Vectren Utility 8-K Reports Second Quarter 2005 Earnings Increase

Ex 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
	2005			2004			2005		2004
OPERATING REVENUES:
Gas utility	$	186.0		$	154.1		$	702.7	$	659.3
Electric utility		96.9			89.1			191.6		177.9
Energy services and other		43.3			33.5			109.1		84.9
Total operating revenues		326.2			276.7			1,003.4		922.1
OPERATING EXPENSES:
Cost of gas sold		116.3			97.0			487.2		462.7
Fuel for electric generation		29.4			23.8			56.3		46.6
Purchased electric energy		3.6			6.8			5.9		11.2
Cost of energy services and other		31.4			23.1			83.0		63.1
Other operating		65.8			60.0			136.9		131.2
Depreciation and amortization		38.5			34.9			75.6		67.4
Taxes other than income taxes		12.0			10.7			34.1		33.4
Total operating expenses		297.0			256.3			879.0		815.6
OPERATING INCOME		29.2			20.4			124.4		106.5
OTHER INCOME:
Equity in earnings of unconsolidated affiliates		0.7			(4.9	)		7.1		12.0
Other - net		1.6			1.8			4.0		(1.4	)
Total other income		2.3			(3.1	)		11.1		10.6
INTEREST EXPENSE		19.7			18.8			39.8		38.1
INCOME BEFORE INCOME TAXES		11.8			(1.5	)		95.7		79.0
INCOME TAXES		(1.6	)		(4.8	)		26.2		20.9
NET INCOME	$	13.4		$	3.3		$	69.5	$	58.1
AVERAGE COMMON SHARES OUTSTANDING		75.6			75.6			75.6		75.5
DILUTED COMMON SHARES OUTSTANDING		76.1			75.8			76.2		75.9
EARNINGS PER SHARE OF COMMON STOCK
BASIC	$	0.18		$	0.04		$	0.92	$	0.77
DILUTED	$	0.18		$	0.04		$	0.91	$	0.77

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
		June 30,			December 31,
		2005			2004
ASSETS
Current Assets
Cash & cash equivalents	$	9.5		$	9.6
Accounts receivable - less reserves of $2.4 &
$2.0, respectively		103.7			173.5
Accrued unbilled revenues		47.1			176.6
Inventories		65.5			67.6
Recoverable fuel & natural gas costs		2.4			17.7
Prepayments & other current assets		102.6			141.3
Total current assets		330.8			586.3
Utility Plant
Original cost		3,524.6			3,465.2
Less: accumulated depreciation & amortization		1,343.0			1,309.0
Net utility plant		2,181.6			2,156.2
Investments in unconsolidated affiliates		195.5			180.0
Other investments		115.6			115.1
Non-utility property - net		244.3			229.2
Goodwill - net		207.1			207.1
Regulatory assets		87.5			82.5
Other assets		29.6			30.5
TOTAL ASSETS	$	3,392.0		$	3,586.9
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	61.2		$	123.8
Accounts payable to affiliated companies		61.8			109.3
Refundable fuel & natural gas costs		21.8			6.3
Accrued liabilities		133.5			125.8
Short-term borrowings		252.9			412.4
Current maturities of long-term debt		38.6			38.5
Long-term debt subject to tender		-			10.0
Total current liabilities		569.8			826.1
Long-term Debt - Net of Current Maturities &Debt Subject to Tender		1,026.8			1,016.6
Deferred Income Taxes & Other Liabilities
Deferred income taxes		239.6			234.0
Regulatory liabilities & other removal costs		260.7			251.7
Deferred credits & other liabilities		168.5			163.2
Total deferred credits & other liabilities		668.8			648.9
Minority Interest in Subsidiary		0.4			0.4
Cumulative, Redeemable Preferred Stock of a Subsidiary		-			0.1
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
76.1 and 75.9 shares, respectively		528.6			526.8
Retained earnings		607.3			583.0
Accumulated other comprehensive loss		(9.7	)		(15.0	)
Total common shareholders' equity		1,126.2			1,094.8
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	3,392.0		$	3,586.9

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
		Six Months
		Ended June 30,
		2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	69.5		$	58.1
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		75.6			67.4
Deferred income taxes & investment tax credits		(0.1	)		10.1
Equity in earnings of unconsolidated affiliates		(7.1	)		(12.0	)
Net unrealized (gain) on derivative instruments		(2.8	)		(0.8	)
Pension & postretirement periodic benefit cost		9.0			8.3
Other non-cash charges - net		12.0			13.3
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue		189.7			119.2
Inventories		2.1			14.6
Recoverable fuel & natural gas costs		30.8			(1.6	)
Prepayments & other current assets		39.9			45.3
Accounts payable, including to affiliated companies		(110.1	)		(37.8	)
Accrued liabilities		11.9			6.7
Changes in noncurrent assets		(3.3	)		(5.1	)
Changes in noncurrent liabilities		(9.3	)		(5.6	)
Net cash flows from operating activities		307.8			280.1
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock option exercises & other stock plans		-			3.9
Requirements for:
Dividends on common stock		(45.2	)		(43.0	)
Redemption of preferred stock of subsidiary		(0.1	)		(0.1	)
Net change in short-term borrowings		(159.5	)		(149.4	)
Net cash flows from financing activities		(204.8	)		(188.6	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions		7.2			21.0
Notes receivable & other collections		0.8			1.0
Requirements for:
Capital expenditures, excluding AFUDC equity		(104.3	)		(111.3	)
Unconsolidated affiliate investments		(6.8	)		(9.0	)
Net cash flows from investing activities		(103.1	)		(98.3	)
Net decrease in cash & cash equivalents		(0.1	)		(6.8	)
Cash & cash equivalents at beginning of period		9.6			15.3
Cash & cash equivalents at end of period	$	9.5		$	8.5

