INDIANA, (WTWO/WAWV) – Duke Energy is requesting another rate increase due to the continued high cost of fuel.
The request is a 7.2% increase that would begin in October as a part of its’ Fuel Adjustment Clause (FAC) tracker that allows utility companies to request rate adjustments based on the increase or decrease in fuel costs.
According to Angeline Protogere with Duke Energy, this happens quarterly and would be happening regardless of the previous increase.
She said the high fuel costs also include coal, natural gases and purchased power costs.
The previous increase that started in July is slated to last until September was 16% in residential rates.
“If approved, it would mean about a 7% increase over what rates are today,” Angeline Protogere, spokesperson for Duke Energy, said.
Protogere said this would be about an $11 increase per billing cycle for the average resident and would last from October to December.
She said with the rising fuel costs nationwide, it is increasing the price of everything across the board.
“Fuel costs fluctuate, they go up and down and utilities do not earn a profit on those. Customers pay what we pay for fuel. Right now though, like a lot of other costs, fuel costs are rising,” Protogere said.
Protegere said although it is a big factor, the rising fuel costs aren’t the only thing impacting higher utility prices.
“We’re also seeing constraints in transportation. Transportation of coal, labor constraints, all of that is driving up the cost of the power we produce, as well as the power we purchase,” Protogere said.
She said they should know by the end of September if the 7.2% rate increase is approved.
Protogere also mentioned Duke Energy is extending their payment plans to six months, interest-free.
For a full list of Duke Energy’s resources, you can click here.