EX 99-1



FOR IMMEDIATE RELEASE
June 30, 2004

Contact:  Media - Mike Roeder, (812) 491-4143 or mroeder@vectren.com
Investor Relations - Steve Schein, 812-491-4209 or sschein@vectren.com

                      Vectren South Gas Rate Order Approved

Evansville, Ind. -- Vectren Corporation (NYSE: VVC), announced that the Indiana
Utility Regulatory Commission (IURC) today approved a $5.7 million base rate
increase for its utility subsidiary, Vectren Energy Delivery of Indiana - South
(Vectren South). The approved rate increase is the company's first base rate
increase since 1996 and helps the company cover the costs of operating and
maintaining its 3,000-mile natural gas distribution and storage system. Vectren
South serves more than 110,000 natural gas customers in a nine-county region in
southwestern Indiana.

Vectren South filed a petition with the IURC on March 12, 2004, which indicated
the company had reached an agreement in principle with the Indiana Office of
Utility Consumer Counselor (OUCC) regarding a proposed increase in base rates.
The IURC order approved the settlement agreement, and authorizes a return of
approximately 7.4% on an original cost rate base of $112,788,000, including a
10.5% return on equity. The rates are designed to produce additional revenues of
$5.7 million, representing an overall revenue increase of about 5% among all
rate classes. The rates for residential customers include a larger monthly
service charge intended to reduce the impact of weather on customers' bills and
the volatility of the Company's revenue recovery. The base rate change will be
reflected in customers' bills after July 1.

The order also permits Vectren South to recover the on-going costs associated
with Vectren South's compliance with the federal Pipeline Safety Improvement Act
of 2002. Implementation of the Safety Act will include additional patrols,
leakage surveys and direct observation of approximately 90 miles of Vectren
South's transmission pipeline system. The Pipeline Safety Improvement Tracker
provides for the recovery of up to $750,000 the first year and $500,000
thereafter, subject to OUCC review and IURC approval that the costs are
prudently incurred.

The rate order 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 driven by national gas market prices. These
commodity gas costs are reviewed quarterly by the OUCC and the IURC and are
passed through the GCA dollar-for-dollar and contain no mark-up or profit by
Vectren.

About 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.