Duke Energy says it will reduce the cost of power for its Indiana customers with the changes taking effect more than eight months after last year’s Republican tax bill mandated them.
Indiana’s largest electric utility company credits the 2017 GOP tax overhaul for what it estimates will be about $7.33 savings per month for the average customer using 1,000 kilowatt-hours a month. The 5.6 percent average rate reduction would be completely handed out by 2020, with most of the savings being passed out in 2018. The company expects a statewide savings of approximately $142 million for Hoosier customers on electric bills from the new federal tax law.
Duke Energy spokesperson Angeline Protogere says the company is passing on its lowered rates.
“Taxes are embedded in our rates just much like the cost of utility poles or employee salaries,” Protogere says.
Other electric companies that had previously adjusted or agreed to adjust their rates include Vectren, Indiana Michigan Power, Aqua Indiana, and Northern Indiana Public Service Company (NIPSCO).
Lewis and Kappes Attorney Aaron Schmoll helped to negotiate the Duke deal and says he’s happy with how much customers will get back, but disappointed it took so long.
“Our positon is and was that all utilities should have acted as soon as they could,” Schmoll says. “It took longer with Duke.”
State utility regulators must still approve Duke’s plan.
Duke Energy has approximately 800,000 customers in Indiana.