(Statewide) – The Indiana Office of Utility Consumer Counselor (OUCC) is recommending reducing Duke Energy Indiana’s pending rate request by more than 60%.
Duke Energy is requesting 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 this week, following a three-month legal and technical review of the testimony, exhibits, and work papers filed by the utility. The OUCC’s testimony notes that most of the increase requested is due to capital projects that received IURC preapproval and are now being included in rates as is 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:
- Keeping 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.
- Reducing the utility’s authorized return on equity to 9.0%. Duke Energy Indiana requests a 10.5% return in this case. Its current authorized return of 9.7% received Commission approval in 2020.
- Decreasing the utility’s proposed depreciation expense and reducing numerous line items from the utility’s proposed amounts for operating and maintenance expenses.
- Denial of 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, 2024, with an IURC evidentiary hearing scheduled to start on Aug. 29, 2024. 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/. Case updates are also available through the agency’s monthly electronic newsletter. Consumers can subscribe at www.in.gov/oucc/news.
(Indiana Office of Utility Consumer Counselor press release)
