Hmmm, let’s see: Vectren promises that the ratepayers will see a reduction in the cost of coal burned per kilowatt-hour of electricity generated. Fair enough, since the cost of coal is passed directly to the ratepayers (I’m ignoring here how that coal cost is calculated). Now how about the other savings that Vectren will realize?
1. Reduced cost of disposing of the coal ash. Since less coal will be burned, less ash is produced.
2. Reduced cost of the limestone used in the flue gas precipitators to remove the sulfur from the burned coal, and disposal of the precipitate.
3. Reduced costs for maintenance of the generating equipment: For example, major turbine maintenance is projected to be extended from 7 to 10 years over the 36-year lifetime of the improvements, a 43% savings.
4. Reduced environmental compliance costs, either from lower emissions fees/fines, and/or the sale of emissions credits to other entities.
Has Vectren offered to share all the additional savings with the ratepayers? It does not appear so, from their published Fact Sheet. It would therefore seem to me that if the utility wishes their ratepayers to foot the full bill for the improvements, then they should share all the financial benefits with the ratepayers as well. If they plan to reward their investors and executives with the additional savings, then the costs should be shared by the investors and executives, too. I would hope that the IURC would take this into consideration during their deliberations over any increase in the ratepayers’ bills.
Does anyone know what Vectren’s previous rate increase request was, that is, the one that was approved? I am pretty sure they only got half of what they asked for. So one thought would be they are now after more to cover what they didn’t get last time which we all know they do not need.
It was for just over 7% and I believe the ask was over 10%. Not sure of the exact numbers.
What am I missing?
We will save $100.00 over the life of the turbines (36-years) 12 months per year x 36 years = 432 months, $100.00 / 432 months = $ .2315 savings per month.
A charge of $1.08 per month over the life of the turbines (36-years) 12 months per year x 36 years = 432 months, $1.08 x 432 months = $466.56.
So it will cost us $466.56 to save $100.00 over 36-years.
Help me out I did the math and I do not see how we save in this deal! Vectern you say the $1.08 will be phased in? Even if the savings doubles and our costs are reduced by half as the result of phasing in, we still loose. Show us your expected charge VS our expected savings month per month for the 36-years, I’m sure you’ve looked at it.
We spoke with Vectren and the $100 is the net savings over the 36 years. So they say $1.08 to them every month and $1.31 in savings back to each user per month. Any way you cut the cake it is a very small cake.
OK Thanks I missed the NET savings. Chaa-ching $100.00 / 432 = $.2314 per month, can’t even buy a (you fill in the space) with that!
Vectren buys their coal to fuel their power power plants from themselves–one of their wholly own bussiness–a coal mine. Conflict of interest????
what’s interesting is that they just renegotiated their coal contracts with themselves at a lower price that will eventually work it”s way out to the consumers. And coal is not the only wholly owned subsidiary, they also own Air Quality Services that certifies the pollution monitors at the powerhouses.
Hmmm, let’s see: Vectren promises that the ratepayers will see a reduction in the cost of coal burned per kilowatt-hour of electricity generated. Fair enough, since the cost of coal is passed directly to the ratepayers (I’m ignoring here how that coal cost is calculated). Now how about the other savings that Vectren will realize?
1. Reduced cost of disposing of the coal ash. Since less coal will be burned, less ash is produced.
2. Reduced cost of the limestone used in the flue gas precipitators to remove the sulfur from the burned coal, and disposal of the precipitate.
3. Reduced costs for maintenance of the generating equipment: For example, major turbine maintenance is projected to be extended from 7 to 10 years over the 36-year lifetime of the improvements, a 43% savings.
4. Reduced environmental compliance costs, either from lower emissions fees/fines, and/or the sale of emissions credits to other entities.
Has Vectren offered to share all the additional savings with the ratepayers? It does not appear so, from their published Fact Sheet. It would therefore seem to me that if the utility wishes their ratepayers to foot the full bill for the improvements, then they should share all the financial benefits with the ratepayers as well. If they plan to reward their investors and executives with the additional savings, then the costs should be shared by the investors and executives, too. I would hope that the IURC would take this into consideration during their deliberations over any increase in the ratepayers’ bills.
Does anyone know what Vectren’s previous rate increase request was, that is, the one that was approved? I am pretty sure they only got half of what they asked for. So one thought would be they are now after more to cover what they didn’t get last time which we all know they do not need.
It was for just over 7% and I believe the ask was over 10%. Not sure of the exact numbers.
What am I missing?
We will save $100.00 over the life of the turbines (36-years) 12 months per year x 36 years = 432 months, $100.00 / 432 months = $ .2315 savings per month.
A charge of $1.08 per month over the life of the turbines (36-years) 12 months per year x 36 years = 432 months, $1.08 x 432 months = $466.56.
So it will cost us $466.56 to save $100.00 over 36-years.
Help me out I did the math and I do not see how we save in this deal! Vectern you say the $1.08 will be phased in? Even if the savings doubles and our costs are reduced by half as the result of phasing in, we still loose. Show us your expected charge VS our expected savings month per month for the 36-years, I’m sure you’ve looked at it.
We spoke with Vectren and the $100 is the net savings over the 36 years. So they say $1.08 to them every month and $1.31 in savings back to each user per month. Any way you cut the cake it is a very small cake.
OK Thanks I missed the NET savings. Chaa-ching $100.00 / 432 = $.2314 per month, can’t even buy a (you fill in the space) with that!
Vectren buys their coal to fuel their power power plants from themselves–one of their wholly own bussiness–a coal mine. Conflict of interest????
what’s interesting is that they just renegotiated their coal contracts with themselves at a lower price that will eventually work it”s way out to the consumers. And coal is not the only wholly owned subsidiary, they also own Air Quality Services that certifies the pollution monitors at the powerhouses.
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