 484 | (694) | (143.4)% | (1146) | (266) | (880) | 330.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (41799) | (42229) | 430 | (1.0)% | (131917) | (128362) | (3555) | 2.8% |
| **INCOME BEFORE INCOME TAX** | 76382 | 62382 | 14000 | 22.4% | 153268 | 114558 | 38710 | 33.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 20368 | 8314 | 12054 | 145.0% | 62943 | 24833 | 38110 | 153.5% |
| **NET INCOME** | 56014 | 54068 | 1946 | 3.6% | 90325 | 89725 | 600 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to noncontrolling interests | (7715) | (872) | (6843) | 784.7% | (103296) | (24171) | (79125) | 327.4% |
| **NET INCOME ATTRIBUTABLE TO COMMON STOCK** | $63729 | $54940 | $8789 | 16.0% | $193621 | $113896 | $79725 | 70.0% |

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**Revenue**

Revenue during the three and nine months ended September 30, 2025 increased $80.2 million and $191.2 million, respectively, compared to the same periods in 2024, which resulted from the following changes (dollars in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **$ Change** | **% Change** | **2025** | **2024** | **$ Change** | **% Change** |
| **Revenue:** |  |  |  |  |  |  |  |  |
| Retail revenue | $485387 | $434276 | $51111 | 11.8% | $1349376 | $1213406 | $135970 | 11.2% |
| Wholesale revenue | 41039 | 10183 | 30856 | 303.0% | 86554 | 29503 | 57051 | 193.4% |
| Miscellaneous revenue | 2918 | 4712 | (1794) | (38.1)% | 9798 | 11657 | (1859) | (15.9)% |
| **Total revenue** | $529344 | $449171 | $80173 | 17.8% | $1445728 | $1254566 | $191162 | 15.2% |
| **Heating degree days:** |  |  |  |  |  |  |  |  |
| Actual | 18 | 18 |  | —% | 3185 | 2674 | 511 | 19.1% |
| 30-year average | 46 | 49 |  |  | 3244 | 3250 |  |  |
| **Cooling degree days:** |  |  |  |  |  |  |  |  |
| Actual | 912 | 835 | 77 | 9.2% | 1279 | 1300 | (21) | (1.6)% |
| 30-year average | 808 | 808 |  |  | 1163 | 1160 |  |  |

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The following table presents additional data on kWh sold:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **kWh Change** | **% Change** | **2025** | **2024** | **kWh Change** | **% Change** |
| **kWh Sales *(In Millions)*:** |  |  |  |  |  |  |  |  |
| Residential | 1367 | 1325 | 42 | 3.2% | 4031 | 3865 | 166 | 4.3% |
| Small commercial and industrial | 470 | 468 | 2 | 0.4% | 1373 | 1363 | 10 | 0.7% |
| Large commercial and industrial | 1718 | 1683 | 35 | 2.1% | 4654 | 4594 | 60 | 1.3% |
| Public lighting | 8 | 8 |  | —% | 26 | 29 | (3) | (10.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales – retail customers | 3563 | 3484 | 79 | 2.3% | 10084 | 9851 | 233 | 2.4% |
| Wholesale | 573 | 174 | 399 | 229.3% | 1343 | 652 | 691 | 106.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total kWh sold | 4136 | 3658 | 478 | 13.1% | 11427 | 10503 | 924 | 8.8% |

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The following graph shows the percentage changes in weather-normalized and actual retail electric kWh sales volumes by customer class for the three months ended September 30, 2025 as compared to the same period in the prior year:

![746](cik0000728391-20250930_g1.jpg)

The following graph shows the percentage changes in weather-normalized and actual retail electric kWh sales volumes by customer class for the nine months ended September 30, 2025 as compared to the same period in the prior year:

![962](cik0000728391-20250930_g2.jpg)

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During the three months ended September 30, 2025, revenue increased $80.2 million compared to the same period of the prior year, and during the nine months ended September 30, 2025, revenue increased $191.2 million compared to the same period of the prior year. These changes were primarily due to the following:

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| | | |
|:---|:---|:---|
| $ in millions | **Three Months Ended September 30, 2025 vs. 2024** | **Nine Months Ended September 30, 2025 vs. 2024** |
| **Retail revenue:** |  |  |
| **Volume:** |  |  |
| Net increase in the volume of kWh sold primarily due to weather and demand in our service territory versus the comparable period. | $11.9 | $28.9 |
| **Price:** |  |  |
| Net increase in the weighted average price of retail kWh sold primarily due to the 2024 Base Rate Order and higher rider revenues  | 39.6 | 106.1 |
| **Other:** |  |  |
| Primarily due to (decrease) / increase in miscellaneous charges to customers (including reconnection and late fee charges) | (0.4) | 1.0 |
| **Net change in retail revenue** | **51.1** | **136.0** |
| **Wholesale revenue:** |  |  |
| **Volume:** |  |  |
| Net increase in the volume of wholesale kWh sold. The amount of electricity available for wholesale sales is impacted by our retail load requirements, generation capacity and unit availability. | 23.4 | 31.3 |
| **Price:** |  |  |
| Net increase in the weighted average price of wholesale kWh sold. Our ability to be dispatched in the MISO market is primarily driven by the locational marginal price of electricity and variable generation costs. | 7.5 | 25.8 |
| **Net change in wholesale revenue** | **30.9** | **57.1** |
| **Miscellaneous revenue** | **(1.8)** | **(1.9)** |
| **Net change in revenue** | $**80.2** | $**191.2** |

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**Operating Costs and Expenses**

The following table illustrates our changes in Operating costs and expenses during the three and nine months ended September 30, 2025 compared to the same periods in 2024 (in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **$ Change** | **% Change** | **2025** | **2024** | **$ Change** | **% Change** |
| **Operating costs and expenses:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fuel | $138017 | $96103 | $41914 | 43.6% | $344499 | $276661 | $67838 | 24.5% |
| &nbsp;&nbsp;&nbsp;Power purchased | 38604 | 31100 | 7504 | 24.1% | 105373 | 113836 | (8463) | (7.4)% |
| &nbsp;&nbsp;&nbsp;Operation and maintenance | 135041 | 125849 | 9192 | 7.3% | 419957 | 350309 | 69648 | 19.9% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 93239 | 85493 | 7746 | 9.1% | 271313 | 248846 | 22467 | 9.0% |
| &nbsp;&nbsp;&nbsp;Taxes other than income taxes | 6262 | 6130 | 132 | 2.2% | 19565 | 20572 | (1007) | (4.9)% |
| &nbsp;&nbsp;Other, net |  | (115) | 115 | (100.0)% | (164) | 1422 | (1586) | (111.5)% |
| **&nbsp;&nbsp;&nbsp;&nbsp; Total operating costs and expenses** | $411163 | $344560 | $66603 | 19.3% | $1160543 | $1011646 | $148897 | 14.7% |

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*Fuel* 

The increases in fuel costs of $41.9 million and $67.8 million during the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year were primarily due to the following:

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| | | |
|:---|:---|:---|
| $ in millions | **Three Months Ended September 30, 2025 vs. 2024** | **Nine Months Ended September 30, 2025 vs. 2024** |
| **Volume:** |  |  |
| Coal | $22.3 | $60.2 |
| Natural gas | (2.2) | (18.8) |
| Oil | (0.3) | (0.8) |
| **&nbsp;&nbsp;&nbsp;&nbsp; Net change in volume** | 19.8 | 40.6 |
| **Price:** |  |  |
| Coal | (13.4) | (42.0) |
| Natural gas | 19.1 | 49.2 |
| Deferred fuel | 16.4 | 20.0 |
| **&nbsp;&nbsp;&nbsp;&nbsp; Net change in price** | 22.1 | 27.2 |
| **Net change in fuel expense** | $41.9 | $67.8 |

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The increases in coal volume are mostly attributed to favorable weather conditions during 2025 that impacted our retail load requirements at our Petersburg coal-fired units, which resulted in higher consumption of coal in the current year. The changes in the price of fuel are reflective of market prices for coal and natural gas. We are generally permitted to recover underestimated fuel and purchased power costs to serve our retail customers in future rates through quarterly FAC proceedings. These variances are deferred when incurred and amortized into expense in the same period that our rates are adjusted to reflect these variances. Additionally, fuel and purchased power costs incurred for wholesale energy sales are considered in the Off-System Sales Margin rider.

