Vectren coal-buying agreements raise questions

INDIANAPOLIS (AP) -  Indiana's utility consumer counselor and public advocacy groups are raising questions about a coal-buying arrangement that's boosted Vectren Corp.'s profits at the expense of its ratepayers.

The Evansville-based utility locked into expensive, multiyear agreements in 2008 to buy nearly all of its coal supply for its coal-fired power plants from its own wholly-owned mining subsidiary, Vectren Fuels. Those agreements were struck at a time when coal prices were at record highs.

The Indianapolis Star reports that Vectren's coal purchases boosted the parent company's profits at the expense of its southwestern Indiana ratepayers, whose rates are among the highest in the nation.

Indiana Consumer Counselor David Stippler calls Vectren's coal-buying agreements highly questionable.

Vectren officials say the coal contracts represented the best deal they could get at the time.