Vectren North signs 5-year gas supply contract
Vectren Energy Delivery of Indiana – North (Vectren North) recently signed a five-year contract with a national supplier of natural gas in order to secure prices and a portion of its supplies through March 2023.
“Natural gas prices continue to remain low and are expected to be into the foreseeable future which has helped keep bills very affordable,” Mike Roeder, president of Vectren North, said. “It is certainly good news for our Hoosier customers, as Vectren North has locked in these favorable market conditions for its customers for the five year term.”
Under the agreement, Vectren North will purchase 6.5 million dekatherms annually, which amounts to approximately 10 percent of the utility’s annual supply purchases, at a cost just under $3 per dekatherm beginning in April 2018 and continuing through March 2023.
Vectren North received approval from Indiana Utility Regulatory Commission (IURC) to adjust its natural gas purchasing strategy, enabling the company to enter into purchases of more than 24 months. Vectren Energy Delivery of Indiana – South filed with the IURC this month for a similar authorization.
Vectren North’s remaining supply needs will continue to be met through its portfolio approach of long-term, intermediate-term and short-term purchases, as well as the use of its numerous storage fields throughout the state.
Vectren North, which serves 580,000 gas customers, does not profit from the sale of natural gas but instead passes these costs along to customers at actual commodity prices on a dollar-for-dollar basis.
