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				Twelve Months
	Ended December 31				Ended December 31
	2010		2009		2010			2009
OPERATING REVENUES:
Gas utility	$	261.3	$	306.1	$	954.1		$	1,066.0
Electric utility		138.9		127.9		608.0			528.6
Nonutility		163.9		134.6		567.4			494.3
Total operating revenues		564.1		568.6		2,129.5			2,088.9
OPERATING EXPENSES:
Cost of gas sold		133.0		177.5		504.7			618.1
Cost of fuel and purchased power		54.7		46.9		235.0			194.3
Cost of nonutility revenues		72.7		53.8		243.3			207.5
Other operating		140.0		136.4		538.4			514.0
Depreciation and amortization		58.5		53.6		229.1			211.9
Taxes other than income taxes		15.3		15.0		62.2			63.0
Total operating expenses		474.2		483.2		1,812.7			1,808.8
OPERATING INCOME		89.9		85.4		316.8			280.1
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of unconsolidated affiliates		5.3		14.7		(8.6	)		3.4
Other income - net		2.8		3.1		4.8			13.7
Total other income (expense)		8.1		17.8		(3.8	)		17.1
INTEREST EXPENSE		26.6		26.0		104.6			100.0
INCOME BEFORE INCOME TAXES		71.4		77.2		208.4			197.2
INCOME TAXES		26.0		22.6		74.7			64.1
NET INCOME	$	45.4	$	54.6	$	133.7		$	133.1
AVERAGE COMMON SHARES OUTSTANDING		81.5		80.8		81.2			80.7
DILUTED COMMON SHARES OUTSTANDING		81.6		81.0		81.3			81.0
EARNINGS PER SHARE OF COMMON STOCK
BASIC	$	0.56	$	0.68	$	1.65		$	1.65
DILUTED	$	0.56	$	0.67	$	1.64		$	1.64

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
	Three Months				Twelve Months
	Ended December 31				Ended December 31
	2010		2009		2010		2009
OPERATING REVENUES:
Gas utility	$	261.3	$	306.1	$	954.1	$	1,066.0
Electric utility		138.9		127.9		608.0		528.6
Other		0.4		0.4		1.6		1.6
Total operating revenues		400.6		434.4		1,563.7		1,596.2
OPERATING EXPENSES:
Cost of gas sold		133.0		177.5		504.7		618.1
Cost of fuel and purchased power		54.7		46.9		235.0		194.3
Other operating		75.9		76.7		299.2		304.6
Depreciation and amortization		47.7		46.1		188.2		180.9
Taxes other than income taxes		14.5		14.1		59.6		60.3
Total operating expenses		325.8		361.3		1,286.7		1,358.2
OPERATING INCOME		74.8		73.1		277.0		238.0
OTHER INCOME - NET		1.5		1.7		5.4		7.8
INTEREST EXPENSE		20.4		20.3		81.4		79.2
INCOME BEFORE INCOME TAXES		55.9		54.5		201.0		166.6
INCOME TAXES		22.3		18.6		77.1		59.2
NET INCOME	$	33.6	$	35.9	$	123.9	$	107.4

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	December 31,			December 31,
	2010			2009
ASSETS
Current Assets
Cash & cash equivalents	$	10.4		$	11.9
Accounts receivable - less reserves of $5.3 &
$5.2, respectively		176.6			162.4
Accrued unbilled revenues		162.0			144.7
Inventories		187.1			167.8
Recoverable fuel & natural gas costs		7.9			-
Prepayments & other current assets		101.2			95.1
Total current assets		645.2			581.9
Utility Plant
Original cost		4,791.7			4,601.4
Less:  accumulated depreciation & amortization		1,836.3			1,722.6
Net utility plant		2,955.4			2,878.8
Investments in unconsolidated affiliates		135.2			186.2
Other utility and corporate investments		34.1			33.2
Other nonutility investments		40.9			46.2
Nonutility property - net		488.3			482.6
Goodwill - net		242.0			242.0
Regulatory assets		189.4			187.9
Other assets		33.7			33.0
TOTAL ASSETS	$	4,764.2		$	4,671.8
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	183.7		$	183.8
Accounts payable to affiliated companies		59.6			54.1
Refundable fuel & natural gas costs		-			22.3
Accrued liabilities		178.4			174.7
Short-term borrowings		118.3			213.5
Current maturities of long-term debt		250.7			48.0
Long-term debt subject to tender		30.0			51.3
Total current liabilities		820.7			747.7
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,435.2			1,540.5
Deferred Income Taxes & Other Liabilities
Deferred income taxes		515.3			458.7
Regulatory liabilities		333.5			322.1
Deferred credits & other liabilities		220.6			205.6
Total deferred credits & other liabilities		1,069.4			986.4
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
81.7 and 81.1 shares, respectively		683.4			666.8
Retained earnings		759.9			737.2
Accumulated other comprehensive income (loss)		(4.4	)		(6.8	)
Total common shareholders' equity		1,438.9			1,397.2
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,764.2		$	4,671.8

