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Indiana Office of Utility Consumer Counselor

OUCC > Electric > Cases of Note > Vectren Electric Rates Vectren Electric Rates

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Base Rates | Trackers | Sales Taxes

Vectren’s electric utility serves six southwestern Indiana counties. Its residential electric rates rank highest among the electric utilities the IURC regulates, as of July 1, 2015.

Major components in a typical electric bill include base rates, trackers, and sales taxes.

Base Rates

Base rates cover most of a utility’s operating and maintenance costs. They make up about 99 percent of a typical Vectren residential electric bill.

Vectren’s electric base rates were approved in April 2011. The OUCC’s news release outlines the order’s consumer protections.

To view the rate case's public file, click here and enter docket number 43839.


In addition to base rates, Vectren and other electric utilities recover and credit separate, specific costs through rate adjustment mechanisms known as "trackers." The OUCC reviews all tracker rate adjustments in IURC cases on a regular basis.

Vectren is authorized to use 5 electric trackers. They make up about 1 percent of a residential customer’s typical bill.

Tracker Recovers Costs for Frequency IURC Cause No.
Fuel Adjustment Clause (FAC) Coal and other fuels Quarterly 38708
Environmental Cost Recovery (ECR) Emissions control equipment (including operations & maintenance) Semi-Annual 42861
Demand Side Management (DSM) Energy efficiency programs Semi-Annual 43405
Reliability Cost & Revenue Adjustment (RCRA) Capacity resources needed for system reliability Semi-Annual 43406
MISO Cost & Revenue Adjustment (MCRA) Participation in Midcontinent Independent Transmission System Operator (MISO) Semi-Annual 43354

To view the IURC public files in tracker cases, click here and enter the appropriate docket number.

Recent Vectren cases potentially affecting electric rates have included the utility’s Dense Pack Project and the review of Vectren’s coal procurement practices.

In addition, Vectren is seeking approval of a new energy efficiency plan that would increase rates over the next two years.

Sales Taxes

The seven percent state sales tax applies to all Indiana electric utilities.


* Rankings and examples refer to monthly usage of 1,000 kWh in the IURC’s 2015 Residential Bill Survey.