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						Six Months
	Ended June 30						Ended June 30
	2009			2008			2009			2008
OPERATING REVENUES:
Gas utility	$	139.1		$	224.9		$	666.5		$	858.5
Electric utility		132.7			127.2			257.7			254.4
Nonutility revenues		103.7			111.8			246.5			253.1
Total operating revenues		375.5			463.9			1,170.7			1,366.0
OPERATING EXPENSES:
Cost of gas sold		58.0			143.8			412.6			605.8
Cost of fuel and purchased power		50.3			48.5			97.3			94.5
Cost of nonutility revenues		43.3			52.1			117.5			147.4
Other operating		125.3			124.7			248.0			240.5
Depreciation and amortization		53.0			47.4			104.4			94.8
Taxes other than income taxes		13.2			14.4			36.7			41.2
Total operating expenses		343.1			430.9			1,016.5			1,224.2
OPERATING INCOME		32.4			33.0			154.2			141.8
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of unconsolidated affiliates		(23.3	)		(6.5	)		(10.7	)		7.5
Other income- net		4.1			3.1			6.5			6.1
Total other income (expense)		(19.2	)		(3.4	)		(4.2	)		13.6
INTEREST EXPENSE		25.5			23.2			48.2			48.5
INCOME (LOSS) BEFORE INCOME TAXES		(12.3	)		6.4			101.8			106.9
INCOME TAXES		(5.6	)		1.7			35.7			38.2
NET INCOME (LOSS)	$	(6.7	)	$	4.7		$	66.1		$	68.7
AVERAGE COMMON SHARES OUTSTANDING		80.7			76.2			80.7			76.1
DILUTED COMMON SHARES OUTSTANDING		80.7			76.6			80.7			76.3
EARNINGS (LOSS) PER SHARE OF COMMON STOCK
BASIC	$	(0.08	)	$	0.06		$	0.82		$	0.90
DILUTED	$	(0.08	)	$	0.06		$	0.82		$	0.89

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
	Three Months				Six Months
	Ended June 30				Ended June 30
	2009		2008		2009		2008
OPERATING REVENUES:
Gas utility	$	139.1	$	224.9	$	666.5	$	858.5
Electric utility		132.7		127.2		257.7		254.4
Other		0.4		0.6		0.8		1.2
Total operating revenues		272.2		352.7		925.0		1,114.1
OPERATING EXPENSES:
Cost of gas sold		58.0		143.8		412.6		605.8
Cost of fuel and purchased power		50.3		48.5		97.3		94.5
Other operating		78.7		74.5		158.0		148.5
Depreciation and amortization		45.0		40.9		88.9		81.6
Taxes other than income taxes		12.6		13.9		35.4		40.1
Total operating expenses		244.6		321.6		792.2		970.5
OPERATING INCOME		27.6		31.1		132.8		143.6
OTHER INCOME - NET		2.5		2.2		4.0		4.2
INTEREST EXPENSE		20.0		19.1		38.7		39.9
INCOME BEFORE INCOME TAXES		10.1		14.2		98.1		107.9
INCOME TAXES		3.5		5.4		35.3		41.1
NET INCOME	$	6.6	$	8.8	$	62.8	$	66.8

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	June 30,			December 31,
	2009			2008
ASSETS
Current Assets
Cash & cash equivalents	$	55.1		$	93.2
Accounts receivable - less reserves of $8.3 &
$5.6, respectively		129.4			226.7
Accrued unbilled revenues		51.8			197.0
Inventories		107.8			131.0
Recoverable fuel & natural gas costs		-			3.1
Prepayments & other current assets		55.6			124.6
Total current assets		399.7			775.6
Utility Plant
Original cost		4,467.5			4,335.3
Less:  accumulated depreciation & amortization		1,660.7			1,615.0
Net utility plant		2,806.8			2,720.3
Investments in unconsolidated affiliates		170.0			179.1
Other utility and corporate investments		28.4			25.7
Other nonutility investments		46.1			45.9
Nonutility property - net		429.1			390.2
Goodwill - net		240.8			240.2
Regulatory assets		210.6			216.7
Other assets		33.8			39.2
TOTAL ASSETS	$	4,365.3		$	4,632.9
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	119.9		$	266.1
Accounts payable to affiliated companies		27.0			75.2
Refundable fuel & natural gas costs		27.5			4.1
Accrued liabilities		170.9			175.0
Short-term borrowings		88.8			519.5
Current maturities of long-term debt		0.5			0.4
Long-term debt subject to tender		10.0			80.0
Total current liabilities		444.6			1,120.3
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,608.0			1,247.9
Deferred Income Taxes & Other Liabilities
Deferred income taxes		380.5			353.4
Regulatory liabilities		319.7			315.1
Deferred credits & other liabilities		237.6			244.6
Total deferred credits & other liabilities		937.8			913.1
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
81.1 and 81.0 shares, respectively		662.6			659.1
Retained earnings		724.8			712.8
Accumulated other comprehensive income (loss)		(12.5	)		(20.3	)
Total common shareholders' equity		1,374.9			1,351.6
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,365.3		$	4,632.9

