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Duke Energy Infrastructure Plan

In a June 29, 2016 order, the IURC approved a seven-year plan for electric transmission, distribution and storage system improvements for Duke Energy, including incremental rate recovery of those costs as the projects proceed.  The utility refers to the program as its Transmission and Distribution Infrastructure Improvement Plan (T&D Plan).

While the utility had originally proposed a $1.83 billion plan, the Commission's order approved a settlement agreement that will cap rate recovery for the plan's projects at $1.4 billion. The OUCC's March 7, 2016 news release offers a summary of the agreement.

The OUCC issued a January 19, 2016 news release to invite consumer comments.

Duke Energy filed its request under a law (Senate Enrolled Act 560) passed by the Indiana General Assembly in 2013.

All public filings in cause number 44720, including settlement testimony, are available on the IURC website.

  • Duke Energy's first requested rate adjustment under the approved plan received IURC approval on March 22, 2017. It raised the monthly residential electric bill for a customer using 1,000 kWh by $1.51. The OUCC filed testimony on the proposed tracker change (Gruca and Golden) on January 11, 2017.
  • The second rate adjustment requested by Duke Energy received IURC approval on October 17, 2017. It raised a monthly residential electric bill for 1,000 kWh by an additional $0.55. The OUCC filed testimony (Gruca and Alvarez) on June 27, 2017.
  • Duke Energy's third TDSIC rate adjustment received Commission approval on October 9, 2018. It increased the monthly 1,000 kWh residential bill by an additional $1.61.
  • The utility's most recent adjustment will add 40 cents to a 1,000 kWh residential bill. The OUCC filed testimony on August 5, 2019.

In a separate case, the IURC denied Duke Energy's first request for such a plan in May 2015. The OUCC's May 8, 2015 news release offers more information.

A brief summary of the TDSIC law

Indiana Code 8-1-39 allows electric and natural gas utilities to submit infrastructure improvement plans for IURC approval. A plan may cover a 5- to 7-year range. The IURC must rule within 210 days once such a request is filed.

  • Once a plan receives IURC approval, the utility may request incremental rate increases every 6 months to pay for the projects. The rate adjustment is referred to as the Transmission, Distribution and Storage System Improvement Charge (TDSIC). The IURC has 120 days to rule on such a request.
  • TDSIC rate increases are limited to no more than 2 percent of a utility's total retail revenues.
  • The TDSIC rate mechanism (or tracker) allows the utility to recover 80 percent of the costs as they are incurred. The remaining costs are deferred until the utility's next base rate case, which must be filed before the end of the 7-year period.