Vectren 2013 Annual Report Download - page 39

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37
Gas Utility Margin (Gas utility revenues less Cost of gas sold)
Gas utility margin and throughput by customer type follows:
Year Ended December 31,
(In millions) 2013 2012 2011
Gas utility revenues $ 810.0 $ 738.1 $ 819.1
Cost of gas sold 358.1 301.3 375.4
Total gas utility margin $ 451.9 $ 436.8 $ 443.7
Margin attributed to:
Residential & commercial customers $ 341.1 $ 333.9 $ 331.2
Industrial customers 58.0 55.2 54.0
Other 9.7 9.5 11.3
Regulatory expense recovery mechanisms 43.1 38.2 47.2
Total gas utility margin $ 451.9 $ 436.8 $ 443.7
Sold & transported volumes in MMDth attributed to:
Residential & commercial customers 111.9 90.2 99.9
Industrial customers 111.7 105.8 97.0
Total sold & transported volumes 223.6 196.0 196.9
Gas utility margins were $451.9 million for the year ended December 31, 2013, and compared to 2012, increased $15.1
million. Customer margin increased approximately $8.7 million in 2013 from customer growth and returns from infrastructure
replacement programs, particularly in Ohio. With rate designs that substantially limit the impact of weather on margin, heating
degree days that were 103 percent of normal in Ohio and 102 percent of normal in Indiana during 2013, compared to 88 percent
of normal in Ohio and 79 percent of normal in Indiana in 2012, had an approximate $0.8 million favorable impact on small
customer margin.
For the year ended December 31, 2012, gas utility margins decreased $6.9 million compared to 2011. Gas utility margin
decreased $10.9 million due to the impact of low natural gas prices and mild weather on revenue taxes, late and reconnect fees,
and volumetric pass through costs in 2012 compared to 2011. Returns generated on investments in infrastructure replacement
in Ohio increased margins $2.9 million in 2012 compared to the prior year. Excluding the impact of regulatory initiatives and
pass through costs, large customer margins in 2012 compared to the prior year increased $1.0 million on increasing volumes.
Large customer volumes in 2012 compared to 2011 significantly increased due to natural gas transported to a natural gas fired
power plant that was placed into service in the Vectren South service territory.