Vectren's utility subsidiary Vectren Energy Delivery of Indiana - North has reached a settlement agreement with the Indiana Office of Utility Consumer Counselor regarding the proposed changes to the rates for its gas distribution business.
The settlement agreement was filed with the Indiana Utility Regulatory Commission (IURC) to complete a collaborative effort between Vectren Energy Delivery of Indiana – North (Vectren North) and the Indiana Office of Utility Consumer Counselor (OUCC).
Vectren North initially filed a petition with the IURC requesting a $41.1 million increase in revenues. The 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 cost recovery mechanisms rather than base rates.
If approved, the impact of the settlement is expected to increase bills by less than 4%, or about $3.50 per month, for the typical residential customer. The settlement agreement resolves the issues in the case and provides for a return on equity of 10.2%, as well as agreement on various personnel expenses, operating and maintenance costs.
Carl Chapman, president and COO, said: This settlement provides a roadmap for Vectren North to continue providing safe, reliable service. Reliability requires investment in people and infrastructure. This rate case prescribes a plan for initiating a comprehensive bare steel and cast iron main replacement program as well as recognizes the other fixed costs we incur to run the business. This change only impacts the delivery portion of the bill.
We remain committed to providing the tools our customers need through our conservation connection program to drive total bills lower through reduced consumption.