Select a question from the drop-down box below for a detailed answer or click here to submit your own question.

How and when will this rate increase impact my bill?
Our answer: Beginning in May 2011, a typical residential combination gas and electric customer who uses around 900 kilowatt hours per month will experience a monthly bill increase of about $10 to $11.


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Why does Vectren need a rate increase?
Our answer: More than half of the request to increase rates was driven by the need to recover costs of the roughly $325 million spent in infrastructure construction during the three years prior to the filing that was needed in its seven-county service territory, which serves more than 142,000 customers. Additionally, the rate increase reflects a slight increase in the utility’s annual operating and maintenance costs.

As a regulated and publicly-traded utility, we utilize investor dollars to make these investments and accordingly must earn a fair return. The bottom line – we operate a very capital intensive business and being able to attract dollars to safely and reliably operate our system is essential.

As we go forward, it’s critical that we have a sound energy delivery infrastructure in place to meet the needs of our community and are prepared to reliably and safely serve existing customers and new customers, particularly at the large-commercial level, as the economy rebounds. This rate adjustment is the only way to achieve that goal in allowing us to continue the level of service our customers expect, ensure the financial stability of the company and to provide resources to reduce customer usage.


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How does Vectren get approval to raise rates?
Our answer: A rate case is a formal process regulated utilities must go through to increase rates. Because we are regulated by the Indiana Utility Regulatory Commission, we can only change our prices, or rates, by filing a rate case to recover the costs of delivering electricity to your home. Unlike retail consumer businesses, such as gas stations or grocery stores, we are not able to change our prices without a formal rate case when the costs of doing business increase.


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Is Vectren raising electric rates to make up for the fact that natural gas bills are lower?
Our answer: No. Vectren’s natural gas rates and Vectren’s electric rates do not impact one another. In fact, they operate under two completely different tariffs. Natural gas bills are forecasted to be lower because the price of natural gas has fallen due to the recession and abundant supplies. Natural gas is a dollar-for-dollar pass through to the customer, and Vectren Energy Delivery by law cannot profit from, nor mark up the price of gas.


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How will this new rate increase benefit me?
Energy efficiency programs: Our planned energy efficiency programs will fundamentally change our relationship with our customers and will allow us to more effectively partner with them to use electricity wisely and efficiently. The energy efficiency programs include automatic discounts through various retailers on compact fluorescent light bulbs, rebates for the early retirement of older, inefficient appliances, including refrigerators and window-unit air conditioners, and custom programs for high-efficiency lighting for small business customers. We have also proposed to establish on-site energy audits for both residential and small commercial customers. Click here for more details.

Cleaner environment: The capital investments that have been made in the past several years mean Vectren’s generation fleet is now 100% scrubbed for sulfur dioxide, 90% controlled for nitrogen oxide and filtered for particulate matter and a significant portion of mercury from the flue gas before exiting the stacks, which directly improves the air quality of southwestern Indiana. Only 35% of Indiana’s generation (megawatts) will be able to meet the proposed air pollutant limits that will be finalized in 2011. Vectren’s coal fired generation fleet is included in that group. Thus, these investments make Vectren’s generation fleet one of the cleanest in the Midwest.

Reliable, safe service: The recent $150 million-spend for new infrastructure including new substations, poles and underground and overhead transmission and distribution lines ensures we can meet the needs of our customers. Key projects include a $15 million expenditure to expand the Oak Grove substation on Evansville’s east side, $19 million in McCutchanville and $14 million in the Pigeon Creek area, which will ensure reliability in the region and foster continued expansion. This rate adjustment will ensure we can move forward with additional projects that help us reliably and safely serve our customers.


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What can I do to lower my electric bill?
Our answer: There are dozens of free and low-cost ways to cut energy usage and lower bills. Click on the resources below to get started.

• Energy efficiency tips (homeowners and renters)
• Energy efficiency tips (businesses)
• Online energy audit
• How-to videos
• Appliance rebates (for natural gas customers)

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How can I get energy assistance to help pay my bills?
Our answer: Federal and state energy assistance programs are administered through local community action agencies. These agencies can assist with bills and home weatherization services.

• The Community Action Program of Evansville and Vanderburgh County serves Gibson, Posey and Vanderburgh counties and can be contacted at (812) 425-4241 or www.capeevansville.org.
• TRI-CAP serves Dubois, Pike and Warrick counties and can be contacted at (812) 482-2233.
• Spencer County customers should contact Lincoln Hills Development Corporation at (812) 547-3435 or www.lhdc.org.
  
  
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