*Power Purchased* 

The increase / (decrease) in power purchased of $7.5 million and $(8.5) million during the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year were primarily due to the following:

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| | | |
|:---|:---|:---|
| $ in millions | **Three Months Ended September 30, 2025 vs. 2024** | **Nine Months Ended September 30, 2025 vs. 2024** |
| **Volume:** |  |  |
| Net decrease in the volume of power purchased primarily due to AES Indiana's generation units running more frequently during the respective periods. | $(3.7) | $(10.5) |
| **Price:** |  |  |
| Market prices | 2.4 | 1.8 |
| Deferred power purchased | 7.2 | 4.0 |
| **&nbsp;&nbsp;&nbsp;&nbsp; Net change in price** | 9.6 | 5.8 |
| Other, net (mostly due to changes in capacity purchases) | 1.6 | (3.8) |
| **Net change in power purchased costs** | $7.5 | $(8.5) |

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The volume of power purchased each period is primarily influenced by retail demand, generating unit capacity and outages, and the relative cost of producing power versus purchasing power in the market. The market price of

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purchased power is influenced primarily by changes in the market price of delivered fuel (primarily natural gas), the supply of and demand for electricity, and the time of day during which power is purchased. We are generally permitted to recover underestimated fuel and power purchased costs to serve our retail customers in future rates through quarterly FAC proceedings.

*Operation and Maintenance* 

The increases in Operation and maintenance of $9.2 million and $69.6 million during the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year were primarily due to the following:

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| | | |
|:---|:---|:---|
| $ in millions | **Three Months Ended September 30, 2025 vs. 2024** | **Nine Months Ended September 30, 2025 vs. 2024** |
| Increase in DSM program costs <sup>(a)</sup> | $11.3 | $31.0 |
| Increase in contracted services expenses and higher materials and supplies inventory consumption, primarily due to the timing of planned generation maintenance and outage costs | 1.6 | 21.5 |
| (Decrease) / increase due to (lower) / higher expected credit losses | (4.0) | 8.7 |
| Other, net | 0.3 | 8.4 |
| **Net change in operation and maintenance costs** | $9.2 | $69.6 |

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<sup>(a)</sup> There is corresponding offset in Revenue associated with these costs and minimal operating margin impact.

*Depreciation and Amortization*

The increases in Depreciation and amortization expense of $7.7 million and $22.5 million during the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year were mostly attributed to the impact of additional assets placed in service, including renewable projects, partially offset by lower regulatory asset amortization following the 2024 Base Rate Order.

**Other (Expense) / Income, Net**

The following table illustrates our changes in Other (expense) / income, net during the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 (in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **$ Change** | **% Change** | **2025** | **2024** | **$ Change** | **% Change** |
| **Other (expense) / income, net** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds used during construction | $622 | $1485 | $(863) | (58.1)% | $2023 | $3585 | $(1562) | (43.6)% |
| &nbsp;&nbsp;&nbsp;Interest expense | (42211) | (44198) | 1987 | (4.5)% | (132794) | (131681) | (1113) | 0.8% |
| &nbsp;&nbsp;&nbsp;Other (expense) / income, net | (210) | 484 | (694) | (143.4)% | (1146) | (266) | (880) | 330.8% |
| **&nbsp;&nbsp;&nbsp;&nbsp; Total other expense, net** | $(41799) | $(42229) | $430 | (1.0)% | $(131917) | $(128362) | $(3555) | 2.8% |

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**Income Tax Expense**

The following table illustrates our changes in Income tax expense during the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year (in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **$ Change** | **% Change** | **2025** | **2024** | **$ Change** | **% Change** |
| &nbsp;&nbsp;&nbsp;Income tax expense | $20368 | $8314 | $12054 | 145.0% | $62943 | $24833 | $38110 | 153.5% |

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The increases in Income tax expense of $12.1 million and $38.1 million during the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year were primarily driven by (i) higher pre-tax income, (ii) a decrease in the net tax benefit related to the reversal of excess deferred taxes of AES Indiana resulting from the 2024 Base Rate Order, (iii) the tax effects associated with HLBV increases compared to the prior periods, and (iv) the reversal of certain excess deferred taxes recorded in the third quarter of 2024 which were not probable to cause a reduction in future base customer rates.

**Net Loss Attributable to Noncontrolling Interests**

The following table illustrates changes in Net loss attributable to noncontrolling interests during the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year (in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **$ Change** | **% Change** | **2025** | **2024** | **$ Change** | **% Change** |
| &nbsp;&nbsp;&nbsp; Net loss attributable to noncontrolling interests | $(7715) | $(872) | $(6843) | 784.7% | $(103296) | $(24171) | $(79125) | 327.4% |

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The increases in Net loss attributable to noncontrolling interests of $6.8 million and $79.1 million for the three and nine months ended September 30, 2025, respectively, primarily relates to the allocation of losses to the tax equity investor of the Pike County BESS Project, as a result of the project being placed in service in March 2025; partially offset by the allocation of losses recognized upon the final stage of the Hardy Hills Solar Project being placed in service in May 2024. See Note 2, "*Regulatory Matters - IRP Filings and Replacement Generation - Hardy Hills Solar Project "* to the Financial Statements included in IPALCO's 2024 Form 10-K for further discussion.

**KEY TRENDS AND UNCERTAINTIES**

During the remainder of 2025 and beyond, we expect that our financial results will be driven primarily by retail demand, weather and maintenance costs. In addition, our financial results will likely be driven by many other factors including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory outcomes and impacts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the passage of new legislation, implementation of regulations or other changes in regulation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• timely recovery of capital expenditures and operation and maintenance costs.

If favorable outcomes related to these factors do not occur, or if the challenges described below and elsewhere in this Quarterly Report impact us more significantly than we currently anticipate, then these factors, or other factors unknown to us, may impact our operating margin, net income and cash flows. We continue to monitor our operations and address challenges as they arise. For a discussion of the risks related to our business, see *"Item 1. Business"* and *"Item 1A. Risk Factors"* as described in IPALCO's 2024 Form 10-K.

**<u>Operational</u>**

*Trade Restrictions and Supply Chain*

In April 2022, the U.S. Department of Commerce ("Commerce") initiated an investigation into whether imports into the U.S. of solar cells and panels from Cambodia, Malaysia, Thailand and Vietnam ("Southeast Asia") were

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circumventing antidumping and countervailing duty ("AD/CVD") orders on solar cells and panels from China. In August 2023, Commerce rendered final affirmative findings of circumvention with respect to all four countries, which resulted in the imposition of AD and CVD duties on certain imported cells and panels from Southeast Asia. Commerce's determination and related matters remain the subject of ongoing litigation before the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit.

In 2024, Commerce and the U.S. International Trade Commission initiated new AD/CVD investigations on solar cells and panels imported from Southeast Asia. On April 18, 2025, Commerce rendered final affirmative determinations and AD/CVD rates with respect to all four countries. On June 13, 2025, the U.S. International Trade Commission issued its determination that imports from Malaysia and Vietnam have injured the U.S. industry and that imports from Cambodia and Thailand threaten injury ("U.S. International Trade Commission Decision"). Commerce then issued orders on June 24, 2025, implementing the AD/CVD rates, which will be subject to annual review by Commerce. We do not expect these AD/CVD orders will have a negative impact on our business.

Separately, the U.S. maintains a global safeguard tariff (currently 14% ad valorem) on solar cells and modules pursuant to the Section 201 Safeguard Action on crystalline silicon photovoltaic products, which became effective in February 2018. On June 21, 2024, President Biden issued Proclamation 10779, revoking the exclusion of bifacial panels from safeguard relief previously proclaimed in Proclamation 10339, and reinstating the tariff on bifacial panels under the Section 201 Safeguard Action, subject to certain qualifications. These global tariffs are expected to expire in February 2026.

The U.S. also maintains Section 301 tariffs on certain Chinese made lithium-ion batteries and related components utilized for energy storage systems, with such tariff currently set at 7.5% and increasing to 25% effective January 1, 2026. There are also ongoing AD/CVD investigations with respect to exports by China of natural and synthetic graphite used to make lithium-ion battery anode material. Final U.S. International Trade Commission and Commerce AD/CVD determinations in these investigations are expected in the first quarter of 2026 and could result in price increases.

Additionally, the Uyghur Forced Labor Prevention Act ("UFLPA") seeks to block the import of products made with forced labor in certain areas of China, at any point in the supply chain, and may lead to certain suppliers being blocked from importing solar cells and panels into the U.S. While this has impacted the U.S. market, we have managed this issue without significant impact to our projects. Further forced labor designations of entities under the UFLPA may impact our suppliers' ability or willingness to meet their contractual agreements or to continue to supply cells or panels into the U.S. market on terms that we deem satisfactory.

The Trump Administration has threatened or imposed tariffs on a wide range of countries and products. On February 10, 2025, President Trump signed Executive Orders modifying existing Section 232 tariffs on steel and aluminum imports to expand their scope and impose 25% tariffs on both products. The President raised these rates to 50% effective June 4, 2025. At this time, we do not expect the modifications to tariffs on steel and aluminum to have a material impact on our business.

