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, 2026 and 2025, respectively:


	Nine Months Ended September 30,
	2026		2025
	(In Thousands)
Balance as of January 1	$	573,187	$	378,460
Liabilities incurred	1,539		1,515
Liabilities settled	(22,946)		(17,314)
Revisions to cash flow and timing estimates	37,844		91,996
Accretion expense	19,225		12,876
Balance as of September 30	$	608,849	$	467,533
Less: ARO liabilities, current	58,850		44,537
ARO liabilities, non-current	$	549,999	$	422,996

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. As of September 30, 2026 and December 31, 2025, 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 2025 Form 10-K.