The IndianaUtility Regulatory Commission on March 30 reapproved most of Vectren Corp. subsidiary Vectren Energy Delivery of Indiana'sgas infrastructure modernization projects, representing $890 million in investmentssupported by recovery mechanisms.
This is thethird update of Vectren's original seven-year plan approved in 2014, according tothe Form 8-K filed March 31. The pipeline replacement and system integrity maintenancework would be carried out by utilities Vectren Energy Delivery of Indiana - Northand Vectren Energy Delivery of Indiana - South.
All of Vectren'sproposed projects total $950 million in investments, but the Indiana regulator excludedone project for recovery: the installation of a 20-mile transmission line and otherrelated investments intended to support industrial customer growth and ongoing systemreliability in the Lafayette, Ind., area. According to the IURC, the project doesnot qualify for cost recovery because it was not in the original plan.
The projectwas approved to move forward and pre-approved for rate base inclusion when Vectrenfiles its next rate case, according to the filing. Still, Vectren plans to appealthe order as it believes new projects should be expected to emerge when updatedrisk assessments call for them.
In addition,the IURC on March 23 approved Vectren's 2016-2017 electric energy efficiency programs,expected to result in 74 million kWh of energy savings over the two-year period,according to the filing. The approval order also included a lost margin recoverymechanism limiting recovery to four years or the life of the installed energy efficiencymeasure, whichever is shorter. Vectren also plans to appeal this decision.
and do business as Vectren Energy Delivery of Indiana.