By STAN PINEGAR
Guest Column
Hoosiers are paying more at the grocery and gas pump and may be noticing higher electric bills as well. We want to share background on what’s driving Duke Energy electricity costs and what we’re doing to help.
Since mid-2021, costs for coal and gas to produce the energy that powers Indiana homes, businesses and assembly lines have increased significantly. Fuel accounts for a significant portion of our electric costs, averaging as much as 30 percent of a total bill. That’s why when there are volatile energy markets, it can have a big impact.
In fact, Duke Energy Indiana is seeing the highest sustained prices for fuel that we have witnessed in a decade. Global demand and tight fuel supplies, as well as labor shortages at coal mines and railroads, are affecting the cost of the power we produce as well as what we purchase in the energy markets. We also have been working to overcome supply chain challenges to ensure we have sufficient supplies of fuel available for summer and winter – the times of highest electric demand.
These are not permanent rate increases. Fuel costs rise and fall, and we pass those costs to our customers with no markup, so customers pay what we pay. Our priority is to purchase fuel at the best possible price, through steps such as long-term contracts and using a diversity of suppliers. To lessen the impact on customer bills, we are spreading recovery of some of these fuel costs over a longer period to reduce the rate impact.
Unfortunately, we expect the bill impact will continue to increase throughout the year. If you are struggling financially to pay your electric bill, contact us at (800) 521-2232. We can discuss payment plans and resources for help.
We also recommend tools such as High Bill Alerts and Budget Billing that can help customers to manage their bills. Financial assistance also is available through our Share the Light Fund, where eligible customers can receive up to $300 in energy bill assistance. You can find more information on these programs at duke-energy.com/home/savings/lower-my-bill-toolkit.
We have found that many of our customers are missing out on state and federal assistance programs for which they are eligible. To learn more, visit benefits.gov/benefit/1535.
We know that higher electric bills can be a hardship for many, and we want to connect customers to resources for help.
Stan Pinegar serves as the President of Duke Energy Indiana.
Editor,
Please remember, (& remind Mr Pingar), that Duke went after, and received approx a 11% rate hike in the State of Indiana, (courtesy of the IURC rubber-stamp), prior to the sudden increase in fuel prices.
One only has to look at compensation packages, especially performance bonuses to the top folks at Duke. The State of Indiana also needs to make sure those saddled with Duke as a provider are not paying for the Duke coal ash clean-up in North Carolina.
Finally, I still have the first several electric bills I received from PSI Indiana, (which became Cynergy, which became Duke). Since that time (in the same house), I’ve converted to a new, more energy-efficient A/C, LED lights throughout, LCD/LED flat screens have replaced ‘boob-toob’ TV’s, even a coffee pot that gives me one cup vs. a whole pot, among other items. I now use slightly more than one quarter, (27% to be exact), of the Kw/hr compared to 1995 when I purchased this house. A $175-$200/month electric bill is now the norm in this same house.