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FAQ
When a company is considering making a large investment in a new or expanded facility, a key element of due diligence is estimating the project’s energy costs. This seemingly simple process can be filled with uncertainty due to many factors – both for the company and for the utility.
The questions and answers below are intended to clarify some of the issues related to gas cost estimation for large users in Vectren’s Ohio service territory.
The company only needs a “ballpark” estimate of its future energy costs, not a precise estimate. Why does it have to provide detailed usage information?
Published “all-in” unit cost data for natural gas, especially for large volumes, is not readily available. Consequently, a specific estimate based on a company’s actual projected energy profile may be the only way to estimate costs.
What is needed to prepare a monthly bill cost estimate?
While an estimate can be prepared with usage information only (expressed in CCF per month), it will eventually be important for the customer to provide other information, such as pressure and location, to allow Vectren to assess its ability to serve the customer, and the costs associated with doing so.
What if the customer does not have all of this information?
The best approach to this problem is to meet with a Vectren Account Manager 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 CCF (one hundred cubic feet) which is the unit used in the VEDO rate schedules)?
This is a frequent occurrence. There are several commonly used units of measurement for natural gas (e.g.,CCF MMBTU, MCF, dekatherms), and converting any of these to CCF is a fairly straightforward process. For assistance, contact Vectren Economic Development.
What about the cost of the natural gas commodity itself?
While it is possible for relatively small industrial users to purchase gas service from Vectren that includes the gas commodity itself (Rate 320), 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?
It may be possible for large users to seek a special rate under the terms of Rate 370.
