A subsidiary of Evansville-based Vectren Corp. (NYSE: VVC) has landed a contract to build a compressed natural gas fuel station for Lafayette's public transportation system. The $3.2 million project is part of CityBus' long-term plan to convert its entire fleet to CNG.

September 3, 2014

News Release

Lafayette, Ind. — Energy Systems Group (ESG), a leading energy services provider and wholly owned subsidiary of Vectren Corporation (NYSE: VVC), has been awarded a $3.2 million contract to design and build a large transit fast-fill compressed natural gas (CNG) fuel station for the Greater Lafayette Public Transportation Corporation, also known as CityBus. The ESG team includes TruStar Energy, a national leader in design and construction of turn-key CNG fueling infrastructure.

Located in Lafayette, Indiana, CityBus provides transit service to local residents and Purdue University students. As part of the project being developed by ESG and TruStar Energy, CityBus will initially purchase eleven new CNG buses. Six are forty-foot standards and an additional five smaller CNG transit buses will be added via an Indiana Department of Transportation (INDOT) grant. Buses will be replaced on an annual basis to gradually convert the entire 73-bus fleet to CNG.

“The emergence of CNG as an alternative fuel, combined with new natural gas engine technology, has resulted in the opportunity to take advantage of considerable fuel and vehicle acquisition cost savings for CityBus,” said Mark Falahee, ESG business development manager. “We've been fortunate to find great partners like TruStar Energy to help bring innovative projects like this to fruition.”

“We commend CityBus for its commitment to pursuing infrastructure solutions that promote local economic growth and enhance the environment,” said ESG President Greg Collins. “This is the second CNG station that ESG has developed in Indiana,” added Collins. “ESG continues to develop its sustainable infrastructure portfolio with compressed natural gas stations and innovative waste-to-energy, distributed generation, and renewable energy solutions.”

“Converting from diesel to CNG is a game changer for enhancing the profitability of transportation operations,” said TruStar Energy President Adam Comora. “Fuel savings from 30 percent to 50 percent create significant value for fleet operators and their partners,” added Comora. “Natural gas is better for the environment, better for domestic energy independence and better for the bottom line — truly a win-win-win solution.”

“We're very excited to continue building CNG infrastructure here in Indiana,” said TruStar Energy Sales VP, Scott Edelbach, who added, “ESG has been a great partner for TruStar Energy as well as the residents of Indiana in helping to bring domestic CNG fueling to those interested in migrating away from foreign fuel.”

Construction of the CityBus CNG fuel station will begin this year, and is expected to be operational by March 2015.

Energy Systems Group (ESG), a wholly owned subsidiary of Vectren Corporation (NYSE: VVC), is a leading energy services provider that specializes in energy efficiency, sustainability, and infrastructure improvement solutions in the government, education, healthcare, commercial, and industrial sectors. ESG also offers a full range of sustainable infrastructure solutions including waste-to-energy, distributed generation, and renewable energy. To learn more about ESG, visit www.energysystemsgroup.com.

TruStar Energy LLC is the preferred partner for commercial fleets looking to transition their fuel supply from oil to natural gas. TruStar Energy provides a suite of solutions making the transition as simple and easy as possible for the customer. With station builds throughout the U.S. and Canada, TruStar Energy is a recognized leader in providing CNG infrastructure and CNG fueling solutions.

Source: Vectren Corp.

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