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
	2009			2008			2009			2008
OPERATING REVENUES:
Gas utility	$	93.4		$	143.9		$	759.9		$	1,002.4
Electric utility		143.0			147.9			400.7			402.3
Nonutility revenues		113.2			119.6			359.7			372.7
Total operating revenues		349.6			411.4			1,520.3			1,777.4
OPERATING EXPENSES:
Cost of gas sold		28.0			80.2			440.6			686.0
Cost of fuel and purchased power		50.1			48.7			147.4			143.2
Cost of nonutility revenues		36.2			51.0			153.7			198.4
Other operating		129.6			127.9			377.6			368.4
Depreciation and amortization		53.9			47.7			158.3			142.5
Taxes other than income taxes		11.3			12.7			48.0			53.9
Total operating expenses		309.1			368.2			1,325.6			1,592.4
OPERATING INCOME		40.5			43.2			194.7			185.0
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of unconsolidated affiliates		(0.6	)		21.5			(11.3	)		29.0
Other income (loss)- net		4.1			(3.7	)		10.6			2.4
Total other income (expense)		3.5			17.8			(0.7	)		31.4
INTEREST EXPENSE		25.8			23.9			74.0			72.4
INCOME BEFORE INCOME TAXES		18.2			37.1			120.0			144.0
INCOME TAXES		5.8			13.9			41.5			52.1
NET INCOME	$	12.4		$	23.2		$	78.5		$	91.9
AVERAGE COMMON SHARES OUTSTANDING		80.8			80.6			80.7			77.6
DILUTED COMMON SHARES OUTSTANDING		81.1			80.9			81.0			78.0
EARNINGS PER SHARE OF COMMON STOCK
BASIC	$	0.15		$	0.29		$	0.97		$	1.18
DILUTED	$	0.15		$	0.29		$	0.97		$	1.17

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
	Three Months				Nine Months
	Ended September 30				Ended September 30
	2009		2008		2009		2008
OPERATING REVENUES:
Gas utility	$	93.4	$	143.9	$	759.9	$	1,002.4
Electric utility		143.0		147.9		400.7		402.3
Other		0.4		0.6		1.2		1.8
Total operating revenues		236.8		292.4		1,161.8		1,406.5
OPERATING EXPENSES:
Cost of gas sold		28.0		80.2		440.6		686.0
Cost of fuel and purchased power		50.1		48.7		147.4		143.2
Other operating		69.9		69.2		227.9		217.7
Depreciation and amortization		45.9		41.6		134.8		123.2
Taxes other than income taxes		10.8		11.7		46.2		51.8
Total operating expenses		204.7		251.4		996.9		1,221.9
OPERATING INCOME		32.1		41.0		164.9		184.6
OTHER INCOME - NET		2.1		0.7		6.1		4.9
INTEREST EXPENSE		20.2		19.6		58.9		59.5
INCOME BEFORE INCOME TAXES		14.0		22.1		112.1		130.0
INCOME TAXES		5.3		8.5		40.6		49.6
NET INCOME	$	8.7	$	13.6	$	71.5	$	80.4

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	September 30,			December 31,
	2009			2008
ASSETS
Current Assets
Cash & cash equivalents	$	15.3		$	93.2
Accounts receivable - less reserves of $6.0 &
$5.6, respectively		126.8			226.7
Accrued unbilled revenues		46.8			197.0
Inventories		163.6			131.0
Recoverable fuel & natural gas costs		-			3.1
Prepayments & other current assets		109.7			124.6
Total current assets		462.2			775.6
Utility Plant
Original cost		4,530.9			4,335.3
Less:  accumulated depreciation & amortization		1,689.4			1,615.0
Net utility plant		2,841.5			2,720.3
Investments in unconsolidated affiliates		172.9			179.1
Other utility and corporate investments		29.6			25.7
Other nonutility investments		46.1			45.9
Nonutility property - net		455.2			390.2
Goodwill - net		240.8			240.2
Regulatory assets		218.8			216.7
Other assets		33.7			39.2
TOTAL ASSETS	$	4,500.8		$	4,632.9
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	135.4		$	266.1
Accounts payable to affiliated companies		24.5			75.2
Refundable fuel & natural gas costs		34.1			4.1
Accrued liabilities		154.9			175.0
Short-term borrowings		161.4			519.5
Current maturities of long-term debt		0.3			0.4
Long-term debt subject to tender		10.0			80.0
Total current liabilities		520.6			1,120.3
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,629.4			1,247.9
Deferred Income Taxes & Other Liabilities
Deferred income taxes		432.6			353.4
Regulatory liabilities		322.1			315.1
Deferred credits & other liabilities		232.2			244.6
Total deferred credits & other liabilities		986.9			913.1
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
81.1 and 81.0 shares, respectively		664.0			659.1
Retained earnings		710.1			712.8
Accumulated other comprehensive income (loss)		(10.2	)		(20.3	)
Total common shareholders' equity		1,363.9			1,351.6
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,500.8		$	4,632.9

