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IN Regulators OK ProLiance Supply Deal with Utility Affiliates

The Indiana Utility Regulatory Commission (IURC) last week approved a contract that will allow Vectren Energy Delivery and Citizens Gas & Coke Utility to continue to utilize the natural gas supply services of ProLiance Energy LLC through March 2011. The original settlement was reached in early February (see NGI, Feb. 6).

Vectren's energy delivery subsidiaries provide gas and/or electricity to more than one million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren and Citizens formed ProLiance as a joint venture in 1996. At the time, the two utilities said they had identified potential gas cost savings resulting from the joint management of their interstate supply portfolios and contracted with ProLiance to provide services to them at a reduced cost. To date, the utilities said that utility customers have enjoyed a cumulative savings of more than $85 million due to ProLiance's portfolio management.

"This long-term contract is great news for our customers who have realized millions of dollars in gas cost savings over the past several years thanks to the energy purchasing expertise of this Indiana-based company," said Carl Chapman, Vectren Corp.'s executive vice president and COO.

In June 2002, Citizens Gas, Vectren Energy Delivery, the Indiana Utility Consumer Counselor, the Citizens Action Coalition of Indiana Inc. and an Industrial Customer Group entered into a settlement resolving outstanding issues related to ProLiance's supply services to Citizens Gas and Vectren, and providing that ProLiance would remain the utilities' supplier through March 2007. Tuesday's commission order represents an approval of a new agreement for ProLiance's provision of services to Vectren and Citizens for the period of April 1, 2006 through March 31, 2011. The new agreement continues the cost savings for customers as originally intended.

Indianapolis, IN-based Citizens Gas & Coke Utility is a Public Charitable Trust that provides energy services to more than 266,000 customers in and around Marion County, IN.

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