Vectren Electric Infrastructure Plan
The IURC has approved a seven-year infrastructure improvement plan for Vectren's southwestern Indiana electric utility (Cause No. 44910).
The OUCC's fact sheet, distributed at the IURC's May 2, 2017 public field hearing in Evansville, offers additional information.
Vectren filed its request under a law (Senate Enrolled Act 560) passed by the Indiana General Assembly in 2013.
- The IURC approved Vectren's first electric TDSIC tracker request (44910 TDSIC 1) on December 20, 2017, raising a monthly residential bill for 1,000 kWh by 57 cents. The OUCC filed testimony (Blakley and Golden) on October 23, 2017.
- Vectren's second TDSIC tracker request (44910 TDSIC 2) received Commission approval on May 23, 2018. It increased the 1,000 kWh monthly residential bill by an additional 72 cents. The OUCC filed testimony (Blakley and Alvarez) on April 2, 2018.
- The third proposed tracker (44910 TDSIC 3) received Commission approval on December 5, 2018. It reduced the bill for 1,000 kWh by $5.49, under the terms of a settlement agreement in the IURC's investigation regarding the federal Tax Cuts and Jobs Act of 2017 and its implications for utility rates.
- The TDSIC for a 1,000 kWh residential bill will be set at $2.55 under Vectren's most recent request (44910 TDSIC 4), as approved on May 29, 2019.
The plan only affects Vectren's electric utility in southwestern Indiana. Separate infrastructure plans for Vectren's Indiana natural gas utilities were approved in 2014.
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.