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
	2011			2010				2011			2010
OPERATING REVENUES:
Gas utility	$	102.1		$	101.8			$	592.8		$	692.8
Electric utility		186.7			173.2				492.4			469.1
Nonutility		250.6			147.7				612.6			403.5
Total operating revenues		539.4			422.7				1,697.8			1,565.4
OPERATING EXPENSES:
Cost of gas sold		30.5			32.4				274.4			371.7
Cost of fuel and purchased power		67.1			64.5				186.9			180.3
Cost of nonutility revenues		93.0			60.7				266.6			170.6
Other operating		180.6			137.2				485.5			398.4
Depreciation and amortization		61.7			57.6				182.0			170.6
Taxes other than income taxes		12.4			11.7				43.4			46.9
Total operating expenses		445.3			364.1				1,438.8			1,338.5
OPERATING INCOME		94.1			58.6				259.0			226.9
OTHER INCOME (EXPENSE):
Equity in (losses) of unconsolidated affiliates		(11.7	)		(8.2	)			(34.6	)		(13.9	)
Other income - net		0.7			1.6				5.9			2.0
Total other income (expense)		(11.0	)		(6.6	)			(28.7	)		(11.9	)
INTEREST EXPENSE		27.1			26.0				80.7			78.0
INCOME BEFORE INCOME TAXES		56.0			26.0				149.6			137.0
INCOME TAXES		20.7			9.6				54.6			48.7
NET INCOME	$	35.3		$	16.4			$	95.0		$	88.3
AVERAGE COMMON SHARES OUTSTANDING		81.8			81.2				81.7			81.1
DILUTED COMMON SHARES OUTSTANDING		81.9			81.4				81.8			81.3
EARNINGS PER SHARE OF COMMON STOCK
BASIC	$	0.43		$	0.20			$	1.16		$	1.09
DILUTED	$	0.43		$	0.20			$	1.16		$	1.09

VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions - Unaudited)
	Three Months					Nine Months
	Ended September 30				Ended September 30
	2011		2010			2011		2010
OPERATING REVENUES:
Gas utility	$	102.1	$	101.8		$	592.8	$	692.8
Electric utility		186.7		173.2			492.4		469.1
Other		0.5		0.4			1.5		1.2
Total operating revenues		289.3		275.4			1,086.7		1,163.1
OPERATING EXPENSES:
Cost of gas sold		30.5		32.4			274.4		371.7
Cost of fuel and purchased power		67.1		64.5			186.9		180.3
Other operating		66.7		70.5			231.8		223.3
Depreciation and amortization		47.8		47.2			143.9		140.5
Taxes other than income taxes		11.6		11.2			40.7		45.1
Total operating expenses		223.7		225.8			877.7		960.9
OPERATING INCOME		65.6		49.6			209.0		202.2
OTHER INCOME - NET		0.1		0.9			4.0		3.9
INTEREST EXPENSE		20.4		20.4			61.2		61.0
INCOME BEFORE INCOME TAXES		45.3		30.1			151.8		145.1
INCOME TAXES		17.4		11.4			59.0		54.8
NET INCOME	$	27.9	$	18.7		$	92.8	$	90.3

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Millions - Unaudited)
	September 30,			December 31,
	2011			2010
ASSETS
Current Assets
Cash & cash equivalents	$	6.4		$	10.4
Accounts receivable - less reserves of $6.5 &
$5.3, respectively		219.8			176.6
Accrued unbilled revenues		62.2			162.0
Inventories		207.3			187.1
Recoverable fuel & natural gas costs		16.0			7.9
Prepayments & other current assets		110.8			101.2
Total current assets		622.5			645.2
Utility Plant
Original cost		4,937.6			4,791.7
Less:  accumulated depreciation & amortization		1,922.2			1,836.3
Net utility plant		3,015.4			2,955.4
Investments in unconsolidated affiliates		98.0			135.2
Other utility & corporate investments		34.4			34.1
Other nonutility investments		41.3			40.9
Nonutility plant - net		537.3			488.3
Goodwill - net		262.3			242.0
Regulatory assets		181.3			189.4
Other assets		45.9			33.7
TOTAL ASSETS	$	4,838.4		$	4,764.2
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	142.2		$	183.7
Accounts payable to affiliated companies		25.4			59.6
Accrued liabilities		176.7			178.4
Short-term borrowings		216.4			118.3
Current maturities of long-term debt		138.0			250.7
Long-term debt subject to tender		-			30.0
Total current liabilities		698.7			820.7
Long-term Debt - Net of Current Maturities &
Debt Subject to Tender		1,581.1			1,435.2
Deferred Income Taxes & Other Liabilities
Deferred income taxes		564.8			515.3
Regulatory liabilities		341.0			333.5
Deferred credits & other liabilities		200.5			220.6
Total deferred credits & other liabilities		1,106.3			1,069.4
Common Shareholders' Equity
Common stock (no par value) – issued & outstanding
81.8 and 81.7 shares, respectively		689.3			683.4
Retained earnings		769.6			759.9
Accumulated other comprehensive income (loss)		(6.6	)		(4.4	)
Total common shareholders' equity		1,452.3			1,438.9
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	4,838.4		$	4,764.2

