TERRE HAUTE, Ind. (WTWO/WAWV) — Following Duke Energy’s request to raise their rates, the body entrusted with regulating such moves is asking for the public’s opinion.
The Indiana Utility Regulatory Commission will be holding a meeting in Terre Haute on June 4 to allow residents to voice their concerns or support for the rate increase. Further public meetings will then be held in Bloomington, Fishers, and New Albany, although those dates have not yet been determined.
Olivia Rivera with the Indiana Office of Utility Consumer Counselor explained that there are two types of cases her office works on, describing them as “trackers” vs “base rates.” Trackers are the seasonal increases and sometimes decreases that Duke Energy implements to respond to the rising and falling cost of fuel, while base rate increases are made less often and remain regardless of the market.
The currently proposed rate increase would see a massive improvement in annual revenues for the company. According to an IOUCC release, the rate increase would raise annual revenues by $492 million.
The most recent similar rate increase approved in 2019-2020 saw the company increase revenue by $146 million by comparison. However, the Indiana Supreme Court later reversed a portion of that order and Duke Energy was required to provide customers with a $70.25 million in refund credits as part of an approved settlement.
What has Duke Energy proposed?
According to information provided by the IURC, Duke’s requested increase would raise the flat, monthly connection charge that each residential customer pays from $10.54 up to $13.70. That’s an annual increase of $37.92 for each residential customer.
Additionally, the price of volumetric price of electricity would increase. A Duke Energy release related to the proposal explains it as such;
“The increase will vary among consumers depending on the cost to serve different types of customers, such as residential and business. The total monthly impact of the two steps for a residential customer using 1,000 kilowatt-hours a month would be about 19%, or $27.63,” the release states.
A $27.63 per month increase would equate to a $331.56 average annual increase.
Duke Energy testified that the reason for the increase is due to multiple infrastructure projects at its power plants and throughout its transmission and distribution system, as well as increased operating and maintenance costs.
The utility’s current base rates received IURC approval in 2020. However, billing amounts have since changed through tracker adjustments, which allow utilities to raise or reduce rates for specific costs subject to IOUCC review and IURC approval. All Indiana investor-owned electric utilities use trackers to varying degrees. Duke Energy uses them to recover costs for fuel and purchased power, transmission and distribution infrastructure improvements, compliance with federal environmental regulations, energy efficiency programs, and regional transmission.
Indiana OUCC News Release
What should you expect at the meeting?
The public field hearing is scheduled for 6 p.m. on June 4 in the Oakley Auditorium located on the Ivy Tech Community College Terre Haute campus.
Those attending are encouraged to arrive by 5:45 p.m. for an overview of how the meeting works and rate case process.
The IOUCC provided the following bullet points for meeting attendees.
- Consumers can speak directly to the Commission under oath and on the record.
- Oral comments presented during the field hearings will become part of the case record. They will carry the same weight as written consumer comments submitted to the IOUCC by July 5, 2024.
- Utilities do not make presentations or answer questions during field hearings. The focus, again, is on public input. In this case, Duke Energy filed testimony and exhibits in April 2024.
- Commissioners are not allowed to answer questions about the case. They will ultimately render a decision after weighing evidence from the utility, the IOUCC, and intervening parties.
Written Consumer Comments
For those unable to make the meeting, or wishing to submit their thoughts in writing, the IUOCC is accepting those until July 5.
To submit a written comment you can do so online here, or by email here. Written comments can also be mailed to:
Public Comments
Indiana Office of Utility Consumer Counselor (IOUCC)
115 W. Washington St., Suite 1500 SOUTH
Indianapolis, IN 46204
For questions regarding written comments call 1-888-441-2494.
For more information about the proposed increase, as well as programs Duke Energy proposed to help customers deal with rising costs and projects the company is undertaking to improve their service read the news release attached below.