On February 1, 2025, President Trump issued an Executive Order declaring a national emergency under the International Emergency Economic Powers Act ("IEEPA") with respect to U.S importation of fentanyl. President Trump imposed a 10% additional tariff on imports from China, effective February 4, 2025. Effective March 4, 2025, this tariff was increased to 20%.

On April 2, 2025, President Trump issued an Executive Order pursuant to IEEPA imposing an indefinite, baseline reciprocal 10% tariff on almost all goods imported into the U.S., effective April 5, 2025, and individualized higher IEEPA tariffs (11% to 50%) starting April 9, 2025 on goods originating from 57 countries with trade surpluses with the U.S. On April 9, 2025, the U.S. government issued a further Executive Order increasing the IEEPA reciprocal tariff on China to 125% effective April 10, 2025. Concurrently, the U.S. government announced a temporary suspension of the country-specific reciprocal tariff measures targeting most U.S. trading partners for a 90-day period, or until July 9, 2025, which was later extended until August 1, 2025. Effective May 14, 2025, the IEEPA reciprocal tariff rate applicable to China was lowered to 10%. IEEPA reciprocal tariffs, at various levels, have now gone into effect for most U.S. trading partners.

Several trading partners (including the EU, Japan, South Korea, and the UK) have reached bilateral trade agreements with the U.S. The ultimate outcome of any reciprocal or other tariffs with countries that have not yet

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reached such trade agreements with the U.S. is uncertain. Also, the Supreme Court will hold oral argument on November 5, 2025, on the legality of the IEEPA tariffs, following lower court decisions declaring the tariffs unlawful.

In July 2025, Commerce initiated an investigation to determine the effects on national security of imports of polysilicon and its derivatives, pursuant to Section 232 of the Trade Expansion Act of 1962 ("Section 232"). In August 2025, Commerce initiated a separate investigation under Section 232 to determine the effects on national security of imports of wind turbines and their parts and components. The outcomes of these investigations are uncertain.

We expect the tariffs on imports from China will increase overall costs for materials and parts that are imported to build and maintain renewable energy plants for the U.S. industry. However, we expect limited impact to projects scheduled to become operational in 2025 through 2027 due to the recently announced tariffs on China.

While we have executed agreements for AES Indiana's existing solar and battery energy storage projects that mitigate these risks, potential future disruptions may impact our suppliers' ability or willingness to meet their contractual agreements with respect to these projects on terms that we deem satisfactory and these and future disruptions may impact the availability or costs of future projects. The impact of new Commerce investigations or any adverse Commerce determinations or other tariff disputes or litigation, the impact of the UFLPA, potential future disruptions to the renewable energy supply chain and their effect on AES Indiana's solar and battery energy storage project development and construction activities remain uncertain. AES Indiana will continue to monitor developments and take prudent steps towards managing our renewable projects.

*Customer Information and Billing System Implementation*

In the fourth quarter of 2023, we implemented our new customer information and billing system, SAP IS-U, a software solution that SAP developed for businesses operating in the utility industries. In connection with this implementation, a temporary pause of customer disconnections and certain collection efforts and write-off processes was instituted. Beginning in 2024 and continuing into 2025, the current period provision and allowance for credit losses has increased due to a temporary pause of customer disconnections and certain collection efforts and write-off processes after the implementation of AES Indiana's customer billing system upgrade in the fourth quarter of 2023. This has resulted in higher past due customer receivables. AES Indiana reinstituted the customer disconnections process and write-off process in March 2025, and third-party collection efforts were reinstituted in the third quarter of 2025.

*Capital Projects*

Our construction projects have experienced some indications of delays and price increases due to supply chain disruptions; however, they are currently proceeding without material delays. For further discussion of our capital requirements, see "*Part I, Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources and Liquidity"* of this Form 10-Q.

**<u>Macroeconomic and Political</u>**

*U.S. Utilities Load Growth and Large Load Customers*

The expansion of data centers due to generative artificial intelligence has the potential to significantly accelerate the load growth of the U.S. utilities market. AES Indiana is working with several companies to provide possible solutions for electric service needs of data centers and we see these relationships deepening as utilization of generative artificial intelligence drives the expansion of data center use within our service territory. As part of this process, AES Indiana is evaluating cost-effective options to reliably serve large load customers. One option in Indiana includes House Enrolled Act 1007, which Governor Braun signed into law effective May 6, 2025. Among other things, the legislation contains a provision providing a regulatory tool for utilities and large load customers to submit an expedited generation resource proposal to the IURC. AES Indiana is analyzing any impacts the law may have on future generation resource plans.

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*U.S. Tax Law Reform and Renewable Energy Tax Credits*

On July 4, 2025, the U.S. enacted H.R. 1 (the "2025 Act"). The legislation included amendments to, and extensions of, various U.S. corporate income tax provisions, which may impact our effective tax rate in future periods. However, the impact to the effective tax rate is not expected to be material. Our interpretation of the 2025 Act may change as the U.S. Treasury and the IRS issue additional guidance.

The IRA includes provisions that benefit the Company's planned clean energy projects, including increases, extensions, direct transfers and/or new tax credits for wind, solar, and storage. For further discussion of our renewable projects, see Note 2, "*Regulatory Matters - IRP Filings and Replacement Generation"* to the Financial Statements of IPALCO's 2024 Form 10-K.

We account for renewable projects according to GAAP, which, when partnering with tax-equity investors to monetize tax benefits, utilizes the HLBV method. This method recognizes the value of the tax-credit that benefits the tax equity investors at the time of its creation, which for projects utilizing the ITC, begins in the quarter the project is placed in service. For projects utilizing the PTC, this value is recognized over 10 years as the facility produces energy.

The 2025 Act amends the phase out of wind and solar ITC and PTC tax credits. Wind and solar renewables projects that begin construction within 12 months of the enactment of the 2025 Act remain eligible for 100% of the credit without the 2027 placed-in-service deadline, provided that, under current Treasury guidance, the projects are placed in service no more than four calendar years after the calendar year when construction began. Renewables projects that begin construction after 12 months of the enactment must be placed in service no later than 2027. Renewables projects that began construction by the end of 2024 are not impacted by the 2025 Act. The 2025 Act does not impose tighter timelines for energy storage projects to qualify for the ITC and PTC, and it allows energy storage projects to receive the full ITC or PTC credit if they begin construction by 2033.

The 2025 Act also imposes a restriction precluding credits for renewables projects, including storage, claiming the ITC or PTC credit that start construction after December 31, 2025 and receive material assistance from a prohibited foreign entity, effectively limiting the percentage of total project costs that may be derived from products that are mined, produced or manufactured in China, with varying permissible percentages depending on the calendar year and applicable renewable technology for the project. This restriction also precludes credit eligibility for projects that start construction after December 31, 2024 that are classified as a prohibited foreign entity, including projects over which a specified foreign entity is deemed to exercise formal or effective control.

Further, President Trump issued an Executive Order on July 7, 2025 that directed the Secretary of the Treasury to take action to enforce the provisions of the 2025 Act related to issuing updated guidance defining the start of construction for claiming the ITC and PTC and implementing the Foreign Entity of Concern (FEOC) Restrictions (the "Treasury Action"). The Executive Order also directed the Secretary of the Interior to take action to review its regulations, guidance, policies, and practices for any preferential treatment of wind and solar projects and eliminate those preferences within 45 days (the "Interior Action").

On August 15, 2025, the Department of Treasury issued updated guidance defining the start of construction for purposes of claiming the ITC and PTC. We do not expect the modifications to the start of construction guidance to materially impact our projects. The Department of Treasury did not issue guidance implementing the FEOC restrictions, however, guidance is expected to be released within the coming months, which may be material.

In 2023, we recognized $26.1 million of earnings from tax attributes using the HLBV method upon the first stage of the Hardy Hills Solar Project being placed in service. Upon the final stage of the project being placed in service in May 2024, the Company recognized $21.4 million of earnings from tax attributes using the HLBV method. In March 2025, upon the Pike County BESS Project being placed in service, we recognized $80.7 million of earnings from tax attributes using the HLBV method. Please see Note 2, "*Regulatory Matters - IRP Filings and Replacement Generation - Pike County BESS Project"* to the Financial Statements included in this Form 10-Q for further discussion. As we progress in our plan of integrating additional renewable energy projects under our 2022 IRP, as discussed further below, we anticipate additional earnings associated with the tax attributes of these projects.

The enactment of the 2025 Act requires that substantial guidance be published by the U.S. Department of Treasury and other government agencies. While we have taken measures to protect against the impact of changes under the

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2025 Act to the IRA, the impacts of the 2025 Act, the Treasury Action, or future actions that have the effect of modifying or repealing the IRA may be material to our results of operations.

