The extreme heat is taking a toll on Hoosiers trying to cool their homes. Local power company officials have said expect monthly bills to increase in July.

"We have ceiling fans in almost every room to help circulate the air," said homeowner Bryan Agan, who said he knows all too well what happens when it gets this hot.

His thermostat is set at 76. Still, the air-conditioning in his home is working overtime because of the heat index that has been in the triple digits in recent days.

"Bill amounts are going to increase because of this hot weather," said Lew Middleton, spokesman for Duke Energy.

Middleton also said Duke Energy customers will also see a slight rate increase in July. The average residential customer who uses 1,000 Kilowatt Hours of Electricity per month will likely pay an additional $2. The change in the rate takes care of the constantly changing fuel costs and a few other factors.

President and CEO of the Indiana Municipal Power Agency Raj Rao had no problem talking about numbers Wednesday afternoon.

He said, regardless of power supply provider, homeowners across Indiana will likely see a 10 percent increase on their power bill this month simply because of the extreme heat.
That means a customer who thinks they may spend $115 in July will instead pay their power company $126.50.

"July 2011 is on pace to be one of the five hottest July's on record, and that translates into higher electric bills. There's no question about that," said Middleton.

As for Agan, he will be spending $199 this month. It is his bill every month since he signed up for a specialized billing program. He said it simply spreads out the damage on his wallet.

"We only have July and August, the two hottest months. We're paying for those months all year round."

Power companies like Duke Energy and IPL offer free, specialized billing programs to help homeowners balance their monthly budget. The programs all customers to pay the same amount for 11 months, and the difference will be settled in month twelve.

A customer's past power consumption is used to set the monthly rate.