Duke Energy to reduce rates, approved by state

The Indiana Utility Regulatory Commission approved Duke Energy Indiana’s request to lower bills due to declining fuel and purchased power costs. For an average residential Duke Energy customer in Indiana using 1,000 kilowatt-hours a month, it means a decrease of approximately 16% over rates today, or $26 a month. That is on top of a 5% decrease that went into effect in January. There are varying levels of rate decreases for other customers, including businesses and municipalities.

Customer electric bills were higher in 2022 primarily due to soaring fuel costs that affected the cost of power utilities produced as well as what they purchased on the energy markets. A number of unique events drove up fuel costs – from volatility in the energy markets worldwide to labor shortages at railroads that delivered fuel.

Fuel and purchased power can account for as much as 25 to 45% of an average residential customer’s bill, so when the markets are volatile, it can have a big impact on energy bills. We’re starting to see costs stabilize and are glad to be able to pass those savings along to customers.

The decrease will be in effect April to June. Four times a year, utilities adjust prices based on fluctuating fuel costs. Fuel rate adjustments are not permanent; fuel costs rise and fall, and utilities pass those costs to our customers with no profit, so customers pay what their utility provider pays. Duke Energy’s priority is to purchase fuel at the best possible price, through steps such as long-term contracts and using a diversity of suppliers.