State OK’s Duke Energy rate increase request

Editor’s note: The following information was released by the City of Westfield on Wednesday afternoon. The Reporter has published it in full.

On Wednesday, the Indiana Utility Regulatory Commission (IURC) issued its final decision in the Duke Energy rate case, which will directly impact the cost of electricity for residents of Westfield and the surrounding areas.

While the IURC largely sided with Duke Energy on many issues, notable outcomes directly impact ratepayers in Westfield and beyond. Duke did not receive the full rate increase it requested. The Commission reduced Duke’s original request for a $491.5 million revenue increase, which will result in a lower-than-anticipated rate hike for customers across the state.

One of the most significant aspects of the ruling is the IURC’s action on Duke’s profit margins or Return on Equity (ROE). Duke had initially requested a 10.8 percent ROE, but the Commission limited it to 9.75 percent, citing customer affordability concerns. This reduction in profit expectations for Duke Energy is a positive development for consumers, as it will help mitigate the overall financial impact of the rate increase. While Duke won the majority of contested issues, the reduction in the ROE was a win for Westfield and other ratepayers concerned about affordability.

The Commission also denied several of Duke’s more controversial requests, including charges for electric vehicle charging stations and credit card processing fees. Duke’s request for large employee bonuses was also reduced from $29.6 million to $15 million.

Unfortunately, the IURC did not approve creating a new low-income rate, which the City of Westfield and other advocates had pushed for. However, the reduction in Duke’s requested profit margin offers relief for customers facing higher rates.

“We remain committed to ensuring affordable utility rates for all residents of Westfield,” said Mayor Scott Willis. “While this ruling may not have addressed every concern we raised, the IURC’s decision to lower Duke’s profit margin is a positive step forward. We will continue to fight for fair utility rates and policies that protect consumers.”

The City of Westfield will continue to keep residents informed about any further updates regarding Duke Energy’s rate changes and will continue to advocate for fair and affordable energy prices for all.

* * *

Editor’s note: The Reporter reached out to Duke Energy on Wednesday afternoon for the company’s perspective, and a spokesperson offered the following statement.

“Today, Duke Energy Indiana received a decision from the Indiana Utility Regulatory Commission (IURC) concerning its rate request. The decision follows an extensive review process that included public input from a variety of customers and stakeholders.

“The rate request centered around investments in a modernized electric grid more resistant to power outages, increasing reliability at our power plants, constructing hundreds of miles of new power lines, complying with evolving environmental responsibilities, increasing electric grid security and providing new systems for customer convenience.

“Over the coming weeks, Duke Energy Indiana will be evaluating the order. Before new rates would be effective, we will prepare a compliance filing for state utility regulators outlining rate adjustments for different types of customers. Once the IURC gives final approval on the rate adjustments, we expect new rates to take effect in late February.”