IS IT TRUE? September 20, 2011
IS IT TRUE that the big news but not necessarily surprising news is that Vectren has filed a request with the Indiana Utility Regulation Commission asking for yet another rate increase?…that it was just a month or so ago that the last Vectren rate increase went into effect?…that Vectren already charges their customer base the highest rate in the State of Indiana by about a 50% margin and higher than Henderson, KY by a 212% margin?…that like a spoiled child that is catered too regularly Vectren is now asking the IURC to let them have a new toy and they want their customers to pay for it?…that Vectren also has asked the IURC to guarantee them a 7.29% rate of return with the ability to raise their fee annually if they didn’t quite get their forecast right the first time?
IS IT TRUE that the shiny new toy in this case is an upgrade to their turbines in the Posey County plant that saves coal but costs $32 Million?…that the coal that is saved is coal that Vectren for the most part already owns?…that Vectren’s right hand pays Vectren’s left hand for their coal so saving this coal completely benefits Vectren and Vectren alone?…that the rates that we already pay were calculated based on the equipment that they already have?…that we have been told time and time again that Vectren is ahead of the game with EPA mandated equipment and that Vectren is compliant with EPA standards?…that Vectren continually tells us that the price differences that exist now will vaporize when the rest of the country catches up with them?…that assuming that is all true there should be no EPA driven reason to consider these turbine upgrades?…that this shiny new toy is a WANT as opposed to a NEED?
IS IT TRUE that the fee that Vectren has asked for is a seemingly harmless $1.08 per month per customer?…that based on the 141,000 customer base this fee will bring Vectren a revenue increase of $1.83 Million per year?…that a guarantee of a 7.29% profit on an investment of $32 Million will “GUARANTEE†Vectren additional profits of $2.33 Million per year?…that we guess the difference in those amounts must be from burning less of their own coal?…that burning less of their own coal is pretty much the same thing as paying them to keep their money in the bank?…that the net result of this request is that the people of SW Indiana send an additional $1.83 Million to Vectren that makes $2.33 Million in profits and keeps the coal that they would have burned in their reserves?…that at Vectren’s current price to earnings ratio of 18.64 that the value of Vectren’ outstanding shares will increase by $43.43 Million?
IS IT TRUE that this request if granted will enrich the Vectren Corporation’s net value by $43.4 Million and that money will be coming via direct transfer of wealth from the working people of SW Indiana?…that in a part of the country where families already work 9 hours per month (2nd highest in Memphis Power study of 50 utilities) to pay for electricity, where we have to squeeze police cars to 10 year lives, where Fire Engines are cannibalized for parts, potholes go unfilled, parks can’t even be mowed, and the president of the Evansville City Council made a serious statement about removing the bulbs from street lights to save money, THIS IS NOT AN APPROPRIATE TIME TO FORCE THE PEOPLE OF SW INDIANA TO BUY VECTREN A NEW TOY?
IS IT TRUE that the City of Evansville is putting the finishing touches on a $128 Million Arena yet our sewer system is under EPA order to spend about $500 Million?…that the message this sends to the world is that we can play ball in luxury but can’t relieve ourselves without concern for walking through the grass?…that these kinds of decisions tell the world about misplaced priorities?…that buying spinner rims for a car that barely runs is a poor decision?…that buying a Rolls Royce when there is a leak in the trailer roof is a poor decision?…that buying Vectren a new toy with the peoples forced contribution is the same kind of decision as buying those spinner rims in this economy?…that it is time for the BUCK TO STOP even if it is just a BUCK A MONTH that we are being asked for?…that BUCK may be bus fare to work for some poor soul whose car won’t start and who can’t afford to pay their Vectren bill?