5th Ward Candidate Brent Grafton Speaks out on Vectren’s Rates, Questions Pass Through Charges

Vectren Rates

Vectren Energy is a publicly traded company that is given special consideration by our government to help guarantee a stable power supply and delivery system. In this time of increasing fees and political rhetoric, the details are being lost in the hyperbole.

Recently, when Brad Ellsworth called Dan McGinn to set up an appointment to explain Vectren’s’ rate increase, Dan invited him to come to City Council and give his presentation in front of the Council and the citizens of Evansville, their customers.

I believe that this is an effective and respectful way to give Vectren an opportunity to speak straight to their ratepayers.

If Vectren takes Dan up on this offer, I would encourage my opponent to use his training as a CPA to ask Vectren some of the following questions:

1. What percentage of our electric bill reflects depreciation expense for the capital investments that Vectren has made in becoming more “green?” And how much of that expenditure was paid to companies owned by Vectren?

2. Recently, we learned that Vectren “buys” coal from itself to sell to us. What percentage of our electric bill reflects the cost of coal that is dug out of the ground by Vectren, processed by Vectren, and burnt by Vectren to make energy to sell to Vectren’s’ customers. How does the “pass through price” that we pay for this coal relate to the open market price for comparable coal from other non-Vectren owned sources?

3. What percentage of our electric bill reflects depreciation on the capital invested in coal mines that were overbuilt to sell coal to other utilities? Did it ever occur to Vectren that other utilities were not going to buy their primary feedstock from a competitor? Are we paying for this misjudgment in our electric bills?

I believe that our residential electric rates are too high, but I also recognize that Vectren employs a large number of people in our region both as direct employees and as construction workers, many of whom belong to Unions that have endorsed my opponent. Vectren deserves the opportunity to explain their rates and explain the decisions that they have made that affect these rates.

I do not believe that is good public policy or wise for any public official to attempt to provoke an “Arab Spring” public response to any of our institutions. At this time in world history, there is way too much possibility for such a response to get out of hand, fast.

I hope that Vectren decides to attend a City Council meeting and take the opportunity to answer some of the tough questions. I also hope that someone on City Council will ask those questions.

I will not sign my opponent’s petition, but if elected, I will find a public forum to ask Vectren these kinds of questions, and I look forward to hearing their response.