Utility company Vectren ( VVC) will spend $110 million to ensure its electric generation fleet is100% scrubbed for sulfur dioxide, 90% scrubbed for nitrogen oxide and to further reduce mercury to meet new mercury reduction requirements.

The company said the move comes as part of a multi-emission settlement between Vectren and the Indiana Office of Utility Consumer Counselor. Vectren said it has received approval from the Indiana Utility Regulatory Commission to begin construction of a flue gas scrubber at Warrick Unit 4, which Vectren co-owns with Alcoa, scheduled for completion by 2010, and the installation of a fabric filter at Culley 3, scheduled to be complete by mid-2007. Both projects will begin during 2006.

The IURC approval includes a cost recovery mechanism to spread the cost over multiple years to minimize customer impact. When fully implemented, this proposal, the company said, would mean an about 6% to 8% increase for a typical Vectren residential electric customer.

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