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
	Ended March 31
		2011			2010
OPERATING REVENUES:
Gas utility		$	356.7		$	468.1
Electric utility			146.4			144.9
Nonutility			179.5			127.3
Total operating revenues			682.6			740.3
OPERATING EXPENSES:
Cost of gas sold			195.1			297.8
Cost of fuel and purchased power			59.5			58.0
Cost of nonutility revenues			105.1			60.5
Other operating			141.6			128.9
Depreciation and amortization			59.1			55.8
Taxes other than income taxes			18.9			23.1
Total operating expenses			579.3			624.1
OPERATING INCOME			103.3			116.2
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of unconsolidated affiliates			(10.9	)		8.2
Other income (loss)- net			2.4			(0.5	)
Total other income (expense)			(8.5	)		7.7
INTEREST EXPENSE			26.6			26.0
INCOME BEFORE INCOME TAXES			68.2			97.9
INCOME TAXES			23.6			34.7
NET INCOME		$	44.6		$	63.2
AVERAGE COMMON SHARES OUTSTANDING			81.7			81.0
DILUTED COMMON SHARES OUTSTANDING			81.7			81.2
EARNINGS PER SHARE OF COMMON STOCK
BASIC		$	0.55		$	0.78
DILUTED		$	0.55		$	0.78

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
(Unaudited)
	Three Months
	Ended March 31
		2011		2010
OPERATING REVENUES:
Gas utility		$	356.7	$	468.1
Electric utility			146.4		144.9
Other			0.5		0.4
Total operating revenues			503.6		613.4
OPERATING EXPENSES:
Cost of gas sold			195.1		297.8
Cost of fuel and purchased power			59.5		58.0
Other operating			86.9		81.6
Depreciation and amortization			48.2		46.5
Taxes other than income taxes			18.0		22.3
Total operating expenses			407.7		506.2
OPERATING INCOME			95.9		107.2
OTHER INCOME - NET			1.7		2.2
INTEREST EXPENSE			20.4		20.3
INCOME BEFORE INCOME TAXES			77.2		89.1
INCOME TAXES			28.6		33.7
NET INCOME		$	48.6	$	55.4

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	March 31,			December 31,
	2011			2010
ASSETS
Current Assets
Cash & cash equivalents	$	34.5		$	10.4
Accounts receivable - less reserves of $8.1 &
$5.3, respectively		216.2			176.6
��Accrued unbilled revenues		105.7			162.0
Inventories		132.4			187.1
Recoverable fuel & natural gas costs		3.0			7.9
Prepayments & other current assets		62.5			101.2
Total current assets		554.3			645.2
Utility Plant
Original cost		4,827.4			4,791.7
Less:  accumulated depreciation & amortization		1,867.6			1,836.3
Net utility plant		2,959.8			2,955.4
Investments in unconsolidated affiliates		126.5			135.2
Other utility & corporate investments		34.8			34.1
Other nonutility investments		41.0			40.9
Nonutility plant - net		527.6			488.3
Goodwill - net		262.3			242.0
Regulatory assets		183.1			189.4
Other assets		52.4			33.7
TOTAL ASSETS	$	4,741.8		$	4,764.2
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	134.5		$	183.7
Accounts payable to affiliated companies		28.5			59.6
Accrued liabilities		207.4			178.4
Short-term borrowings		122.3			118.3
Current maturities of long-term debt		103.4			250.7
Long-term debt subject to tender		30.0			30.0
Total current liabilities		626.1			820.7
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,587.4			1,435.2
Deferred Income Taxes & Other Liabilities
Deferred income taxes		534.3			515.3
Regulatory liabilities		339.2			333.5
Deferred credits & other liabilities		198.6			220.6
Total deferred credits & other liabilities		1,072.1			1,069.4
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
81.7 and 81.7 shares, respectively		685.5			683.4
Retained earnings		775.7			759.9
Accumulated other comprehensive income (loss)		(5.0	)		(4.4	)
Total common shareholders' equity		1,456.2			1,438.9
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,741.8		$	4,764.2

