INDIANAPOLIS – In proceedings this week, the Indiana Office of Utility Consumer Counselor (OUCC) recommended reducing Duke Energy Indiana’s pending rate petition by more than 60%.
Duke Energy requested a $491.5 million (16.2%) base rate increase from the Indiana Utility Regulatory Commission (IURC). The OUCC’s analysis shows that an increase of approximately $184.7 million (6.1%) is warranted instead, based on the case’s evidence and applicable law.
Ten OUCC witnesses filed testimony with the IURC, following a three-month legal and technical review of the testimony, exhibits, and work papers the utility filed. The OUCC’s testimony notes that most of the increase requested is due to capital projects that received IURC preapproval and are now included in rates as provided by state law.
“The significant reduction we recommend to Duke Energy’s request is based on a thorough analysis by our attorneys and technical staff, and it balances the need for reliable service with the affordability concerns raised by our staff and by the hundreds of customers who have spoken out on the request,” said Indiana Utility Consumer Counselor Bill Fine.
The OUCC’s testimony recommends:
- To keep Duke Energy’s monthly residential customer service charge at $10.54. The utility proposes raising the charge to $13.70 in this case. OUCC recommendations would also hold small commercial customer service charges at their current levels.
- To reduce the utility’s authorized return on equity to 9%. Duke Energy Indiana requests a 10.5% return in this case. Its current authorized return of 9.7% received Commission approval in 2020.
- To decrease the utility’s proposed depreciation expense and reduce numerous line items from the utility’s proposed amounts for operating and maintenance expenses.
- To deny Duke Energy’s request to recover $92.1 million in coal ash remediation costs. The Indiana Court of Appeals found Duke was not entitled to recover these costs. The utility is requesting recovery now under a different legal theory.
The OUCC included nearly 3,000 written consumer comments and petition signatures in this week’s filing with the Commission. In addition, 74 Duke Energy customers spoke at the three public field hearings the IURC held in this case in June.
Rebuttal testimony from Duke Energy is due on August 8, with an IURC evidentiary hearing scheduled to start on August 29. A final Commission order is expected in early 2025.
The OUCC is posting case updates online at https://www.in.gov/oucc/electric/key-cases-by-utility/duke-energy-rates/duke-energy-rate-case/.
Duke Energy, headquartered in Plainfield, provides electricity to most of Indiana, including the local counties of Bartholomew, Johnson, Jackson, Jennings, Decatur, Shelby, and Brown.
