Duke Energy Indiana requests three-month rate increase – Daily Journal

Considered one of Johnson County’s largest electrical utilities is looking for regulatory approval to boost its charges by means of the summer time as a consequence of rising gas prices.

Late final month, Plainfield-based Duke Power Indiana filed an software with the Indiana Utility Regulatory Fee for approval of fee adjustments for its electrical and steam companies as a consequence of gas prices. If authorised by regulators, the brand new charges would take impact in July and stay in impact by means of September.

Duke Power serves about 34,000 clients in Johnson County.

Within the filings, Duke Power introduced its intent to extend its present electrical charges for residential by 16%, or a rise of 24.6% from what clients paid from July to September 2021. For industrial clients, the charges will enhance by lower than 20.3% and for industrial clients, the speed will enhance by lower than 25.7%.

A residential buyer with a invoice of $141.20 proper now would see it go up by $22.59, and a buyer who had a invoice of $131.40 final August would see it enhance by $32.39, in response to filings.

If authorised by regulators, the brand new charges would take impact in July and stay in impact by means of September.

Representatives of Duke Power, which is Indiana’s largest electrical utility supplier, mentioned in testimony filed with the appliance that the rise was wanted as a consequence of volatility in gas markets. The utility has skilled a “vital and extended” rise in coal, pure fuel and wholesale energy costs between when the projections have been made and when the charges go into impact, filings say.

“We’re seeing the very best sustained costs for gas that we’ve got witnessed in a decade,” mentioned Angeline Protogere, a Duke Power spokesperson.

Utility representatives additionally mentioned in filings that constraints from excessive fuel costs, coal provide and fossil gas transportation have considerably affected how Duke Power operates its fossil gas thermal crops and the way the utility purchases vitality and gas within the market.

“Duke Power Indiana has made each affordable effort to accumulate gas and generate or buy energy or each in order to supply electrical energy to its retail clients on the lowest gas value fairly doable,” the submitting says.

Since mid-2021, the electrical utility has seen prices for coal and fuel enhance considerably. Gasoline purchases account for a good portion of Duke Power’s electrical prices, averaging as excessive as 30% of a complete invoice, Duke Power Indiana President Stan Pinegar mentioned in an op-ed shared with media shops throughout the state.

“That’s why when there are risky vitality markets, it might probably have a big effect,” Pinegar mentioned.

The markets are being affected by quite a lot of components. Together with world demand and tight gas provides, the markets have been affected by labor shortages at coal mines and railroads. These points are affecting the price of the facility the corporate each produces and purchases in vitality markets, he mentioned within the assertion.

There is also the matter of provide chain challenges.

“We even have been working to beat provide chain challenges to make sure we’ve got enough provides of gas accessible for summer time and winter — the instances of highest electrical demand,” Pinegar mentioned.

Whereas the charges have gone up, firm officers say the will increase will not be everlasting. Gasoline prices rise and fall, and Duke Power passes the prices onto clients with no mark-up. Prospects pay what the utility pays, he mentioned.

“Our precedence is to buy gas at the absolute best worth, by means of steps comparable to long-term contracts and utilizing a variety of suppliers.,” Pinegar mentioned. “To reduce the influence on buyer payments, we’re spreading restoration of a few of these gas prices over an extended interval to cut back the speed influence.”

These prices are anticipated to be unfold out over six months, as an alternative of the same old three-month interval, in response to Duke Power’s software.

Duke Power expects the impact on payments to extend as summer time approaches and all through the remainder of the 12 months. Nevertheless, the utility does have plans to attempt to ease the prices for purchasers, officers say.

The utility is encouraging clients who’re struggling to pay their payments to name them at 800-421-2232. Customer support representatives can talk about fee plans and supply different sources for assist. Extra info will also be discovered on-line at duke-energy.com.

Prospects are additionally inspired to have a look at instruments comparable to finances billing and excessive invoice alerts to assist handle payments. The Excessive Invoice Alerts characteristic is designed to let clients know if their invoice goes to be increased than standard to allow them to regulate their electrical consumption, Protogere mentioned.

Monetary help can also be accessible by means of Duke Power’s Share the Mild program, the place eligible clients can obtain as much as $300 in vitality invoice help. There is also help accessible from the state of Indiana, Protogere mentioned.

An evidentiary listening to on the proposal earlier than regulators will happen at 10:15 a.m. on June 15 on the Nationwide Metropolis Heart, 101 W. Washington St., Indianapolis.