Duke Energy rate increase takes effect this month
Oct. 5—Duke Energy has gain approval for a second, though temporary, increase in rates in the last five months.
On Sept. 28, Indiana Regulatory Commission approved the Plainfield-based utility's application, submitted in August, to increase rates 7.2% due to fuel costs for its electric and steam services.
The new rates take effect this month and will remain in effect through March 2023.
On average, residential customers will see an impact of $11.71 on their bills, which makes an increase of nearly 30% over what customers paid last year. The 7.2% increase is based on a typical residential customer using 1,000 kilowatts of power.
Major Indiana electric utilities are allowed to request rate adjustments every three to six months for changes in generating fuel costs as part of a quarterly fuel adjustment clause tracker.
The new rate will be spread out over six months, instead of the typical three months, to reduce the cost impact, according to Duke Energy's application.
The second rate increase comes after Duke sought and the IURC approved a rate increase that went into effect in July.
That request included a 16% rate hike, or an additional $22.59 a month for residential customers. Combined, the two increases total $34.30 over the last two rate applications.
In its second rate filing, the company said "Duke Energy Indiana has made every reasonable effort to acquire fuel and generate or purchase power or both so as to provide electric to its retail customers at the lowest fuel cost reasonably possible."
The company also made a statement that the utility "is seeing the highest sustained prices for fuel to produce that electricity that we have witnessed in a decade. Global demand and tight fuel supplies as well as labor shortages at coal mines and railroads are affecting the cost of the power we produce as well as what we purchase in the energy markets.
"Fuel costs rise and fall and we pass those costs to our customers with no profit, so customers pay what we pay. Our priority is to purchase fuel at the best possible price, through steps such as long-term contracts and using a diversity of suppliers."
