Duke Energy Rate Hike: Another Setback for Indiana Consumers and a Step in the Wrong Direction for Renewable Energy

Late last month, the Indiana Utility Regulatory Commission (IURC) officially approved Duke Energy Indiana’s request to raise rates, a decision that will significantly impact thousands of Hoosier households. 

Under Duke’s original proposal, residential customers using 1,000 kWh per month could’ve seen their bills increase by as much as $27.63, with one increase in March 2025 and another in March 2026.

The IURC’s reduced the scope of Duke’s request, which should alter the impact on ratepayers, though Duke still hasn’t let consumers know exactly what the final cost will be. 

How does Duke justify its massive rate increase? They claim they need the additional revenue to maintain infrastructure and meet future energy demands. However, consumer advocates and clean energy proponents know this increase is yet another example of Duke prioritizing shareholder profits and fossil fuel interests over its customers and Indiana’s energy future.

Breaking Down the Rate Hike

Duke Energy initially filed for a $491.5 million annual revenue increase in April 2024, which would have raised rates by 16.2%. As part of the rate case, Duke also sought to raise its Return on Equity (ROE)—a key financial metric that affects the company’s profitability—from 9.7% to 10.5%, a rate that would make it the highest among Indiana’s investor-owned utilities. 

Consumer advocacy groups like the Citizens Action Coalition (CAC) and other stakeholders, like ICV, strongly opposed this move, arguing that Duke’s request would place an undue burden on ratepayers while doing little to promote long-term affordability or renewable energy investment.

While the IURC approved a slightly lower increase than Duke initially requested, the decision still represents a significant financial burden for customers. Duke’s customers already pay some of the highest electricity bills in the state, and this rate hike will exacerbate energy affordability issues, particularly for low- and middle-income Hoosiers.

Duke Energy’s Troubling Track Record

Duke Energy has a long history of making decisions that favor shareholders and executives at the expense of everyday customers. A prime example is the Edwardsport Integrated Gasification Combined Cycle (IGCC) plant, which has been one of the most expensive and troubled energy projects in Indiana history. The plant, originally estimated to cost $1.985 billion, ballooned to over $3.5 billion due to massive cost overruns and persistent operational failures. Despite its inefficiency and continued maintenance issues, Duke still expects ratepayers to cover the costs of this project until 2045.

Consumer advocates argue that Duke has repeatedly mismanaged projects while passing costs onto ratepayers, and the latest rate increase is just another chapter in this ongoing trend. Instead of investing in affordable, reliable, and renewable energy sources, Duke continues to lean heavily on outdated infrastructure and inefficient fossil fuel projects that drive up costs and emissions.

Delaying the Transition to Clean Energy

Perhaps even more concerning than the financial burden of this rate hike is Duke Energy’s continued resistance to transitioning to clean energy. In its latest 20-year energy plan, Duke announced a delay in retiring its Gibson coal plant, pushing back the closure from 2035 to 2038. This decision directly contradicts the approach taken by other major utilities in the state, including AES Indiana, CenterPoint Energy, NIPSCO and Indiana Michigan Power, all of which currently have committed to phasing out coal within the next decade.

The Gibson coal plant is the largest coal-fired power station in Indiana and one of the biggest polluters in the region. Extending its lifespan locks in more years of carbon emissions, air pollution, and higher costs for customers, all while other utilities move toward more cost-effective renewable energy solutions. Delaying the retirement of this plant is a step backward, particularly when renewable energy sources like wind and solar are now cheaper than coal and natural gas in many cases.

Duke’s resistance to fully embracing renewable energy puts Indiana at a competitive disadvantage. Instead of investing in solar, wind, battery storage, and grid modernization—measures that could lower energy costs and create jobs—Duke continues to prop up coal plants that are increasingly expensive to operate. This decision not only harms ratepayers financially but also stifles Indiana’s ability to attract new industries looking for access to clean, affordable energy.

What Comes Next?

With the IURC’s approval of this rate increase, Duke customers will see their electric bills rise gradually over the next two years. But that doesn’t mean Hoosiers should stay silent. Consumer advocates and clean energy supporters are continuing to push back against Duke’s anti-consumer practices and call for more investment in renewables.

If you are a Duke Energy customer, there are steps you can take:

• Contact your legislators: State policymakers have the power to hold utilities like Duke accountable and push for stronger regulations that prioritize consumers over corporate profits. There are bills actively moving through the legislative process right now that prioritize shareholders over consumers.
• Engage with advocacy groups: Organizations like the Citizens Action Coalition, Solar United Neighbors, and Indiana Conservation Voters are actively fighting for fair energy policies and clean energy expansion.
• Explore energy efficiency programs: While Duke’s rate hike is unavoidable, reducing energy consumption through efficiency upgrades can help lower overall costs.

The approval of this rate hike is a reminder that Indiana’s energy future is being shaped right now. Hoosiers deserve an energy system that is affordable, sustainable, and customer-focused—not one that prioritizes corporate profits and fossil fuel interests at their expense. The fight for fair rates and a clean energy future is far from over.