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Indiana Office of Utility Consumer Counselor

Indiana Office of Utility Consumer Counselor

OUCC > Electric > Key Cases By Utility > Vectren Electric Rates Vectren Electric Rates

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Base Rates | Trackers | Sales Taxes

 

Vectren’s electric utility serves six southwestern Indiana counties. Its residential electric rates rank highest among the electric utilities the IURC regulates as of July 1, 2016.

Major components in a typical electric bill include base rates, trackers, and sales taxes.

Base Rates

Base rates cover most of a utility’s operating and maintenance costs. They make up nearly 98 percent of a typical Vectren residential electric bill.

Vectren’s electric base rates were approved in April 2011. The OUCC’s news release outlines the order’s consumer protections.

To view the rate case's public file, click here and enter docket number 43839.

Trackers

In addition to base rates, Vectren and other electric utilities recover and credit separate, specific costs through rate adjustment mechanisms known as "trackers." The OUCC reviews all tracker rate adjustments in IURC cases on a regular basis.

Vectren is authorized to use 5 electric trackers. They make up about 2 percent of a residential customer’s typical bill.

Tracker Recovers Costs for Frequency IURC Cause No.
Fuel Adjustment Clause (FAC) Coal and other fuels Quarterly 38708
Environmental Cost Recovery (ECR) Emissions control equipment (including operations & maintenance) Semi-Annual 42861
Demand Side Management (DSM) Energy efficiency programs Semi-Annual 43405
Reliability Cost & Revenue Adjustment (RCRA) Capacity resources needed for system reliability Semi-Annual 43406
MISO Cost & Revenue Adjustment (MCRA) Participation in Midcontinent Independent Transmission System Operator (MISO) Semi-Annual 43354

To view the IURC public files in tracker cases, click here and enter the appropriate docket number.

Additional cases of note include Vectren's:

Sales Taxes

The seven percent state sales tax applies to all Indiana electric utilities.

 

* Rankings and examples refer to monthly usage of 1,000 kWh in the IURC’s 2016 Residential Bill Survey.

7-20-16