By CAMILA FERNANDEZ
WISH-TV | wishtv.com
Your electric bill may be lower this summer. AES and Duke – two of Indiana’s largest utilities – are asking for rate reductions. After experiencing a rise in energy costs, AES and Duke Energy have said that lighting up your homes is going to be cheaper.
AES Indiana has asked the Indiana Utility Regulatory Commission for a decrease in utility bills for a second time.
If approved, the monthly bill for a residential customer will drop 16.5 percent or $23.09 per month on average. The new rate would go into effect this June.
“We’re able to offer that savings to our customers and we’re holding on to that positivity,” said Kelly Young, the public relations director at AES Indiana.
Duke Energy Indiana says it has also asked state regulators for a decrease. If approved, the new monthly bill for a typical residential customer would amount to $26 per month, which would go into effect in April.
Barbknecht
McKenzie Barbknecht, the spokesperson of Duke Energy Indiana said, “So, we’ve filed for two rate decreases. We passed along about a 5.5 percent decrease in electric rates for residential customers in January and we’re asking state regulators to approve a second decrease of about 16 percent of low rates today.”
These companies say this decrease is thanks to falling fuel prices.
Michael Hicks is an economist at Ball State University. He says the lower rates are also caused by smaller demands from consumers.
“They see that the cost of the energy they’re buying is lower and they want to pass those savings back on to consumers because A, it’s good business practice,” Hicks said. “B, if they don’t then they’re Indiana utility regulatory commission will find out in six months will say look you’ll have to reduce your prices.”
Officials with these companies say while they’re happy prices are going down, there’s a chance costs will rise again later on.