EVANSVILLE, Ind., May 23 /PRNewswire-FirstCall/ -- Vectren Energy Delivery of Indiana, Inc., a wholly owned subsidiary of Vectren Corporation , has entered into a new power purchase agreement, effective 2010 through 2012, to help meet peak electric demand in the coming years. In turn, the company officially withdrew its request from the Indiana Utility Regulatory Commission (IURC) to build a 100 Megawatt (MW) natural-gas-fired peaking unit in Gibson County, Ind.
"Our electric service area continues to experience moderate growth, and the need for additional power was coming quickly given an existing 100 MW power purchase agreement was set to expire in 2009," said Ron Jochum, Vectren's vice president of power supply. "This contract allows us to delay the need to build new generation while meeting the peak needs of our southwestern Indiana customers."
The company is also pursuing development of electric demand side management programs, which will be filed with the IURC later this year. If approved, Vectren will provide proven conservation and energy efficiency programs to residential and commercial electric customers in southwestern Indiana. Examples of program components may include additional incentives for Vectren's Summer Cycler program, rebates on compact fluorescent lamp (CFL) light bulbs, and on-site audits and assistance programs for qualifying customers.
"Our proposed electric conservation programs combined with the new power purchase agreement will ensure our generation needs are met for the next several years," Jochum said. "Our goal is to implement customer solutions that help them lower usage, however, customer growth, particularly on the large commercial and industrial side, may spur the need for more baseload generation in the next decade. Similar to our recent purchase of wind energy, we will also explore opportunities to incorporate additional renewable energy resources, with a heavy focus on those produced in Indiana."
Vectren's total generation capacity of 1,425 MW includes 1,295 MW of coal and gas-fired generation, 30 MW of wind power and 100 MW of purchased power. Furthermore, interruptible load and demand side management initiatives can yield more than 60 MW of energy savings to meet peak demand if needed.
About Vectren
Vectren Corporation is an energy holding company headquartered in Evansville, Ind. Vectren's energy delivery subsidiaries provide gas and/or electricity to more than one 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 Midwest and Southeast. These include gas marketing and related services; coal production and sales; and energy infrastructure services. To learn more about Vectren, visit http://www.vectren.com/.
