INDIANAPOLIS – After Hoosiers saw a series of rate increases last year, Duke Energy is asking state regulators to approve a decrease.
The company filed its request with the Indiana Utility Regulatory Commission on Jan. 31. The application calls for a 15.9% decrease for residential customers, as well as decreases of 12.9% for commercial customers and an 18.6% decrease for industrial ones.
According to testimony filed with the IURC, the 15.9% decrease for residential customers represents a $26.60 reduction when compared to their current bill. The utility also said it would be a 1.5% decrease compared to what customers were paying at this time last year.
The request was filed as part of the fuel adjustment clause (FAC), which allows Indiana utilities to ask for rate changes every quarter based on market conditions.
This is actually the second rate cut Duke has requested; the IURC approved a 5.5% decrease for January through March. If the 15.9% cut is approved, it would go into effect April through June.
Duke customers saw their bills go up last year because of volatility in the fuel market. The utility company specifically cited fluctuations in coal, natural gas and wholesale power prices in past applications.
While market volatility remains an issue, prices have stabilized somewhat in recent months. Transportation and supply chain issues have improved, although they can still be unpredictable, according to testimony from Duke.
The utility company said in 2022 that the higher rates approved by the IURC would not become permanent. The same applies to the decreases, which could be adjusted based on market conditions.