Vectren (VVC) 8-K Results of Operations and Financial Condition

Exhibit 99.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share amounts)
(Unaudited)
	Three Months
	Ended March 31
	2010			2009
OPERATING REVENUES:
Gas utility	$	468.1		$	527.4
Electric utility		144.9			125.0
Nonutility revenues		127.3			142.8
Total operating revenues		740.3			795.2
OPERATING EXPENSES:
Cost of gas sold		297.8			354.6
Cost of fuel and purchased power		58.0			47.0
Cost of nonutility revenues		60.5			74.2
Other operating		128.9			122.7
Depreciation and amortization		55.8			51.4
Taxes other than income taxes		23.1			23.5
Total operating expenses		624.1			673.4
OPERATING INCOME		116.2			121.8
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated affiliates		8.2			12.6
Other income (loss)- net		(0.5	)		2.4
Total other income		7.7			15.0
INTEREST EXPENSE		26.0			22.7
INCOME BEFORE INCOME TAXES		97.9			114.1
INCOME TAXES		34.7			41.3
NET INCOME	$	63.2		$	72.8
AVERAGE COMMON SHARES OUTSTANDING		81.0			80.6
DILUTED COMMON SHARES OUTSTANDING		81.2			80.7
EARNINGS PER SHARE OF COMMON STOCK
BASIC	$	0.78		$	0.90
DILUTED	$	0.78		$	0.90

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
	Three Months
	Ended March 31
	2010		2009
OPERATING REVENUES:
Gas utility	$	468.1	$	527.4
Electric utility		144.9		125.0
Other		0.4		0.4
Total operating revenues		613.4		652.8
OPERATING EXPENSES:
Cost of gas sold		297.8		354.6
Cost of fuel and purchased power		58.0		47.0
Other operating		81.6		79.3
Depreciation and amortization		46.5		43.9
Taxes other than income taxes		22.3		22.8
Total operating expenses		506.2		547.6
OPERATING INCOME		107.2		105.2
OTHER INCOME - NET		2.2		1.5
INTEREST EXPENSE		20.3		18.7
INCOME BEFORE INCOME TAXES		89.1		88.0
INCOME TAXES		33.7		31.8
NET INCOME	$	55.4	$	56.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	March 31,			December 31,
	2010			2009
ASSETS
Current Assets
Cash & cash equivalents	$	69.0		$	11.9
Accounts receivable - less reserves of $7.5 &
$5.2, respectively		200.3			162.4
Accrued unbilled revenues		87.4			144.7
Inventories		131.3			167.8
Prepayments & other current assets		51.6			95.1
Total current assets		539.6			581.9
Utility Plant
Original cost		4,649.2			4,601.4
Less:  accumulated depreciation & amortization		1,750.2			1,722.6
Net utility plant		2,899.0			2,878.8
Investments in unconsolidated affiliates		180.1			186.2
Other utility and corporate investments		33.3			33.2
Other nonutility investments		42.1			46.2
Nonutility property - net		488.8			482.6
Goodwill - net		242.0			242.0
Regulatory assets		173.9			187.9
Other assets		29.6			33.0
TOTAL ASSETS	$	4,628.4		$	4,671.8
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	129.1		$	183.8
Accounts payable to affiliated companies		32.7			54.1
Refundable fuel & natural gas costs		12.9			22.3
Accrued liabilities		214.6			174.7
Short-term borrowings		164.3			213.5
Current maturities of long-term debt		48.0			48.0
Long-term debt subject to tender		41.3			51.3
Total current liabilities		642.9			747.7
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,549.9			1,540.5
Deferred Income Taxes & Other Liabilities
Deferred income taxes		468.3			458.7
Regulatory liabilities		330.7			322.1
Deferred credits & other liabilities		206.6			205.6
Toal deferred credits & other liabilities		1,005.6			986.4
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
81.2 and 81.1 shares, respectively		668.4			666.8
Retained earnings		772.9			737.2
Accumulated other comprehensive income (loss)		(11.3	)		(6.8	)
Total common shareholders' equity		1,430.0			1,397.2
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,628.4		$	4,671.8

