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CenterPoint Energy/Vectren South Gas Rates

The CenterPoint Energy/Vectren South natural gas service territory covers the southwestern Indiana counties formerly served by Southern Indiana Gas & Electric Co.

To compare average natural gas bills, see the IURC's monthly residential surveys.

Key components in a natural gas bill include:

  • Base rates
  • Gas costs
  • Trackers

Base Rates

Vectren South is seeking a base rate increase in Cause No. 45447. The utility initially requested an annual increase of $29.6 million, adjusting it to $27.9 million in rebuttal testimony.

The OUCC, industrial customers, Direct Energy Business Marketing, and Vectren have reached a settlement agreement that would allow for an increase of $20.5 million if approved. The agreement is now pending before the IURC, which may approve, deny, or modify any settlement. Settling parties must show that an agreement is in the public interest.

The OUCC's Feb. 19, 2021 news release summarizes the following testimony, which recommended reducing the utility's request to $14.3 million.

  1. Grosskopf
  2. Gao
  3. Griffith
  4. Sabillon
  5. Courter
  6. Garrett
  7. Krieger
  8. Consumer Comments

Our infographic outlines the steps in a base rate case. An IURC public field hearing was held on Feb. 1 in Evansville, and the OUCC issued a Jan. 15 news release to invite public comments.

All publicly filed documents are available in the IURC's online case file, including Vectren's petition and testimony:

  1. Leger (37 pages)
  2. Bell (47 pages)
  3. Moore (93 pages)
  4. Hoover (71 pages)
  5. Vyvoda (632 pages)
  6. Porter (313 pages)
  7. Myerson (18 pages)
  8. Townsend (176 pages)
  9. Villatoro (97 pages)
  10. Spanos (278 pages)
  11. Musser (17 pages)
  12. Bulkley (99 pages)
  13. McRae (16 pages)
  14. Harris (478 pages)
  15. Cullum (21 pages)
  16. Feingold (81 pages)
  17. Tieken (240 pages)

This information will be updated based on case developments. Electric rates are not at issue in this case. The Vectren North gas rate case is pending in a separate docket.

Vectren South's most recent base rate order received IURC approval in 2007.

Gas Costs

Natural gas utilities buy gas for their customers in a competitive wholesale market. Indiana law allows utilities to adjust rates every three months to recover changes in those costs, which can go up or down. These costs comprise a significant portion of a residential bill and are recovered through the Gas Cost Adjustment (GCA) process.

  • Utilities may recover wholesale gas costs on a dollar-for-dollar basis but may not profit on them.
  • Before adjusting rates to reflect the costs, a utility must demonstrate that it has shopped prudently in the competitive market.
  • Each GCA filing requires OUCC review and IURC approval.

The utility's most recent adjustment was approved in Cause No. 37366 GCA-151. It will affect bills for August, September, and October.

Trackers

State law allows natural gas and electric utilities to seek IURC approval of 5-to-7-year plans for infrastructure improvements. If a plan is approved, the utility may then seek incremental rate increases as the projects proceed. Most costs are recovered through the Transmission, Distribution, and Storage System Improvement Charge (TDSIC). Vectren South's current gas TDSIC plan received Commission approval in 2014.

Additional OUCC Resources

An informational docket regarding the Vectren/CenterPoint merger was filed in 2018 (Cause No. 45109). The OUCC filed testimony on August 27, 2018.

OUCC Publications:

7-28-2021