*Tax*

The macroeconomic and political environments in the U.S. have changed in recent years. This could result in significant impacts to future tax law. In the U.S., the IRA included a 15% corporate alternative minimum tax (CAMT) based on adjusted financial statement income. In June 2025, the IRS released interim guidance for CAMT and announced its intention to revise regulations that were proposed in September 2024. The impact to the Company in 2025 is not expected to be material. We will continue to monitor the issuance of CAMT revised guidance.

In April 2025, the 2025 Indiana General Assembly passed Senate Enrolled Act No. 1, which includes language that could impact AES Indiana's property tax expense. We are currently evaluating the impact of this legislation; however, the impact to AES Indiana in 2025 is not expected to be material.

*Inflation*

In the markets in which we operate, there have been higher rates of inflation recently. If inflation continues to increase in our markets, it may increase our expenses that we may not be able to pass through to customers. It may also increase the costs of some of our construction projects. AES Indiana may have the ability to recover operations and maintenance costs through the regulatory process, however, timing impacts on recovery may vary. In addition, we expect the cost of fuel, specifically coal and natural gas, to continue to be volatile during 2025. Our exposure to fluctuations in the price of fuel is limited because of our FAC. If we are unable to timely or fully recover our fuel and power purchased costs, however, it could have a material adverse effect on our results of operations, financial condition and cash flows.

*Interest Rates*

In the U.S. there has been a rise in interest rates since 2021, and interest rates are expected to remain volatile in the near term. Although all of our existing IPALCO and AES Indiana long-term debt is at fixed rates, an increase in interest rates can have several impacts on our business. For our existing short-term debt under floating rate structures and any future debt refinancings or future new money financings, rising interest rates will increase future financing costs. Our floating rate debt is currently limited to short-term borrowings under our AES Indiana Credit Agreement. For future IPALCO debt financings, IPALCO, at times, manages a hedging program and evaluates pre-issuance hedges to reduce uncertainty and exposure to future interest rates.

*Executive Orders*

On January 25, 2025, President Trump issued an Executive Order titled "*Declaring a National Energy Emergency*" directing Agencies to, among other tasks, identify and exercise any lawful emergency authorities available to them to facilitate the identification, leasing, siting, production, transportation, refining, and generation of domestic energy resources.

In April 2025, President Trump issued several Executive Orders with potential impacts to the energy industry and national energy policy, including: (i) "Reinvigorating America's Beautiful Clean Coal Industry and Amending Executive Order 14241", (ii) "Protecting American Energy from State Overreach", and (iii) "Strengthening the Reliability and Security of the United States Electric Grid". Indiana Governor Braun also issued Executive Orders with potential impacts to the energy industry, including: (i) "Ensuring Economic Opportunity and Indiana's Energy Future by Supporting Life Extension for Coal Energy Generation and Assessing Natural Gas Supplies" in April 2025, and (ii) "Creating a State Energy Strategy to Meet Growing Demand and Support Reliability and Affordability" in June 2025. These Executive Orders direct federal and state agencies, as applicable, to review and take actions with respect to energy and economic development matters and it is too early to determine the impact, if any, of the Executive Orders on our business, but any resulting actions by such agencies could have a material impact on our business, financial condition or results of operations.

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**<u>Regulatory</u>**

*Regulatory Rate Review*

On June 3, 2025, AES Indiana filed a petition with the IURC for authority to increase its basic rates and charges to cover the rising operational costs and needs associated with continuing to serve its customers safely and reliably. On October 15, 2025, AES Indiana filed a partial settlement agreement with most parties as part of its ongoing regulatory rate review with the IURC. AES Indiana expects to receive an order from the IURC during the second quarter of 2026. Please see Note 2, "*Regulatory Matters - Regulatory Rate Review"* to the Financial Statements included in this Form 10-Q for further discussion.

*2025 IRP*

In January 2025, AES Indiana initiated its 2025 IRP process with external stakeholders. Public advisory meetings for the 2025 IRP took place in January, July, September and October of 2025. On October 31, 2025, AES Indiana filed its 2025 IRP with the IURC, which describes AES Indiana's Preferred Resource Portfolio for meeting generation capacity needs for serving AES Indiana's retail customers over the next several years. The Preferred Resource Portfolio is AES Indiana's reasonable least cost option and provides a reliable and flexible generation mix for customers. Please see Note 2, "*Regulatory Matters - IRP Filings and Replacement Generation - 2025 IRP"* to the Financial Statements included in this Form 10-Q for further discussion.

*2022 IRP*

AES Indiana filed its 2022 IRP with the IURC in December 2022. The 2022 IRP short-term action plan includes converting the two remaining coal units at Petersburg to natural gas. Additionally, AES Indiana plans to add up to 1,300 MW of wind, solar, and battery energy storage by 2027. Please see Note 2, "*Regulatory Matters"* to the Financial Statements included in this Form 10-Q and Note 2, *"Regulatory Matters"* to the Financial Statements included in IPALCO's 2024 Form 10-K for further discussion of these and other regulatory matters.

**<u>Environmental</u>**

We are subject to numerous environmental and climate change laws and regulations in the jurisdictions in which we operate. We face certain risks and uncertainties related to these environmental and climate change laws and regulations, including existing and potential GHG legislation or regulations, and actual or potential laws and regulations pertaining to water discharges, waste management (including disposal or beneficial reuse of CCR) and certain air emissions, such as SO2, NOx, particulate matter and mercury. Such risks and uncertainties could result in increased capital expenditures or other compliance costs which could have a material adverse effect on our consolidated results of operations. The following discussion of the impact of environmental laws and regulations on the Company updates the discussion provided in *"Item 1. Business - Environmental Matters"* in IPALCO's 2024 Form 10-K.

*Trump Administration Actions Affecting Environmental Regulations*

On January 20, 2025, President Trump issued an Executive Order titled "*Unleashing American Energy*" directing Agencies to, among other tasks, review regulations issued under the prior Administration to determine whether they should be suspended, revised, or rescinded. The Trump Administration also issued a Memorandum titled "*Regulatory Freeze Pending Review*" directing Agencies to refrain from proposing or issuing any rules until the Trump Administration has reviewed and approved those rules. In accordance with these and other Trump Administration Executive Orders, on March 12, 2025, EPA released a list of environmental regulations that will be targeted for reconsideration and other deregulatory action. These and other actions, including other Executive Orders and directives from the Trump Administration, may have an impact on regulations and permitting processes that may affect our business, financial condition, or results of operations.

*MATS*

In April 2012, the EPA's rule to establish maximum achievable control technology standards for hazardous air pollutants regulated under the CAA emitted from coal and oil-fired electric utilities, known as "MATS", became effective. AES Indiana management developed and implemented a plan, which was approved by the IURC, to

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comply with this rule and all Petersburg units subject to the rule have been and remain in material compliance with the MATS rule since applicable deadlines.

On May 7, 2024, EPA published a final rule to revise MATS for coal and oil-fired EGUs which lowers certain emissions limits and revises certain other aspects of MATS. The requirements of MATS would not apply to AES Indiana upon conversion of the remaining two coal-fired units at Petersburg to natural gas. The May 2024 rule to revise MATS is subject to legal challenges. On October 4, 2024, the U.S. Supreme Court denied emergency stay applications. On June 17, 2025, EPA published a proposed rule to repeal the majority of the May 7, 2024 final rule revising MATS.

Further rulemakings and/or proceedings are possible; however, in the meantime, MATS remains in effect. We currently cannot predict the outcome of the regulatory or judicial process, or its impact, if any, on our MATS compliance planning or ultimate costs.

*Waste Management and CCR* 

The EPA has indicated that they will implement a phased approach to amending the CCR Rule, which is ongoing. On May 8, 2024, EPA published final revisions to the CCR Rule which expand the scope of CCR units regulated by the CCR Rule to include legacy surface impoundments, inactive surface impoundments, and CCR management units. The May 8, 2024 revisions to the CCR Rule are currently subject to legal challenges and on November 1, 2024, the D.C. Circuit Court denied a motion to stay these revisions to the CCR Rule. On November 5, 2024, an application for stay of the CCR Rule revisions was filed with the United States Supreme Court, which was denied by the Court on December 11, 2024.

On July 22, 2025, EPA published both a direct final rule and a proposed rule that, if finalized, would extend certain deadlines for coal combustion residual management units associated with its May 8, 2024 revisions to the CCR Rule. On September 4, 2025, EPA withdrew the direct final rule due to receipt of adverse comment. It is too early to determine any potential impact from the July 22, 2025 proposed revisions to the CCR Rule. The CCR Rule, current or future amendments to, or EPA interpretations of, the CCR Rule, Indiana CCR regulations, the results of groundwater monitoring data or the outcome of CCR-related litigation could have a material impact on our business, financial condition and results of operations. We would seek recovery of any resulting expenditures; however, there is no guarantee we would be successful in this regard. See Note 3, "*Property, Plant and Equipment*", Note 4, "*ARO*" and Note 11, "*Commitments and Contingencies - Contingencies - Legal Matters - Coal Ash Insurance Litigation*" to the Financial Statements of IPALCO's 2024 Form 10-K for further discussion.

