ZIONSVILLE — One common way everyday ratepayers try to keep bills under control is by adjusting the thermostat. But owners of businesses that rely on electricity for equipment say they don’t have that flexibility.
"We've noticed a 110% increase in our numbers. So last year we were looking at more of like the $200 to around $225, and this year our last bill was $45, and it has been a little bit higher, even so, just an extreme difference in just a year,” Rio White, the owner of No Label Salon, said.
Business owners say increases like that affect decisions about hiring and growth.
"This is really affecting how many more people can employ what you put back in your business expansion plans, all type of stuff like that. It's a little amount, but it has a big impact,” White said.
The increase stems from an approved rate increase last year, and bills could climb again if a new proposal is approved.
"Duke Energy has come forth with yet another rate increase proposal,” Ben Inskeep, program director at Citizens Action Coalition, said. “This one related to a new natural gas-fired power plant that they would like to build. The proposal could lead to bill increase by $29 a month by 2030. "
Duke Energy says the updates are needed. A company spokesperson said the first rate increase covered grid infrastructure upgrades aimed at cutting down on outages. Those changes included converting several wood utility poles to metal ones, which are less likely to be blown over in a storm. A proposed gas-fired power plant would be needed to serve a growing customer base.
The utility said it has added new customers in recent years: since 2013, Duke Energy has 126,000 new customers. Many of those are residential users, while others are larger developments.
Citizens Action says ratepayers are being asked to shoulder costs for larger commercial developments.
"Utilities try to designate certain projects as targeted economic development projects,” Inskeep said. “If they get that designation approved by the Indiana Economic Development Corporation, then they can socialize the costs of upgrades for these facilities."
Small-business owners say they hope regulators will listen to their concerns.
"It is a major difference of when I opened this business and what I thought the numbers would look like as opposed to what they are now, today,” White said.
Duke Energy provides power for 69 of Indiana's 92 counties and says it has the lowest rate of any provider in the state. The company added that the Indiana Utility Regulatory Commission could approve the new project as early as November and noted bills are expected to be lower in the fourth quarter because pass-through costs, like fuel, are lower.
A spokesperson said the utility does not profit from pass-through costs, which fluctuate, and that hotter-than-normal summer temperatures this year also contributed to higher bills. The company said it offers options for customers struggling to pay and directs them to bill-assistance information on its website.