VECTREN CORPORATION
AND SUBSIDIARY  COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	Three Months
	Ended March 31
	2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	63.2		$	72.8
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		55.8			51.4
Deferred income taxes & investment tax credits		9.5			11.3
Equity in earnings of unconsolidated affiliates		(8.2	)		(12.6	)
Provision for uncollectible accounts		6.5			4.3
Expense portion of pension & postretirement benefit cost		3.1			2.6
Other non-cash charges - net		8.4			1.0
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue		12.9			120.7
Inventories		36.5			38.8
Recoverable/refundable fuel & natural gas costs		(9.4	)		24.7
Prepayments & other current assets		42.7			83.2
Accounts payable, including to affiliated companies		(79.2	)		(167.0	)
Accrued liabilities		41.3			43.4
Unconsolidated affiliate dividends		6.9			4.3
Employer contributions to pension & postretirement plans		(4.3	)		(2.6	)
Changes in noncurrent assets		21.0			14.8
Changes in noncurrent liabilities		(4.0	)		(6.6	)
Net cash flows from operating activities		202.7			284.5
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Dividend reinvestment plan & other		1.5			1.5
Long-term debt		-			191.2
Requirements for:
Dividends on common stock		(27.5	)		(27.1	)
Retirement of long-term debt		(0.7	)		(0.6	)
Net change in short-term borrowings		(49.2	)		(405.9	)
Net cash flows from financing activities		(75.9	)		(240.9	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions		0.5			-
Other collections		2.0			0.9
Requirements for:
Capital expenditures, excluding AFUDC equity		(71.0	)		(117.4	)
Unconsolidated affiliate investments		(0.1	)		(0.1	)
Other investments		(1.1	)		(0.8	)
Net cash flows from investing activities		(69.7	)		(117.4	)
Net change in cash & cash equivalents		57.1			(73.8	)
Cash & cash equivalents at beginning of period		11.9			93.2
Cash & cash equivalents at end of period	$	69.0		$	19.4

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months
	Ended March 31
	2010			2009
REPORTED EARNINGS:
Utility Group	$	55.4		$	56.2
Nonutility Group
Energy Marketing and Services		10.2			15.4
Coal Mining		3.9			2.8
Energy Infrastructure Services		(3.3	)		(0.5	)
Other Businesses		(3.0	)		(1.2	)
Total Nonutility Group		7.8			16.5
Corporate and Other		-			0.1
Vectren Consolidated	$	63.2		$	72.8
REPORTED EPS	$	0.78		$	0.90

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months
	Ended March 31
	2010			2009
GAS OPERATING REVENUES (Millions):
Residential	$	323.8		$	363.1
Commercial		121.6			140.7
Industrial		18.8			18.5
Other Revenue		3.9			5.1
	$	468.1		$	527.4
GAS MARGIN (Millions):
Residential	$	113.2		$	115.1
Commercial		36.8			37.5
Industrial		16.2			15.1
Other		4.1			5.1
	$	170.3		$	172.8
GAS SOLD & TRANSPORTED (MMDth):
Residential		38.3			36.8
Commercial		16.3			15.8
Industrial		26.6			24.1
		81.2			76.7
AVERAGE GAS CUSTOMERS
Residential		908,723			909,616
Commercial		83,933			84,515
Industrial		1,618			1,610
		994,274			995,741
YTD WEATHER  AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)		111	%		105	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months
	Ended March 31
	2010			2009
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	49.5		$	43.5
Commercial		33.3			31.0
Industrial		45.6			35.8
Other Revenue		1.9			1.5
Total Retail		130.3			111.8
Net Wholesale Revenues		14.6			13.2
	$	144.9		$	125.0
ELECTRIC MARGIN (Millions):
Residential	$	33.8		$	30.9
Commercial		21.8			21.1
Industrial		22.2			18.7
Other		1.7			1.6
Total Retail		79.5			72.3
Net Wholesale Margin		7.4			5.7
	$	86.9		$	78.0
ELECTRICITY SOLD (GWh):
Residential		411.2			377.8
Commercial		300.7			293.8
Industrial		610.4			509.0
Other Sales - Street Lighting		6.0			5.1
Total Retail		1,328.3			1,185.7
Wholesale		235.4			341.6
		1,563.7			1,527.3
AVERAGE ELECTRIC CUSTOMERS
Residential		123,029			122,590
Commercial		18,314			18,344
Industrial		107			104
Other		33			33
		141,483			141,071
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)		N/A			N/A
Heating Degree Days (Indiana)		108	%		94	%