Full house as residents voice opposition to Duke Energy’s proposed rate increase – The B Square

State Senator Shelli Yoder. (June 20, 2024)

Cheryl Munson, Monroe County Councilwoman. (June 20, 2024)

State Representative Matt Pierce. (June 20, 2024)

Administrative Law Judge Greg Loyd, who presided over the hearing on January 20, 2024 in Bloomington.

Nearly 170 people crowded into the Olcott Young Room of the Monroe Convention Center in downtown Bloomington Thursday night to attend a public hearing on Duke Energy’s request to raise electricity rates.

This is a large number because it is the maximum occupancy of the room according to fire regulations.

The rate increase is also a large sum. According to the utility’s own calculations, Duke’s proposal would increase the bill of a typical customer by at least $330 per year. The Citizens Action Coalition puts this amount at over $500 per year.

Duke Energy cites the need for additional revenue to make the power grid stronger and more resilient, as well as the need to make operations more environmentally friendly. Duke released a statement outlining some current projects in Monroe County that will improve the grid’s resilience.

In connection with the proposed rate increase, Duke also points to its energy assistance tools, which are intended to make it easier for consumers to manage their bills.

Based on the 300-day deadline for utility-scale rate cases and Duke’s filing on April 4, 2024, a final decision on Duke’s application can be expected around the end of January 2025. The rate case can be followed on the IURC docket.

Thursday’s hearing in Bloomington was hosted by the Indiana Utility Regulatory Commission (IURC) and the Indiana Office of Utility Consumer Counselor (OUCC).

The meeting in Bloomington was attended by people from Ellettsville, Columbus, Bedford, Mooresville and Poland.

The only mandatory in-person hearing will be held in Fishers, the largest community in Duke’s service area, on June 27 at 5 p.m. at the Hamilton East Public Library, 5 Municipal Drive.

But Senator Shelli Yoder and Representative Matt Pierce requested a hearing in Bloomington, and the OUCC complied. Yoder opened the hearing, followed by Pierce and Monroe County Councilwoman Cheryl Munson.

In addition to Yoder, Pierce and Munson, speakers included numerous current and former officials, including city councilors, school board members and former Bloomington Mayor Tomi Allison.

In his remarks, Pierce addressed many political issues.

Pierce pointed to the $500 annual impact on the average consumer analyzed by the Citizens Action Coalition and said it would place a significant burden on his constituents. Pierce criticized the proposed 29.9 percent increase in base rates because it discourages consumers from practicing energy efficiency and using renewable energy sources such as solar power.

Pierce also questioned the legitimacy of increasing Duke’s return on equity from 9.7% to 10.5%, arguing that Indiana’s favorable regulatory environment already attracts minimal-risk investors, making the increase unnecessary.

Pierce also condemned Duke’s continued reliance on coal, which he said is becoming increasingly expensive due to increasing environmental regulations and problems with coal ash disposal. He was particularly critical of Duke’s proposal to use rate increases to fund carbon capture and storage studies related to the Edwardsport plant. Pierce called the attempt to maintain coal gasification at the Edwardsport plant “one of the more expensive energy approaches.”

Pierce also opposed the inclusion of membership fees to industry associations in the costs to consumers, as he equates these memberships with lobbying costs, which he believes should not be financed by consumers.

Pierce urged the commission to prioritize affordability in its deliberations, which would be consistent with a recently enacted legislative directive. He pointed to the legislature’s amendment to state law IC 8-1-2-0.6, which outlines the “five pillars” the utility commission must consider in making rate decisions:

• Reliability: Ensuring a constant and reliable supply of electricity to consumers.
• Affordability: Keep energy costs manageable for consumers.
• Elasticity: The ability of the energy system to withstand and recover from disruptions.
• Stability: Maintaining a stable power supply without fluctuations or interruptions.
• Environmental responsibility: Consider the environmental impact of energy production and strive for sustainable practices.

