Vectren 2008 Annual Report Download - page 8

6 Vectren 2008
In January 2009, we introduced six hybrid bucket trucks
to our eet to help reduce fuel costs and lower our carbon
footprint in our electric service territory. Combined with other
hybrid vehicles already in Vectren’s eet, we estimate annual
savings of more than 13,000 gallons of fuel and reduced
carbon dioxide emissions of 110 tons per year, which is
equivalent to removing 20 vehicles from the road.
These types of projects t naturally with our pledge to help
customers Live Smart and use energy wisely. We are doing
the same things we are asking our customers to do, and we
are condent you will see many more efforts in the coming
years to help ensure the way we operate our business aligns
with our mission.
In 2008, Vectren recorded the best overall safety
record in its history, improving upon the company’s 2007
performance when Vectren’s Occupational Safety and Health
Administration recordable incidence rate was best-in-class
compared to peers by the American Gas Association. Our
employees have worked hard to nd the right combination
of safety awareness and accountability to make for a safe
work environment. What we have discovered is that there is
no magic formula to improve our safety record but rather a
continuous process of keeping safety at the forefront of our
business every day – not an afterthought.
Helping Nonutility Customers
No less important to our customer energy efciency efforts are
Vectren’s nonutility subsidiaries. ESG had another successful
year in both the performance contracting arena as well as in
its progress in creating innovative renewable energy projects.
The company signed a number of performance contracts to
help various government, nonprot and education institutions
dramatically cut energy costs and ultimately reduce their
collective carbon footprints through facility upgrades and energy
efciency overhauls. Examples include a $21-million effort with
the University of Arkansas to overhaul 56 buildings throughout its
Fayetteville campus and a $17-million partnership with the U.S.
Navy to renovate seven naval stations.
On the renewable energy front, ESG has constructed and
is operating the rst bio-fuel generated power source in
southwestern Indiana, which is being sold to Vectren’s utility.
Located at the Veolia Environmental Services landll in Pike
County, this 3.2 MW sustainability project will power up to
2,000 homes and by capturing the landll gas will provide
an environmental benet equivalent to planting 27,000
acres of forest. ESG also owns and operates a landll
project in Johnson City, Tennessee, and is designing, building
and will operate a project just outside Atlanta, Georgia.
Both of these projects convert landll methane to higher
quality natural gas that then can be used by local customers.
On the natural gas management side, Vectren’s subsidiary,
ProLiance, provides services to a broad range of municipalities,
utilities, industrial and commercial operations, schools and
healthcare institutions throughout the Midwest and Southeast
that offer ways to help clients manage their energy costs. For
example, customers wanting assistance in mitigating the price
risk associated with buying natural gas can participate in an
aggregate price management program, in which ProLiance
helps manage gas supply and price volatility.
ProLiance also provides energy audits to customers who
wish to reduce their energy consumption. Energy auditors
thoroughly examine the client’s facility to determine how
energy is being used and make recommendations for changes
that can be made to improve energy efciencies. Through the
use of monitoring equipment, customers have the ability to
benchmark the before-and-after effects of implementing the
suggested changes.
Vectren’s subsidiary, Energy Systems Group, helps its
clients improve their energy efciency and advance their
sustainability initiatives through facility upgrades that
pay for themselves from energy savings and operational
improvements. As an example, at the University of
Arkansas’ Fayetteville campus, ESG is installing more
efcient lighting and HVAC systems in classroom
buildings, among many other renovations.