Vectren Reaches Rate Hike Agreeent

A settlement has been reached between Vectren, Indiana Office of Utility Consumer Counselor and a coalition of industrial customers regarding Vectren’s seven-year improvement plan.

The electric system improvement plan includes upgrades to portions of Vectren’s network of substations, transmission and distribution networks that serve seven counties in southwestern Indiana. The original plan featured more than 800 projects and was estimated to cost $514 million over the plan’s seven-year period.

The settlement agreement reduces the plan spend to $446 million. The majority of the $68 million reduction relates to the removal of advanced metering infrastructure (AMI or digital meters) from this plan. However, deferral of the costs for AMI was agreed upon in the settlement whereby the company can move forward with deployment in the near-term. In removing it from the plan, the request for cost recovery for the project will not occur until the next base rate review proceeding, which will begin in 2023.

If the settlement is approved, electric bills will be gradually adjusted likely beginning in early 2018, and adjustments will continue with modest increases in subsequent years as the improvement projects are completed. In 2018, the typical residential electric customer would pay $1 to $2 more per month. The bill impact at the end of the seven-year period will now be $16 to $17 per month compared to $18 to $20 per month in the original filing. 

The IURC is expected to rule on the settlement no later than September.


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