Pierce said Duke’s proposed rate increases do not meet the affordability and environmental responsibility criteria set out in the legislative mandate. Pierce urged the OUCC to closely examine Duke’s proposals and reject those that would unduly burden consumers and perpetuate dependence on expensive and polluting energy sources.

Pierce called on the OUCC to act as the last line of defense for consumers and stressed the importance of protecting the financial well-being of citizens.

Pierce put it in the context of the refrain he hears as a state representative whenever he raises concerns about what is best for ratepayers. Pierce said, “The answer I always get is, you don’t have to worry about that, because the Indiana Utility Regulatory Commission is required by law to make sure that all rates are fair and reasonable.”

Pierce continued, “And quite frankly, that’s what the legislature is hiding behind, isn’t it? So we’re saying we can count on you to make sure it all works out in the end. So I’m asking you as legislators to put some truth to that statement so that it works out for the taxpayers.”

Andy Ruff and Hopi Stosberg spoke from Bloomington City Council. Stosberg read passages from the City Council letter that was adopted at its meeting earlier this week.

Several speakers echoed Pierce’s point regarding Duke’s proposed increase in return on equity from 9.7% to 10.5%.

On the topic of return on equity, one of the speakers was on the microphone for less than a minute. Here is what he said:

My name is Andrew Oxner, this is ANDREW and this is OXNER. … I know it’s been a long evening, so instead of going on a long rant like I had planned, I’m going to be very, very brief. I’m a shareholder in Duke Energy. I benefit from the profits. I get a dividend every quarter. Duke Energy pays out $3 billion a year in dividends to people like me, and as long as they make $3 billion extra in profits to pay out to people like me, I don’t need any blood money from these people (points to audience). These people deserve a break. And that’s all I have to say. Say no to the raise. I don’t need the extra money. Thank you.

Several speakers talked about consumers having to pay an additional $500 or even $330 per year.

Among them was chiropractor Matthew Schulz, who said he spoke on behalf of all Duke Energy customers, but especially on behalf of “the disabled, single parents, children and small business owners who will all be harmed by this rate increase.”

Schulz said Duke Energy should receive a price reduction, not a price increase. He told the IURC and members of the IURC and OUCC, “I personally struggle to pay my existing electric bill…” He continued, “As a single father of a 22-month-old, paying the already high electric bills is a struggle to say the least, and consequently, paying for things like diapers, wipes, and groceries for my family becomes even more difficult.”

When the hearing began at 6 p.m. on Thursday, the temperature was 32 degrees Celsius. Schulz said: “It was already a hot spring and an even hotter start to the summer. My son and I were forced to live in the dark at over 27 degrees in order to keep current energy costs as affordable as possible.”

Schulz added, “In short, Duke Energy is letting its customers suffer and now wants to add to that suffering.” Schulz said, “I need to get assistance for my current Duke Energy bills so my power doesn’t go out or food doesn’t spoil. I now live in public housing and an older home and have no other choice. This rate increase will literally take away food for my son and me and prevent me from affording other things like diapers.”

Ryan Still spoke from the perspective of a Section 8 housing permit worker at the Bloomington Housing Authority. He said, “We provide Section 8 housing permits to over 1,500 residents… And I personally oversee a caseload of over 300 households.”

Still pointed out that there are many people who need help but do not have access to Section 8. He estimated that number to be around 6,300 households in Monroe County and surrounding counties. Among those 6,300 households, 2,500 have children and 1,900 have a disabled member, Still said.

Still said the BHA is also hearing from community trustees that they have not been able to help as many people who turn to them. Still concluded by noting that the current social safety net, which includes Section 8 and support from community trustees, is overflowing.

“There is no good safety net to fall back on. If the tax rate is increased, people will suffer directly and there is nothing to catch them because the net is overflowing,” Still said.

Still added: “People are becoming homeless and struggling to eat. These are realities that will occur if tax rates are increased.”

Photos: On-site hearing in the Duke Energy Rate case, Bloomington