By contrast, air emissions from Vectren's system have decreased even more dramatically in the same time period. Through the investment of millions of dollars in emissions control equipment, Vectren’s power system is one of the best controlled in the Midwest.

In 2004, the EPA announced new multi-pollutant reduction requirements, mandating further significant emission reductions in SO2, NOx and mercury. In May of 2005, Vectren filed a new multi-emission compliance plan with the Indiana Utility Regulatory Commission (IURC). When implemented, Vectren's entire electric generation fleet will be controlled for SO2 and NOx and will further reduce mercury 65% across the system to meet the new mercury reduction requirements.

Included in phase one of the proposed project is an expenditure of approximately $110 million to fund the construction of a flue gas desulfurization system (scrubber) at Warrick Unit 4 scheduled for completion by 2009 and the installation of a fabric filter at F.B. Culley Unit 3 scheduled to be in service by late 2006.

Nitrogen Oxide (NOx) Emissions Control
In May of 2005, Vectren completed the installation of the last of four selective catalytic reduction (SCR) devices on its baseload generation fleet. The $255 million project, which began in the fall of 2001, was implemented specifically to target NOx emissions. The pollution control equipment has successfully cut NOx emissions by 80% over the past four years and met EPA and the Indiana Department of Environmental Management (IDEM) pollution reduction goals ahead of regulatory compliance deadlines.

Sulfur Dioxide (SO2) Emissions Control Vectren uses a flu gas desulfurization (FGD) unit, often called a scrubber, to remove SO2 from flue gas. F.B Culley Units 2 and 3 share an FGD unit. The $107 million investment, which has been in operation since September 1994, uses 140,000 tons of limestone annually. A.B. Brown Units 1 and 2 each have a dual-alkali scrubber. The $18 million investment for Unit 1 was implemented in 1979, and Unit 2’s $30 million scrubber has been operational since 1986. Upon the completion of the Warrick Unit 4 scrubber and the shut down of F.B. Culley Unit 1, the entire Vectren system will be scrubbed for SO2. But Vectren does not intend to stop there. We are currently studying enhancements to the older dual alkali scrubbers at AB Brown to make Vectren's control of SO2 emissions even more effective.

The SRC unit at Vectren's F.B. Culley plant has been reducing NOx emissions since 2003.

Particulate Matter (PM) Emissions Control Vectren is one of the few Midwestern utilities to install state-of-the-art fabric filter technology on units that burn high sulfur coal. In 2004, we replaced an existing electrostatic precipitator at Brown Unit 1 with a fabric filter which increased the particulate removal rate of the unit to 99% and greatly enhanced the ability of the unit to remove fine particulates. Vectren will spend an additional $37 million to construct a fabric filter at Culley Unit 3 which is expected to be in full operation by late 2006.

The giant hoppers at the base of A.B. Brown's fabric filter collect soot and ash from exhaust gas.

Mercury Emissions Control

Studies by the Department of Energy and EPA indicate that the most effective mercury removal strategy of mercury results from the combination of existing pollutant removal technologies employed to remove SO2 NOx and particulate matter. Vectren currently employs this combination of control technology across its system. This pollution control technology enables Vectren units within the system to currently control mercury at high levels of efficiency. With the shut down of Culley Unit 1 in 2006, the installation of the Culley Unit 3 fabric filter in 2006 and the completed construction of the scrubber on Warrick Unit 4 in 2009, we will further reduce our mercury emissions across the Vectren system by 65%.