VECTREN CORPORATION
AND SUBSIDIARY  COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions - Unaudited)
	Nine Months
	September 30,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	95.0		$	88.3
Adjustments to reconcile net income to cash from operating activities:
Depreciation & amortization		182.0			170.6
Deferred income taxes & investment tax credits		56.5			33.9
Equity in losses of unconsolidated affiliates		34.6			13.9
Provision for uncollectible accounts		9.1			13.2
Expense portion of pension & postretirement benefit cost		6.8			6.7
Other non-cash charges - net		9.5			19.4
Changes in working capital accounts:
Accounts receivable & accrued unbilled revenues		68.6			106.7
Inventories		(20.2	)		(20.5	)
Recoverable/refundable fuel & natural gas costs		(8.1	)		(34.8	)
Prepayments & other current assets		(1.0	)		(16.4	)
Accounts payable, including to affiliated companies		(83.8	)		(82.9	)
Accrued liabilities		(3.4	)		15.7
Unconsolidated affiliate dividends		0.1			42.7
Employer contributions to pension & postretirement plans		(37.2	)		(12.4	)
Changes in noncurrent assets		(8.4	)		(9.8	)
Changes in noncurrent liabilities		(8.6	)		(11.9	)
Net cash flows from operating activities		291.5			322.4
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Dividend reinvestment plan & other common stock issuances		5.2			7.2
Requirements for:
Dividends on common stock		(84.6	)		(82.7	)
Retirement of long-term debt		(2.2	)		(2.1	)
Other financing activities		(1.4	)		-
Net change in short-term borrowings		98.1			(56.2	)
Net cash flows from financing activities		15.1			(133.8	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from:
Unconsolidated affiliate distributions		0.5			0.5
Other collections		1.0			10.2
Requirements for:
Capital expenditures, excluding AFUDC equity		(227.8	)		(200.9	)
Business acquisition, net of cash acquired		(83.4	)		-
Other investments		(0.9	)		(3.1	)
Net cash flows from investing activities		(310.6	)		(193.3	)
Net change in cash & cash equivalents		(4.0	)		(4.7	)
Cash & cash equivalents at beginning of period		10.4			11.9
Cash & cash equivalents at end of period	$	6.4		$	7.2

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
HIGHLIGHTS
(Millions, except per share amounts)
(Unaudited)
	Three Months						Nine Months
	Ended September 30						Ended September 30
	2011			2010			2011			2010
REPORTED EARNINGS:
Utility Group
Gas Utility Services	$	(4.8	)	$	(6.3	)	$	33.5		$	32.0
Electric Utility Services		30.8			23.1			53.1			51.4
Other Operations		1.9			1.9			6.2			6.9
Total Utility Group		27.9			18.7			92.8			90.3
Nonutility Group
Infrastructure Services		11.9			3.2			11.1			2.2
Energy Services		2.3			2.8			1.6			4.2
Coal Mining		5.8			2.5			15.9			8.1
Energy Marketing
Vectren Source		(3.6	)		(3.5	)		1.0			0.8
ProLiance		(8.6	)		(6.9	)		(25.3	)		(9.9	)
Other Businesses		(0.2	)		(0.3	)		(0.9	)		(7.3	)
Total Nonutility Group		7.6			(2.2	)		3.4			(1.9	)
Corporate and Other		(0.2	)		(0.1	)		(1.2	)		(0.1	)
Vectren Consolidated	$	35.3		$	16.4		$	95.0		$	88.3
EARNINGS PER SHARE:
Utility Group	$	0.34		$	0.22		$	1.13		$	1.11
Nonutility Group, excluding ProLiance		0.20			0.06			0.35			0.10
ProLiance		(0.11	)		(0.08	)		(0.31	)		(0.12	)
Corporate and Other		-			-			(0.01	)		-
Reported EPS	$	0.43		$	0.20		$	1.16		$	1.09

