Vectren Could Merge With Texas Company

Indiana-based energy company Vectren will be acquired by a Texas-based firm. In the past few years, Vectren has had some of the highest rates in Indiana, and customers have noticed.

The merger with Houston-based CenterPoint Energy will not have any impact in the short term due to rates already being set.

However, Vectren CEO Carl Chapman says the acquisition could benefit consumers financially.

“That combined scale ought to result in some lower rates.”

Indiana University business professor Scott Smart says while it could help reduce costs, it could also increase prices.

“When two firms in the same industry are combining, that that will reduce competition within a market. And reduced competition can lead to higher prices for consumers or lower service perhaps.”

The merger still needs to be approved by federal agencies.  The merger is expected to be complete by the first quarter of 2019.