Indianapolis, Indiana – Duke Energy is requesting state regulators to approve a cut in rates after Hoosiers experienced several rate increases last year.
On January 31, the business submitted its request to the Indiana Utility Regulatory Commission. The application requests for reductions of 15.9% for residential consumers, 12.9% for industrial clients, and 18.6% for industrial clients.
In comparison to their current bill, the residential customers’ 15.9% decrease amounts to a $26.60 savings, according to testimony submitted to the IURC. In addition, the company stated that it will be 1.5% less than what consumers were paying at this time last year.
The request was made in accordance with the fuel adjustment clause (FAC), which permits Indiana utilities to request rate adjustments every three months in response to market circumstances.
This is actually the second rate reduction that Duke has asked for; in January through March, the IURC authorized a 5.5% reduction. The 15.9% cut would take effect from April through June if it were approved.
Due to the erratic nature of the fuel market, Duke customers last year noticed an increase in their prices. In previous applications, the utility firm specifically mentioned changes in the cost of coal, natural gas, and wholesale electricity.
Although market volatility is still a problem, prices have somewhat steadied recently. According to evidence from Duke, problems with transportation and supply chains have improved, but they can still be unexpected.
The power company declared in 2022 that the IURC’s higher rates would not last indefinitely. The declines, which might also be modified depending on the state of the market, follow the same logic.
