INDIANAPOLIS — Duke Energy customers can expect a rate hike after the Indiana Utility Regulatory Commission approved their request on Wednesday.
According to an Indiana Utility Regulatory Commission report obtained by FOX59/CSB4, Duke Energy has been permitted to raise its retail rates and electric bills after the IURC allowed the company to increase its revenue to around $395 million.
The company had originally requested to increase its revenue totals to around $491.5 million when it originally filed its petition in April of last year.
The report concluded that Duke Energy could follow an annual increase to its rates, with charges reaching $395,691,000.
The report outlined how any customers using 1,000 kWh could see their bills increase by as much as $27.63 a month over two steps. But the exact impact this revenue change could have on customer bills remains unclear.
The first of those is projected to take place in March 2025 with an initial increase worth $20.43 while step two could see another $7.20 tacked onto monthly bills beginning in March of 2026.
According to previous reports, Duke said it had invested more than $1.5 billion in its power grid to keep pace with Indiana suburbs that are continuing to experience exponential growth, like Westfield and surrounding places across Hamilton County.
Westfield Mayor Scott Willis has previously criticized the company’s efforts to implement a rate hike.
Duke has sought to justify the proposal by pointing to its ongoing efforts to shift away from coal by 2035, citing technology changes and keeping up with growing communtiies as key factors behind the decision.
“We remain committed to ensuring affordable utility rates for all residents of Westfield,” Mayor Willis said. “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 pointed to the IURC’s ruling regarding Duke’s profit margins, also known as Return on Equity (ROE). Duke had initially requested a 10.8% ROE before the IURC reduced that to 9.75%.
“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,” City of Westfield said in a news release. “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 City of Westfield also confirmed that the IURC rejected its push to implement a new low-income rate. Additionally, the report denied Duke’s request to levy charges for electirc vehucle charging stations and introduce processing fees for credit cards.
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