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							Six Months
	Ended June 30							Ended June 30
		2010			2009				2010			2009
OPERATING REVENUES:
Gas utility		$	122.9		$	139.1			$	591.0		$	666.5
Electric utility			151.0			132.7				295.9			257.7
Nonutility revenues			128.5			103.7				255.8			246.5
Total operating revenues			402.4			375.5				1,142.7			1,170.7
OPERATING EXPENSES:
Cost of gas sold			41.5			58.0				339.3			412.6
Cost of fuel and purchased power			57.8			50.3				115.8			97.3
Cost of nonutility revenues			49.4			43.3				109.9			117.5
Other operating			132.3			125.3				261.2			248.0
Depreciation and amortization			57.2			53.0				113.0			104.4
Taxes other than income taxes			12.1			13.2				35.2			36.7
Total operating expenses			350.3			343.1				974.4			1,016.5
OPERATING INCOME			52.1			32.4				168.3			154.2
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of unconsolidated affiliates			(13.9	)		(23.3	)			(5.7	)		(10.7	)
Other income - net			0.9			4.1				0.4			6.5
Total other income (expense)			(13.0	)		(19.2	)			(5.3	)		(4.2	)
INTEREST EXPENSE			26.0			25.5				52.0			48.2
INCOME (LOSS) BEFORE INCOME TAXES			13.1			(12.3	)			111.0			101.8
INCOME TAXES			4.4			(5.6	)			39.1			35.7
NET INCOME (LOSS)		$	8.7		$	(6.7	)		$	71.9		$	66.1
AVERAGE COMMON SHARES OUTSTANDING			81.0			80.7				81.0			80.7
DILUTED COMMON SHARES OUTSTANDING			81.2			80.7				81.2			80.7
EARNINGS (LOSS) PER SHARE OF COMMON STOCK
BASIC		$	0.11		$	(0.08	)		$	0.89		$	0.82
DILUTED		$	0.11		$	(0.08	)		$	0.89		$	0.82

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VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
	Three Months				Six Months
	Ended June 30				Ended June 30
	2010		2009		2010		2009
OPERATING REVENUES:
Gas utility	$	122.9	$	139.1	$	591.0	$	666.5
Electric utility		151.0		132.7		295.9		257.7
Other		0.4		0.4		0.8		0.8
Total operating revenues		274.3		272.2		887.7		925.0
OPERATING EXPENSES:
Cost of gas sold		41.5		58.0		339.3		412.6
Cost of fuel and purchased power		57.8		50.3		115.8		97.3
Other operating		71.2		78.7		152.8		158.0
Depreciation and amortization		46.8		45.0		93.3		88.9
Taxes other than income taxes		11.6		12.6		33.9		35.4
Total operating expenses		228.9		244.6		735.1		792.2
OPERATING INCOME		45.4		27.6		152.6		132.8
OTHER INCOME - NET		0.8		2.5		3.0		4.0
INTEREST EXPENSE		20.3		20.0		40.6		38.7
INCOME BEFORE INCOME TAXES		25.9		10.1		115.0		98.1
INCOME TAXES		9.7		3.5		43.4		35.3
NET INCOME	$	16.2	$	6.6	$	71.6	$	62.8

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	June 30,			December 31,
	2010			2009
ASSETS
Current Assets
Cash & cash equivalents	$	16.8		$	11.9
Accounts receivable - less reserves of $4.7 &
$5.2, respectively		138.7			162.4
Accrued unbilled revenues		58.2			144.7
Inventories		160.3			167.8
Recoverable fuel & natural gas costs		3.2			-
Prepayments & other current assets		76.3			95.1
Total current assets		453.5			581.9
Utility Plant
Original cost		4,697.1			4,601.4
Less: accumulated depreciation & amortization		1,779.7			1,722.6
Net utility plant		2,917.4			2,878.8
Investments in unconsolidated affiliates		169.9			186.2
Other utility and corporate investments		32.8			33.2
Other nonutility investments		40.6			46.2
Nonutility property - net		486.0			482.6
Goodwill - net		242.0			242.0
Regulatory assets		174.8			187.9
Other assets		29.5			33.0
TOTAL ASSETS	$	4,546.5		$	4,671.8
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	115.5		$	183.8
Accounts payable to affiliated companies		25.4			54.1
Refundable fuel & natural gas costs		1.3			22.3
Accrued liabilities		186.0			174.7
Short-term borrowings		145.6			213.5
Current maturities of long-term debt		49.1			48.0
Long-term debt subject to tender		41.3			51.3
Total current liabilities		564.2			747.7
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,549.4			1,540.5
Deferred Income Taxes & Other Liabilities
Deferred income taxes		480.2			458.7
Regulatory liabilities		327.8			322.1
Deferred credits & other liabilities		205.8			205.6
Total deferred credits & other liabilities		1,013.8			986.4
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
81.2 and 81.1 shares, respectively		670.7			666.8
Retained earnings		754.1			737.2
Accumulated other comprehensive income (loss)		(5.7	)		(6.8	)
Total common shareholders' equity		1,419.1			1,397.2
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,546.5		$	4,671.8