*Regional Haze Rule*

EPA's 1999 Regional Haze Rule established timelines for states to improve visibility in national parks and wilderness areas throughout the U.S. by establishing reasonable progress goals toward meeting a national goal of natural visibility conditions in Class I areas by the year 2064 through submittal of a series of state implementation plans (SIPs). Indiana's SIP for the first planning period (through 2018) did not require any additional controls to be installed or operated on AES Indiana generating facilities. For all future SIP planning periods, states must evaluate whether additional emissions reduction measures may be needed to continue making reasonable progress toward natural visibility conditions. On December 29, 2021, IDEM submitted Indiana's Regional Haze SIP for the Second Implementation Period to EPA for review and approval. The SIP does not include additional requirements for AES Indiana EGUs or for other EGUs in Indiana. On June 18, 2025, EPA proposed to approve the Indiana SIP. On September 29, 2025, EPA issued a pre-publication version of an advanced notice of proposed rulemaking requesting public input on potential future changes to the Regional Haze Rule. It is too early to predict the possible outcome or potential impacts of this matter at this time. We would seek recovery of capital expenditures; however, there is no guarantee we would be successful.

*Climate Change Legislation and Regulation*

In the past, the U.S. Congress has considered several different draft bills pertaining to GHG legislation, including comprehensive GHG legislation that would impact many industries and more limited legislation focusing only on the utility and electric generation industry. Although no legislation pertaining to GHG emissions has been passed to date by the U.S. Congress, similar legislation may be considered or passed by the U.S. Congress in the future. In addition, state or regional initiatives may be pursued in the future.

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On May 9, 2024, EPA published the final NSPS requiring carbon capture and sequestration for new and reconstructed baseload stationary combustion turbines, among other requirements. EPA did not finalize revisions to the NSPS for newly constructed or reconstructed coal-fired electric utility steam generating units as proposed in

2018. On July 8, 2019, the EPA published the final ACE Rule which would have established CO2 emission rules for existing coal-fired power plants under CAA Section 111(d) and would have replaced the EPA's 2015 CPP, which among other things, had called on states to mandate that power companies shift electricity generation to lower or zero carbon fuel sources. However, on January 19, 2021, the D.C. Circuit vacated and remanded to EPA the ACE Rule. Subsequently, on June 30, 2022, the U.S. Supreme Court reversed the judgment of the D.C. Circuit Court and remanded for further proceedings consistent with its opinion, holding that the "generation shifting" approach in the CPP exceeded the authority granted to EPA by Congress under Section 111(d) of the CAA. As a result of the June 30, 2022 U.S. Supreme Court decision, on October 27, 2022, the D.C. Circuit issued a partial mandate holding pending challenges to the ACE Rule in abeyance while EPA developed a replacement rule. On May 23, 2023, EPA published a proposed rule that would vacate the ACE Rule, establish emissions guidelines in the form of CO2 emissions limitations for certain existing EGUs and would require states to develop State Plans that establish standards of performance for such EGUs that are at least as stringent as EPA's emissions guidelines. On May 9, 2024, EPA published the final rule regulating GHGs from existing EGUs pursuant to Section 111(d) of the Clean Air Act and effective on July 8, 2024. Existing EGUs are those that were constructed prior to January 8, 2014. Depending on various EGU-specific factors, the bases of emissions guidelines for natural gas-fired units include the use of uniform fuels and routine methods of operation and maintenance and the bases of emissions guidelines for coal-fired units include 40% natural gas co-firing or carbon capture and sequestration with 90% capture of CO2 depending on the date that coal operations cease. Specific standards for performance for EGUs will be established through a State Plan (or a Federal Plan if the state of Indiana were to not submit an approvable plan). The May 2024 rule is subject to legal challenges. On October 16, 2024, the U.S. Supreme Court denied emergency stay applications.

On June 17, 2025, EPA published a proposed rule to repeal the May 9, 2024 final rules for new and existing EGUs in addition to 2015 greenhouse gas new source performance standards for certain new EGUs. In this proposed rule, the EPA also offered an alternative proposal to repeal a narrower set of greenhouse gas requirements which would include the repeal of requirements for existing EGUs and requirements based on carbon capture and sequestration for new EGUs. On August 1, 2025, EPA published a proposed rule to rescind the 2009 greenhouse gas endangerment finding which concluded that greenhouse gases endanger public health and welfare. On September 16, 2025, EPA published a proposed rule to remove certain greenhouse gas emissions reporting obligations from source categories, including electricity generation and electrical transmission and distribution equipment use.

It is too early to determine any potential impact. GHG regulations, current or future amendments to, resulting state or federal plans, or pending or future litigation associated with such regulations or plans could have a material impact on our business, financial condition and results of operations. We would seek recovery of any resulting capital expenditures; however, there is no guarantee we would be successful in this regard.

On the international level, on December 12, 2015, 195 nations, including the U.S., finalized the text of an international climate change accord in Paris, France (the "Paris Agreement"), which agreement was signed and officially entered into on April 22, 2016. The Paris Agreement calls for countries to set their own GHG emissions targets, make these emissions targets more stringent over time and be transparent about the GHG emissions reporting and the measures each country will use to achieve its GHG emissions targets. A long-term goal of the Paris Agreement is to limit global temperature increase to well below two degrees Celsius from temperatures in the pre-industrial era. The U.S. withdrawal from the Paris Agreement became effective on November 4, 2020. On January 20, 2021, President Biden signed and submitted an instrument for the U.S. to rejoin the Paris Agreement, which became effective on February 19, 2021. On January 20, 2025, President Trump issued an Executive Order titled "Putting America First in International Environmental Agreements" directing the U.S. Ambassador to the United Nations to formally withdraw from the Paris Agreement. The international community has gathered and continues to gather annually for the Conference to the Parties on the United Nations Framework Convention on Climate Change (UNFCCC).

Based on the above, there is some uncertainty with respect to the impact of GHG rules on AES Indiana. The EPA, states and other utilities are still evaluating potential impacts of the GHG regulations in our industry. In light of these

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uncertainties, we cannot predict the impact of the EPA's current and future GHG regulations, or resulting state or federal plans, on our consolidated results of operations, cash flows, and financial condition, but it could be material.

*CWA - Environmental Wastewater Requirements and Regulation of Water Discharge*

In November 2015, the EPA published its final Steam Electric Power Generating Effluent Limitation Guidelines (ELG) rule to reduce toxic pollutants discharged into waterways by steam-electric power plants through technology applications. In 2020, EPA issued a final rule, known as the 2020 Reconsideration Rule, revising certain aspects of the 2015 ELG rule. Wastewater treatment technologies already installed and operated at Petersburg met the requirements of these rules. Following the 2019 U.S. Court of Appeals vacatur and remand of portions of the 2015 ELG rule related to leachate and legacy water, on March 29, 2023, EPA published a proposed rule revising the 2020 Reconsideration Rule. On May 9, 2024, EPA published revisions to the ELG rule which became effective on July 8, 2024, establishing more stringent best available technology limits for flue gas desulfurization wastewater, bottom ash transport water and combustion residual leachate and establishing a new set of definitions and new limits for combustion residual leachate and legacy wastewater. The May 2024 rule is subject to legal challenges and on October 10, 2024, the Eighth Circuit Court denied stay applications. On October 2, 2025, EPA published a proposed rule that, if finalized, would extend certain ELG deadlines and allow facilities to choose between compliance alternatives. On the same date, EPA also published a direct final rule to extend the deadline for power plants to file a notice of planned participation for the permanent cessation of coal from December 31, 2025, to December 31, 2031 pending any significant adverse comments. It is too early to determine whether any outcome of the proposed revisions to the ELG rule, litigation or future revisions to the ELG rule might have a material impact on our business, financial condition and results of operations.

The concept of WOTUS defines the geographic reach and authority of the U.S. Army Corps of Engineers and EPA (together, the "Agencies") to regulate streams, wetlands, and other water bodies under the CWA. There have been multiple Supreme Court decisions and dueling regulatory definitions over the past several years concerning the appropriate standard for how to properly determine whether a wetland or stream that is not navigable is considered a WOTUS. On May 25, 2023, the U.S. Supreme Court rendered a decision (Decision) in the case of *Sackett v. Environmental Protection Agency*, addressing the definition of WOTUS with regards to the CWA. The Decision provides a standard that substantially restricts the Agencies' ability to regulate certain types of wetlands and streams. Specifically, under the Decision, wetlands that do not have a continuous surface connection with traditional interstate navigable water are not considered a WOTUS and therefore are not federally jurisdictional.

