Duke Energy Indiana gets approval for smaller rate hike than requested

INDIANA – State regulators approved a $395.7 million annual rate increase for Duke Energy Indiana on Wednesday, approximately 19.5% less than the utility’s initial request of $491.5 million.

The Indiana Utility Regulatory Commission’s decision comes after Duke, the state’s largest electric utility, sought a 16% rate increase over two years. The new rates are expected to take effect in late February, affecting about 900,000 customers across 69 Indiana counties.

Duke spokesperson Angeline Protogere said the increase will fund grid modernization, power plant reliability improvements, new power lines, and enhanced security measures. The approved rate hike marks Duke’s first base rate increase over four years.

While the exact impact on monthly bills will vary by customer type, the original proposal estimated a 19% increase (approximately $27.63) for residential customers using 1,000 kilowatt-hours monthly. The approved lower rate means customers will see a smaller increase than initially projected.

The decision drew mixed reactions from stakeholders. Kerwin Olson of Citizens Action Coalition criticized the commission’s decision to increase Duke’s return on equity from 9.7% to 9.75%. While acknowledging the reduced profit margin as positive, Westfield Mayor Scott Willis pledged to continue advocating for fair utility rates.