VECTREN CORPORATION
AND SUBSIDIARY  COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	For the three months ended
	March 31,
		2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	44.6		$	63.2
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization			59.1			55.8
Deferred income taxes & investment tax credits			18.5			9.5
Equity in (earnings) losses of unconsolidated affiliates			10.9			(8.2	)
Provision for uncollectible accounts			5.9			6.5
Expense portion of pension & postretirement benefit cost			2.2			3.1
Other non-cash charges - net			3.2			8.4
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenues			31.5			12.9
Inventories			54.7			36.5
Recoverable/refundable fuel & natural gas costs			5.1			(9.4	)
Prepayments & other current assets			39.0			42.7
Accounts payable, including to affiliated companies			(86.8	)		(79.2	)
Accrued liabilities			23.8			41.3
Unconsolidated affiliate dividends			-			6.9
Employer contributions to pension & postretirement plans			(29.2	)		(4.3	)
Changes in noncurrent assets			8.0			21.0
Changes in noncurrent liabilities			(2.1	)		(4.0	)
Net cash flows from operating activities			188.4			202.7
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Dividend reinvestment plan & other common stock issuances			1.7			1.5
Requirements for:
Dividends on common stock			(28.2	)		(27.5	)
Retirement of long-term debt			(0.1	)		(0.7	)
Other financing activities			(1.4	)		-
Net change in short-term borrowings			4.0			(49.2	)
Net cash flows from financing activities			(24.0	)		(75.9	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions			-			0.5
Other collections			0.3			2.0
Requirements for:
Capital expenditures, excluding AFUDC equity			(57.7	)		(71.0	)
Business acquisition, net of cash acquired			(82.9	)		-
Other investments			-			(1.2	)
Net cash flows from investing activities			(140.3	)		(69.7	)
Net change in cash & cash equivalents			24.1			57.1
Cash & cash equivalents at beginning of period			10.4			11.9
Cash & cash equivalents at end of period		$	34.5		$	69.0

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(millions, except per share amounts)
(Unaudited)
	Three Months
	Ended March 31
		2011			2010
REPORTED EARNINGS:
Utility Group		$	48.6		$	55.4
Nonutility Group
Infrastructure Services			(2.9	)		(3.0	)
Energy Services			(1.4	)		(0.3	)
Coal Mining			1.6			3.9
Energy Marketing			(0.4	)		10.2
Other Businesses			(0.3	)		(3.0	)
Total Nonutility Group			(3.4	)		7.8
Corporate and Other			(0.6	)		-
Vectren Consolidated		$	44.6		$	63.2
REPORTED EPS		$	0.55		$	0.78

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months
		Ended March 31
		2011			2010
GAS OPERATING REVENUES (Millions):
Residential		$	245.0		$	322.8
Commercial			88.9			121.1
Industrial			18.7			18.8
Other Revenue			4.1			5.4
		$	356.7		$	468.1
GAS MARGIN (Millions):
Residential		$	105.1		$	112.1
Commercial			34.4			36.4
Industrial			17.7			16.2
Other			4.4			5.6
		$	161.6		$	170.3
GAS SOLD & TRANSPORTED (MMDth):
Residential			37.1			38.3
Commercial			15.7			16.3
Industrial			28.8			26.6
			81.6			81.2
AVERAGE GAS CUSTOMERS
Residential			909,290			908,723
Commercial			83,852			83,933
Industrial			1,654			1,618
			994,796			994,274
YTD WEATHER  AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)			108	%		111	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months
	Ended March 31
	2011			2010
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	47.4		$	49.4
Commercial		34.1			33.2
Industrial		50.3			45.8
Other Revenue		2.0			1.9
Total Retail		133.8			130.3
Net Wholesale Revenues		12.6			14.6
	$	146.4		$	144.9
ELECTRIC MARGIN (Millions):
Residential	$	32.1		$	33.6
Commercial		21.9			21.7
Industrial		23.4			22.5
Other		1.9			1.7
Total Retail		79.3			79.5
Net Wholesale Margin		7.6			7.4
	$	86.9		$	86.9
ELECTRICITY SOLD (GWh):
Residential		381.2			411.2
Commercial		300.4			300.7
Industrial		661.9			610.4
Other Sales - Street Lighting		5.9			6.0
Total Retail		1,349.4			1,328.3
Wholesale		183.9			235.4
		1,533.3			1,563.7
AVERAGE ELECTRIC CUSTOMERS
Residential		123,126			123,029
Commercial		18,248			18,314
Industrial		111			107
Other		33			33
		141,518			141,483
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)		N/A			N/A
Heating Degree Days (Indiana)		98	%		108	%