Vectren Utility 8-K Results of Operations and Financial Condition

Exhbit 99.2

VECTREN CORPORATION

AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

(Millions, except per share amounts)

(Unaudited)

	Three Months					Twelve Months
	Ended December 31					Ended December 31
	2009		2008			2009		2008
OPERATING REVENUES:
Gas utility	$	306.1	$	430.3		$	1,066.0	$	1,432.7
Electric utility		127.9		121.9			528.6		524.2
Nonutility revenues		134.6		155.1			494.3		527.8
Total operating revenues		568.6		707.3			2,088.9		2,484.7
OPERATING EXPENSES:
Cost of gas sold		177.5		297.1			618.1		983.1
Cost of fuel and purchased power		46.9		39.7			194.3		182.9
Cost of nonutility revenues		53.8		83.8			207.5		282.2
Other operating		136.4		137.9			514.0		506.3
Depreciation and amortization		53.6		49.8			211.9		192.3
Taxes other than income taxes		15.0		20.6			63.0		74.5
Total operating expenses		483.2		628.9			1,808.8		2,221.3
OPERATING INCOME		85.4		78.4			280.1		263.4
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated affiliates		14.7		8.4			3.4		37.4
Other income (loss)- net		3.1		(0.3	)		13.7		2.1
Total other income		17.8		8.1			17.1		39.5
INTEREST EXPENSE		26.0		25.4			100.0		97.8
INCOME BEFORE INCOME TAXES		77.2		61.1			197.2		205.1
INCOME TAXES		22.6		24.0			64.1		76.1
NET INCOME	$	54.6	$	37.1		$	133.1	$	129.0
AVERAGE COMMON SHARES OUTSTANDING		80.8		80.6			80.7		78.3
DILUTED COMMON SHARES OUTSTANDING		81.0		80.8			81.0		78.7
EARNINGS PER SHARE OF COMMON STOCK
BASIC	$	0.68	$	0.46		$	1.65	$	1.65
DILUTED	$	0.67	$	0.46		$	1.64	$	1.63

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
	Three Months					Twelve Months
	Ended December 31						Ended December 31
	2009		2008				2009		2008
OPERATING REVENUES:
Gas utility	$	306.1	$	430.3			$	1,066.0	$	1,432.7
Electric utility		127.9		121.9				528.6		524.2
Other		0.4		-				1.6		1.8
Total operating revenues		434.4		552.2				1,596.2		1,958.7
OPERATING EXPENSES:
Cost of gas sold		177.5		297.1				618.1		983.1
Cost of fuel and purchased power		46.9		39.7				194.3		182.9
Other operating		76.7		82.6				304.6		300.3
Depreciation and amortization		46.1		42.3				180.9		165.5
Taxes other than income taxes		14.1		20.5				60.3		72.3
Total operating expenses		361.3		482.2				1,358.2		1,704.1
OPERATING INCOME		73.1		70.0				238.0		254.6
OTHER INCOME - NET		1.7		(0.9	)			7.8		4.0
INTEREST EXPENSE		20.3		20.4				79.2		79.9
INCOME BEFORE INCOME TAXES		54.5		48.7				166.6		178.7
INCOME TAXES		18.6		18.0				59.2		67.6
NET INCOME	$	35.9	$	30.7			$	107.4	$	111.1

