Vectren Sources Clarify Customer Bill Impacts from Dense Pack Implementation


Vectren Sources Clarify Customer Bill Impacts from Dense Pack Implementation

After recognizing that the Vectren fact sheet issued yesterday may have been misinterpreted, Vectren authorities have reached out to clarify the actual benefit that a residential customer is expected to realize if the new dense pack technology is approved for installation by the IURC.

Dense pack technology enhances a turbine’s efficiency whereby it can produce the same amount of energy with less fuel (coal). Vectren wants to be clear that no charge will be added to customer bills until the dense pack technology has been installed and is turned on. When that happens, Vectren would begin adding a minimal monthly charge to the residential electricity bills to, over time, recover the costs of the technology. However, when the dense pack technology is brought online, it will result in a decrease in fuel costs given Vectren will not have to burn as much coal. As such, the fuel cost savings from utilizing this technology will instantly begin reducing the bill thereby offsetting the new monthly charge mentioned above. This offset (the lower fuel costs) would then continue over the life of the dense pack units and would yield $30 to $130 in savings at the residential customer level.

Vectren reiterates that while this implementation has not yet been approved that the net result to their customer base is positive.


  1. I think that all of us got it the first time that they are once again going to screw us, the clarification just confirms it for the folks that didn’t.


  2. More sneaky but non-committal words from Vectren. They seem to be trying to say that the real cost to us is not the $1.08 per month that they are asking for and that it may really be plus a few cents a month. The trouble with Vectren is they never just come out with numbers that favor customers. What they do is hint at it so they don’t have any legal trail leading back to a lie. This clarification reminds me of a drug commercial that spends 55 seconds selling you on it and the some fast talker spends 5 seconds with all the negative things that could happen.

    You know the ones. “If you shoot a rabbit, gain more than 7 ounces, can hop on one foot, know the alphabet backwards, or eat ice cream in February you may not see the results that we hinted at”. Why can’t Vectren just show the real numbers with any certainty. It makes me think that they are blowing smoke up our butts.

  3. i just keep waiting to get a letter in a Vectren envelope that reads:
    “Who run Bartertown ?”

  4. If it will save Vectren and the customer money in the end, then why petition for a rate increase?

    • They want us to make the payments for them. We all get 7 cents a month and they get a guaranteed 7.3% profit on a $32 Million investment. They also get to keep the technology and place it on their balance sheet.

  5. If it is going to save us more than #1.08 per month, why don’t they front the money for the change and give us a reduction in rates when it goes on line?

    I forgot, that makes sense and might not let them continue to pay their 7.3% dividends while they paid for the installation.

    On top of that, they will probably qualify for MORE ENERGY CREDITS that they can sell to “dirtier” plants. Those plants will be able to avoid federal censure and charge their customers more.

    Sorry, Vectren, too little for too much. How do you shave and keep from slitting your throat?

    • Good point. Given the scenario that Vectren says will happen why can’t they just make the improvements and forget about asking us for $1.08 each to give us back $1.25 or so each month. They should just forget about the $1.08 fee increase and raise their profits by 20 cents per customer per month. If they really believe in the story they are telling they would be better off by just doing it and keeping all of the savings. I guess that we are guaranteeing Vectren’s 7.3% ROI. There is nothing like a profitable enterprise with no risk at all.

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