Vectren Corporation has added a news release to its Investor Relations website.
Title: Vectren North Gas Rate Case ApprovedDate: 2/13/2008 5:11:00 PM For a complete listing of our news releases, please click here
EVANSVILLE, Ind., Feb. 13 /PRNewswire-FirstCall/ -- An order approved
today by the Indiana Utility Regulatory Commission (IURC) completes a
collaborative effort between Vectren Corporation's (NYSE: VVC) utility
subsidiary, Vectren Energy Delivery of Indiana - North (Vectren North), the
Indiana Office of Utility Consumer Counselor (OUCC) and other stakeholders in
Vectren North's territory regarding proposed changes to the rates for its gas
distribution business that covers nearly two-thirds of Indiana.
Vectren North filed a petition with the IURC on May 18, 2007, requesting a
$41.1 million increase in revenues. After an extended collaboration with the
OUCC and the other stakeholders in the case, a settlement agreement was
reached and filed with the IURC. Today's order, which approves that settlement
agreement, provides for a $27.5 million increase, including the recovery of
certain costs totaling $10.6 million that will be recovered through separate
recovery mechanisms rather than base rates. This decision is expected to
result in bills increasing by less than 4 percent or about $3.50 per month for
the typical residential customer. The increase in revenues provided for in the
order is based on an allowed return on equity (ROE) of 10.2 percent; cost
recovery of increased operating and maintenance expenditures; a main
replacement program to begin replacement of 245 miles of bare steel and cast
iron pipelines; and recovery of gas costs relating to uncollected customer
bills and unaccounted for gas costs. All gas costs will be recovered from
customers through Vectren North's existing gas cost adjustment (GCA) process
on a dollar-for-dollar basis.
"The rate case is a necessary step in the utility's effort to continue
providing safe, reliable service," said Vectren Chairman and CEO Niel C.
Ellerbrook. "Reliability requires investment in people and infrastructure. We
now have an approved plan for initiating a comprehensive bare steel and cast
iron main replacement program, as well as recognizing other fixed costs it
takes to run the business.
"This change only impacts the distribution and service charges portion of
the bill. The actual cost of natural gas continues to have the largest
customer impact. We remain committed to providing the tools our customers need
through our Conservation Connection program to drive total bills lower through
reduced consumption," Ellerbrook said.
The distribution and service charges line on the bill makes up only about
30 percent of a typical residential customer bill. The cost of the natural gas
commodity makes up about 70 percent of a typical bill. The utility continues
managing the gas cost by utilizing a portfolio hedging program to mitigate gas
volatility on behalf of customers. These gas costs are passed through to
customers on a dollar-for-dollar basis through the state's quarterly GCA
regulatory review process.
About Vectren
Vectren Corporation is an energy holding company headquartered in
Evansville, Indiana. The Company's energy delivery subsidiaries provide gas
and/or electricity to more than one million customers in adjoining service
territories that cover nearly two-thirds of Indiana and west central Ohio. The
Company's nonutility subsidiaries and affiliates currently offer energy-
related products and services to customers throughout the Midwest and
Southeast. These include gas marketing and related services; coal production
and sales; and energy infrastructure services.
SOURCE Vectren Corporation
-0- 02/13/2008
/CONTACT: Media, Mike Roeder, +1-812-491-4143, mroeder@vectren.com, or
Investor Relations, Steve Schein, +1-812-491-4209, sschein@vectren.com, both
of Vectren Corporation/
/Web site: http://www.vectren.com /
(VVC)
CO: Vectren Corporation
ST: Indiana; Ohio
IN: OIL UTI
SU:
EG-CB
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4908 02/13/2008 17:11 EST http://www.prnewswire.com
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