AES, Duke Energy Seek Rate Decreases From State Regulators

STATEWIDE — Many utility companies in Indiana are asking state regulators for rate decreases as the global oil and gas market begins to stabilize.

This week AES Indiana and Duke Energy have both filed for rate decreases. AES Indiana has asked the state for a 16.5-percent reduction in power bills, saving a majority of Hoosiers in the Indianapolis area roughly $23 a month. If approved that rate decrease would take effect in June.

Duke Energy is asking for a similar decrease of around $26 a month that would take effect in April.

“We’re able to offer that savings to our customers and we’re holding on to that positivity,” said Kelly Young, the public relations director at AES Indiana, talking to WISH-TV.

“So, we’ve filed for two rate decreases,” said McKenzie Barbknecht with Duke Energy. “We passed along about a 5.5% decrease in electric rates for residential customers in January and we’re asking state regulators to approve a second decrease of about 16% of low rates today.”

Ball State economist Dr. Michael Hicks said the rate reductions are also a side effect of falling demand from consumers.

“(Utilities) see that the cost of the energy they’re buying is lower and they want to pass those savings back on to consumers because A, it’s good business practice. B, if they don’t then the Indiana utility regulatory commission will find out in six months and say look you’ll have to reduce your prices,” Hicks said.

Both utility companies say there is a chance of further rate reductions in the near future.