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	For the nine months ended
	September 30,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	78.5		$	91.9
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		158.3			142.5
Deferred income taxes & investment tax credits		55.2			57.2
Equity in earnings (loss) of unconsolidated affiliates		11.3			(29.0	)
Provision for uncollectible accounts		15.3			12.9
Expense portion of pension & postretirement periodic benefit cost		7.8			5.8
Other non-cash charges - net		(1.0	)		19.1
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue		234.0			148.7
Inventories		(32.0	)		(77.3	)
Recoverable/refundable fuel & natural gas costs		33.1			(49.0	)
Prepayments & other current assets		30.6			(10.4	)
Accounts payable, including to affiliated companies		(169.9	)		(30.9	)
Accrued liabilities		(17.4	)		75.1
Unconsolidated affiliate dividends		11.3			9.3
Changes in noncurrent assets		(6.9	)		1.3
Changes in noncurrent liabilities		(38.6	)		(23.5	)
Net cash flows from operating activities		369.6			343.7
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Issuance of common stock		-			124.9
Long-term debt		311.6			171.2
Dividend reinvestment plan & other		4.5			-
Requirements for:
Dividends on common stock		(81.2	)		(75.6	)
Retirement of long-term debt		(2.7	)		(104.1	)
Other financing activities		-			(0.1	)
Net change in short-term borrowings		(358.1	)		(202.9	)
Net cash flows from financing activities		(125.9	)		(86.6	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Other collections		1.2			6.1
Requirements for:
Capital expenditures, excluding AFUDC equity		(321.8	)		(258.7	)
Unconsolidated affiliate investments		(0.2	)		(0.2	)
Other investments		(0.8	)		(10.8	)
Net cash flows from investing activities		(321.6	)		(263.6	)
Net change in cash & cash equivalents		(77.9	)		(6.5	)
Cash & cash equivalents at beginning of period		93.2			20.6
Cash & cash equivalents at end of period	$	15.3		$	14.1

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months						Nine Months
	Ended September 30						Ended September 30
	2009			2008			2009			2008
REPORTED EARNINGS (LOSSES):
Utility Group	$	8.7		$	13.6		$	71.5		$	80.4
Non-utility Group
Energy Marketing and Services		(4.8	)		10.1			6.0			12.4
Coal Mining		4.0			(0.5	)		7.4			(1.6	)
Energy Infrastructure Services		4.6			6.0			7.6			5.5
Other Businesses		(0.5	)		(5.8	)		(2.3	)		(4.2	)
Total Non-utility Operations		3.3			9.8			18.7			12.1
Corporate and Other		0.4			(0.2	)		0.2			(0.6	)
Sub-Total Operations		12.4			23.2			90.4			91.9
Charge related to Liberty Gas Storage Investment		-			-			(11.9	)		-
Vectren Consolidated	$	12.4		$	23.2		$	78.5		$	91.9
EARNINGS PER SHARE:
EPS FROM OPERATIONS	$	0.15		$	0.29		$	1.12		$	1.18
Charge related to Liberty Gas Storage Investment		-			-			(0.15	)		-
REPORTED EPS	$	0.15		$	0.29		$	0.97		$	1.18

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months				Nine Months
	Ended Sep 30				Ended Sep 30
	2009		2008		2009			2008
GAS OPERATING REVENUES (Millions):
Residential	$	59.9	$	85.4	$	517.1		$	663.7
Commercial		22.0		43.9		194.4			278.8
Industrial		10.1		12.8		39.1			49.9
Other Revenue		1.4		1.8		9.3			10.0
	$	93.4	$	143.9	$	759.9		$	1,002.4
GAS MARGIN (Millions):
Residential	$	42.9	$	39.2	$	211.7		$	203.0
Commercial		11.9		12.4		64.2			65.3
Industrial		9.0		9.9		33.4			37.2
Other		1.6		2.2		10.0			10.9
	$	65.4	$	63.7	$	319.3		$	316.4
GAS SOLD & TRANSPORTED (MMDth):
Residential		3.8		3.8		49.2			52.7
Commercial		2.5		2.5		22.3			23.9
Industrial		15.3		18.4		55.1			67.5
		21.6		24.7		126.6			144.1
AVERAGE GAS CUSTOMERS
Residential		882,860		887,185		895,030			900,122
Commercial		81,914		82,764		83,109			83,883
Industrial		1,622		1,610		1,622			1,610
		966,396		971,559		979,761			985,615
YTD WEATHER  AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)						104	%		101	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months						Nine Months
	Ended Sep 30						Ended Sep 30
	2009			2008			2009			2008
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	52.9		$	53.7		$	140.9		$	133.8
Commercial		36.4			35.2			104.7			96.4
Industrial		44.9			40.3			123.6			117.4
Municipals		-			-			-			1.0
Other Revenue		1.6			1.7			4.6			4.9
Total Retail		135.8			130.9			373.8			353.5
Net Wholesale Revenues		7.2			17.0			26.9			48.8
	$	143.0		$	147.9		$	400.7		$	402.3
ELECTRIC MARGIN (Millions):
Residential	$	38.3		$	40.7		$	100.7		$	100.2
Commercial		24.2			24.9			69.4			67.6
Industrial		23.3			23.0			63.6			64.5
Municipals		-			-			-			-
Other		1.5			1.6			4.3			4.6
Total Retail		87.3			90.2			238.0			236.9
Net Wholesale Margin		5.6			9.0			15.3			22.2
	$	92.9		$	99.2		$	253.3		$	259.1
ELECTRICITY SOLD (GWh):
Residential		421.4			462.4			1,134.0			1,182.4
Commercial		348.6			371.4			988.1			1,013.2
Industrial		620.5			619.0			1,686.9			1,859.5
Municipals		-			-			-			44.3
Other Sales - Street Lighting		4.5			4.3			14.1			14.0
Total Retail		1,395.0			1,457.1			3,823.1			4,113.4
Wholesale		87.9			371.1			494.3			1,111.4
		1,482.9			1,828.2			4,317.4			5,224.8
AVERAGE ELECTRIC CUSTOMERS
Residential		122,222			122,373			122,307			122,505
Commercial		18,388			18,393			18,360			18,434
Industrial		106			103			105			102
Other		33			34			33			34
		140,749			140,903			140,805			141,075
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)		79	%		100	%		92	%		99	%
Heating Degree Days (Indiana)								93	%		100	%