VERIFIED PETITION OF SOUTHERN INDIANA GAS AND ELECTRIC COMPANY d/b/a VECTREN ENERGY DELIVERY OF INDIANA, INC. (“VECTREN SOUTH”) FOR (1) ISSUANCE OF A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE CONSTRUCTION OF A COMBINED CYCLE GAS TURBINE GENERATION FACILITY (“CCGT”); (2) APPROVAL OF ASSOCIATED RATEMAKING AND ACCOUNTING TREATMENT; (3) ISSUANCE OF A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR COMPLIANCE PROJECTS TO MEET FEDERALLY MANDATED REQUIREMENTS (“CULLEY 3 COMPLIANCE PROJECT”); (4) AUTHORITY TO TIMELY RECOVER 80% OF THE COSTS INCURRED DURING CONSTRUCTION AND OPERATION OF THE CULLEY 3 COMPLIANCE PROJECTS THROUGH VECTREN SOUTH’S ENVIRONMENTAL COST ADJUSTMENT MECHANISM; (5) AUTHORITY TO CREATE REGULATORY ASSETS TO RECORD (A) 20% OF THE REVENUE REQUIREMENT FOR COSTS, INCLUDING CAPITAL, OPERATING, MAINTENANCE, DEPRECIATION, TAX AND FINANCING COSTS ON THE CULLEY 3 COMPLIANCE PROJECT WITH CARRYING COSTS AND (B) POST-IN-SERVICE ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION, BOTH DEBT AND EQUITY, AND DEFERRED DEPRECIATION ASSOCIATED WITH THE CCGT AND CULLEY 3 COMPLIANCE PROJECT UNTIL SUCH COSTS ARE REFLECTED IN RETAIL ELECTRIC RATES; (6) ONGOING REVIEW OF THE CCGT; (7) AUTHORITY TO IMPLEMENT A PERIODIC RATE ADJUSTMENT MECHANISM FOR RECOVERY OF COSTS DEFERRED IN ACCORDANCE WITH THE ORDER IN CAUSE NO. 44446; AND (8) AUTHORITY TO ESTABLISH DEPRECIATION RATES FOR THE CCGT AND CULLEY 3 COMPLIANCE PROJECT ALL UNDER IND. CODE §§ 8-1-2-6.7, 8-1-2-23, 8-1-8.4-1 ET SEQ, 8-1-8.5-1 ET SEQ., AND 8-1-8.8 -1 ET SEQ. |