PLAINFIELD, Ind. — The Indiana Utility Regulatory Commission approved Duke Energy Indiana’s request to lower bills due to declining fuel and purchased power costs. The request was approved on Wednesday.
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.
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. Several 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,” said Duke Energy Indiana President Stan Pinegar. “We’re starting to see costs stabilize, and the Indiana Utility Regulatory Commission has approved our request to pass those savings along to customers.”
The decrease will be in effect from April through 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. Customers can view a short video here about how fuel costs affect their bills: Fuel Costs & Your Bill – Duke Energy (duke-energy.com).