INDIANA – A modernized electric grid more resistant to power outages, hundreds of miles of new power lines, environmental responsibilities, increased electric grid security, and new systems for customer convenience are some of the vital parts of Duke Energy’s Indiana rate increase submitted to state utility regulators.
“Since our last base rate increase in 2020, we’ve invested $1.6 billion in our electric grid, power plants and overall system on behalf of our customers, including advanced technology that has helped prevent more than 185,000 power outages,” said Duke Energy Indiana President Stan Pinegar.
“We know that utility costs can be a major part of a household and business’s budget and that customers expect us to do our part to keep bills as low as possible,” Pinegar said. “We have kept our day-to-day operating costs flat since 2020 while we make long-term investments to serve customers. We also are proposing voluntary, ‘time-of-use’ rates to help manage customer bills. Fortunately, fuel costs for our electricity production have declined, and residential customer bills are about 25% lower than they were in late 2022.”
The request, filed on April 4 with the Indiana Utility Regulatory Commission, for an average bill increase of approximately 16%. If approved, the increase would be added to bills in two steps around 12% in 2025 and around 4% in 2026. The annual revenue increase would be $492 million.
The increase will vary among consumers depending on the different types of customers, such as residential and business. The monthly impact of the two steps for a residential customer using 1,000 kilowatt-hours a month would be about 19%, or $27.63.
As a regulated business, Duke Energy’s rates can only be changed after approval from state utility regulators. There will be extensive public proceedings, including opportunities for customer input. A regulatory decision is possible in early 2025.
To help customers manage their electric bills, Duke Energy is proposing time-of-use rates where customers can shift some of their power use to times of day when energy is less expensive. If the program is approved, it would be voluntary for residential, commercial and industrial customers interested in participating.
Investments, improvements and upgrades
Some of the components of Duke Energy’s request include:
- Duke Energy is adding state-of-the-art sensors to its Indiana power lines. Much like the GPS in a car that can identify an accident ahead and reroute a driver around the incident, the technology can quickly identify power outages and alternate energy pathways to restore service faster for customers when an outage occurs. For a video of how the technology works, visit Self Healing Technology – Duke Energy (duke-energy.com)
- The company is hardening its system against severe weather to reduce power outages. It includes changing wood poles to steel, undergrounding power lines in targeted, outage-prone areas, and rebuilding overhead line miles. When last spring’s tornadoes ripped through Indiana, steel structures on Duke Energy’s Indiana system withstood the weather.
- In the wake of physical attacks on the electric grid nationally, the company is improving physical security and protections at some of its vital infrastructure, which delivers power to Indiana communities.
- Indiana’s economy is growing, and Duke Energy expects to have more than 60,000 new residential and business customers by 2025. The company is adding 345 miles of new power lines and infrastructure.
- Federal rules require changes to how we manage coal ash generated from electricity production and stored at our power plant sites. Duke Energy is closing its Indiana ash basins responsibly and in compliance with environmental regulations.
- The company needs to keep pace with evolving customer needs and expectations, so it has installed new systems, such as customers initiating service at a new location online and receiving service the same day.
Energy assistance and bill management
In addition to the proposed time-of-use rates, Duke Energy has more than a dozen energy assistance and bill-lowering tools, including:
- Usage Alerts notify customers of how much electricity they use and its cost so they can make adjustments before their billing period ends.
- Free Home Energy House Calls, where energy professionals assess a home for efficiency and provide homeowners with a toolkit of energy-saving devices.
- Budget billing helps ease the impact of higher seasonal bills by leveling out monthly payments.
- Interest-free payment plans for customers needing flexibility.
- Share the Light program funded by Duke Energy shareholders for qualifying customers struggling to pay their energy bills.
For more information about these programs and others, visit:
duke-energy.com/LowerMyBills. Information on this rate request at duke-energy.com/IN-Rates.
