LOUISVILLE, Ky. (WDRB) -- Customers of Duke Energy in Indiana could soon see an increase to their bill, a request the company said is the result of years of long-term investment with no change to revenue.

On April 4, Duke Energy made a request to the Indiana Utility Regulatory Commission for an "overall average bill increase" of 16% in the next two years, according to the company's website.

Duke Energy is asking for an average bill increase of 12% next year and a 4% increase in 2026. The rate increase would bring the utility company an annual revenue increase of $492 million, money it says it needs to adapt to "advanced technology" to drive cleaner operations and better security as well as reduce power outages.

Kristen Thomas, a Duke Energy customer in southern Indiana, said she's currently spending around $140 on her bill each month and doesn't want to pay more.

"It's already expensive enough," Thomas said Wednesday. "Everything else is going up — groceries, everything. But I wish it would go down, actually."

McKenzie Barbknecht, a Duke Energy spokesperson, said making a rate request is not something the utility takes lightly. The company said this would be its first rate increase since 2020 and is needed for upgrades and expansion. 

"We know that utility costs can be a major part of a household and business’s budget and that customers expect us to do our part to keep bills as low as possible," Stan Pinegar, president of Duke Energy Indiana, said in an April 4 news release. "We have kept our day-to-day operating costs flat since 2020 while we make longterm investments to serve customers."

While Duke Energy's average rate increase would be 16%, the increase for each customer would vary for different customer classes like residential or commercial users. 

"If we're talking residential specifically, that would just be homes," Barbknecht said. "That would be a 19% average increase over that two-step period."

Duke Energy estimates the proposed rate hike will increase monthly bills by $27.63 per month for a residential customers using 1,000 kw of electricity per month. But a group that advocates for customers, the Office of Utility Consumer Counselor, responded July 12 with its own recommendation: reducing Duke Energy's proposed 16.2% rate increase to a 6.1% increase.

OUCC gathered testimony from field experts and formed a recommendation to give to the IURC, ultimately saying that Duke Energy is asking for too much.

"We found, based on all the information that was provided to us, that only a small portion of the utility's request is justified," Olivia Rivera, with the OUCC, said Wednesday.

OUCC's Bill Fine said their proposal balances the realities of better service with the realities of affordability for Hoosier customers.

"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," Fine wrote in a July 12 news release.

Barbknecht said, despite that recommendation, Duke Energy believes its 16% request is warranted.

"Our request before the commission hasn't changed," Barbknecht said. "Our request is still for an average, overall rate increase of 16%."

Rivera said one of the biggest concerns from the OUCC is affordability. 

"Under Indiana law, utilities need to provide safe and reliable service," she said. "But they have to do it at an affordable cost. And so that's the thing that we look at and we try to make sure is balanced in our recommendations to the commission."

Part of the recommendation from the OUCC also pushes to keep Duke Energy's monthly residential service charge at $10.54. It said the utility is proposing to change that to $13.70 in this request. 

The IURC said since Duke Energy Indiana's rate case is pending before the commission, it cannot comment at this time.

As an offset to a potential increase, Duke is proposing the use of "time-of-use" rates, which would involve customers shifting some power use to times of the day when energy is less expensive. That would need state approval, though, and would be voluntary for any residential, commercial or industrial customer interested in participating.

Duke Energy said since 2020, the company has invested $1.6 billion in the electric grid, power plants and the overall system to better serve its customers, preventing more than 185,000 power outages.

To gauge feedback from Indiana residents on the proposed increase, the IURC will hold a public meeting at 5 p.m. Thursday, Aug. 8 at the Floyd County Public Library on West Spring Street in New Albany. Hoosiers can also file written comments for the meeting on the OUCC's website.

The IURC will make the final call on Duke's rate increase proposal, and it can grant all, part or none of it. Its decision to approve or deny the recommendation isn't expected until early 2025.

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