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2005			2004			2005			2004
REPORTED EARNINGS:
Utility Group	$	7.8		$	2.8		$	55.9		$	47.4
Non-regulated Group
Energy Marketing and Services		0.7			0.9			6.7			7.9
Mining		1.3			0.6			2.6			1.3
Synfuels related		3.4			3.3			6.5			6.2
Total Coal Mining		4.7			3.9			9.1			7.5
Utility Infrastructure Services		0.5			0.5			(0.5	)		(0.1	)
Other Businesses		(0.2	)		(4.6	)		(0.7	)		(4.0	)
Total Non-regulated Group		5.7			0.7			14.6			11.3
Corporate and Other		(0.1	)		(0.2	)		(1.0	)		(0.6	)
Vectren Consolidated	$	13.4		$	3.3		$	69.5		$	58.1

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share amounts)
(Unaudited)
	Three Months				Six Months
	Ended June 30				Ended June 30
	2005		2004		2005		2004
OPERATING REVENUES:
Gas utility	$	186.0	$	154.1	$	702.7	$	659.3
Electric utility		96.9		89.1		191.6		177.9
Other		0.1		0.2		0.3		0.5
Total operating revenues		283.0		243.4		894.6		837.7
OPERATING EXPENSES:
Cost of gas sold		116.3		97.0		487.2		462.7
Fuel for electric generation		29.4		23.8		56.3		46.6
Purchased electric energy		3.6		6.8		5.9		11.2
Other operating		59.2		53.7		120.8		115.7
Depreciation and amortization		34.5		31.8		67.9		61.5
Taxes other than income taxes		11.7		10.4		33.5		32.7
Total operating expenses		254.7		223.5		771.6		730.4
OPERATING INCOME		28.3		19.9		123.0		107.3
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated affiliates		-		0.1		-		0.2
Other - net		1.1		1.4		3.3		3.2
Total other income		1.1		1.5		3.3		3.4
INTEREST EXPENSE		16.4		16.5		33.3		33.4
INCOME BEFORE INCOME TAXES		13.0		4.9		93.0		77.3
INCOME TAXES		5.2		2.1		37.1		29.9
NET INCOME	$	7.8	$	2.8	$	55.9	$	47.4

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2005			2004			2005			2004
GAS OPERATING REVENUES (Millions):
Residential	$	120.4		$	98.8		$	468.9		$	442.4
Commercial		48.1			43.0			194.7			185.1
Industrial		12.7			10.9			31.7			29.0
Miscellaneous Revenue		4.8			1.4			7.4			2.8
	$	186.0		$	154.1		$	702.7		$	659.3
GAS MARGIN (Millions):
Residential	$	45.2		$	36.0		$	140.0		$	127.8
Commercial		12.7			10.1			45.6			41.6
Industrial		9.7			9.2			25.3			24.1
Miscellaneous		2.1			1.8			4.6			3.1
	$	69.7		$	57.1		$	215.5		$	196.6
GAS SOLD & TRANSPORTED (MMDth):
Residential		9.2			8.5			47.6			49.9
Commercial		4.3			4.3			20.9			22.0
Industrial		19.2			17.9			46.0			45.3
		32.7			30.7			114.5			117.2
AVERAGE GAS CUSTOMERS
Residential		885,954			876,405			893,186			883,990
Commercial		82,870			81,590			83,586			82,484
Industrial		1,635			1,569			1,606			1,568
		970,459			959,564			978,378			968,042
YTD WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days		88	%		73	%		92	%		92	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2005			2004			2005			2004
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	29.7		$	29.4		$	58.1		$	56.7
Commercial		23.7			22.6			44.0			41.5
Industrial		29.8			27.3			55.8			52.2
Municipals		6.6			6.0			12.2			11.4
Miscellaneous Revenue		1.5			3.0			2.4			6.6
Total Retail		91.3			88.3			172.5			168.4
Net Wholesale Revenues		5.6			0.8			19.1			9.5
	$	96.9		$	89.1		$	191.6		$	177.9
ELECTRIC MARGIN (Millions):
Residential	$	22.9		$	23.2		$	45.0		$	44.4
Commercial		16.8			16.3			31.8			30.3
Industrial		16.3			16.1			31.6			30.6
Municipals		3.5			3.5			6.8			6.6
Miscellaneous		1.6			1.2			2.4			2.9
Total Retail		61.1			60.3			117.6			114.8
Net Wholesale Margin		2.8			(1.8	)		11.8			5.3
	$	63.9		$	58.5		$	129.4		$	120.1
ELECTRICITY SOLD (GWh):
Residential		329.0			361.1			691.3			737.1
Commercial		336.5			354.1			640.1			649.7
Industrial		651.1			635.9			1,270.0			1,258.5
Municipals		169.4			158.0			319.0			310.2
Miscellaneous Sales		4.3			54.2			9.1			107.5
Total Retail		1,490.3			1,563.3			2,929.5			3,063.0
Wholesale		632.9			593.8			1,696.9			1,105.1
		2,123.2			2,157.1			4,626.4			4,168.1
AVERAGE ELECTRIC CUSTOMERS
Residential		119,720			118,723			119,776			118,830
Commercial		18,695			18,446			18,661			18,417
Industrial		107			107			106			106
All Others		55			21			55			21
		138,577			137,297			138,598			137,374
YTD WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days		88	%		73	%		92	%		92	%
Cooling Degree Days		93	%		120	%		92	%		120	%