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Vectren Asserts that Rockport SNG Plant will cost ratepayers over $1 Billion

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Proposed Rockport SNG plant expected to cost natural gas users more than $1 billion; Vectren, others battle to protect customers

Evansville, Ind. – The proposed substitute natural gas (SNG) plant in Rockport, Ind., which is being developed by Indiana Gasification, an affiliate of New York-based holding company Leucadia Corporation, is estimated, based upon current natural gas prices, to cost the State of Indiana nearly $1.1 billion in its first eight years of operation. These costs will be passed on by the State and will be borne by Hoosier natural gas customers, including the 680,000 customers served by Vectren Energy Delivery of Indiana (Vectren), as well as the natural gas customers of most of the other gas utilities in Indiana.

As proposed, the developers of the SNG plant, which is designed to convert coal to pipeline-quality natural gas, reached a deal with the State of Indiana in 2011 via the Indiana Finance Authority (IFA) to buy all of the plant’s manufactured gas and then resell it into the open market. Under a 30-year agreement, if the manufactured gas does not sell in the open market at a price above the contract price that is projected to escalate each year for the contract period, then Indiana’s natural gas customers, including those of Vectren, will see a charge on their monthly natural gas bills to make up the shortfall. The SNG plant developers have provided a projected average SNG price discounted to 2008 dollars over the entire contract term, but they have refused to publicly say what the actual price of the manufactured gas will be each year. In the event the plant’s manufactured gas beats the current market price, customers would share in that gain.

“The concept of this plant originated at a time, in 2006, when natural gas prices were at record highs and there were national fears that we were going to run out of natural gas,” said Mike Roeder, vice president of corporate communications and government affairs. “Since 2009, the available supply and price of natural gas has changed dramatically. Thanks to the emergence of shale gas, our nation’s natural gas supply has grown to record levels, which has caused the price of natural gas to hover near record lows. More importantly, multiple independent forecasts conclude that prices are likely to remain low for the next two decades and beyond. Given the current and projected market price for natural gas is now substantially lower than the SNG plant’s projected contract price for the manufactured gas, the project no longer makes economic sense, especially when Hoosier natural gas customers carry the risk to absorb the state’s gas market losses throughout the 30-year contract term.”

The plant alone is expected to cost nearly $3 billion to build, and the developers of the SNG plant are now seeking a federal loan guarantee, similar to the one provided to Solyndra, the bankrupt solar panel manufacturer, to help with construction of the plant and a 440-mile pipeline to transport the plant’s carbon dioxide output, the cost of which is not yet public.

The state legislature required that Indiana Gasification guarantee savings for customers before the plant could go forward. Indiana Gasification has publicly said that the requirement that they provide a guarantee only means they promise they will make a commitment and not that they actually fulfill their commitment. In furtherance of their “promise,” Indiana Gasification has proposed to fund an account of $150 million. Given the forecasted low price of natural gas and the fact that Indiana gas customers are allocated 100 percent of the market losses the State incurs, this account will likely be exhausted within about the first year of the SNG plant’s operation after which customers will start to see a new line item charge on their bill to ensure the losses are refunded to the State of Indiana that will then make the developer whole. It is expected that the developer will make a profit even if the State loses money.

Based on the expected losses from the State’s resale of the SNG in the first eight years:
• a Vectren residential customer would likely pay an additional $375 on their gas bills to cover these losses;
• an average size small business customer would likely pay up to an additional $2,000 on their bills; and
• a small industrial customer would likely pay up to an additional $250,000 on their bills.

“Put simply, this is a tax on all natural gas customers,” Roeder said. “Using today’s gas futures prices from the New York Mercantile Exchange (NYMEX prices), we can purchase gas many years into the future below the expected SNG price.”

Other similar projects around the country are being abandoned due to the fundamental change that has occurred in the natural gas marketplace. Proposed SNG plants in Illinois and Mississippi have experienced setbacks and some have even been cancelled. As an example, Leucadia, which had planned to develop an Illinois plant, abandoned it after the state rejected a proposed law that would have required gas utilities and their customers to take the output from the plant. (Click here for that news article.)

