Duke receives approval to lower electric bills

Plainfield-based Duke Energy Indiana said Thursday it has received approval from the Indiana Utility Regulatory Commission to lower bills due to declining fuel and purchased power costs.

The utility said as a result of the approval, the average residential customer using 1,000 kilowatt-hours per month will see a decrease of about $26 per month on their bill.

The decrease will be in effect from April through June, according to Duke. The utility said fuel rate adjustments are not permanent, and the rates could change again based on fluctuating fuel costs.

Electric bills for customers were higher last year because of soaring fuel costs that Duke said affected the cost of power that utilities produced, as well as what they purchased on the energy markets.

“Fuel and purchased power can account for as much as 25 to 45% of an average residential customer’s bill, so when the markets are volatile, it can have a big impact on energy bills,” Duke Energy Indiana President Stan Pinegar said in a news release. “We’re starting to see costs stabilize, and the Indiana Utility Regulatory Commission has approved our request to pass those savings along to customers.”

Duke said the decrease is on top of 5% decrease that went into effect in January.