Staff Reports
Three public hearings are planned for Duke Energy Indiana customers to comment on the utility’s pending rate increase request.
The Indiana Office of Utility Consumer Counselor, the state agency representing consumer interests in cases before the Indiana Utility Regulatory Commission, is reviewing Duke Energy’s request and is scheduled to file testimony on the rate case Oct. 30.
Three public field hearings in Duke Energy’s service territory are planned, each beginning at 6 p.m. at the following locations, including:
In Carmel, on Monday, at Carmel High School Auditorium, 520 Main St.
In Terre Haute, Sept. 23, at South High School Auditorium, 3737 S. Seventh St.
In New Albany, Oct. 1, at New Albany Floyd County Consolidated School Corp. Facilities Services Center, 2801 Grant Line Road.
Those who wish to testify are asked to arrive no later than 5:45 p.m. for the session, which will begin at 6 p.m. and will include an overview of field hearing procedures and the rate case process.
Duke Energy, which provides electric service to about 840,000 customers in 69 Indiana counties, is requesting to raise rates in two phases, with increases occurring in 2020 and 2021.
If approved, the proposal would increase Duke’s annual operating revenues by $395 million, an increase of 15.5 percent, when fully phased in, the company stated.
The Plainfield-based company on July 2 asked the Indiana Utility Regulatory Commission to allow it to raise rates in two steps: 13% in mid-2020 and 2% more in 2021.
The exact amount of the increase would vary among customers. A typical residential customer using 1,000 kilowatt-hours a month could expect a monthly bill increase of about $23 as a result of both steps of the increase, the utility said.
The request would raise a monthly residential electrical bill for 1,000 kilowatt hours from $120.30 to $142.95 if and when the proposed rate increase is fully implemented, the company stated.
Duke Energy said it is seeking a rate increase to offset the costs of generating cleaner electricity, improving the reliability of electric service, and making “investments to serve a growing customer base.”
Duke Energy had its last rate case in 2004, when the company was known as PSI/Cinergy. It merged with Duke Energy Corp., based in Charlotte, North Carolina, in 2005.
But some consumer groups quickly criticized Duke Energy’s request, saying it represents a steep, sudden increase in rates.
“Asking their customers for an extra $23 every month is an alarming and extraordinary request, especially for households living on low and fixed incomes who have realized little to no increases in income in recent years,” said Kerwin Olson, executive director of Citizens Action Coalition of Indiana. “It’s Hoosier ratepayers struggling to make ends meet that need relief, not Duke Energy, a monopoly who is financially healthy with enormous market value.”
Others pointed out that Duke Energy, the largest electric utility in Indiana, is still relying too heavily on coal. Nearly 90% of the power it produced in Indiana last year was coal-fired.
Under pressure to modernize its coal-fired generating fleet, Duke Energy said July 1 that it plans to build two natural gas plants and step up its use of solar and wind power. But that could take years to put in place. In detailed plans filed with state regulators, the utility said it wants to keep most of its coal-fired plants in Indiana running through much of the next decade, and some until 2038.
Duke Energy said its overall average electric rate is currently below state, regional and national averages and is the lowest overall electric rate average in Indiana.
The counselor’s office said Duke’s testimony and exhibits indicate it is seeking the new rates due to increases in operating and maintenance costs to pay for numerous capital improvements.
“The utility’s filings cite the deployment of advanced metering infrastructure throughout its Indiana service territory, ash pond closures and remediation at its coal-fired generating facilities and plans to retire certain coal-fired generation units earlier than originally scheduled…” according to the regulators.
The company also wants to use the increase for tree trimming and vegetation management costs, plug-in electrical vehicle incentives and improvements in the Indiana transmission and distribution system including line sensors and additional grid technology.
At the field hearings, consumers may speak directly to the commission while under oath and on the record. Commissioners are not allowed to answer questions about the case, but staff members will be available before, during, and after the hearing to address questions about the process.
Customers who wish to submit written comments for the case record may do so at the commission’s website at in.gov/oucc/2361.htm or by email at uccinfo@oucc.IN.gov. Comments may be mailed to Consumer Services Staff, Indiana Office of Utility Consumer Counselor, 115 W. Washington St., Suite 1500 South, Indianapolis, IN 46204.
All written consumer comments are due by Oct. 23. Comments must include the consumer’s name, mailing address and a reference to either IURC Cause N. 45253 or Duke Energy.
For more information, or questions, call the commission’s consumer services staff at 888-441-2494.
A number of additional parties have intervened in the case, including Walmart, Kroger Co., the Citizens Action Coalition of Indiana, Indiana Community Action Association, Sierra Club Hoosier Chapter, Enviromental Working Group, the Navy, Wabash Valley Power Association, the Indiana Coal Council, among others, including industrial customers. All intervenor testimony is due Oct. 30.
A final order in the case is expected next April, according to the commission.
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To follow Duke Energy’s rate case before the Indiana Utility Regulatory Commission, visit in.gov.oucc/2927.htm.
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