“We continue working on behalf of all natural gas users in a court proceeding where we are challenging the contract between Indiana Gasification and the IFA,” added Roeder. “Predictably, the project has received state environmental permits, but the project has many more hurdles to clear, including the federal loan guarantee that puts additional risk on all taxpayers. Given the current state of the natural gas marketplace, this project is contrary to market forces, would cost Hoosiers billions, will hurt future economic development activity in the state, and, as currently structured, makes no sense to proceed with at this time.”

Although the plant received state regulatory approval to move forward last fall, Vectren, consumer advocates, environmental organizations and other natural gas utilities in the state continue to work on behalf of Hoosiers to ensure they are protected from bearing these costs. These groups, including Vectren, have also appealed the contract’s approval to the Indiana Court of Appeals.

Among issues under consideration by the court include:
• what customers – residential, commercial and/or industrial – are affected and subject to the IFA’s losses;
• whether the contract approved by the IURC complies with state law;
• when the customer savings guarantee must take place, if at all; and
• how the savings guarantee will be achieved.

Indiana Gasification and the IFA have requested oral argument before the Indiana Court of Appeals. All parties are now awaiting dates to be set.

About Vectren

Vectren Corporation (NYSE: VVC) is an energy holding company headquartered in Evansville, Ind. Vectren’s energy delivery subsidiaries provide gas and/or electricity to more than 1 million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren’s nonutility subsidiaries and affiliates currently offer energy-related products and services to customers throughout the U.S. These include infrastructure services, energy services, coal mining and energy marketing. To learn more about Vectren, visit www.vectren.com.

VANDERBURGH COUNTY FELONY CHARGES

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VANDERBURGH COUNTY FELONY CHARGES

This feature is sponsored by Chris Walsh For Vanderburgh County Clerk. Chris Walsh is a veteran county administrator that strongly supports our local law enforcement professionals . Chris Walsh is a candidate that possess a non-partisan attitude with a consumer friendly demeanor. Chris also stands against unification of city and county governments.
This ad paid for by the committiee to elect Walsh Clerk.

VANDERBURGH COUNTY FELONY CHARGES

Evansville, IN – Below is a list of felony cases that were filed by the Vanderburgh County Prosecutor’s Office on Tuesday, October 16, 2012.

Shabiha Abbas Criminal Confinement – Class D Felony
Intimidation – Class D Felony
Domestic Battery – Class A Misdemeanor

Dustin Biggs Possession with Intent to Deal in a Controlled Substance – Class B Felony
Possession of Marijuana – Class A Misdemeanor

Robert Branson Operating a Vehicle with a BAC of .15 or More – Class A Misdemeanor
(Enhanced to a Class D Felony due to Prior Convictions)
Operating a Vehicle While Intoxicated – Class C Misdemeanor
(Enhanced to a Class D Felony due to Prior Convictions)

Bryan Harvey Residential Entry – Class D Felony
Resisting Law Enforcement – Class A Misdemeanor

Demarco Hawkins Possession of Marijuana – Class A Misdemeanor
(Enhanced to a Class D Felony due to Prior Convictions)
Maintaining a Common Nuisance – Class D Felony

Shannon Jackson Forgery – Class C Felony
Theft – Class D Felony

Laura Kissel Unlawful Possession or Use of a Legend Drug – Class D Felony

Tara McKnight Dealing in Methamphetamine – Class B Felony
Neglect of a Dependent – Class C Felony

Stephanie Oshodi Theft – Class D Felony

Bristen Pride Dealing in Marijuana – Class A Misdemeanor
(Enhanced to a Class D Felony due to Prior Convictions)

Michael Sigler Possession of a Controlled Substance – Class D Felony
(Habitual Substance Offender Enhancement)

Teisha Thompson Dealing in Methamphetamine – Class B Felony

Jason Woolems Dealing in Methamphetamine – Class B Felony
Neglect of a Dependent – Class C Felony
Resisting Law Enforcement – Class D Felony (Two Counts)
Criminal Recklessness – Class A Misdemeanor
Reckless Driving – Class B Misdemeanor
Criminal Recklessness – Class B Misdemeanor

For further information on the cases listed above, or any pending case, please contact Carly Settles at 812.435.5688 or via e-mail at csettles@vanderburghgov.org.

