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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Indiana Office of Utility Consumer Counselor is recommending that state regulators reduce Duke Energy Indiana’s proposed $491.5 million base rate increase by 60%.
The office, which acts on behalf of utility customers, said Friday that based on its analysis, the Plainfield-based utility should get a rate increase of only $184.7 million.
“The significant reduction we recommend to Duke Energy’s request is based on a thorough analysis by our attorneys and technical staff, and it balances the need for reliable service with the affordability concerns raised by our staff and by hundreds of customers who have spoken out on the request,” Utility Consumer Counselor Bill Fine said in written remarks.
Duke Energy Indiana, the state’s largest electric utility, in April filed a request with state regulators for permission to raise rates by about 16% over two years.
If approved, the rate increase would be added to bills in two steps: approximately 12% in 2025 and about 5% in 2026.
The dollar amount would vary, depending on the cost to serve different types of customers, such as residential and business, the company said. It estimated 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.
In addition, the Citizens Action Coalition of Indiana, a consumer-advocacy group, said state regulators should consider affordability in its ruling.
“Duke’s proposal would impose extreme rate shock and unfairly burden its residential customer base, which experienced significant and worsening affordability challenges,” Ben Inskeep, the coalition’s program director, said in written remarks on Friday.
The Office of Utility Consumer Counselor said an increase of only 6.1% was warranted.
Duke Energy Indiana said it is still reviewing the testimony for the OUCC and others, but added it is not uncommon to have different positions in legal proceedings.
“There will be extensive hearings before state utility regulators beginning in late August, and all the parties involved will present evidence to support their positions,” the utility said in a statement. “State regulators will carefully weigh all the information before they make a decision early next year.”
The utility added: “Our request centers on the $1.6 billion in improvements we’ve made in a modernized electric grid to reduce power outages, hundreds of miles of new power lines, environmental responsibilities, investments in reliability at our power plants, and increased electric grid security in the wake of attacks nationally. We made these long-term investments while keeping our daily operating expenses flat since 2020.”
Ten witnesses for the OUCC filed testimony with the Indiana Utility Regulatory Commission this week, following a three-month legal and technical review of the testimony, exhibits and work papers filed by the utility.
The OUCC is recommending:
- Keeping Duke Energy’s monthly resident customer service charge at $10.54. The utility wants to raise the charge to $13.70.
- Denial of Duke Energy’s request to recover $92.1 million in coal ash remediation costs. The Indiana Court of Appeals found the utility was not entitled to recover the costs, the OUCC said.
- Decreasing the utility’s proposed depreciation expense and reducing numerous line items from the utility’s proposed amounts for operating and maintenance expenses.
Citizens Action Coalition is recommending that the IURC reduce or eliminate punitive charges and fees, such as deposits, late fees, reconnection charges and payment transaction charges.
It also wants state regulators to prohibit Duke from charging customers for costs related to Gulfstream jets and a private helicopter for executive travel, utility association dues “that primarily benefit shareholders,” and filing litigating this rate case.
Rebuttal testimony from Duke Energy is due on Aug. 8 with an IURC evidentiary hearing scheduled to start on Aug. 29. A final commission order is expected in early 2025.
Duke Energy Indiana services about 900,000 customers in 69 of Indiana’s 92 counties.
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Maybe the utility companies can cut their marketing budgets since we have no choice but to use them anyways. Waste of money.
But don’t the marketing efforts make you feel better about your high rates?
It is preposterous! Duke Energy’s gross profit was over 19 BILLION in 2023, which was an increase of 3.59% from 2022.
Now, the energy mongrel is trying to stiff us, its customers, with the tab for their executive jets, helicopters, and dues. That is WRONG and an easy one to strike from their proposal.
But, it seems to me Duke should be sanctioned for attempting to sneak in the $92.1 million they spent cleaning up coal ash after the courts rightly denied their attempts to recover it. after having profited from it for years?
Duke Energy’s request to increase rates by 19% is laughable. Kudos to the staff at the Indiana Office of Utility Consumer Counselor! Well done. I can’t wait to learn of Duke’s rebuttal at the Aug 29th hearing and the Regulatory Commission’s ruling next year. Keep us posted, IBJ!
It’s the same scenario every time. The monopolist utility asks for a whopping rate increase — in this case 16% — knowing it will never be approved. The Utility Consumer Counselor and the Citizens Action Coalition recommend something much lower — in this case 6%.
The Utility Regulatory Commission then holds hearings and settles on a rate hike of say 9%.
The utility counters with grim pronouncements about how it will have a difficult time maintaining service levels with such a small increase. And after sending out the press release, utility executive retire to a nice steakhouse to toast the fact that 9% was all they wanted in the first place!