RELATED: Vectren applies to raise natural gas rates
However, the PUCO expects to initiate a rate cut tied to recent federal tax cuts to offset some of that increase. Expected reductions will reach $82.6 million prior to tax adjustments, regulators said.
Customers can expect rate increases of $2.50 or less a month as Vectren continues its infrastructure replacement program to replace aging pipelines through 2023, PUCO said.
In addition, Vectren will begin collecting deferred expenses related to a capital expenditures program, with monthly bills rising about $1.50 a month.
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In all, state regulators approved an agreement that will allow Vectren to increase annual distribution rates by $22 million, lower than the $34 million increase the company originally sought.
The PUCO says distribution rates will reflect the federal tax cuts corporations received in the Tax Cuts and Jobs Act of 2017. The agreement establishes a method for Vectren to return to customers “excess rates” collected by the utility since the tax cut went into effect in January 2018.
Vectren will also continue a conservation and energy efficiency program, and will commit $75,000 of shareholder funds to the city of Dayton for economic development purposes, the PUCO also said.
Vectren filed an application to increase its distribution rates in March 2018.
The company provides gas and/or electricity to more than 1 million people in nearly two-thirds of Indiana and about 20 percent of Ohio, mostly counties in west-central Ohio, including the Dayton area.
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