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	December 31,			December 31,
	2009			2008
ASSETS
Current Assets
Cash & cash equivalents	$	11.9		$	93.2
Accounts receivable - less reserves of $5.2 &
$5.6, respectively		162.4			226.7
Accrued unbilled revenues		144.7			197.0
Inventories		167.8			131.0
Recoverable fuel & natural gas costs		-			3.1
Prepayments & other current assets		95.1			124.6
Total current assets		581.9			775.6
Utility Plant
Original cost		4,601.4			4,335.3
Less:  accumulated depreciation & amortization		1,722.6			1,615.0
Net utility plant		2,878.8			2,720.3
Investments in unconsolidated affiliates		186.2			179.1
Other utility and corporate investments		33.2			44.2
Other nonutility investments		46.2			27.4
Nonutility property - net		482.6			390.2
Goodwill - net		242.0			240.2
Regulatory assets		187.9			216.7
Other assets		33.0			39.2
TOTAL ASSETS	$	4,671.8		$	4,632.9
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	183.8		$	266.1
Accounts payable to affiliated companies		54.1			75.2
Refundable fuel & natural gas costs		22.3			4.1
Accrued liabilities		174.7			175.0
Short-term borrowings		213.5			519.5
Current maturities of long-term debt		48.0			0.4
Long-term debt subject to tender		51.3			80.0
Total current liabilities		747.7			1,120.3
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,540.5			1,247.9
Deferred Income Taxes & Other Liabilities
Deferred income taxes		458.7			353.4
Regulatory liabilities		322.1			315.1
Deferred credits & other liabilities		205.6			244.6
Total deferred credits & other liabilities		986.4			913.1
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
81.1 and 81.0 shares, respectively		666.8			659.1
Retained earnings		737.2			712.8
Accumulated other comprehensive income (loss)		(6.8	)		(20.3	)
Total common shareholders' equity		1,397.2			1,351.6
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,671.8		$	4,632.9

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	For the Twelve months ended
	December 31,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	133.1		$	129.0
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		211.9			192.3
Deferred income taxes & investment tax credits		84.9			79.6
Equity in earnings of unconsolidated affiliates		(3.4	)		(37.4	)
Provision for uncollectible accounts		15.1			16.9
Expense portion of pension & postretirement periodic benefit cost		10.4			7.8
Other non-cash charges - net		13.3			25.4
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue		96.9			(83.0	)
Inventories		(36.1	)		26.4
Recoverable/refundable fuel & natural gas costs		21.3			(26.2	)
Prepayments & other current assets		43.1			9.8
Accounts payable, including to affiliated companies		(85.8	)		65.7
Accrued liabilities		4.0			16.5
Unconsolidated affiliate dividends		12.6			15.5
Employer contributions to pension & postretirement plans		(38.5	)		(15.1	)
Changes in noncurrent assets		0.2			19.6
Changes in noncurrent liabilities		(33.4	)		(19.6	)
Net cash flows from operating activities		449.6			423.2
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Long-term debt		312.5			171.4
Issuance of common stock		-			124.9
Dividend reinvestment plan & other		5.8			0.9
Requirements for:
Dividends on common stock		(108.6	)		(102.6	)
Retirement of long-term debt		(3.5	)		(104.9	)
Other financing activities		-			(0.1	)
Net change in short-term borrowings		(306.0	)		(37.8	)
Net cash flows from financing activities		(99.8	)		51.8
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions		4.6			0.2
Other collections		1.5			6.4
Requirements for:
Capital expenditures, excluding AFUDC equity		(432.0	)		(391.0	)
Unconsolidated affiliate investments		(0.2	)		(0.6	)
Other investments		(5.0	)		(17.4	)
Net cash flows from investing activities		(431.1	)		(402.4	)
Net change in cash & cash equivalents		(81.3	)		72.6
Cash & cash equivalents at beginning of period		93.2			20.6
Cash & cash equivalents at end of period	$	11.9		$	93.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months						Twelve Months
	Ended December 31						Ended December 31
	2009			2008			2009			2008
REPORTED EARNINGS:
Utility Group	$	35.9		$	30.7		$	107.4		$	111.1
Non-utility Group
Energy Marketing and Services		10.0			5.6			16.0			18.0
Coal Mining		6.0			(3.0	)		13.4			(4.6	)
Energy Infrastructure Services		3.2			5.9			10.8			11.4
Other Businesses		(0.2	)		(1.7	)		(2.5	)		-
Commercial Real Estate Impairment Charge		-			-			-			(5.9	)
Total Non-utility Operations		19.0			6.8			37.7			18.9
Corporate and Other		(0.3	)		(0.4	)		(0.1	)		(1.0	)
Sub-Total Operations		54.6			37.1			145.0			129.0
Charge related to Liberty Gas Storage Investment		-			-			(11.9	)		-
Vectren Consolidated	$	54.6		$	37.1		$	133.1		$	129.0
EARNINGS PER SHARE:
EPS FROM OPERATIONS	$	0.68		$	0.46		$	1.80		$	1.65
Charge related to Liberty Gas Storage Investment		-			-			(0.15	)		-
REPORTED EPS	$	0.68		$	0.46		$	1.65		$	1.65

