Vectren receives criticism, praise at hearing on rate increase proposal

Vectren this week heard criticism from fixed-income residents opposed to the utility's rate increase and praise from nonprofit agencies who depend on corporate philanthropy to help those residents.

Representatives of the Indiana Utility Regulatory Commission took all of Tuesday's spoken testimony, and more that came in written form, back to Indianapolis, where they will consider a $514 million plan to upgrade Vectren's electrical grid.

The projects are to be funded by ratepayers, with step increases occurring over the next seven years.

Vectren's residential electric rates are the state's highest. Vectren last requested an increase from IURC in 2009. It was granted two years later.

Tuesday's field hearing lasted 90 minutes and was held in an auditorium at the Academy of Innovative Studies. State Rep. Ron Bacon, R-Chandler, requested that a field hearing be held in Vectren's primary service area.

Leaders of United Way of Southwestern Indiana, Habitat for Humanity of Evansville, YWCA Evansville, the Evansville Rescue Mission and the Joshua Academy charter school said Vectren is a caring company run by caring people.

Among other things, Vectren helps disadvantaged local residents with energy savings initiatives, leaders of those agencies told IURC staff. They cited the company's financial and volunteer support.

Tracy Gorman of the Rescue Mission, echoing the comments of others, said Vectren is "an unwavering partner and friend."

Greg Wathen, executive director of the Economic Development Coalition of Southwest Indiana, voiced support for Vectren's plan, saying the utility is relied upon heavily by local industries who need good infrastructure.

Maintaining that infrastructure properly is important to further economic growth, Wathen said.

Numerous other speakers were not complimentary of Vectren.

Courtney Woodruff, a single mother from Evansville who said she works 45-55 hours per week, spoke of the burden that rising bills puts on her.

She said she shares a room with her daughter to cut utility costs as much as possible.

"I am barely making it," Woodruff said. "I can't save for the future of my child."

Many speakers cited high local poverty rates. Bartell Berg, a father of six who lives in Posey County, said he is sympathetic "to all the good Vectren does in our community" but local residents can't afford bills that are comparatively higher than those in surrounding areas.

"I urge you not to allow this," he told the IURC officials.

Vectren's call for digitized smart metering technology was criticized by some as unnecessary. Russell Granderson is a farmer in New Harmony who said his property would have four of those smart meters. They would have fixed rates that continue to rise, he said.

"As consumers, we have no other option than to take their (Vectren's energy,)" Granderson said.

Smart meters "are a gadget that we don’t need right now," Jean Webb of Evansville said. "I’m sure no one will complain that they have to continue to call in power outages."

Webb and some others who spoke against Vectren's plan are active in cleaner air initiatives. Wendy Bredhold of Evansville, a campaign representative with the Sierra Club's Beyond Coal Campaign, said those who try to use less energy and reduce their bills are punished by higher, fixed charges.

"Vectren can make the necessary improvements in this plan when needed and without asking for a flat fee added to our bills," Bredhold said.

Several Vectren executives were present at the hearing but did not speak. Prior to the hearing, Vectren said its plan is about maintaining a reliable electrical system.

Vectren notified local nonprofit and economic development agencies that a hearing was taking place on Tuesday "and they could choose to speak" if they wished, said Chase Kelley, Vectren vice president for marketing and communications.

Some speakers at Tuesday's hearing asked why Vectren could not use its own existing profits to pay for the projects. Kelley on Wednesday said Vectren is constantly reinvesting in its infrastructure, using those profits.

"We have a $514 million plan, but there are other capital investments that are not part of this process, epseically when you consider our gas process," Kelley said.

She said Vectren does not, however, currently have the revenue for the transmission and distribution projects that are part of the $514 million plan under consideration by the IURC.

"We have to make the case for why these investments are prudent and critical and not just luxury items," Kelley said. "This isn’t fluff around the edges stuff."

Those who were unable to attend Tuesday's hearing but wish to submit comments may do so via the OUCC website, www.in.gov/oucc, by email at uccinfo@oucc.IN.gov, or by mail at Consumer Services Staff, Indiana Office of Utility Consumer Counselor, 115 W. Washington St., Suite 1500 South, Indianapolis, IN 46204.