Under Indiana law, all criminal defendants are considered to be innocent until proven guilty by a court of law.
SENTENCE CHART

Class Range
Murder 45-65 Years
Class A Felony 20-50 Years
Class B Felony 6-20 Years
Class C Felony 2-8 Years
Class D Felony ½ – 3 Years
Class A Misdemeanor 0-1 Year
Class B Misdemeanor 0-180 Days
Class C Misdemeanor 0-60 Days

Debate Moderator Crowley Admits Post Debate that Romney was Correct about Benghazi

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After the debate, debate moderator Candy Crowley said Republican nominee Mitt Romney was “right in the main” but “picked the wrong word” on the Obama administration’s immediate response to the terrorist attack in Benghazi, Libya, that left four Americans dead.

Crowley interrupted Romney during the debate, insisting that President Obama had in fact called the attack an “act of terror.”

ROMNEY: I want to make sure we get that for the record because it took the president 14 days before he called the attack in Benghazi an act of terror.

OBAMA: Get the transcript.

CROWLEY: It — it — it — he did in fact, sir. So let me — let me call it an act of terror…

OBAMA: Can you say that a little louder, Candy?

CROWLEY: He — he did call it an act of terror. It did as well take — it did as well take two weeks or so for the whole idea there being a riot out there about this tape to come out. You are correct about that.

In a statement given in the Rose Garden on Sept. 12, Obama emphasized an anti-Islam video, before saying that “no acts of terror would shake the resolve of this great nation.”

The administration’s narrative on the attack over the next two weeks was muddled.

On Sept. 16, U.S. Ambassador Susan Rice attributed the attack on the U.S. Consulate to violent protests stemming from a “heinous and offensive” video.

On Sept. 25, the president himself declined to call the attack an act of terrorism during an interview with “The View,” saying that an investigation was still ongoing.

Update (12:22 a.m.): After the debate, “Romney was actually right on Libya” trended on Twitter in the United States:

Link to article and videos:

http://freebeacon.com/candy-crowley-he-was-right/

IS IT TRUE October 17, 2012

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IS IT TRUE October 17, 2012

IS IT TRUE that the second Presidential debate staged last night at Hoftstra University has teed up the final debate where the topic will be foreign policy in what will be the discussion for the next week and in all likelihood the determining factor in who will win the presidency?…that President Obama made an assertion last night that seems to create a classic prisoner’s dilemma?…that assertion that the President made that seemed to catch Governor Romney off guard that was verified by moderator Candy Crowley is the assertion that on September 12, 2012 he made a speech in the White House rose garden where he referred to the murders in Benghazi as “acts of terror”?…upon review of the transcript it seems more like his referral to “acts of terror” was in the general sense as opposed to associating that term with the Benghazi murders?…the specific quote from the transcript is open to both interpretations and read as follows?

“No acts of terror will ever shake the resolve of this great nation, alter that character, or eclipse the light of the values that we stand for. Today we mourn four more Americans who represent the very best of the United States of America. We will not waver in our commitment to see that justice is done for this terrible act. And make no mistake, justice will be done.” President Obama 9/12/2012

IS IT TRUE that President Obama by injecting a transcript from his own speech and asserting that he acknowledged the Benghazi murders as the work of terrorists has set himself and his team up in a classic prisoner’s dilemma?…if this were a game of chess President Obama would be in a state of checkmate?…if last night’s assertions are true and the President knew and accepted on September 12th that the Benghazi murders were the work of terrorists then the White House Press Secretary, the Ambassador to the United Nations, President Obama himself, Vice President Biden in last week’s debate, and Secretary of State Hillary Clinton have all been engaged in a campaign of deception for over a month?…in this case the purpose for the deception was political spin that the President explicitly stated to Mr. Romney last night was offensive?

IS IT TRUE that if the words of the President from last night regarding his intentions and beliefs that he stated in the White House rose garden are false whether by design or lack of knowledge then the White House was oblivious to the now established fact that the Benghazi murders were the work of terrorists until last night’s debate?…in this particular situation the President has created a can of worms that leads to the conclusion of intentional deception in one interpretation and a conclusion of not being in the loop in the other interpretation?…the mitigation of this prisoner’s dilemma that he President has painted himself into a corner with will in all likelihood determine this election?