VECTREN CORPORATION
AND SUBSIDIARY  COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	For the twelve months ended
	December 31,
	2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	133.7		$	133.1
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		229.1			211.9
Deferred income taxes & investment tax credits		69.3			84.9
Equity in (earnings) losses of unconsolidated affiliates		8.6			(3.4	)
Provision for uncollectible accounts		16.8			15.1
Expense portion of pension & postretirement benefit cost		10.0			10.4
Other non-cash charges - net		15.9			13.3
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenue		(48.3	)		96.9
Inventories		(19.3	)		(36.1	)
Recoverable/refundable fuel & natural gas costs		(30.2	)		21.3
Prepayments & other current assets		(23.5	)		43.1
Accounts payable, including to affiliated companies		5.5			(85.8	)
Accrued liabilities		10.2			4.0
Unconsolidated affiliate dividends		42.7			12.6
Employer contributions to pension & postretirement plans		(22.0	)		(38.5	)
Changes in noncurrent assets		(7.6	)		0.2
Changes in noncurrent liabilities		(6.1	)		(33.4	)
Net cash flows from operating activities		384.8			449.6
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Dividend reinvestment plan & other common stock issuances		14.0			5.8
Long-term debt, net of issuance costs		124.2			312.5
Requirements for:
Dividends on common stock		(110.8	)		(108.6	)
Retirement of long-term debt		(49.3	)		(3.5	)
Other Financing Activities		(0.2	)		-
Net change in short-term borrowings		(95.2	)		(306.0	)
Net cash flows from financing activities		(117.3	)		(99.8	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions		0.5			4.6
Other collections		10.8			1.5
Requirements for:
Capital expenditures, excluding AFUDC equity		(277.2	)		(432.0	)
Unconsolidated affiliate investments		(0.2	)		(0.2	)
Other investments		(2.9	)		(5.0	)
Net cash flows from investing activities		(269.0	)		(431.1	)
Net change in cash & cash equivalents		(1.5	)		(81.3	)
Cash & cash equivalents at beginning of period		11.9			93.2
Cash & cash equivalents at end of period	$	10.4		$	11.9

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months					Twelve Months
	Ended December 31					Ended December 31
	2010		2009			2010			2009
REPORTED EARNINGS:
Utility Group	$	33.6	$	35.9		$	123.9		$	107.4
Nonutility Group
Infrastructure Services		0.9		0.2			3.1			2.4
Energy Services		2.2		3.0			6.4			8.4
Coal Mining		3.8		6.0			11.9			13.4
Energy Marketing		4.9		10.0			(4.2	)		4.1	*
Other Businesses		-		(0.2	)		(7.4	)		(2.5	)
Total Nonutility Group		11.8		19.0			9.8			25.8
Corporate and Other		-		(0.3	)		-			(0.1	)
Vectren Consolidated	$	45.4	$	54.6		$	133.7		$	133.1
REPORTED EPS	$	0.56	$	0.68		$	1.65		$	1.65
* Twelve months ended December 31, 2009 includes $11.9 million after tax charge related to Liberty Gas Storage Investment

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months						Twelve Months
	Ended December 31						Ended December 31
	2010			2009			2010			2009
GAS OPERATING REVENUES (Millions):
Residential	$	179.5		$	209.5		$	651.2		$	726.6
Commercial		61.9			77.9			234.5			272.3
Industrial		17.0			16.8			57.6			55.9
Other Revenue		2.9			1.9			10.8			11.2
	$	261.3		$	306.1		$	954.1		$	1,066.0
GAS MARGIN (Millions):
Residential	$	84.7		$	87.2		$	297.9		$	298.9
Commercial		24.8			25.7			87.2			89.9
Industrial		15.6			13.4			52.4			46.8
Other		3.2			2.3			11.9			12.3
	$	128.3		$	128.6		$	449.4		$	447.9
GAS SOLD & TRANSPORTED (MMDth):
Residential		26.1			24.1			74.0			73.3
Commercial		10.7			10.9			32.2			33.2
Industrial		25.7			22.9			90.8			78.0
		62.5			57.9			197.0			184.5
AVERAGE GAS CUSTOMERS
Residential		901,735			900,977			897,715			896,516
Commercial		82,993			83,265			82,780			83,148
Industrial		1,652			1,618			1,638			1,621
		986,380			985,860			982,133			981,285
YTD WEATHER  AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)		108	%		102	%		105	%		103	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months					Twelve Months
	Ended December 31					Ended December 31
	2010		2009			2010			2009
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	42.4	$	40.9		$	206.4		$	183.3
Commercial		36.1		34.3			149.7			139.9
Industrial		47.6		41.1	��		199.1			162.3
Other Revenue		3.6		3.1			9.1			7.7
Total Retail		129.7		119.4			564.3			493.2
Net Wholesale Revenues		9.2		8.5			43.7			35.4
	$	138.9	$	127.9		$	608.0		$	528.6
ELECTRIC MARGIN (Millions):
Residential	$	29.4	$	29.4		$	144.3		$	131.6
Commercial		23.0		22.8			96.9			93.1
Industrial		23.0		20.5			97.1			81.7
Other		3.4		2.9			8.5			7.2
Total Retail		78.8		75.6			346.8			313.6
Net Wholesale Margin		5.4		5.4			26.2			20.7
	$	84.2	$	81.0		$	373.0		$	334.3
ELECTRICITY SOLD (GWh):
Residential		324.7		317.7			1,603.5			1,451.7
Commercial		324.0		321.0			1,360.5			1,309.1
Industrial		610.6		572.0			2,630.3			2,258.9
Other Sales - Street Lighting		6.6		5.9			22.6			20.0
Total Retail		1,265.9		1,216.6			5,616.9			5,039.7
Wholesale		121.4		109.3			587.6			603.6
		1,387.3		1,325.9			6,204.5			5,643.3
AVERAGE ELECTRIC CUSTOMERS
Residential		122,907		122,600			122,857			122,380
Commercial		18,261		18,347			18,321			18,357
Industrial		111		106			108			105
Other		33		33			33			33
		141,312		141,086			141,319			140,875
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)							134	%		90	%
Heating Degree Days (Indiana)							101	%		96	%