Vectren the Issue: Smaller Hike Ok, 'Decoupling' Is Not. Our View: Could Have Been Worse.

Summary

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As unpopular and difficult as any electricity rate increase can be, the Vectren rate increase approved Wednesday by Indiana utility regulators could have been worse for its customers.

The Evansville-based company had asked permission to collect an additional $54 million when it filed for the increase in late 2009, saying it needed the additional revenue to recoup the costs of system improvements, such as new substations, transmission lines and clean emissions projects. But this week the Indiana Utility Regulatory Commission ruled that Vectren could collect a smaller annual amount of $28.6 million. That is its first rate increase since 2007.

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Vectren the Issue: Smaller Hike Ok, 'Decoupling' Is Not. Our View: Could Have Been Worse.

Had the full request been approved, it would have cost the average residential customer -- someone who uses 900 kilowatts...

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