Indiana Regulators Approve Rate Decrease For Duke Energy Customers

Duke Energy is crediting tax reform for lower electric rates for residential customers.

Duke Energy photo

(Lawrenceburg, Ind.) - Duke Energy customers in Indiana will soon begin seeing their electricity billing rates decline.

The Indiana Utility Regulatory Commission approved last week an agreement allowing the electric utility to reduce rates by an average of 5.6 percent by 2020. Most of the savings will begin this year, Duke Energy says.

A typical residential customer using 1,000 kilowatt hours per month will save about $7.33 on each month’s bill over the next two years.

Duke Energy previously credited the rate decline to savings resulting from the new federal tax law passed by Republicans in Washington and President Donald Trump in 2017.

"This is an important agreement, and the commission’s approval allows us to begin passing along savings to customers immediately and ensure they see the benefit of the new federal tax law," said Duke Energy Indiana President Melody Birmingham-Byrd. “It’s a unique opportunity to lower electric rates and help offset other costs.”

According to Duke Energy, the company began reflecting the lower federal tax rate in customer bills earlier in 2018 as it filed new electric bill riders with the state utility regulatory commission. In addition to the tax reductions in bill riders, the settlement agreement reduces base rates in September 2018 to reflect the lower tax rate. The agreement also includes refunds of accumulated deferred taxes in 2018 and 2020.

Duke Energy has about 800,000 customers in Indiana.

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