VECTREN CORPORATION
AND SUBSIDIARY  COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	For the six months ended
	June 30,
	2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	71.9		$	66.1
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		113.0			104.4
Deferred income taxes & investment tax credits		17.6			20.5
Equity in losses of unconsolidated affiliates		5.7			10.7
Provision for uncollectible accounts		10.2			9.4
Expense portion of pension & postretirement benefit cost		4.5			5.9
Other non-cash charges - net		14.5			(0.8	)
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue		100.0			232.3
Inventories		7.5			23.8
Recoverable/refundable fuel & natural gas costs		(24.2	)		26.5
Prepayments & other current assets		17.6			67.5
Accounts payable, including to affiliated companies		(98.8	)		(185.2	)
Accrued liabilities		14.0			(2.6	)
Unconsolidated affiliate dividends		12.2			10.9
Employer contributions to pension & postretirement plans		(8.2	)		(16.4	)
Changes in noncurrent assets		9.5			5.0
Changes in noncurrent liabilities		(8.3	)		(10.1	)
Net cash flows from operating activities		258.7			367.9
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Dividend reinvestment plan & other		3.1			3.1
Long-term debt		-			290.8
Requirements for:
Dividends on common stock		(55.1	)		(54.1	)
Retirement of long-term debt		(1.6	)		(1.7	)
Net change in short-term borrowings		(67.9	)		(430.7	)
Net cash flows from financing activities		(121.5	)		(192.6	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions		0.5			-
Other collections		6.8			1.1
Requirements for:
Capital expenditures, excluding AFUDC equity		(137.2	)		(213.6	)
Unconsolidated affiliate investments		(0.1	)		(0.1	)
Other investments		(2.3	)		(0.8	)
Net cash flows from investing activities		(132.3	)		(213.4	)
Net change in cash & cash equivalents		4.9			(38.1	)
Cash & cash equivalents at beginning of period		11.9			93.2
Cash & cash equivalents at end of period	$	16.8		$	55.1

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2010			2009			2010			2009
REPORTED EARNINGS:
Utility Group	$	16.2		$	6.6		$	71.6		$	62.8
Nonutility Group
Energy Marketing and Services		(8.9	)		(4.7	)		1.3			10.8
Charge related to Liberty Gas Storage Investment		-			(11.9	)		-			(11.9	)
Subtotal Energy Marketing and Services		(8.9	)		(16.6	)		1.3			(1.1	)
Coal Mining		1.7			0.7			5.6			3.4
Energy Infrastructure Services		3.7			3.6			0.4			3.0
Other Businesses		(4.0	)		(0.7	)		(7.0	)		(1.8	)
Total Nonutility Group		(7.5	)		(13.0	)		0.3			3.5
Corporate and Other		-			(0.3	)		-			(0.2	)
Vectren Consolidated	$	8.7		$	(6.7	)	$	71.9		$	66.1
REPORTED EPS	$	0.11		$	(0.08	)	$	0.89		$	0.82

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2010			2009			2010			2009
GAS OPERATING REVENUES (Millions):
Residential	$	82.6		$	94.1		$	406.4		$	457.2
Commercial		26.4			31.7			148.0			172.4
Industrial		11.0			10.5			29.8			29.0
Other Revenue		2.9			2.8			6.8			7.9
	$	122.9		$	139.1		$	591.0		$	666.5
GAS MARGIN (Millions):
Residential	$	54.2		$	53.7		$	167.4		$	168.8
Commercial		13.9			14.8			50.7			52.3
Industrial		10.2			9.3			26.4			24.4
Other		3.1			3.3			7.2			8.4
	$	81.4		$	81.1		$	251.7		$	253.9
GAS SOLD & TRANSPORTED (MMDth):
Residential		6.1			8.6			44.4			45.4
Commercial		2.8			4.0			19.1			19.8
Industrial		19.2			15.7			45.8			39.8
		28.1			28.3			109.3			105.0
AVERAGE GAS CUSTOMERS
Residential		894,200			892,613			901,462			901,114
Commercial		82,470			82,901			83,201			83,708
Industrial		1,636			1,633			1,627			1,622
		978,306			977,147			986,290			986,444
YTD WEATHER  AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)		65	%		99	%		103	%		104	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2010			2009			2010			2009
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	48.6		$	45.4		$	97.9		$	89.0
Commercial		39.7			37.7			72.9			68.7
Industrial		51.7			41.6			97.6			77.3
Other Revenue		1.5			1.5			3.4			3.0
Total Retail		141.5			126.2			271.8			238.0
Net Wholesale Revenues		9.5			6.5			24.1			19.7
	$	151.0		$	132.7		$	295.9		$	257.7
ELECTRIC MARGIN (Millions):
Residential	$	34.7		$	32.4		$	68.4		$	63.4
Commercial		25.7			24.5			47.4			45.6
Industrial		24.8			20.3			47.2			38.9
Other		1.4			1.2			3.1			2.8
Total Retail		86.6			78.4			166.1			150.7
Net Wholesale Margin		6.6			4.0			14.0			9.7
	$	93.2		$	82.4		$	180.1		$	160.4
ELECTRICITY SOLD (GWh):
Residential		356.2			334.8			767.4			712.6
Commercial		360.3			345.7			661.0			639.5
Industrial		697.1			557.4			1,307.5			1,066.4
Other Sales - Street Lighting		5.1			4.5			11.1			9.6
Total Retail		1,418.7			1,242.4			2,747.0			2,428.1
Wholesale		108.8			64.8			344.2			406.4
		1,527.5			1,307.2			3,091.2			2,834.5
AVERAGE ELECTRIC CUSTOMERS
Residential		122,754			122,107			122,891			122,348
Commercial		18,373			18,349			18,344			18,347
Industrial		107			105			107			104
Other		33			33			33			33
		141,267			140,594			141,375			140,832
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)		146	%		120	%		144	%		119	%
Heating Degree Days (Indiana)		53	%		93	%		101	%		94	%