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Consumers of Vectren encouraged to testify at public hearing about proposed $27 million rate hike

Average monthly bill and customer charge to increase

COLUMBUS, Ohio — August 6, 2008 — The Office of the Ohio Consumers’ Counsel (OCC) is encouraging customers of Vectren Energy Delivery of Ohio to testify about the utility’s proposed natural gas delivery rate increase.

Vectren has proposed to increase its delivery rates by $27 million per year. The proposed rates vary according to season, so the impact on customers will be different in the summer than in the winter. Based on summer usage of 20 Ccf (hundred cubic feet), this would result in a 10 percent increase to customers’ monthly bills. Based on winter usage of 150 Ccf, this would result in a 5.5 percent increase. In addition, Vectren seeks to shift natural gas delivery charges away from being usage-based fees, which would significantly raise the fixed customer charge.

“Residential consumers are encouraged to participate in the local public hearings. The PUCO needs to hear from people who will be directly affected by the proposed rate increase,” said Janine Migden-Ostrander, Consumers’ Counsel. “By shifting many delivery costs based on a customer’s usage to fixed charges, Vectren’s proposed rates would discourage residents from conserving energy. Low-income and elderly populations also will be put more at risk by adopting this approach.”

The local public hearings will are scheduled to be held in:

Sidney, Wednesday, Sept. 3, 2008 at 6 p.m., Sidney Municipal Building, Council Chambers, 201 W. Poplar Street

Dayton, Thursday, Sept. 4, 2008 at 2 p.m. and 6 p.m., Dayton Municipal Building, Council Chambers, 101 W. Third Street

Washington Court House, Monday, Sept. 8, 2008 at 6 p.m., Fayette County Commission on Aging, 1179 S. Elm Street

The OCC, the residential utility consumer advocate, opposes the rate increase, asserts that Vectren has failed to prove that it needs to increase its rates to the level it has requested. The OCC’s expert testimony, filed at the PUCO, shows that the company has overstated some of its costs and investments.

The OCC also opposes raising the flat-rate customer charge because this change will have an adverse effect on lower-usage, lower income customers and will also have a negative impact on energy efficiency efforts by decreasing the incentive to conserve.

Based on Vectren’s proposal, the fixed customer charge would increase from $7 to $16.75, during the winter months of Nov. 1, 2008-April 30, 2009 while lowering the volumetric charge. A $10 customer charge would be in effect only during the lower-usage months of May-October, 2009. Beginning in 2010, the winter month customer charge would be $20.04, while the summer month customer charge would be $11.96.

Vectren serves approximately 293,000 residential customers in Miami Valley, including the Dayton area.

The OCC encourages individual customers to also share their opinions with the PUCO by writing letters to the PUCO about this case. All letters and envelopes should reference Case Number 07-1080-GA-AIR and be sent to: Public Utilities Commission of Ohio, Attn: Docketing Division, 180 E. Broad Street, Columbus, OH 43215.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.