On September 8, 2023, the Agencies published final amendments to the "Revised Definition of 'Waters of the United States'" rule. These final rule amendments conform the definition of WOTUS to the definition adopted in the Decision. The Agencies have amended key aspects of the regulatory text to conform the rule to the Decision.

Due to ongoing litigation, the definition of WOTUS (as amended on September 8, 2023) is not operative in certain jurisdictions. In the jurisdictions involved in the litigation, including Indiana, the amended 2023 Rule is subject to a preliminary injunction, and the Agencies interpret WOTUS consistent with the pre-2015 regulatory regime and the Supreme Court's decision in *Sackett*. In the remaining states the Agencies implement the definition in the January 2023 Rule, as amended in September 2023.

On March 12, 2025, the Agencies issued a joint guidance memorandum for implementing the "continuous surface connection" consistent with the Decision and related issues. The *Federal Register* notice was published on March 24, 2025 outlining a process to gather recommendations for implementation of WOTUS.

It is too early to determine whether any outcome of litigation or current or future revisions to rules interpreting federal jurisdiction over WOTUS might have a material adverse effect on our results of operations, financial condition and cash flows.

*CWA - NPDES Permits*

NPDES permits regulate specific industrial wastewater and storm water discharges to the waters of Indiana under Section 402 of the Federal Water Pollution Control Act. A number of CWA regulations described above are implemented through NPDES permits.

In 2017, IDEM issued to Eagle Valley a NPDES permit regulating water discharges associated with operation of its CCGT. As part of the normal course of business, AES Indiana submitted a timely application for renewal for the

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Eagle Valley NPDES permit, and on March 31, 2023, IDEM issued the renewed NPDES permit. On April 17, 2023, a third party filed an appeal of Eagle Valley's renewed NPDES permit. On February 18, 2025, the Indiana Office of Administrative Law Proceedings (OALP) issued a final order which determined that the third-party appellant failed to prove it has associational standing to challenge the NPDES permit and that the third-party appellant failed to prove any of the alleged deficiencies in its petition for review as a matter of law. On March 20, 2025, the third-party appellant filed a Petition for Judicial Review with the Morgan County Circuit Court (Indiana Trial court), asking the court to set aside OALP's final order. AES Indiana contends that the renewed permit was validly issued, and the permit remains in effect. AES Indiana is unable to predict the outcome of the appeal, but depending on the results, it could have an adverse effect on the Company.

In 2017, IDEM also issued to Harding Street and Petersburg NPDES permits regulating water discharges associated with operation of their power plant operations. As part of the normal course of business, AES Indiana submitted timely applications for renewal for both Harding Street and Petersburg NPDES permits in March 2022. On May 7, 2025, IDEM issued the final Petersburg NPDES permit renewal. No parties appealed the permit. On November 29, 2023, IDEM issued the final NPDES permit renewal for Harding Street with an effective date of January 1, 2024. Among other new requirements, the permit includes new thermal limitations, that could result in the need for AES Indiana to take additional actions to ensure compliance with the final permit. On December 14, 2023, AES Indiana filed a petition for appeal of certain new requirements, including the new thermal limitations, in the final Harding Street NPDES permit. A stay of the appealed requirements was initially granted on January 4, 2024, and is in effect until November 6, 2025 (as extended from August 6, 2025), which could be further extended. Final or future permits could have a material impact on our business, financial condition and results of operations. We would seek recovery of any resulting capital expenditures; however, there is no guarantee we would be successful in this regard.

**CAPITAL RESOURCES AND LIQUIDITY**

**Overview**

As of September 30, 2025, we had unrestricted cash and cash equivalents of $72.2 million and available borrowing capacity of $475 million under our unsecured revolving AES Indiana Credit Agreement. All of AES Indiana's long-term borrowings must first be approved by the IURC and the aggregate amount of AES Indiana's short-term indebtedness must be approved by the FERC. AES Indiana has approval from the FERC to borrow up to $750 million of short-term indebtedness outstanding at any time through July 29, 2026. In February 2024, AES Indiana received an order from the IURC granting authority through December 31, 2026 to, among other things, issue up to $1 billion in aggregate principal amount of long-term debt, of which $0 million remains available under the order as of September 30, 2025. This order also grants authority to have up to $750 million of amounts outstanding under long-term credit agreements and liquidity facilities, of which $725 million remains available under the order as of September 30, 2025. As an alternative to the sale of all or a portion of $65 million in principal of the long-term debt, AES Indiana has authority to issue up to $65 million of new preferred stock, all of which authority remains available under the order as of September 30, 2025. We also have restrictions on the amount of new debt that may be issued due to contractual obligations of AES and by financial covenant restrictions under our existing debt obligations. We do not believe such restrictions will be a limiting factor in our ability to issue debt in the ordinary course of prudent business operations.

**Cash Flows**

The following table provides a summary of our cash flows (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | |
| | **2025** | **2024** |<br>**$ Change** |
| Net cash provided by operating activities | $646142 | $191244 | $454898 |
| Net cash used in investing activities | (650383) | (804764) | 154381 |
| Net cash provided by financing activities | 49774 | 633249 | (583475) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in cash, cash equivalents and restricted cash | 45533 | 19729 | 25804 |
| Cash, cash equivalents and restricted cash at beginning of period | 26652 | 28584 | (1932) |
| **Cash, cash equivalents and restricted cash at end of period** | $**72185** | $**48313** | $**23872** |

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*Operating Activities*

The following table summarizes the key components of our consolidated operating cash flows (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | |
| | **2025** | **2024** |<br>**$ Change** |
| Net income | $90325 | $89725 | $600 |
| Depreciation and amortization | 271313 | 248846 | 22467 |
| Deferred income taxes and investment tax credit adjustments - net | 51847 | 8072 | 43775 |
| Tax credit transfer proceeds allocated to noncontrolling interest | 133010 |  | 133010 |
| Other adjustments to net income | 780 | 572 | 208 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income, adjusted for non-cash items | 547275 | 347215 | 200060 |
| Net change in operating assets and liabilities<sup>(1)</sup> | 98867 | (155971) | 254838 |
| **Net cash provided by operating activities** | $**646142** | $**191244** | $**454898** |
| <sup>(1)</sup> Refer to the table below for explanations of the variance in operating assets and liabilities. | <sup>(1)</sup> Refer to the table below for explanations of the variance in operating assets and liabilities. | <sup>(1)</sup> Refer to the table below for explanations of the variance in operating assets and liabilities. | <sup>(1)</sup> Refer to the table below for explanations of the variance in operating assets and liabilities. |

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The net change in operating assets and liabilities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was driven by changes in the following (in thousands):

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| | |
|:---|:---|
| Increase from current and non-current regulatory assets and liabilities primarily due to higher collections of regulatory assets in the current year and the settlement of pre-existing purchase power agreements in the prior year  | $151482 |
| Increase from accounts payable driven by the accrual of invoices and timing of payments | 89822 |
| Increase from lower net accounts receivable driven by the timing of collections, and billing delays and a temporary pause of customer disconnections and certain collection efforts and write-off processes primarily in the prior year period following AES Indiana's customer billing system upgrade in the fourth quarter of 2023 | 81287 |
| Decrease from other tax payable driven by higher tax payments during the current year | (27482) |
| Decrease from other long term liabilities driven by higher ARO settlements during the current year | (23512) |
| Decrease from prepaid expenses and other current assets primarily due to the prepayment of various insurance policies during the current year | (11358) |
| Other | (5401) |
| **Net change in operating assets and liabilities** | $**254838** |

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*Investing Activities*

Net cash used in investing activities decreased $154.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, which was primarily driven by (in thousands):

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| | |
|:---|:---|
| Lower cash outflows for capital expenditures related with renewable energy projects and growth related capital expenditures primarily from TDSIC investments | $179189 |
| Larger payment for acquisitions made in 2025 | (29272) |
| Other | 4464 |
| &nbsp;&nbsp;&nbsp;**Net change in investing activities** | $**154381** |

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*Financing Activities*

Net cash provided by financing activities decreased $583.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, which was primarily driven by (in thousands):

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| | |
|:---|:---|
| Decrease due to greater repayment of short-term borrowings | $(400000) |
| Decrease due to net long-term debt issuances at IPALCO and AES Indiana in 2024 | (335000) |
| Decrease due to higher distributions to noncontrolling interests | (137761) |
| Decrease due to higher distributions to shareholders | (88898) |
| Increase due to equity contributions from shareholders | 260000 |
| Increase due to higher sales to noncontrolling interests | 103007 |
| Decrease due to net revolver repayments on AES Indiana's revolving credit facility | 30000 |
| Other | (14823) |
| &nbsp;&nbsp;&nbsp;**Net change in financing activities** | $**(583475)** |

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**Liquidity**

We expect our existing cash balances, cash generated from operating activities and borrowing capacity on our existing AES Indiana Credit Agreement will be adequate to meet our anticipated operating needs, including interest expense on our debt and dividends to our equity owners. Our business is capital intensive, requiring significant resources to fund operating expenses, construction expenditures, scheduled debt maturities and carrying costs, potential margin requirements related to interest rate and commodity hedges, taxes and dividend payments. In 2025 and subsequent years, we expect to satisfy these requirements with a combination of cash from operations, funds from debt financing, funds from tax equity contributions, and parent capital contributions as our internal liquidity needs and market conditions warrant. We also expect that the borrowing capacity under our existing AES Indiana Credit Agreement will continue to be available to manage working capital requirements during those periods. The absence of adequate liquidity could adversely affect our ability to operate our business and have a material adverse effect on our results of operations, financial condition and cash flows.

