Vectren Utility 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						Nine Months
	Ended September 30						Ended September 30
	2007			2006			2007		2006
OPERATING REVENUES:
Gas utility	$	114.0		$	116.8		$	890.0	$	848.6
Electric utility		143.6			123.2			361.6		324.4
Nonutility revenues		123.8			100.5			385.5		259.5
Total operating revenues		381.4			340.5			1,637.1		1,432.5
OPERATING EXPENSES:
Cost of gas sold		52.9			59.9			592.0		577.4
Cost of fuel and purchased power		50.5			46.8			129.5		115.8
Cost of nonutility revenues		57.5			48.8			210.2		174.8
Other operating		116.4			101.8			334.4		242.9
Depreciation and amortization		47.3			44.0			139.7		127.5
Taxes other than income taxes		11.7			10.8			50.9		45.7
Total operating expenses		336.3			312.1			1,456.7		1,284.1
OPERATING INCOME		45.1			28.4			180.4		148.4
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of unconsolidated affiliates		(4.0	)		3.2			18.7		14.7
Other - net		13.9			1.6			23.1		(4.5	)
Total other income (expense)		9.9			4.8			41.8		10.2
INTEREST EXPENSE		25.7			24.2			74.1		69.9
INCOME BEFORE INCOME TAXES		29.3			9.0			148.1		88.7
INCOME TAXES		12.2			(3.0	)		44.9		14.8
NET INCOME	$	17.1		$	12.0		$	103.2	$	73.9
AVERAGE COMMON SHARES OUTSTANDING		75.9			75.7			75.9		75.7
DILUTED COMMON SHARES OUTSTANDING		76.4			76.0			76.5		76.0
EARNINGS PER SHARE OF COMMON STOCK
BASIC	$	0.23		$	0.16		$	1.36	$	0.98
DILUTED	$	0.22		$	0.16		$	1.35	$	0.97

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
	Three Months				Nine Months
	Ended September 30				Ended September 30
	2007		2006		2007		2006
OPERATING REVENUES:
Gas utility	$	114.0	$	116.8	$	890.0	$	848.6
Electric utility		143.6		123.2		361.6		324.4
Other		0.4		0.5		1.3		1.4
Total operating revenues		258.0		240.5		1,252.9		1,174.4
OPERATING EXPENSES:
Cost of gas sold		52.9		59.9		592.0		577.4
Cost of fuel and purchased power		50.5		46.8		129.5		115.8
Other operating		65.6		61.6		198.4		182.8
Depreciation and amortization		40.4		38.0		119.4		112.8
Taxes other than income taxes		11.3		10.5		49.6		44.9
Total operating expenses		220.7		216.8		1,088.9		1,033.7
OPERATING INCOME		37.3		23.7		164.0		140.7
OTHER INCOME - NET		1.3		2.0		6.2		4.8
INTEREST EXPENSE		20.8		19.2		58.8		57.4
INCOME BEFORE INCOME TAXES		17.8		6.5		111.4		88.1
INCOME TAXES		7.1		-		41.8		31.1
NET INCOME	$	10.7	$	6.5	$	69.6	$	57.0

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	September 30,		December 31,
	2007		2006
ASSETS
Current Assets
Cash & cash equivalents	$	11.2	$	32.8
Accounts receivable - less reserves of $3.7 &
$3.3, respectively		145.2		198.6
Accrued unbilled revenues		60.7		146.5
Inventories		198.8		163.5
Recoverable fuel & natural gas costs		-		1.8
Prepayments & other current assets		132.1		172.7
Total current assets		548.0		715.9
Utility Plant
Original cost		3,990.8		3,820.2
Less:  accumulated depreciation & amortization		1,499.1		1,434.7
Net utility plant		2,491.7		2,385.5
Investments in unconsolidated affiliates		194.5		181.0
Other investments		73.0		74.5
Nonutility property - net		312.9		294.4
Goodwill - net		238.0		237.8
Regulatory assets		184.8		163.5
Other assets		37.9		39.0
TOTAL ASSETS	$	4,080.8	$	4,091.6
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	164.8	$	180.0
Accounts payable to affiliated companies		33.7		89.9
Refundable fuel & natural gas costs		25.9		35.3
Accrued liabilities		151.0		147.2
Short-term borrowings		486.7		464.8
Current maturities of long-term debt		17.8		24.2
Long-term debt subject to tender		20.0		20.0
Total current liabilities		899.9		961.4
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,208.3		1,208.0
Deferred Income Taxes & Other Liabilities
Deferred income taxes		256.6		260.7
Regulatory liabilities		303.1		291.1
Deferred credits & other liabilities		199.8		195.8
Total deferred credits & other liabilities		759.5		747.6
Minority Interest in Subsidiary		0.4		0.4
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
76.5 and 76.1 shares, respectively		531.7		525.5
Retained earnings		674.2		643.6
Accumulated other comprehensive income		6.8		5.1
Total common shareholders' equity		1,212.7		1,174.2
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,080.8	$	4,091.6