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	For the six months ended
	June 30,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	66.1		$	68.7
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		104.4			94.8
Deferred income taxes & investment tax credits		20.5			18.9
Equity in earnings (loss) of unconsolidated affiliates		10.7			(7.5	)
Provision for uncollectible accounts		9.4			8.9
Expense portion of pension & postretirement periodic benefit cost		5.9			3.9
Other non-cash charges - net		(0.8	)		7.2
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue		232.3			132.0
Inventories		23.8			25.7
Recoverable/refundable fuel & natural gas costs		26.5			(32.3	)
Prepayments & other current assets		67.5			41.2
Accounts payable, including to affiliated companies		(185.2	)		(48.2	)
Accrued liabilities		(2.6	)		18.2
Unconsolidated affiliate dividends		10.9			9.1
Changes in noncurrent assets		5.0			3.9
Changes in noncurrent liabilities		(26.5	)		(13.6	)
Net cash flows from operating activities		367.9			330.9
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Issuance of common stock		-			124.9
Long-term debt		290.8			171.2
Stock option exercises & other		3.1			-
Requirements for:
Dividends on common stock		(54.1	)		(49.4	)
Retirement of long-term debt		(1.7	)		(103.3	)
Other financing activities		-			(0.2	)
Net change in short-term borrowings		(430.7	)		(311.8	)
Net cash flows from financing activities		(192.6	)		(168.6	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Other collections		1.1			4.3
Requirements for:
Capital expenditures, excluding AFUDC equity		(213.6	)		(164.4	)
Unconsolidated affiliate investments		(0.1	)		(0.1	)
Other investments		(0.8	)		(10.7	)
Net cash flows from investing activities		(213.4	)		(170.9	)
Net change in cash & cash equivalents		(38.1	)		(8.6	)
Cash & cash equivalents at beginning of period		93.2			20.6
Cash & cash equivalents at end of period	$	55.1		$	12.0

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2009			2008			2009			2008
REPORTED EARNINGS:
Utility Group	$	6.6		$	8.8		$	62.8		$	66.8
Non-utility Group
Energy Marketing and Services		(4.7	)		(6.7	)		10.8			2.3
Coal Mining		0.7			(0.2	)		3.4			(1.1	)
Energy Infrastructure Services		3.6			2.7			3.0			(0.5	)
Other Businesses		(0.7	)		0.2			(1.8	)		1.6
Total Non-utility Operations		(1.1	)		(4.0	)		15.4			2.3
Corporate and Other		(0.3	)		(0.1	)		(0.2	)		(0.4	)
Sub-Total Operations		5.2			4.7			78.0			68.7
Charge related to Liberty Gas Storage Investment		(11.9	)		-			(11.9	)		-
Vectren Consolidated	$	(6.7	)	$	4.7		$	66.1		$	68.7
EARNINGS PER SHARE:
EPS FROM OPERATIONS	$	0.07		$	0.06		$	0.97		$	0.90
Charge related to Liberty Gas Storage Investment		(0.15	)		-			(0.15	)		-
REPORTED EPS	$	(0.08	)	$	0.06		$	0.82		$	0.90

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2009			2008			2009			2008
GAS OPERATING REVENUES (Millions):
Residential	$	94.1		$	146.5		$	457.2		$	578.3
Commercial		31.7			59.7			172.4			234.9
Industrial		10.5			14.5			29.0			37.1
Other Revenue		2.8			4.2			7.9			8.2
	$	139.1		$	224.9		$	666.5		$	858.5
GAS MARGIN (Millions):
Residential	$	53.7		$	50.6		$	168.8		$	163.8
Commercial		14.8			15.2			52.3			52.9
Industrial		9.3			10.8			24.4			27.3
Other		3.3			4.5			8.4			8.7
	$	81.1		$	81.1		$	253.9		$	252.7
GAS SOLD & TRANSPORTED (MMDth):
Residential		8.6			8.7			45.4			48.9
Commercial		4.0			3.8			19.8			21.4
Industrial		15.7			20.4			39.8			49.1
		28.3			32.9			105.0			119.4
AVERAGE GAS CUSTOMERS
Residential		892,613			899,510			901,114			906,590
Commercial		82,901			83,766			83,708			84,443
Industrial		1,633			1,611			1,622			1,611
		977,147			984,887			986,444			992,644
YTD WEATHER  AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)		99	%		101	%		104	%		103	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months						Six Months
	Ended June 30						Ended June 30
	2009			2008			2009			2008
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	44.5		$	37.3		$	88.0		$	78.9
Commercial		37.3			31.3			68.3			60.1
Industrial		42.9			38.6			78.7			75.0
Municipals		-			0.3			-			1.0
Other Revenue		1.5			6.1			3.0			7.7
Total Retail		126.2			113.6			238.0			222.7
Net Wholesale Revenues		6.5			13.6			19.7			31.7
	$	132.7		$	127.2		$	257.7		$	254.4
ELECTRIC MARGIN (Millions):
Residential	$	31.5		$	27.5		$	62.4		$	58.3
Commercial		24.1			21.1			45.2			41.6
Industrial		21.6			19.1			40.3			39.3
Municipals		-			-			-			-
Other		1.2			5.9			2.8			7.5
Total Retail		78.4			73.6			150.7			146.7
Net Wholesale Margin		4.0			5.1			9.7			13.2
	$	82.4		$	78.7		$	160.4		$	159.9
ELECTRICITY SOLD (GWh):
Residential		334.8			314.6			712.6			720.0
Commercial		345.7			332.0			639.5			641.8
Industrial		557.4			639.8			1,066.4			1,240.5
Municipals		-			13.0			-			44.3
Other Sales - Street Lighting		4.5			4.4			9.6			9.7
Total Retail		1,242.4			1,303.8			2,428.1			2,656.3
Wholesale		64.8			276.9			406.4			740.3
		1,307.2			1,580.7			2,834.5			3,396.6
AVERAGE ELECTRIC CUSTOMERS
Residential		122,107			122,387			122,348			122,571
Commercial		18,349			18,440			18,347			18,454
Industrial		105			101			104			102
Other		33			34			33			34
		140,594			140,962			140,832			141,161
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)		120	%		97	%		119	%		97	%
Heating Degree Days (Indiana)		93	%		108	%		94	%		102	%