IS IT TRUE that both candidates were assertive to the point of borderline rudeness last night?…that both made assertions that were not true?…that in the case of the pissing contest over the Obama record on energy production and leases that fact checkers sided with Mitt Romney’s numbers before the candidates left the stage last night?…the assertions by Governor Romney about job creation that will occur as a result of his “5 point plan” are not possible to verify but have been both supported and refuted by outside sources?…it was indeed frustrating to have answers not available about what deductions will be limited to offset Mr. Romney’s proposed tax rate reductions?…it is desirable to see those details?…on the other hand the only details that President Obama has out there regarding taxation is the roll back of the so called “Bush tax cuts” that are called the “fiscal cliff” in many circles?

IS IT TRUE that we should all be reminded no matter what the candidates say about General Motors that in the summer of 2009 they did indeed enter into a prepackaged bankruptcy arranged by the Obama Administration?…the rules of American bankruptcy were turned upside down in favor of groups that voted for the President in that bankruptcy?…the American people through the federal government became both shareholders and bankers for GM when the company emerged from bankruptcy?…if Mitt Romney would have had his way in the GM bankruptcy proceeding the only possible differences in outcome would have been that the traditional bankruptcy laws would have been used and some outside money would have come into the picture?…that may have been government money and it may have been Toyota but the assets of GM would have continued to be put to good use anyway?

IS IT TRUE that most opinions were that last night’s debate was close with Obama fans giving the nod to Obama and Romney fans giving the nod to Romney?…the number of true undecided people is down to low to mid single digits?…most of them were probably not helped much last night?…it will be the way that President Obama’s Prisoner’s Dilemma plays out in the next week and the last debate that will determine who will be the next President of the United States?

Link to Rose Garden transcript:

http://www.buzzfeed.com/chrisgeidner/in-heated-libya-exchange-obama-challenges-romney

Standard & Poor’s Reaffirms Evansville “AA-“Bond Rating

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CITY OF EVANSVILLE
ONE N.W. MARTIN LUTHER KING, JR. BLVD.
EVANSVILLE, INDIANA 47708
OFFICE OF THE MAYOR
LLOYD WINNECKE

October 16, 2012

Standard & Poor’s Reaffirms Evansville “AA-“Bond Rating
Administration Addresses Concerns of Audit Findings

EVANSVILLE, IN – The City of Evansville’s Standard & Poor’s “AA-” bond rating will remain unchanged despite a disclaimer opinion issued by the State Board of Accounts (SBOA) last month on the city’s 2011 audit findings.

Some members of the City Council expressed concern that the disclaimer – caused primarily by problems during the conversion to a new financial software system – would result in a lower bond rating, making it more expensive for the city to borrow money for future capital projects.

Mayor Lloyd Winnecke directed City Controller Russ Lloyd, Jr. to contact officials at Standard & Poor’s to inform them of the 2011 audit findings and to explain the City’s corrective plan of action. Today John Sauter, a U.S. Public Finance Ratings Specialist at Standard & Poor’s Ratings Service, informed our administration that there will be no change in the City of Evansville bond rating.

“I am pleased with the decision made by Standard & Poor’s. After considering the City’s 2011 audit findings, the ratings service understands that the City’s financial position remains strong,” said Mayor Winnecke. “S&P is also comfortable that the City’s computer software issues are being fully addressed and the accounts are now reconciled.”

City Controller Lloyd said the review by Standard & Poor’s was a courtesy to the city. Following a conference call, Lloyd said, “S&P appreciated the city’s proactive management of the issue and that city officials reached out to them to explain the State Board of Accounts audit findings and satisfactorily answered all of their questions.”

As a result, Lloyd said when the city goes to market issuing bonds for new debt or to refinance debt the city will go through the regular rating review process.

Reward Offered for Information about Arson

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The Evansville Fire Department is seeking information about a recent arson at the 407 Richardt Ave.

The Indiana Chapter of the International Association of Arson Investigators is offering a reward of up to $5,000.00 for information leading to the arrest of the person(s) responsible for this fire.

Anyone with information is urged to call (800) 382-4628.

REXING FOUND GUILTY ON ALL COUNTS

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Evansville, IN – Tuesday, October 16, 2012 Terry W. Rexing, age 40, was convicted in Vanderburgh County Superior Court of Dealing in Methamphetamine – Class A Felony, Possession of a Precursor with Intent to Manufacture Methamphetamine – Class D Felony, Maintaining a Common Nuisance – Class D Felony, False Informing – Class B Misdemeanor and Criminal Recklessness – Class B Misdemeanor. After the jury found Rexing guilty on all counts, the defendant admitted to being a Habitual Offender.

