Duke Energy is seeking rate increases. Here's how much it could cost you.

Duke Energy is seeking regulatory permission to increase fees to electricity customers in Indiana and Hoosier residents and businesses have until July 5 to submit comments before the Indiana Utility Regulatory Commission (IURC) makes a decision.

The request would raise electric rates by 19% in a two-step process, with rate increases in March 2025 and again in January 2026. The increase would raise the flat connection charge for residential customers from $10.54 to $13.70 each month, according to the IURC. It would also increase the electricity consumption portion of a customer's bill.

Duke Energy is the largest electric utility company in Indiana, serving about 900,000 customers in 69 counties from near Fort Wayne south to the Ohio River.

Christa Graft, Duke's manager of rates and regulatory strategy, told the IURC if the increase is approved, a retail customer using 1,000 kWh of electricity would see their bill increase by about $20 in the first step and another $7 in the second step.

Kerwin Olson, director of development for Citizens Action Coalition of Indiana (CAC), said his group estimates the impact on Duke Energy customers is higher.

"This is a $42 bill increase, based on what people are paying today," said Olson. "Citizens Action Coalition is opposed to a massive rate increase. We are hopeful that cities will intervene in this case."

Angeline Protogere, Indiana spokesperson for Duke Energy, said the difference in the amounts detailed by Duke and projected by CAC is due to the parts of an electric bill often referred to as "bill riders" that include fuel prices and other costs associated with generating electricity that Duke Energy is allowed to pass on to its customers. Fuel costs are reviewed quarterly by the IURC and afterward bills are adjusted up or down.

Protogere said the rate increase before the IURC is only for the base rate, which if approved would be $27.63 more for a customer using 1,000 kWh a month. "The base rate is what the (IURC) is reviewing now," she said. "That's what these hearings are about."

The proposed rate increases would be different for businesses and residential consumers.

CAC's Olson said a large portion of what Duke Energy customers would be paying for with the increase is depreciation for the company's coal-fired power plants. "They would be paying for something that's not serving customers," he said.

Duke Energy is proposing it delay the retirement of the Gibson Generating Station, with the intention to "burn more coal" in 2024-2026 than the company has in many years, Olson said. While Duke Energy remains 96% reliant on coal and natural gas, other Hoosier utilities propose to be coal-free by 2030, he said.

John Verderame, Duke's vice president of fuels and systems optimization, testified to the IURC that Duke contracted to purchase coal fuel for its power plants at the upper end of its projected needs. He said the utility projects it would use more coal in the next five years than it did in the previous five years, even as the utility increases its reliance on natural gas.

Kathryn Lilly, Duke's manager of rates and regulatory planning, told the IURC that while Duke plans to retire its coal plants in Gibson early, it wants to apply the full depreciation value of the plants as if they had operated longer. Lilly argued this would give Duke assurance that it can recover the full value of the plants from ratepayers "even if the company is not able to account for the retirements using normal accounting."

Possible opt-in for time-of-use rate

As part of the rate increase proposal before the IURC, Duke Energy is proposing a voluntary "time-of-use" rate for customers to manage their bills by using electricity at times when demand is less and thus less expensive.

The charge for electricity would vary by time of day and season of year. The highest price would be for electricity used from 5 to 9 p.m. year-round (22.8 cents per kilowatt hour) and 6-8 a.m. in the winter. Electricity use from midnight to 4 a.m. would cost the least, at 9.12 cents per kWh.

If approved, residential, commercial and industrial customers would have to sign up to participate.

Who is opposed to the proposed rate increase

In addition to CAC and the Sierra Club, Walmart and Kroger have petitioned as intervenors, as have two of Indiana's Bloomington lawmakers.

The Sierra Club is opposing the rate increase mainly because Duke Energy is "overinvesting in its coal plant infrastructure," said Robyn Skuya-Boss, director of Sierra Club, Hoosier Chapter. Duke's Gibson power plant is one of the nation's 22 super polluting power plants and has negative impacts on people's health, Skuya-Boss said. The Gibson power plant is the largest carbon dioxide-producing power plant in Indiana and was listed as the 19th in the U.S. in 2023, he said.

"This case itself will lead to more coal being burned through the rest of the decade," said Megan Anderson, senior organizer with the Sierra Club.

Both state Rep. Matt Pierce, D-Bloomington, and state Sen. Shelli Yoder, D-Bloomington, have voiced their opposition to Duke Energy's rate hike.

"I am deeply troubled by these proposed rate hikes that would increase consumer electric bills by almost 33%, or about $42.07 a month for the average consumer ..." said Yoder in a prepared statement. "At a time when Hoosier families are reeling from unstable gasoline prices, continued inflation driving up groceries and rent costs along with a statewide childcare provider shortage, it's unconscionable to me that Duke would suggest such a dramatic rate increase."

Public comments in Bloomington, elsewhere

The Indiana Office of Utility Consumer Counselor is accepting comments about Duke's request to raise rates through July 5. Public comments will be accepted in person during an IURC field hearing at 6 p.m. June 20 in Bloomington. The meeting will be at the Monroe Convention Center, Olcott Young Room, 302 S. College Ave.

Ahead of the field hearing in Bloomington, CAC will have a town hall at 7 p.m. June 13 in Room 1B at the Monroe County Public Library, 303 E. Kirkwood Ave. CAC officials will discuss and share information about the proposed rate hike.

Written comments are being accepted on the OUCC’s website at www.in.gov/oucc/2361.htm, by email at uccinfo@oucc.IN.gov or by mail at: Public Comments, Indiana Office of Utility Consumer Counselor, 115 W. Washington St., Suite 1500 South, Indianapolis, IN 46204. Comments must be received by July 5 and must include the consumer's name and reference to either "IURC Cause N. 46038" or "Duke Energy Rates."

Anyone with questions about submitting written comments can contact the OUCC’s consumer services staff toll-free at 1-888-441-2494.

Duke Energy last raised rates in Indiana in 2020. Since that time, the utility states it has modernized the electric grid, investing $1.6 billion in the grid, power plants and the overall system. Duke Energy states in its petition to the IURC it must raise revenues to attract capital, pay its debts and make a profit.

Herald-Times News Director Jill Bond contributed to this report.