EX 99-1
                                                    News
                                                    Release


                                                    Vectren Corporation
                                                    P.O. Box 209
                                                    Evansville, IN  47702-0209



FOR IMMEDIATE RELEASE
March 26, 2004

Contact:  Media - Mike Roeder (812) 491-4143 or mroeder@vectren.com
Investor Relations - Steve Schein, 812-491-4209 or sschein@vectren.com
OUCC Contact - Anthony Swinger (317) 233-2747 or aswinger@oucc.state.in.us

                    Vectren South files settlement agreement
                       in natural gas base rate proceeding

Evansville, Ind. -- Vectren Corporation (NYSE: VVC), announced today that its
utility subsidiary, Vectren Energy Delivery of Indiana - South (Vectren South)
has reached a definitive agreement with the Indiana Office of Utility Consumer
Counselor (OUCC) regarding the proposed changes to the base rates and charges
for its gas distribution business in southwestern Indiana. The settlement
agreement was filed today with the Indiana Utility Regulatory Commission (IURC)
and completes a collaborative effort between Vectren South and the OUCC to
streamline one aspect of the formal regulatory review process. The IURC will now
conduct a public review process to consider approval of the filed Settlement.

Vectren South filed a petition with the IURC on March 12, 2004 requesting an
increase in its base rates. That filing indicated the company had reached an
agreement in principle with the OUCC regarding a $5.7 million increase in base
rates to cover the company's cost of operating and maintaining its 3,000-mile
natural gas distribution and storage system in its southwestern Indiana region.
Vectren originally proposed a base gas rate increase of $14.7 million. Because
Vectren South had not sought a rate increase since 1995, its current rates fail
to reflect the fact that over the last nine years, an additional $39 million has
been invested in Vectren South's gas delivery and customer service
infrastructure to serve its customers. Vectren South, which is also known as
Southern Indiana Gas and Electric Company, Inc. (SIGECO), serves more than
110,000 natural gas customers in a nine-county region in southwestern Indiana.

The settlement agreement provides for:
o   A rate increase of $5.7 million
o   An authorized return on equity (ROE) of 10.5 percent
o   An overall cost of capital of 7.41 percent (Return on Rate Base of $112
    million) based on a capital structure with 44 percent equity
o   A rate design for the revenue increase, including a larger service charge,
    intended to address earnings volatility related to weather

The settlement also permits Vectren South to recover the on-going costs
associated with the federal Pipeline Safety Improvement Act of 2002. The
Pipeline Safety Improvement Tracker provides for the deferral and future
recovery of incremental non-capital dollars, capped at $750,000 the first year
and $500,000 thereafter. Costs in excess of the annual cap amounts are deferred
for future recovery.

The proposed rate settlement only addresses "non-gas" costs, including the costs
of constructing, operating and maintaining the company's natural gas system.
These costs generally range from 25 percent to 30 percent of a customer's total
bill. This amount would not include any changes that may occur in the Gas Cost
Adjustment (GCA), which primarily reflects the commodity cost of gas purchased
from its suppliers as well as interstate pipeline and storage costs. Changes in
the commodity cost of gas are set by the market based upon the supply and demand
of natural gas and are reviewed quarterly by the IURC. These commodity gas costs
are passed through the GCA dollar-for-dollar and contain no mark-up or profit by
Vectren.

Vectren Corporation is an energy and applied technology holding company
headquartered in Evansville, Indiana. Vectren's regulated energy delivery
subsidiaries provide gas and/or electricity to nearly one million customers in
adjoining service territories that cover nearly two-thirds of Indiana and west
central Ohio. Vectren's non-regulated subsidiaries and affiliates currently
offer energy-related products and services to customers throughout the midwest
and southeast. These include gas marketing and related services; coal production
and sales; utility infrastructure services; and broadband communication
services. To learn more about Vectren, visit www.vectren.com.

Safe Harbor for Forward Looking Statements

This document contains forward-looking statements, which are based on
management's beliefs and assumptions that derive from information currently
known by management. Vectren wishes to caution readers that actual results could
differ materially from those contained in this document. Additional detailed
information concerning a number of factors that could cause actual results to
differ materially from the information that is provided to you is readily
available in our report on Form 10-K filed with the Securities and Exchange
Commission on February 26, 2004.