FAQ

Does a company need a “ballpark” estimate of a utility’s energy costs, or a relatively precise estimate based on the company’s actual projected consumption?

If a company only requires a generic estimate of electric cost, historic average unit cost data is readily available from several sources, such as the Edison Electric Institute or the Federal Energy Regulatory Commission (FERC).  Such unit cost data still requires that the customer know approximately how much electric energy it will use. 

Published unit cost data for natural gas, especially for large volumes, is not as readily available.

A specific estimate based on a company’s actual projected energy profile is preferable.

What is needed to prepare a monthly bill cost estimate?

For electricity, there are two key billing determinants: 1) usage (i.e., energy consumption, expressed in kilowatt hours (kWh) per month), and 2) peak demand (generally expressed in either kilowatts (kWh) or kilovolt-amperes (kVA).

For natural gas distribution services, an estimate can be prepared with usage information only (expressed in therms per month). 

What if the customer does not have all of this information?

It is not uncommon for a customer to know only one of the two electric billing determinants.  In such cases, Vectren can assist in estimating the other determinant if the customer can provide an indication of the project’s operating schedule. 

The best approach to this problem is to meet with one of Vectren’s Industrial Account Managers and complete a project load sheet, which takes into account all of the factors affecting a customer’s energy consumption, and yields a reliable energy usage estimate.

What can be done if the project’s natural gas usage is known, but it is not expressed in therms?

This is a frequent occurrence.  There are several commonly used units of measurement for natural gas (e.g., MMBTU, MCF, dekatherms), and converting any of these to therms is a fairly straightforward process.  For assistance, contact Vectren Economic Development. 

What about service voltage?  Does this factor play a role in cost estimating?

The voltage at which a customer takes service plays a major role in how the cost is estimated, because it impacts the tariff available to the customer.  There are two commonly applied tariffs for industrial and commercial customers, Rate DGS (Demand General Service) and Rate LP (Large Power).  If a customer takes service at “secondary voltage” (i.e.  240 volt or 480 volt), he is restricted to using only Rate DGS.  If a customer takes service at “primary” voltage (generally 12,470 volts for 3-phase service), then he can qualify for Rate LP, which will in most circumstances result in a lower cost per kWh.

If the customer intends to use a substantial amount of natural gas, can it procure the gas commodity from Vectren?

While it is possible for relatively small industrial users to purchase gas service from Vectren that includes the gas commodity itself (Rate w20), it is much more common for large users to purchase only “transportation service” from Vectren, and secure the gas commodity separately.  Vectren will provide information to potential customers about natural gas suppliers or marketers who are approved to serve customers on Vectren’s system.

Will the customer have to pay for the cost of extending a main to its facility?

If the customer will complete the second section (section B) of the Bill Estimator, Vectren will be able to provide an educated guess as to what additional costs will be incurred by the customer.  A more accurate approach is to complete a project load sheet with the assistance of a Vectren Account Manager.

Are there special rates available for new or expanding large customers?

There are several special riders in Vectren South’s gas and electric tariffs that provide for discounts in specific situations.  In Vectren North, it may be possible for large users to seek a special rate under the terms of Rate 270.