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED GAS DISTRIBUTION
OPERATING STATISTICS
(Unaudited)
	Three Months				Nine Months
	Ended September 30				Ended September 30
	2011		2010		2011			2010
GAS OPERATING REVENUES (Millions):
Residential	$	64.8	$	65.1	$	399.4		$	470.3
Commercial		24.1		24.5		141.8			172.1
Industrial		11.8		10.9		43.0			40.6
Other Revenue		1.4		1.3		8.6			9.8
	$	102.1	$	101.8	$	592.8		$	692.8
GAS MARGIN (Millions):
Residential	$	46.6	$	45.7	$	207.2		$	211.9
Commercial		11.9		11.5		60.7			61.7
Industrial		11.5		10.4		41.2			36.7
Other		1.6		1.8		9.3			10.8
	$	71.6	$	69.4	$	318.4		$	321.1
GAS SOLD & TRANSPORTED (MMDth):
Residential		3.9		3.5		49.1			47.9
Commercial		2.6		2.4		21.9			21.5
Industrial		20.7		19.3		70.6			65.1
		27.2		25.2		141.6			134.5
AVERAGE GAS CUSTOMERS
Residential		888,508		886,200		898,058			896,375
Commercial		81,834		81,725		82,768			82,709
Industrial		1,635		1,642		1,643			1,632
		971,977		969,567		982,469			980,716
YTD WEATHER  AS A PERCENT OF NORMAL:
Heating Degree Days (Ohio)						106	%		102	%

VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
SELECTED ELECTRIC
OPERATING STATISTICS
(Unaudited)
	Three Months						Nine Months
	Ended September 30						Ended September 30
	2011			2010			2011			2010
ELECTRIC OPERATING REVENUES (Millions):
Residential	$	71.7		$	66.2		$	169.7		$	163.8
Commercial		46.0			40.9			120.9			113.5
Industrial		56.7			54.1			160.8			151.4
Other Revenue		2.2			1.6			6.1			5.9
Total Retail		176.6			162.8			457.5			434.6
Net Wholesale Revenues		10.1			10.4			34.9			34.5
	$	186.7		$	173.2		$	492.4		$	469.1
ELECTRIC MARGIN (Millions):
Residential	$	51.7		$	46.7		$	120.0		$	114.8
Commercial		30.4			26.6			79.1			73.7
Industrial		27.7			27.0			76.6			73.9
Other		2.2			1.6			5.7			5.6
Total Retail		112.0			101.9			281.4			268.0
Net Wholesale Margin		7.6			6.8			24.1			20.8
	$	119.6		$	108.7		$	305.5		$	288.8
ELECTRICITY SOLD (GWh):
Residential		485.8			511.4			1,209.2			1,278.8
Commercial		377.7			375.5			1,013.8			1,036.5
Industrial		731.8			712.2			2,074.6			2,019.7
Other Sales - Street Lighting		5.6			4.9			16.3			16.0
Total Retail		1,600.9			1,604.0			4,313.9			4,351.0
Wholesale		142.5			122.0			469.4			466.2
		1,743.4			1,726.0			4,783.3			4,817.2
AVERAGE ELECTRIC CUSTOMERS
Residential		122,831			122,738			122,947			122,840
Commercial		18,314			18,335			18,278			18,341
Industrial		111			109			111			108
Other		33			33			33			33
		141,289			141,215			141,369			141,322
YTD WEATHER  AS A PERCENT OF NORMAL:
Cooling Degree Days (Indiana)		114	%		129	%		117	%		134	%
Heating Degree Days (Indiana)								95	%		99	%