Learn about a risky plan that could cost Hoosiers billions in increased energy costs.

The proposed substitute natural gas (SNG) plant in Rockport, Ind. is estimated to cost the State of Indiana nearly $1.1 billion in its first eight years of operation, a cost that will be borne by all Hoosier natural gas customers. This site is dedicated to protecting Hoosier gas customers.

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Get the facts about the proposed SNG plant

SNG Price Comparison Projected costs of Natural Gas vs. SNG
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Background The Indiana Finance Authority (IFA) signed a 30-year deal with Indiana Gasification, a subsidiary of Leucadia Corporation of New York, to buy most of the output of the SNG plant. IFA will sell the SNG on the open market at prevailing prices. If the SNG is sold at a price below what IFA paid, the Hoosier gas customers will be charged 100% of the shortfall, but if it is sold above the price IFA paid, only 50% of the gain will be credited to customers’ bills. Continue Reading

How It WorksOnce operational, the IFA will buy most of the plant’s output and re-sell it into the open market. If the manufactured gas does not sell in the open market at a price above the contract price, which is projected to escalate each year for the contract period, then Indiana’s natural gas customers will see a charge on their monthly natural gas bills to make up the shortfall.

Your RiskBased on future natural gas prices, customers will pay nearly $1.1 billion in its first eight years of operation. This loss will be passed on by the State of Indiana and will be borne by Hoosier natural gas customers. More facts »

Act NowPlease contact your state legislators and ask them to vote in favor of Senate Bill 510 and House Bill 1515 in order to protect Hoosier natural gas customers from the financial risks of the proposed Rockport substitute natural gas (SNG) plant by triggering a review and true-up every three years to ensure customers are not subsidizing this private development.

The impact on your bill

Based on the expected losses in the first eight years:
  • Residential Customers A Vectren residential customer would likely pay more than $375 on their gas bill to cover the expected losses on the SNG.
  • Business Customers An average size small business customer would likely pay up to an additional $2,000 more.
  • Small Industrial Customers A small industrial customer would likely pay up to an additional $250,000.