In December 2009, Vectren filed a request with the Indiana Utility Regulatory Commission (IURC) to approve an increase in our electric rates. The decision to file was not one we made lightly.  We recognize in these very difficult economic times customers are already facing significant financial challenges.  In light of the difficult economy, we delayed making the request for as long as we reasonably could. However, to continue to provide safe, reliable and clean energy, we can no longer delay this request. The IURC will now thoroughly review the case. Their decision on this request likely won’t come until late 2010.

Over the last three years, we have invested $325 million in various infrastructure projects to serve Southwest Indiana, and in the next three years, we expect to spend a similar amount. These expenditures for new substations, poles and electric lines and clean energy projects require us to continue to attract the capital necessary to make these investments.

All of our coal-based electric generation units now have very effective emission controls, which make our generation fleet one of the cleanest in the Midwest.  We recognize clean air is critical to providing both quality of life and opportunities for economic development in our part of the state.

We are also requesting that our rates be redesigned, so we are no longer incented to sell more energy to earn a fair return on the capital invested in the business.  We are asking the commission to structure electric rates like those in our gas business, which remove sales volumes from the equation and allow us to partner with customers in using less.  It’s likely that energy costs will continue to rise, as the nation considers carbon legislation. Ensuring we have a structure that fosters reductions in usage makes sense; not only will customers use less fuel and reduce bills, but they’ll also be conserving natural resources. We are also seeking electric energy efficiency programs and incentives to help customers use energy wisely.

Carl L. Chapman
President and CEO
Vectren Corporation