EVANSVILLE, Ind., Oct. 14 /PRNewswire-FirstCall/ -- Having recently submitted a grant application to the U.S. Department of Energy (DOE) to support smart grid implementation in its southwestern Indiana electric service territory, Vectren Energy Delivery of Indiana - South (Vectren) today filed for regulatory approval from the Indiana Utility Regulatory Commission (IURC) to move forward with the accelerated grid modernization project should federal dollars be awarded.
Creating a smart grid requires a complete modernization of a utility's electrical system and infrastructure. Using wireless sensors, communications networks, software and other technology, upgrading to a smart grid enables utilities to see how much and where energy is being consumed in real-time and instantly detect if there are problems in the system. Smart grid development also encompasses digital smart meters on homes and businesses that provide two-way communication between customers and utilities and will replace traditional meters. Furthermore, if installed, these enhancements will dramatically improve system reliability, positively impact outage prevention and response and enable the expansion of renewable energy generation.
"Smart grid technology creates a two-way digital communication link between Vectren and its customers as well as Vectren and its energy delivery infrastructure," said Vectren President and COO Carl Chapman. "For customers, it means a better understanding of how to utilize energy as efficiently as possible, which could lead to substantial cost savings. Smart grid technology brings a clearer picture of how much and where energy is being consumed in real-time, which will help minimize excess generation, and thus, reduce carbon emissions. Furthermore, the technology improves our ability to pinpoint outages, including direct communication with substation equipment and individual smart meters, to ensure efficient restoration."
Details of the filing include a request for project pre-approval and an ability to recover project costs as incurred as well as approval of dynamic pricing tariffs, which would provide the means for customers to effectively manage their energy costs by limiting energy use, for example, during higher-cost peak times in the summer.
"If implemented, the project will also include new residential rate designs, which take advantage of smart meter technology and provide customers a tool to better manage their electric energy consumption and potentially reduce their electric bills," added Chapman.
Later this month or in early November, the DOE may award up to $4.5 billion in smart grid grants nationwide as part of the economic stimulus and infrastructure bill passed earlier this year. Vectren's proposal to the DOE includes a request for $45 million, or roughly 50 percent of the project's total cost.
"If awarded, the DOE would require implementation to begin almost immediately to ensure the funds are spent within the next three years," said Chapman. "We want to make sure we have the necessary regulatory approval in progress to capitalize on any awarded dollars and quickly initiate the project."
Vectren's electric utility serves more than 140,000 customers in all or portions of seven counties in southwestern Indiana, including Vanderburgh, Warrick, Spencer, Gibson, Posey, Pike and Dubois.
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/.
Vectren Corporation
CONTACT: Chase Kelley, +1-812-491-4128, kckelley@vectren.com
Web Site: http://www.vectren.com/
