For immediate release: Apr 20, 2007
Posted by: [OUCC]
Contact: Anthony Swinger
Phone: (317) 233-2747

Agreement filed in Vectren electric rate case

Agreement filed in Vectren electric rate case

The Indiana Office of Utility Consumer Counselor (OUCC) and Vectren Energy Delivery have reached an agreement on Vectren's pending request for an electric rate increase. The settlement agreement - also signed by a group of industrial customers that intervened in the case through legal counsel - was filed with the Indiana Utility Regulatory Commission (IURC) today and will require IURC approval to take effect.

Under the agreement, Vectren would receive approximately $60.8 million in new annual revenues through its electric base rates and charges. The utility originally requested $90.4 million in new electric revenues while the OUCC - the state agency representing consumer interests in IURC proceedings - filed testimony on Feb. 27 recommending an increase of $51.4 million.

The agreement in IURC Cause No. 43111 includes the following provisions:

The customer service options are largely in response to concerns raised by Vectren customers during the Jan. 8 public field hearing in this case in Evansville. The OUCC and Vectren also agreed to these same provisions in the utility's pending natural gas rate case.

In addition, today's agreement requires Vectren to file a new electric base rate case - allowing for another full review of its electric rates and charges - by 2012.

If approved, the settlement agreement would provide Vectren's electric utility - which serves 140,000 customers in Vanderburgh, Gibson, Pike, Posey, Spencer and Warrick Counties - with its first base rate increase since 1995. This case does not affect Vectren's quarterly Fuel Adjustment Clause (FAC) proceedings, which allow regulated electric utilities to recover the costs of coal and other fuels on a dollar-for-dollar basis. FAC cost recovery is subject to OUCC review and IURC approval every three months.

Vectren is also seeking a natural gas base rate increase for customers in its "South territory," which includes 10 counties in southwestern Indiana. A pending settlement agreement in that case (IURC Cause No. 43112) would increase Vectren's annual natural gas base rate revenues by $5.3 million. Neither case would affect natural gas rates for customers in Vectren's "North territory," which includes counties in central, south-central and southeastern Indiana.


The Indiana Office of Utility Consumer Counselor (OUCC) is the state agency that represents utility consumer interests in state and federal regulatory proceedings. To learn more, visit www.IN.gov/OUCC.

(IURC Cause No. 43111)

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