Summary
This 8-K filing reports that Duke Energy Indiana, LLC (DEI), a subsidiary of Duke Energy Corporation, has filed a general rate case with the Indiana Utility Regulatory Commission (IURC). The filing seeks an approximate 15% increase in retail revenues, which translates to roughly $395 million. This request is based on a proposed rate base of $10.2 billion as of December 31, 2018, with adjustments for projected changes through December 31, 2020. The proposed rate increase is designed to support a requested overall rate of return of approximately 6.15%, including a 10.4% return on equity. Investors should note that while a procedural schedule is not yet set, hearings are anticipated in late 2019 or early 2020, with new rates expected to be effective mid-2020. This rate case is a significant event for DEI and its parent, Duke Energy, as it directly impacts future revenue and profitability in Indiana.
Key Highlights
- 1Duke Energy Indiana (DEI) filed a general rate case with the Indiana Utility Regulatory Commission (IURC) on July 2, 2019.
- 2The filing requests an approximate 15% increase in retail revenues, amounting to roughly $395 million.
- 3The proposed rate increase is supported by a requested overall rate of return of 6.15%, including a 10.4% return on equity.
- 4The rate base used for the calculation is $10.2 billion as of December 31, 2018, adjusted for projected changes through December 31, 2020.
- 5Hearings are expected to begin in late 2019 or early 2020.
- 6New rates are anticipated to become effective in mid-2020.
- 7An overview of the filing is attached as Exhibit 99.1.