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

    • Indiana's Potential as a Leader in Healthcare Tech

      The explosive success and high-profile acquisitions of local businesses such as ExactTarget and Interactive Intelligence have put Indiana on the map as a rising hotspot in the tech industry. Thanks to a growing talent base, software-as-a-service innovations and a healthy desire to solve problems, our collection of marketing tech businesses stack up against any state in the Union. Add several other factors and you'll see why Indiana is becoming a leader in health care tech, as well.

    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

    • Roberts to Lead Innovation Efforts at IEDC

      The Indiana Economic Development Corp. has a new chief innovation officer. Dave Roberts, who previously served as president of the Battery Innovation Center at the WestGate @ Crane Technology Park, will oversee innovation and entrepreneurship efforts at the IEDC. He succeeds Ian Steff, who was appointed deputy assistant secretary of commerce for manufacturing by the Trump Administration in March. Roberts will be the second person to serve in the position.

    • Evansville's Big Plans Coming to Life

      The director of the Downtown Alliance in Evansville says the next five-to-seven years will be a "building boom." Joshua Armstrong says there is $250 million in active construction happening, including the ongoing Indiana University School of Medicine project, the $61 million DoubleTree by Hilton and more than 140 housing units. He says the city also has big plans for the former Old National Bank Building, now known as The 420 Building, including...

    • Report: Steel Company Mulling $35M Gary Relocation

      A steel company based in Illinois is considering a move to Gary. Our partners at The Times of Northwest Indiana report Alliance Steel Corp. is proposing a $35 million relocation, which could bring 100 jobs with it. The company is bidding $925,000 on a 25-acre property where it is proposing a new 250,000 square-foot production facility and office space. The Times reports An Illinois steel company is proposing to relocate to the city and create 100 new jobs.

    • Indy Airport Among 'World's Best'

      Indianapolis International Airport has landed yet another accolade. The airport is ranked among the 10 best domestic airports in Travel + Leisure Magazine's "World Best Awards for 2017." 

    • American Can Building Getting $23M Facelift

      An 85-year-old building in Terre Haute that has stood vacant since the early 2000s is set to undergo a major transformation. Indianapolis-based Core Redevelopment plans to invest $23 million to revitalize the building that originally served as a manufacturing facility for the American Can Co. Core Redevelopment is looking to redevelop the building, which is currently owned by Indiana State University, into 178 loft-style apartments, to be known as One Sycamore.