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months						Twelve Months
	Ended Dec 31						Ended Dec 31
	2009			2008			2009			2008
GAS OPERATING REVENUES (Millions):
Residential	$	209.5		$	295.5		$	726.6		$	959.2
Commercial		77.9			114.0			272.3			392.8
Industrial		16.8			18.9			55.9			68.8
Other Revenue		1.9			1.9			11.2			11.9
	$	306.1		$	430.3		$	1,066.0		$	1,432.7
GAS MARGIN (Millions):
Residential	$	87.2		$	89.5		$	298.9		$	292.5
Commercial		25.7			27.7			89.9			93.0
Industrial		13.4			14.0			46.8			51.2
Other		2.3			2.0			12.3			12.9
	$	128.6		$	133.2		$	447.9		$	449.6
GAS SOLD & TRANSPORTED (MMDth):
Residential		24.1			26.5			73.3			79.2
Commercial		10.9			11.7			33.2			35.6
Industrial		22.9			24.0			78.0			91.5
		57.9			62.2			184.5			206.3
AVERAGE GAS CUSTOMERS
Residential		900,977			904,163			896,516			901,131
Commercial		83,265			84,107			83,148			83,940
Industrial		1,618			1,622			1,621			1,614
		985,860			989,892			981,285			986,685
YTD WEATHER  AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)		102	%		105	%		103	%		102	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months						Twelve Months
	Ended Dec 31						Ended Dec 31
	2009			2008			2009			2008
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	40.5		$	37.2		$	181.4		$	171.0
Commercial		34.3			30.7			139.0			127.1
Industrial		41.5			33.1			165.1			150.5
Municipals		-			-			-			1.0
Other Revenue		3.1			2.8			7.7			7.7
Total Retail		119.4			103.8			493.2			457.3
Net Wholesale Revenues		8.5			18.1			35.4			66.9
	$	127.9		$	121.9		$	528.6		$	524.2
ELECTRIC MARGIN (Millions):
Residential	$	29.0		$	28.8		$	129.7		$	129.0
Commercial		22.8			22.0			92.2			89.6
Industrial		20.9			18.4			84.5			82.9
Municipals		-			-			-			-
Other		2.9			2.7			7.2			7.3
Total Retail		75.6			71.9			313.6			308.8
Net Wholesale Margin		5.4			10.3			20.7			32.5
	$	81.0		$	82.2		$	334.3		$	341.3
ELECTRICITY SOLD (GWh):
Residential		317.7			331.4			1,451.7			1,513.8
Commercial		321.0			323.5			1,309.1			1,336.7
Industrial		572.0			549.6			2,258.9			2,409.1
Municipals		-			-			-			44.3
Other Sales - Street Lighting		5.9			5.5			20.0			19.5
Total Retail		1,216.6			1,210.0			5,039.7			5,323.4
Wholesale		109.3			401.5			603.6			1,512.9
		1,325.9			1,611.5			5,643.3			6,836.3
AVERAGE ELECTRIC CUSTOMERS
Residential		122,600			122,576			122,380			122,522
Commercial		18,347			18,385			18,357			18,422
Industrial		106			103			105			103
Other		33			34			33			34
		141,086			141,098			140,875			141,081
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)								90	%		100	%
Heating Degree Days (Indiana)		100	%		104	%		96	%		102	%