Vectren Answers Critics on Coal Buying Agreements
By: Michael C. Fehn
Updated: November 19, 2012
Vectren is responding to critics who are raising questions about a coal buying agreement
Indiana's Utility Consumer Counselor and public advocacy groups have raised concerns about a 2008 coal-buying arrangement they say has boosted Vectren's profits at the expense of Tri-State residents. They say the utility locked into expensive, multi-year agreements in 2008, to buy nearly all of its coal supply from its wholly-owned mining subsidiary, when coal prices were at record highs.
In an email to Eyewitness News, Vectren Spokesperson, Chase Kelley says, the contracts of the 2008 purchase have since expired, and the company went shopping for coal again in 2010, with different results.
"Prices had moderated due to the recession - and customers are getting the benefits of those moderate prices today", Kelley says.
She went on to say that the purchases were made in two different years at a time when market conditions were much different.
"We have been very transparent about our coal purchases and rates - and will continue to be. And our coal purchases absolutely were not the cause of our higher electric rates - that has everything to do with our status on making environmental investments ahead of others", according to Kelley.
Indiana's Utility Consumer Counselor and public advocacy groups have raised concerns about a 2008 coal-buying arrangement they say has boosted Vectren's profits at the expense of Tri-State residents. They say the utility locked into expensive, multi-year agreements in 2008, to buy nearly all of its coal supply from its wholly-owned mining subsidiary, when coal prices were at record highs.
In an email to Eyewitness News, Vectren Spokesperson, Chase Kelley says, the contracts of the 2008 purchase have since expired, and the company went shopping for coal again in 2010, with different results.
"Prices had moderated due to the recession - and customers are getting the benefits of those moderate prices today", Kelley says.
She went on to say that the purchases were made in two different years at a time when market conditions were much different.
"We have been very transparent about our coal purchases and rates - and will continue to be. And our coal purchases absolutely were not the cause of our higher electric rates - that has everything to do with our status on making environmental investments ahead of others", according to Kelley.
