Duke really is lowering your electric bill

After a year of rising fuel costs, Duke Energy has filed for two rate decreases related in part to lower fuel price forecasts.

Duke Senior Communications Manager McKenzie Barbknecht told The Reporter customer electric bills were higher in 2022 primarily due to soaring fuel costs to produce power.

Barbknecht

“Global demand and tight fuel supplies as well as labor shortages at coal mines and railroads affected the cost of the power we produce as well as what we purchased in the energy markets,” Barbknecht said. “While energy markets remain volatile, we’re starting to see costs stabilize, and we’re glad to pass those savings along to customers.”

Four times a year Indiana utilities rates are adjusted to reflect changing fuel and purchased power costs. All changes must be reviewed and approved by state utility regulators.

“The rate adjustments are not permanent; fuel costs rise and fall, and we pass those costs to our customers with no profit, so customers pay what we pay,” Barbknecht said. “Our priority is to purchase fuel at the best possible price, through steps such as long-term contracts and using a diversity of suppliers.”

Click here to watch a short video from Duke Energy on how fuel costs affect bills.

“We passed along about a 5.5 percent decrease in electric rates in January,” Barbknecht said. “We are asking state regulators to approve a second decrease, estimated at 16 percent over rates today for an average residential customer. If approved, the new rate would be effective in April. For an average residential customer that amounts to an estimated $26 per month decrease.”

Duke Energy filed its petition for the next rate decrease with the Indiana Utility Regulatory Commission on Jan. 31. Final testimony was filed on Feb. 15.