The state’s top utility customer advocate says Duke Energy Indiana over-collected more than $89 million from its ratepayers and is set to over-collect another $86 million annually.
The company, however, says it’s done nothing wrong.
Two presiding officers — including Indiana Utility Regulatory Commission Chair Andy Zay — agreed with Duke in a docket entry last month, prompting Indiana Utility Consumer Counselor Abby Gray’s office to file an appeal before the full panel of five men.
“Any case before the Commission sets a precedent that could be relied on in future cases,” Gray said in a statement to the Capital Chronicle. “That is why it is imperative the full Commission examine this matter and only allow Duke to recover the amount (authorized) last year.”
Advocacy group Citizens Action Coalition and several industrial ratepayers have joined the appeal.
The IURC last year approved a nearly $296 million revenue increase for Duke — although the commission’s original order misstated the revenue increase as $396 million. It was later corrected.
In a footnote, regulators wrote that the numbers are “subject to refinement” pending the review and approval of compliance filings. Duke submitted Step 1 filings last year and Step 2 in March.
Gray’s office and the others objected to the Step 2 filing, which the presiding officers denied.
The appellants wrote that Zay and Chief Administrative Law Judge Loraine Seyfried “erred” in that decision “to the detriment of Duke’s ratepayers and the affordability of their rates.”
“Under the guise of ‘refinement,’ the Presiding Officers approved a Docket Entry … that enables Duke to recover $86.5 Million more when implementing its Step 2 rates … and over $89.0 Million more annually during its Step 1 rates,” the appeal reads.
“The Commission knew its approved increase of $295,678,000 was subject to ‘refinement’ but never intimated such refinement could raise Duke’s rates and charges to virtually the amount ($395,691,000) the Commission rejected as incorrect,” the appellants continued.
Duke on Tuesday filed a notice of intent to not respond further to the appeal, noting the company “stands by its previous assertions” and arguing the presiding officers made the right decision.
“Duke Energy Indiana followed the instructions in the Indiana Utility Regulatory Commission’s order, which has since been reviewed and approved twice by commission staff and affirmed by the prevailing officers of the case,” spokeswoman Angeline Protogere said in a statement.
Gray, however, said consumers “deserve to have affordability at the forefront of every issue considered before the Commission.”
“Duke has recovered and will continue to recover over $86 million a year more than what was approved. This is not ‘refinement,’” she added. “ Just ask the Hoosiers footing the bill.”
Indiana Gov. Mike Braun appointed Gray and three members of the IURC last year, including Zay. The commission’s original order predates their service.
The OUCC serves as utility customers’ legal and technical representative in IURC matters, while the commission is intended to be an “impartial arbiter” between utilities and customers.
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
