OUCC, Vectren Reach Agreement on Rate Case

Posted: Updated:
EVANSVILLE -

The Indiana Office of Utility Consumer Counselor says it has reached a settlement with Evansville-based Vectren Corp. (NYSE: VVC) on a proposed seven-year electric infrastructure plan. The agreement reduces Vectren's proposal by more than $67 million.

The utility's original proposal totaled $514 million and will now be capped at $446.5 million over the next seven years. The proposal was filed under the state's Transmission, Distribution, and Storage System Improvement Charge statute.

The settlement says costs will be recovered through rate tracker increases over the same time period and caps the increases' fixed portions at $7.00 at the end of the seven-year term. The agreement also includes annual caps to "mitigate against substantial cost increases in any given year."

The OUCC says the money recovered through rate increases will primarily go toward the replacement of poles, lines, substations and other infrastructure. The settlement agreement removes certain projects, including the $39 million proposal to recover costs for advanced metering infrastructure deployment, which the OUCC describes as "beyond the scope of the TDSIC statute.

"Over the last four years, the TDSIC statute has been tested in several cases before the IURC and before the Indiana Court of Appeals. The Court’s opinions and previous IURC orders give clear guidance as to which infrastructure projects are eligible for TDSIC rate recovery," said Indiana Utility Consumer Counselor Bill Fine. "Based on those decisions and parameters, we have negotiated an agreement at arms-length that will allow eligible projects to go forward in the most cost-effective way that they can. At the same time, the utility will be able to strengthen its portion of the grid to ensure more reliable service in the future."

The settlement agreement must still be approved by the Indiana Utility Regulatory Commission.

  • Perspectives

    • Sink or Swim: How to Stop Sabotaging New Hires

      You've jumped through the hiring hoops and emerged with some transformational talent. Before joining your company, Joe slashed costs and doubled revenue at his previous job, and Sue is known for building record-breaking teams and product launches. It should take them no time to produce similar results in your organization, right? In reality, Joe and Sue’s performances will hinge heavily on how you manage their post-hire assimilation: a cycle all new hires experience, lasting...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • (photo courtesy Butler University)

      Aramark to End Operations at Butler

      Aramark Educational Services LLC has detailed plans to lay off 200 workers in Indianapolis. In a notice to the state, the company says the decision is the result of Butler University not renewing its contract to provide food services on the campus.

    • Metal Powder Products has Indiana operations in Noblesville and Campbellsburg.

      Manufacturer Growing Noblesville Operations

      Noblesville-based Metal Powder Products has announced plans to move a manufacturing division from Ohio to Hamilton County and add up to 80 jobs by 2020. The powder metallurgy product manufacturer says it will invest $1.5 million to increase production capacity in Indiana. The company currently employs more than 350 associates in its Noblesville and Washington County operations, and over 1,100 overall in the U.S. and China. MPP says it has already hired 51 employees as part of the...

    • Fishers Among Finalists For National Prize

      The city of Fishers is one of 12 finalists for the Robert Wood Johnson Foundation Culture of Health Prize. The award honors "communities that are bringing partners together around a shared commitment to health, opportunity, and equity."

    • Matt McIntyre is co-founder and executive director of Brackets For Good.

      Brackets For Good Launches New Program

      Indianapolis-based Brackets For Good Inc. is changing up its annual fundraising program. The sports-themed fundraising organization has launched Champ's Charity Challenge, in which users can fill out brackets for the NCAA men's college basketball tournament in the name of their charity of choice. The previous iteration of the program saw nonprofits competing in a tournament-style bracket of their own to see who could raise the most money. In an interview with Inside INdiana Business...

    • (file photo courtesy Schrader Real Estate and Auction Co.)

      Farmland Prices 'Remain Resilient'

      An auctioneer at Columbia City-based Schrader Real Estate and Auction Company says farmland prices “remain resilient" despite downward pressures."  R.D. Schrader cites mixed cropland prices on tillable land in 2018, stating that downward pressures include lower incomes, higher interest rates and the prospect of tariffs on farm goods.