Rexing faces 20-50 years for the Class A Felony, ½-3 years for each of the Class D Felonies and 0-180 days for each of the Class B Misdemeanors; all to be served in the Indiana Department of Corrections. The Habitual Offender Enhancement will add 30 years on top of what he is sentenced to by Judge Robert Pigman on November 16, 2012 at 1:00 p.m.

Rexing was arrested on August 2, 2012 after a second floor apartment that he rented caught fire. The apartment was less than 100 feet from Vogel Elementary School, where children were present at the time of the fire. Once the fire was out and a search warrant was obtained, many methamphetamine making materials were located inside the apartment. The materials used to manufacture methamphetamine were found to be the cause of the fire. For more arrest information, please see the attached probable cause affidavit.

Dr. Glassman featured speaker at Public Library

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Forensic anthropology topic at Friends annual meeting
October 16, 2012 – Evansville, IN – On Sunday, October 21st, the Public Library Friends will host Dr. David Glassman at Central Library. Dr. Glassman – an anthropologist, Provost and Vice President for Academic Affairs at Bradley University, and former dean of the College of Liberal Arts at USI – will speak about forensic anthropology and talk about some of the most unusual cases he has been involved with.

Dr. Glassman’s presentation will begin at 2:00 pm in the Browning Events Room and is free and open to all.

This program is co-sponsored by One Book One Community. This year’s reading selection, Flash and Bones by Dr. Kathy Reichs, greatly focuses on forensic anthropology and crime scene investigation.

The annual meeting of the Public Library Friends will follow Dr. Glassman’s presentation. The meeting is open to the public, and anyone interested in becoming involved with the Friends is encouraged to stay and learn more about how this group supports the EVPL.

VANDERBURGH COUNTY FELONY CHARGES

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VANDERBURGH COUNTY FELONY CHARGES

This feature is sponsored by Chris Walsh For Vanderburgh County Clerk. Chris Walsh is a veteran county administrator that strongly supports our local law enforcement professionals . Chris Walsh is a candidate that possess a non-partisan attitude with a consumer friendly demeanor. Chris also stands against unification of city and county governments.
This ad paid for by the committiee to elect Walsh Clerk.

VANDERBURGH COUNTY FELONY CHARGES
Evansville, IN – Below is a list of felony cases that were filed by the Vanderburgh County Prosecutor’s Office on Monday, October 15, 2012.

Emily Caine Theft – Class D Felony
Conversion – Class A Misdemeanor

John Haynes Theft – Class D Felony

Jonathan Hoehn Operating a Motor Vehicle as an Habitual Traffic Violator – Class D Felony

Kristen Holley Theft –Class D Felony

Zachary Marshall Theft – Class D Felony

Kimberly Toliver Theft – Class D Felony
Conversion – Class A Misdemeanor

For further information on the cases listed above, or any pending case, please contact Carly Settles at 812.435.5688 or via e-mail at csettles@vanderburghgov.org.

Under Indiana law, all criminal defendants are considered to be innocent until proven guilty by a court of law.
SENTENCE CHART

Class Range
Murder 45-65 Years
Class A Felony 20-50 Years
Class B Felony 6-20 Years
Class C Felony 2-8 Years
Class D Felony ½ – 3 Years
Class A Misdemeanor 0-1 Year
Class B Misdemeanor 0-180 Days

Another Stimulus Company files Bankruptcy: A123 Systems got $250 Million and now in Chapter 11

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Electric car battery manufacturer A123 Systems Inc., the recipient of nearly
$250 million in government grants, filed for Chapter 11 bankruptcy protection
Tuesday.

The Massachusetts-based company and two affiliates filed for bankruptcy a day
after it said it would be unable to make a $2.8 million interest payment to
bondholders due Monday.

Auto-parts manufacturer Johnson Controls Inc. is providing the company with
$72.5 million in so-called debtor-in-possession financing to fund the bankruptcy
case.

Read the Wall Street Journal article: http://online.wsj.com/article/SB10000872396390443854204578060433271656440.html?mod=djemalertNEWS