Duke Energy faces criticism for rate hike

By Andi Anderson

Duke Energy is under fire for proposing a rate hike of up to 16% in Indiana while delaying the retirement of its coal-fired power plants.

The energy company, which reported a profit of $497 million in Indiana in 2023, is seeking regulatory approval for the increase, citing the need to cover rising operational costs.

Environmental groups, including the Hoosier Chapter of the Sierra Club, have raised concerns about the necessity of the rate hike, especially given Duke Energy’s recent financial performance.

Robyn Skuya-Boss, director of the Hoosier Chapter, voiced her doubts about the timing of the increase, stating that the profits should have been enough to maintain and upgrade infrastructure without burdening customers.

“That is money that is coming out of customers’ pockets,” said Skuya-Boss. “We are really questioning, why does Duke need a rate increase now?”

Duke Energy argues that the rate hike is essential to maintain and upgrade its infrastructure, including investments in transitioning to cleaner energy sources.

The company also cited inflation and other economic pressures as reasons for the rising operational costs. However, the decision to delay the closure of coal plants has fueled further criticism from environmentalists who argue it contradicts Duke’s pledges to reduce carbon emissions.

“Keeping these plants operational is an expensive choice for customers,” said Skuya-Boss. “Our contention is really to see Duke Energy make the decision this year to invest in that clean energy transition.”

The proposed rate increase is currently under review by the Indiana Utility Regulatory Commission, which will decide whether to approve the hike.

The outcome could significantly impact the costs faced by thousands of Duke Energy customers across Indiana. Advocacy groups and ratepayers are urging the commission to carefully assess the financial implications before approving any changes.

As the debate continues, Duke Energy finds itself at a crossroads, balancing the need for infrastructure upgrades and clean energy investments with the responsibility to keep energy affordable for its customers.

Photo Credit: duke-energy