Duke Energy’s Indiana regional headquarters is seen in Plainfield. State regulators approved the utility’s request to lower current residential electric rates by an average of 16%.
Submitted Photo
Indiana regulators have approved Duke Energy’s request for a rate decrease, lowering rates by an average of 16% for residential customers.
The Indiana Utility Regulatory Commission approved granting Plainfield-based Duke Energy Indiana’s application requesting approval of rate changes for its electric and steam services due to fuel costs on March 29. Duke Energy serves about 34,000 customers in Johnson County, and the application was filed as part of the utility’s quarterly Fuel Adjustment Clause, or FAC, tracker.
In the request from Jan. 31, Duke asked to lower its current residential electric rates by 15.9%, or 1.5% over what these customers paid for the same period last year. It would appear on bills as a decrease of $26.60 per billing cycle, meaning a residential customer with a bill of $150.50 right now would see it go down to $123.90. For commercial electric customers, the rates will decrease by at least 12.9% and for industrial customers, the rates will decrease by at least 18.6%, according to filings.
The new rates take effect this month, and will last into June. This is on top of a 5.5% decrease that went into effect in January, according to a Duke Energy news release.
The decreases come after Duke Energy requested several rate increases throughout 2022. Duke Energy officials say customers’ bills were higher last year due to soaring fuel costs that affected the cost of power utilities produced as well as what they purchased on the energy markets, the news release says.
“Fuel and purchased power can account for as much as 25 to 45% of an average residential customer’s bill, so when the markets are volatile, it can have a big impact on energy bills,” Duke Energy Indiana President Stan Pinegar said in a statement. “We’re starting to see costs stabilize, and the Indiana Utility Regulatory Commission has approved our request to pass those savings along to customers.”
The utility’s priority is to purchase fuel at the best possible price, through steps such as long-term contracts and using a diversity of suppliers, officials say.
Duke Energy also offers a variety of options for customers to get assistance with paying bills. These include interest-free payment plans, budget billing and usage alerts. There is also energy assistance available through the state, according to the utility.
More information about how customers can lower their bills can be found online at duke-energy.com/home/savings/lower-my-bill-toolkit.
