Ohio Gas Utility Asks Commission to Include Energy Efficiency In Compensation Formula
Vectren Energy files a request with the Public Utilities Commission (PUC) of Ohio on November 28 that requests that its customers compensate the company to help them reduce their natural gas consumption through energy efficiency. Vectren Energy is headquartered in Evansville, Indiana, and provides electricity and natural gas to customers in southwestern Indiana and natural gas to customers throughout Ohio.
Chairman of the Public Utilities Commission of Ohio Alan Schriber said, "What they're saying, basically, is they are admitting that conservation doesn't serve them well." He noted that under the existing regulatory framework, the company makes no money from high natural gas prices, only on distribution. Therefore the company's revenues decrease proportionally when gas consumption goes down from energy conservation. The PUC is not expected to rule on the case until 2007.
The Ohio Consumer Counsel supports the company's request because it will lead to decreased consumption and lower bills for consumers. You can see the counsel's and other comments and relevant documents that the Ohio PUC publishes under the case docket.