Duke Energy request to reduce fuel electric rate approved by Indiana regulators

Rhea-AI Summary

Duke Energy Indiana's request for a 16% reduction in electric bills due to lower fuel and power costs has been approved by the Indiana Utility Regulatory Commission. Effective from April to June, this reduction translates to an average saving of $26 per month for residential customers using 1,000 kilowatt-hours. This follows a 5% decrease implemented in January. Increased fuel prices in 2022 were driven by global market volatility and labor shortages. Duke Energy aims to stabilize costs through diverse procurement strategies and long-term contracts.

Positive

• 16% decrease in electric bills approved, saving an average of $26 monthly for residential customers.
• Successful passing of cost savings to customers reflects improved market conditions.

Negative

• Previous year saw higher fuel costs impacting customer bills significantly.
• Bill assistance resources may indicate continued customer financial strain.

• Decrease averages 16%, or $26 a month, for average residential customer

PLAINFIELD, Ind., March 30, 2023 /PRNewswire/ -- On March 29, the Indiana Utility Regulatory Commission approved Duke Energy Indiana's request to lower bills due to declining fuel and purchased power costs. For an average residential Duke Energy customer in Indiana using 1,000 kilowatt-hours a month, it means a decrease of approximately 16% over rates today, or $26 a month. That is on top of a 5% decrease that went into effect in January.

Customer electric bills were higher in 2022 primarily due to soaring fuel costs that affected the cost of power utilities produced as well as what they purchased on the energy markets. A number of unique events drove up fuel costs – from volatility in the energy markets worldwide to labor shortages at railroads that delivered fuel.

"Fuel and purchased power can account for as much as 25 to 45% of an average residential customer's bill, so when the markets are volatile, it can have a big impact on energy bills," said Duke Energy Indiana President Stan Pinegar. "We're starting to see costs stabilize, and the Indiana Utility Regulatory Commission has approved our request to pass those savings along to customers."

The decrease will be in effect April-June. Four times a year, utilities adjust prices based on fluctuating fuel costs. Fuel rate adjustments are not permanent; fuel costs rise and fall, and utilities pass those costs to our customers with no profit, so customers pay what their utility provider pays. Duke Energy's priority is to purchase fuel at the best possible price, through steps such as long-term contracts and using a diversity of suppliers. Customers can view a short video here about how fuel costs affect their bills: Fuel Costs & Your Bill - Duke Energy (duke-energy.com).

Bill assistance resources

Energy costs can be a major part of household budgets, and Duke Energy offers a variety of assistance options for customers:

• Interest-free installment plans – Customers can contact the company at 800.521.2232 to learn more.
• Energy and bill management programs, including Budget Billing and Usage Alerts that let a customer know when their bill may be higher than normal so they can make adjustments. The company also has a host of energy efficiency programs, including free home energy assessments. Customers can learn more about these programs and others at Lower My Bill ToolKit - Home - Duke Energy (duke-energy.com).
• Each year, through shareholder contributions and customer donations, Duke Energy dedicates funds for customers in need through its Share the Light Fund®. The company recently announced $300,000 in available assistance funds for distribution through statewide community action agencies. A list of agencies can be found at Energy Assistance (incap.org).

Duke Energy Indiana

Duke Energy Indiana, a subsidiary of Duke Energy, provides about 6,300 megawatts of owned electric capacity to approximately 890,000 customers in a 23,000-square-mile service area, making it Indiana's largest electric supplier.

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 27,600 people.

Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear. 

Duke Energy was named to Fortune's 2023 "World's Most Admired Companies" list and Forbes' "World's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Contact: McKenzie Barbknecht
24-Hour: 800.559.3853

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SOURCE Duke Energy

FAQ

What is the recent change in Duke Energy's electric rates?

Duke Energy Indiana's electric rates have been reduced by 16%, effective from April to June.

How much will average residential customers save on their bills?

Average residential customers will save approximately $26 per month.

What caused the previous increase in Duke Energy's electric bills in 2022?

The increase was primarily due to soaring fuel costs and market volatility.

When did Duke Energy last reduce its rates before this announcement?

Duke Energy implemented a 5% decrease in rates in January.

How does Duke Energy plan to stabilize fuel costs?

Duke Energy plans to stabilize costs through long-term contracts and diverse fuel procurement.