VECTREN CORPORATION
AND SUBSIDIARY  COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	Nine months ended September 30,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	103.2		$	73.9
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		139.7			127.5
Deferred income taxes & investment tax credits		18.0			(1.6	)
Equity in earnings of unconsolidated affiliates		(18.7	)		(14.7	)
Provision for uncollectible accounts		12.7			12.4
Expense portion of pension & postretirement periodic benefit cost		7.3			8.1
Other non-cash charges - net		-			10.3
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue		126.5			279.1
Inventories		(35.3	)		(43.0	)
Recoverable/refundable fuel & natural gas costs		(7.6	)		31.9
Prepayments & other current assets		2.5			(29.7	)
Accounts payable, including to affiliated companies		(74.3	)		(146.1	)
Accrued liabilities		(15.0	)		(42.0	)
Unconsolidated affiliate dividends		20.0			33.5
Changes in noncurrent assets		(13.5	)		(20.7	)
Changes in noncurrent liabilities		(33.3	)		(15.3	)
Net cash flows from operating activities		232.2			263.6
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Long-term debt		-			0.1
Stock option exercises		5.2			(0.4	)
Requirements for:
Dividends on common stock		(71.8	)		(69.3	)
Retirement of long-term debt, including premiums paid		(6.6	)		(0.4	)
Net change in short-term borrowings		21.9			32.3
Net cash flows from financing activities		(51.3	)		(37.7	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions		11.7			1.9
Other collections		37.3			2.9
Requirements for:
Capital expenditures, excluding AFUDC equity		(239.0	)		(185.9	)
Unconsolidated affiliate investments		(12.4	)		(16.7	)
Other investments		(0.1	)		(41.9	)
Net cash flows from investing activities		(202.5	)		(239.7	)
Net decrease in cash & cash equivalents		(21.6	)		(13.8	)
Cash & cash equivalents at beginning of period		32.8			20.4
Cash & cash equivalents at end of period	$	11.2		$	6.6

VECTREN CORPORATION          & #160;
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months						Nine Months
	Ended September 30						Ended September 30
	2007			2006			2007		2006
REPORTED EARNINGS:
Utility Group	$	10.7		$	6.5		$	69.6	$	57.0
Non-utility Group
Energy Marketing and Services		(2.0	)		(0.2	)		15.6		13.0
Coal Mining		0.4			1.6			2.7		4.3
Energy Infrastructure Services		4.6			3.6			6.6		3.2
Other Businesses		0.1			(0.1	)		0.2		0.1
Total Non-utility Operations		3.1			4.9			25.1		20.6
Corporate and Other		(0.2	)		-			0.2		-
Sub-Total Operations		13.6			11.4			94.9		77.6
Synfuels-related		3.5			0.6			8.3		(3.7	)
Vectren Consolidated	$	17.1		$	12.0		$	103.2	$	73.9

VECTREN CORPORATION          & #160;
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS          &# 160;
(Unaudited)
	Three Months				Nine Months
	Ended September 30				Ended September 30
	2007		2006		2007			2006
GAS OPERATING REVENUES (Millions):
Residential	$	67.2	$	68.7	$	591.2		$	555.2
Commercial		30.9		33.5		240.7			236.4
Industrial		12.1		12.4		47.5			47.1
Miscellaneous Revenue		3.8		2.2		10.6			9.9
	$	114.0	$	116.8	$	890.0		$	848.6
GAS MARGIN (Millions):
Residential	$	35.8	$	34.6	$	190.4		$	171.9
Commercial		10.1		10.2		59.4			54.6
Industrial		9.2		9.5		34.9			34.2
Miscellaneous		6.0		2.6		13.3			10.5
	$	61.1	$	56.9	$	298.0		$	271.2
GAS SOLD & TRANSPORTED (MMDth):
Residential		3.8		4.1		51.7			43.5
Commercial		2.6		2.9		23.4			20.2
Industrial		18.0		17.7		62.5			61.2
		24.4		24.7		137.6			124.9
AVERAGE GAS CUSTOMERS
Residential		889,257		882,366		899,926			893,029
Commercial		82,870		82,358		83,790			83,334
Industrial		1,655		1,636		1,643			1,645
		973,782		966,360		985,359			978,008
YTD WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)						96	%		87	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC          &# 160;
OPERATING STATISTICS
(Unaudited)
	Three Months						Nine Months
	Ended September 30						Ended September 30
	2007			2006			2007			2006
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	56.2		$	43.6		$	123.2		$	101.7
Commercial		34.3			27.7			84.0			72.2
Industrial		39.1			36.2			105.0			97.0
Municipals		8.3			7.8			20.1			20.0
Miscellaneous Revenue		0.9			3.2			5.6			9.1
Total Retail		138.8			118.5			337.9			300.0
Net Wholesale Revenues		4.8			4.7			23.7			24.4
	$	143.6		$	123.2		$	361.6		$	324.4
ELECTRIC MARGIN (Millions):
Residential	$	41.3		$	31.3		$	90.7		$	75.7
Commercial		23.2			18.0			57.2			49.9
Industrial		21.6			18.9			56.4			53.4
Municipals		3.6			3.5			9.3			10.1
Miscellaneous		0.8			3.1			5.4			8.8
Total Retail		90.5			74.8			219.0			197.9
Net Wholesale Margin		2.6			1.6			13.1			10.7
	$	93.1		$	76.4		$	232.1		$	208.6
ELECTRICITY SOLD (GWh):
Residential		547.7			474.6			1,290.3			1,147.3
Commercial		406.7			372.4			1,067.4			1,005.1
Industrial		638.7			674.7			1,942.4			1,983.9
Municipals		187.4			178.1			469.4			480.3
Miscellaneous Sales		4.7			4.8			14.1			14.4
Total Retail		1,785.2			1,704.6			4,783.6			4,631.0
Wholesale		96.5			110.8			544.1			763.1
		1,881.7			1,815.4			5,327.7			5,394.1
AVERAGE ELECTRIC CUSTOMERS
Residential		122,194			121,263			122,078			121,015
Commercial		18,489			18,428			18,478			18,361
Industrial		109			107			109			107
All Others		38			36			37			36
		140,830			139,834			140,702			139,519
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)		127	%		95	%		127	%		95	%
Heating Degree Days (Indiana)								90	%		84	%