*Indebtedness*

For further discussion of our significant debt transactions, please see Note 7, "*Debt"* to IPALCO's 2024 Form 10-K and Note 5, "*Debt"* to the Financial Statements of this Form 10-Q.

*Line of Credit*

AES Indiana entered into a third amendment and restatement of its $500 million revolving Credit Agreement on March 25, 2025 with a syndication of bank lenders, as discussed in Note 5, "*Debt - Line of Credit*" to the Financial Statements of this Quarterly Report on Form 10-Q.

We had the following amounts available under the revolving Credit Agreement:

---

| | | | | |
|:---|:---|:---|:---|:---|
| $ in millions | Type | Maturity | Commitment | Amounts available at September 30, 2025 |
| AES Indiana | Revolving | March 2030 | $500.0 | $475.0 |

---

**Capital Requirements**

*Capital Expenditures*

Our capital expenditure program, including development and permitting costs, for the three-year period from 2025 through 2027 (including amounts already expended in the first nine months of 2025) is currently estimated to cost approximately $2.8 billion (excluding environmental compliance), and includes estimates as follows (amounts in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2026** | **2027** | **For the three-year period**<br>**from 2025 through 2027** | |
| Power generation related projects | $584.7 | $577.6 | $345.2 | $1507.5 | <sup>(1)</sup> |
| Transmission and distribution related additions, improvements and extensions | 231.7 | 198.6 | 347.2 | 777.5 | <sup>(2)</sup> |
| TDSIC Plan investments | 149.2 | 215.7 |  | 364.9 | <sup>(3)</sup> |
| Other miscellaneous equipment | 36.4 | 39.5 | 28.0 | 103.9 |  |
| Total estimated costs of capital expenditure program | $1002.0 | $1031.4 | $720.4 | $2753.8 |  |
| <sup>(1)</sup> Includes spending for AES Indiana's power generation and renewable energy projects. | <sup>(1)</sup> Includes spending for AES Indiana's power generation and renewable energy projects. | <sup>(1)</sup> Includes spending for AES Indiana's power generation and renewable energy projects. | <sup>(1)</sup> Includes spending for AES Indiana's power generation and renewable energy projects. | <sup>(1)</sup> Includes spending for AES Indiana's power generation and renewable energy projects. | <sup>(1)</sup> Includes spending for AES Indiana's power generation and renewable energy projects. |
| <sup>(2)</sup> Additions, improvements and extensions to AES Indiana's transmission and distribution lines, substations, power factor and voltage regulating equipment, distribution transformers and street lighting facilities. | <sup>(2)</sup> Additions, improvements and extensions to AES Indiana's transmission and distribution lines, substations, power factor and voltage regulating equipment, distribution transformers and street lighting facilities. | <sup>(2)</sup> Additions, improvements and extensions to AES Indiana's transmission and distribution lines, substations, power factor and voltage regulating equipment, distribution transformers and street lighting facilities. | <sup>(2)</sup> Additions, improvements and extensions to AES Indiana's transmission and distribution lines, substations, power factor and voltage regulating equipment, distribution transformers and street lighting facilities. | <sup>(2)</sup> Additions, improvements and extensions to AES Indiana's transmission and distribution lines, substations, power factor and voltage regulating equipment, distribution transformers and street lighting facilities. | <sup>(2)</sup> Additions, improvements and extensions to AES Indiana's transmission and distribution lines, substations, power factor and voltage regulating equipment, distribution transformers and street lighting facilities. |
| <sup>(3)</sup> Includes spending under AES Indiana's TDSIC plan approved by the IURC on March 4, 2020 for eligible transmission, distribution and storage system improvements totaling $1.2 billion from 2020 through 2026. Total TDSIC costs expended from project inception through September 30, 2025 were $1,034.5 million. | <sup>(3)</sup> Includes spending under AES Indiana's TDSIC plan approved by the IURC on March 4, 2020 for eligible transmission, distribution and storage system improvements totaling $1.2 billion from 2020 through 2026. Total TDSIC costs expended from project inception through September 30, 2025 were $1,034.5 million. | <sup>(3)</sup> Includes spending under AES Indiana's TDSIC plan approved by the IURC on March 4, 2020 for eligible transmission, distribution and storage system improvements totaling $1.2 billion from 2020 through 2026. Total TDSIC costs expended from project inception through September 30, 2025 were $1,034.5 million. | <sup>(3)</sup> Includes spending under AES Indiana's TDSIC plan approved by the IURC on March 4, 2020 for eligible transmission, distribution and storage system improvements totaling $1.2 billion from 2020 through 2026. Total TDSIC costs expended from project inception through September 30, 2025 were $1,034.5 million. | <sup>(3)</sup> Includes spending under AES Indiana's TDSIC plan approved by the IURC on March 4, 2020 for eligible transmission, distribution and storage system improvements totaling $1.2 billion from 2020 through 2026. Total TDSIC costs expended from project inception through September 30, 2025 were $1,034.5 million. | <sup>(3)</sup> Includes spending under AES Indiana's TDSIC plan approved by the IURC on March 4, 2020 for eligible transmission, distribution and storage system improvements totaling $1.2 billion from 2020 through 2026. Total TDSIC costs expended from project inception through September 30, 2025 were $1,034.5 million. |

---

------

The amounts described in the capital expenditure program above include estimated spending under AES Indiana's 2022 IRP filed with the IURC in December 2022. See Note 2, "*Regulatory Matters - IRP Filings and Replacement Generation - 2022 IRP"* to the Financial Statements of IPALCO's 2024 Form 10-K for further discussion.

*Credit Ratings*

Our ability to borrow money or to refinance existing indebtedness and the interest rates at which we can borrow money or refinance existing indebtedness are affected by our credit ratings. In addition, the applicable interest rates on the AES Indiana Credit Agreement (as well as the amount of certain other fees in the AES Indiana Credit Agreement) are dependent upon the credit ratings of AES Indiana. Downgrades in the credit ratings of AES could result in AES Indiana's and/or IPALCO's credit ratings being downgraded. Any reduction in our debt or credit ratings may adversely affect the trading price of our outstanding debt securities.

The following table presents the debt ratings and credit ratings (issuer/corporate rating) and outlook for IPALCO and AES Indiana.

---

| | | | |
|:---|:---|:---|:---|
| **Debt ratings** | **IPALCO** | **AES Indiana** | **Outlook** |
| Fitch Ratings | BBB <sup>(a)</sup> | A <sup>(b)</sup> | Stable |
| Moody's Investors Service | Baa3 <sup>(a)</sup> | A2 <sup>(b)</sup> | Negative |
| S&P Global Ratings | BBB- <sup>(a)</sup> | A- <sup>(b)</sup> | Stable |
| **Credit ratings** | **IPALCO** | **AES Indiana** | **Outlook** |
| Fitch Ratings | BBB- | BBB+ | Stable |
| Moody's Investors Service |  | Baa1 | Negative |
| S&P Global Ratings | BBB | BBB | Stable |
| &nbsp;&nbsp;&nbsp;&nbsp; (a) Ratings relate to IPALCO's Senior Secured Notes. | &nbsp;&nbsp;&nbsp;&nbsp; (a) Ratings relate to IPALCO's Senior Secured Notes. | &nbsp;&nbsp;&nbsp;&nbsp; (a) Ratings relate to IPALCO's Senior Secured Notes. | &nbsp;&nbsp;&nbsp;&nbsp; (a) Ratings relate to IPALCO's Senior Secured Notes. |
| &nbsp;&nbsp;&nbsp;&nbsp; (b) Ratings relate to AES Indiana's first mortgage bonds. | &nbsp;&nbsp;&nbsp;&nbsp; (b) Ratings relate to AES Indiana's first mortgage bonds. | &nbsp;&nbsp;&nbsp;&nbsp; (b) Ratings relate to AES Indiana's first mortgage bonds. | &nbsp;&nbsp;&nbsp;&nbsp; (b) Ratings relate to AES Indiana's first mortgage bonds. |

---

We cannot predict whether our current debt and credit ratings or the debt and credit ratings of AES Indiana will remain in effect for any given period of time or that one or more of these ratings will not be lowered or withdrawn entirely by a rating agency. A security rating is not a recommendation to buy, sell or hold securities. Such ratings may be subject to revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating.

