Vectren Signs 5-Year Gas Supply Contract, Locks In Low Prices 

To take advantage of low, stable natural gas pricing market conditions, Vectren Energy Delivery of Indiana – South (Vectren South) recently signed a contract with a national supplier to lock in a portion of its natural gas supply through October 2023.

“Natural gas prices continue to remain low and are expected to be into the foreseeable future which has helped keep bills very affordable,” said Brad Ellsworth, president of Vectren Energy Delivery South. “It is certainly good news for our Hoosier customers, as Vectren South has locked in these favorable market conditions for its customers for the five year term.”

Vectren South received Indiana Utility Regulatory Commission (IURC) approval in 2012 to enter into long-term purchases of natural gas for terms of more than 24 months. Vectren South is taking this long-term approach to natural gas purchases in an effort to achieve the lowest gas cost reasonably possible for its customers. As a reminder, Vectren South has among the lowest natural gas rates in the state. As of January 2017, Vectren South was in position #17 out of 18 companies; with #18 being the lowest cost natural gas company.

Under the terms of the contract, Vectren South will purchase 1.1 million dekatherms annually, which is about 10 percent of the utility’s annual supply purchases, at a cost around $2.90 per dekatherm beginning in November 2018 and continuing through October 2023. Current market conditions provide the opportunity to secure long-term gas supply at this time at an attractive price, while complementing the utility’s long-standing portfolio approach to natural gas acquisition. Vectren South’s remaining supply needs will be met through its portfolio approach of long-term, intermediate-term and short-term purchases, as well as the utilization of its various storage fields throughout the state.

Vectren South does not profit from the sale of natural gas. These costs are passed along to customers at actual commodity prices on a dollar-for-dollar basis.

Vectren South delivers natural gas to approximately 111,000 customers in Daviess, Gibson, Knox, Martin, Pike, Posey, Spencer, Vanderburgh and Warrick counties.