The Indiana Utility Regulatory Commission approved on Wednesday 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 percent over rates today, or $26 a month. That is on top of a 5 percent 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.
Pinegar
“Fuel and purchased power can account for as much as 25 to 45 percent of an average residential customer’s bill, so when the markets are volatile, it can have a big impact on energy bills,” Duke Energy Indiana President Stan Pinegar said. “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 to 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 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.
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 call 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 this link.
- 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 incap.org/energy-assistance.