*Dividend Distributions*

All of IPALCO's outstanding common stock is held by AES U.S. Investments and CDPQ. During the first nine months of 2025 and 2024, IPALCO paid $199.0 million and $110.1 million, respectively, in distributions to its shareholders. Future distributions to our shareholders will be determined at the discretion of our Board of Directors and will depend primarily on dividends received from AES Indiana. Dividends from AES Indiana are affected by AES Indiana's actual results of operations, financial condition, cash flows, capital requirements, regulatory and legal considerations, and such other factors as AES Indiana's Board of Directors deems relevant.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

The condensed consolidated financial statements of IPALCO are prepared in conformity with GAAP, which requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented.

The Company's significant accounting policies are described in Note 1, "*Overview and Summary of Significant Accounting Policies"* of this report and in IPALCO's 2024 Form 10-K. The Company's other critical accounting estimates are described in "*Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations"* in IPALCO's 2024 Form 10-K. An accounting estimate is considered critical if the estimate requires management to make an assumption about matters that were highly uncertain at the time the estimate was made, different estimates reasonably could have been used, or if changes in the estimate that would have a material impact on the Company's financial condition or results of operations are reasonably likely to occur from period to period. Management believes that the accounting estimates employed are appropriate and resulting balances are

------

reasonable; however, actual results could differ from the original estimates, requiring adjustments to these balances in future periods. The Company has reviewed and determined that these remain as critical accounting policies as of and for the nine months ended September 30, 2025.

***ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK***

There have been no material changes to our quantitative and qualitative disclosure about market risk as previously disclosed in IPALCO's 2024 Form 10-K.

***ITEM 4. CONTROLS AND PROCEDURES***

**Evaluation of Disclosure Controls and Procedures**

The Company, under the supervision and with the participation of its management, including the Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), evaluated the effectiveness of its "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO have concluded that our disclosure controls and procedures were effective as of September 30, 2025, to ensure that information required to be disclosed by the Company in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

**Changes in Internal Controls over Financial Reporting**

There were no changes that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II – OTHER INFORMATION**

***ITEM 1. LEGAL PROCEEDINGS***

In the normal course of business, we are subject to various lawsuits, actions, claims, and other proceedings. We are also, from time to time, involved in other reviews, investigations and proceedings by governmental and regulatory agencies regarding our business, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. We have accrued in our Financial Statements for litigation and claims where it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. We believe the amounts provided in our Financial Statements, as prescribed by GAAP, for these matters are adequate in light of the probable and estimable contingencies. However, there can be no assurances that the actual amounts required to satisfy alleged liabilities from various legal proceedings, claims and other matters (including those matters noted below), and to comply with applicable laws and regulations will not exceed the amounts reflected in our Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided for in our Financial Statements cannot be reasonably determined, but could be material.

Please see Note 2, "*Regulatory Matters*" and Note 9, *"Commitments and Contingencies"* to the Financial Statements included in Part I - Financial Information of this Form 10-Q for a summary of certain legal proceedings involving us. In addition, our Form 10-K for the fiscal year ended December 31, 2024 and the Notes to IPALCO's Consolidated Financial Statements included therein contain descriptions of certain legal proceedings in which we are or were involved. The information in or incorporated by reference into this Item 1 to Part II is limited to certain recent developments concerning our legal proceedings and new legal proceedings, since the filing of such Form 10-K, and should be read in conjunction with such Forms 10-K and our Form 10-Qs.

***ITEM 1A. RISK FACTORS***

There have been no material changes to the risk factors disclosed in Item 1A.—Risk Factors of IPALCO's 2024 Form 10-K. Additional risks and uncertainties also may adversely affect our business and operations, including those discussed in Item 2. – *Management's Discussion and Analysis of Financial Condition and Results of Operations* in this Form 10-Q.

------

***ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS***

None.

***ITEM 3. DEFAULTS UPON SENIOR SECURITIES***

None.

***ITEM 4. MINE SAFETY DISCLOSURES***

Not applicable.

***ITEM 5. OTHER INFORMATION***

None.

***ITEM 6. EXHIBITS***

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Document</u>** |
| 4.1 | <u>[Seventy-Third Supplemental Indenture between AES Indiana and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated August 1, 2025, relating to the 5.050% First Mortgage Bonds due 2035](https://www.sec.gov/Archives/edgar/data/728391/000095010325010255/dp233011_ex0401.htm)[(Incorporated by reference to Exhibit No. 4.1 to IPALCO's August 1](https://www.sec.gov/Archives/edgar/data/728391/000095010325010255/dp233011_ex0401.htm)[3](https://www.sec.gov/Archives/edgar/data/728391/000095010325010255/dp233011_ex0401.htm)[, 2025 Form 8-K)](https://www.sec.gov/Archives/edgar/data/728391/000095010325010255/dp233011_ex0401.htm)</u> |
| 10.1 | <u>[Stipulation and Settlement Agreement dated October 15, 2025](https://www.sec.gov/Archives/edgar/data/728391/000072839125000053/ipalco8-k101525exhibit101.htm)[(Incorporated by Reference to Exhibit No. 10.1 to IPALCO's October 15, 2025 Form 8-K)](https://www.sec.gov/Archives/edgar/data/728391/000072839125000053/ipalco8-k101525exhibit101.htm)</u> |
| 31.1 | <u>[Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ipalco10q20250930ex311.htm)</u> |
| 31.2 | <u>[Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ipalco10q20250930ex312.htm)</u> |
| 32.1 | <u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ipalco10q20250930ex321.htm)</u> |
| 32.2 | <u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ipalco10q20250930ex322.htm)</u> |
| 101.INS | XBRL Instance Document (filed herewith as provided in Rule 406T of Regulation S-T) |
| 101.SCH | XBRL Taxonomy Extension Schema Document (filed herewith as provided in Rule 406T of Regulation S-T) |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith as provided in Rule 406T of Regulation S-T) |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (filed herewith as provided in Rule 406T of Regulation S-T) |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document (filed herewith as provided in Rule 406T of Regulation S-T) |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith as provided in Rule 406T of Regulation S-T) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | | <u>IPALCO ENTERPRISES, INC.</u> |
| Date: | <u>November 4, 2025</u> | <u>/s/ Gustavo Garavaglia</u> |
| | | Gustavo Garavaglia |
| | | Vice President and Chief Financial Officer and Acting Principal Accounting Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

**<u>Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>**

I, Kenneth J. Zagzebski, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of IPALCO Enterprises, Inc. (the "registrant");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | <u>November 4, 2025</u> | <u>/s/ Kenneth J. Zagzebski</u> |
| | | Kenneth J. Zagzebski |
| | | President and Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**<u>Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>**

I, Gustavo Garavaglia, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of IPALCO Enterprises, Inc. (the "registrant");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | <u>November 4, 2025</u> | <u>/s/ Gustavo Garavaglia</u> |
| | | Gustavo Garavaglia |
| | | Vice President and Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**<u>Certification Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>**

The certification set forth below is being submitted in connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2025 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Kenneth J. Zagzebski, President and Chief Executive Officer of IPALCO Enterprises, Inc. ("IPALCO"), certifies that, to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of IPALCO.

---

| | | |
|:---|:---|:---|
| Date: | <u>November 4, 2025</u> | <u>/s/ Kenneth J. Zagzebski</u> |
| | | Kenneth J. Zagzebski |
| | | President and Chief Executive Officer |

---

A signed original of this written statement required by Section 906 has been provided to IPALCO and will be retained by IPALCO and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**Exhibit 32.2**

**<u>Certification Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>**

The certification set forth below is being submitted in connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2025 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Gustavo Garavaglia, Vice President and Chief Financial Officer of IPALCO Enterprises, Inc. ("IPALCO"), certifies that, to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of IPALCO.

---

| | | |
|:---|:---|:---|
| Date: | <u>November 4, 2025</u> | <u>/s/ Gustavo Garavaglia</u> |
| | | Gustavo Garavaglia |
| | | Vice President and Chief Financial Officer |

---

A signed original of this written statement required by Section 906 has been provided to IPALCO and will be retained by IPALCO and furnished to the Securities and Exchange Commission or its staff upon request.

<br>