Exhibit 99.2
Vectren South Electric - Rate Case Settlement
· | Overall Revenue Increase - $60.8 Million ($67.3 Million less $6.5 Million Municipal Contract credits through Reliability Cost Recovery Adjustment (RCRA) in the first year) |
· | Authorized ROE - 10.40% |
· | Overall Rate of Return - 7.32% |
· | Capital Structure - |
o | 47% Equity in Ratemaking Capital Structure |
o | 55% Equity in Permanent Capital Structure |
· | Rate Base - $1,043.7 Million |
· | Additional recovery mechanisms approved: |
o | MISO Cost Recovery Adjustment (MCRA) - Tracker includes timely recovery of ongoing costs associated with the Midwest Independent Transmission System Operators (MISO). Tracker also includes MISO approved transmission projects that will earn a return equal to FERC rates. Return on Vectren Transmission Projects that qualify for Regional Expansion Criteria and Benefit Process (RECB) treatment will be recovered under MISO Schedule 26. |
o | RCRA - Track reliability costs, including Municipals sales credit, Wholesale Power Margins sharing, Environmental Emission Allowance Credits, Interruptible Sales Credits, and Purchased Power Non-Fuel Costs. |
§ | Municipal sales credits - 100% of margins on existing contracts which expire during 2007 and 2008. |
§ | Wholesale Power Margins - 50/50 symmetrical sharing with customers around $10.5 Million base level. |
· | IURC Hearing on the Settlement May 3, 2007 |
· | Comparison of Settlement to Initial Filed Request: |
o | Revenue Increase, net of Municipal credits, of $60.8 million, compared to $76.7 million as originally filed. |
o | Authorized ROE of 10.4%, compared to 12.0% as originally filed. |