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Vectren’s long-term electric generation transition plan receives partial approval

1157 Days ago

EVANSVILLE, Ind., April 24, 2019 (GLOBE NEWSWIRE) -- Vectren Energy Delivery of Indiana - South (Vectren), a CenterPoint Energy company, today announced the Indiana Utility Regulatory Commission (IURC) granted partial approval of its Smart Energy Future long-term electric generation transition plan. Today’s approval is in addition to IURC approval last month to move forward with construction of a 50 megawatt (MW) universal solar array. Vectren’s Smart Energy Future strategy aims to ensure a reliable, reasonably priced and well-balanced energy mix for its 145,000 electric customers in southwestern Indiana.

In today’s order, the IURC approved the plan, filed in February 2018, to retrofit Vectren’s largest, most-efficient coal-fired generation unit, Culley Unit 3 (270 MW), to ensure it remains in compliance with EPA rules related to coal ash and waste water handling. Also related to Culley Unit 3, the IURC ruled that certain costs associated with ash pond closure are recoverable through a new annual rate adjustment mechanism, the environmental cost adjustment. The IURC also approved recovery of certain past pollution control investments at Vectren’s power plants through the new environmental cost adjustment. Vectren’s request to construct a 700-850 MW combined cycle natural gas plant was denied.

“We appreciate the IURC’s continued thorough review of our electric generation transition plan,” said Lynnae Wilson, chief business officer, Indiana electric. “As we demonstrated in our case, economic and reliability factors are driving a transition from coal-based generation and the selection of replacement resources will continue to be our focus. The case was filed at a time of significant changes in generation technology. While a large generation resource offered significant economic efficiencies, the IURC has directed us to increase our focus on the benefits of a more diverse resource mix. We look forward to continuing to discuss with the IURC investment alternatives to provide our customers affordable, reliable and balanced energy.”

As Vectren begins this year’s Integrated Resource Plan, the company will once again work to identify a mix of resources to meet a growing demand of cleaner, reasonably priced energy to the region while maintaining the reliability customers deserve and have come to expect. Full details of the 2019 IRP schedule including stakeholder engagement opportunities will be released soon and the direction and feedback from this order will be included in the IRP process. Because this order affirms another piece of an overall fleet plan, during its 2019 IRP Vectren will revisit its 2016 IRP inputs and assumptions to judge the effectiveness of partial implementation of the fleet plan at this time.

“We will continue moving forward with Vectren’s Smart Energy Future plan, and we remain dedicated to transforming the way Vectren produces and delivers power in order to become a next generation energy company,” said Wilson.

Forward Looking Statement
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “target,” “will” or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as future legislative and regulatory filings, actions and decisions, including the timing and impact of such actions and decisions, the timing of completion of the projects, the benefits derived from the projects under the respective plans, including options related to ash disposal, the projected impact to customers and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in business plans, financial market conditions and other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

About CenterPoint Energy
Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers primarily in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy’s competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $29 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

Media contact: Natalie Hedde, (812) 491-5105 or natalie.hedde@centerpointenergy.com
Investor Relations: Dave Mordy (713) 207-6500 or david.mordy@centerpointenergy.com

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