EX 99-1
News
Release
Vectren Corporation
P.O. Box 209
Evansville, IN 47702-0209
FOR IMMEDIATE RELEASE
October 28, 2004
Vectren Corporation
Reports Third Quarter 2004 Increase
Evansville, Indiana - Vectren Corporation (NYSE:VVC) today reported net income
for the three months ended September 30, 2004, of $9.7 million, or $0.13 per
share, compared to net income of $7.3 million, or $0.10 per share, for the three
months ended September 30, 2003. For the nine months ended September 30, 2004,
reported earnings were $67.8 million, or $0.90 per share, compared to $67.1
million, or $0.97 per share, for the same period in 2003. Year-to-date earnings
per share were reduced $0.08 as the result of an increase in weighted average
shares outstanding, resulting primarily from the Company's equity offering in
August 2003.
Company Highlights
o Utility earnings increased during third quarter of 2004 over 2003 o
Nonregulated earnings increased during third quarter of 2004 over 2003 o
Vectren North gas rate case settlement agreement filed and awaiting
Commission review and action o December 1 common stock dividend
increased by 3.5% o 2004 and 2005 earnings guidance affirmed
Early in the third quarter new gas rates for Vectren South were implemented and
in early October Vectren North entered into a collaborative settlement agreement
with several parties, including the Indiana Office of Utility Consumer
Counselor, the Indiana Gas Industrial Group and the Citizen Action Coalition of
Indiana, regarding the proposed changes to the base rates and charges for
Vectren North's gas distribution business.
"We have added significant investments to our utility businesses and have
successfully strengthened our balance sheet. We believe the third quarter begins
to illustrate the significant progress we have made in executing our plans to
improve returns in our utility operations", stated Niel C. Ellerbrook, Vectren's
chairman, president and CEO. "The Vectren South settlement and the Vectren North
settlement, if and when approved, will help ensure our ability to provide safe
and reliable service to our customers while providing fair returns on our
investments. We are also pleased that our primary nonregulated businesses
continue to meet expectations, and we believe they provide a stable platform for
future growth."
Operating Highlights for the Quarter
Utility Group earnings were $4.5 million for the quarter compared to $2.4
million for the same period last year. The $2.1 million increase was primarily
due to the recovery of NOx related environmental expenditures, increased gas
base rates in the Vectren South territory, increased demand in large electric
customer margins, and higher earnings from wholesale power marketing operations.
These increases offset the impact of mild weather during the quarter, which the
Company estimates reduced margins for the quarter by $2.2 million after tax, as
compared to the same period last year.
Nonregulated Group earnings were $5.9 million for the quarter, an increase of
$0.2 million over the prior year. The Company's three primary nonregulated
businesses, Energy Marketing and Services, Coal Mining and Utility
Infrastructure Services, each improved their earnings contribution from 2003.
Improved nonregulated operating results exceeded the impact from the sale of the
Company's investment in Genscape, Inc. for $2.6 million after tax recorded in
the third quarter of 2003.
Settlement Reached in Vectren North Pending Gas Rate Case
Vectren's largest gas utility, Vectren Energy Delivery of Indiana-North filed a
settlement agreement with the Indiana Utility Regulatory Commission (IURC) on
October 12, 2004, that provides for a $24 million increase in Vectren North's
base distribution rates. If approved by the IURC, the settlement will result in
an approximate 3.5 percent increase in the total average bill for residential
customers who heat their homes with natural gas. The request to adjust base
rates was the first by Vectren North since 1991. The IURC has scheduled a
hearing on the settlement agreement for November 22, 2004.
Terms of the settlement agreement include:
o a rate increase of $24 million
o a tracker to recover annual pipeline integrity compliance costs up to
$2.5 million
o an authorized return on equity (ROE) of 10.6 percent o an overall cost of
capital of 8.38 percent o a return on a $708 million rate base o a new rate
design that includes a larger service charge, which is
intended to address and mitigate, to some extent, earnings volatility
related to weather
o a demand side management pilot program and market study to determine
potential benefits associated with gas demand side management programs
o a statement by the parties urging the IURC for prompt approval in this
proceeding
Dividend
The Board of Directors declared a quarterly dividend of $0.295 per share of
common stock, an increase of 3.5 percent. This dividend increase marks the 45th
consecutive year that Vectren and its predecessor companies have increased the
annual dividend. The dividend will be payable December 1, 2004, to shareholders
of record at the close of business on November 12, 2004.
Earnings Guidance
The Company affirmed that fiscal 2004 earnings are expected to be in the range
of $1.43 to $1.58 per share. The targeted range is based on several factors,
including normal weather conditions, continued cost control measures and
continued growth from the Company's complementary nonregulated businesses.
As previously announced, the Company believes the street consensus estimate of
$1.78 for fiscal year 2005 is very achievable. Vectren senior management will
provide an outlook for 2005 during a meeting with the financial community
scheduled at noon EST, Tuesday, November 9, 2004. Interested parties may listen
to the live Webcast and view the supporting slides by accessing the Investor
Relations link on Vectren's Web site at www.vectren.com. A replay will be
available on Vectren's Web site beginning two hours after the completion of the
Webcast.
Discussion of Utility Group Results
Utility Group earnings for the third quarter of 2004 were $4.5 million compared
to $2.4 million for the same period last year. The $2.1 million increase was
primarily due to the return on additional NOx related environmental expenditures
and increased gas base rates in the Vectren South service territory. Electric
margins also benefited from increased wholesale power activities and large
customer electric consumption. Management estimates that mild weather decreased
earnings for the quarter an estimated $2.2 million after tax compared to the
same period last year.
Utility Group earnings were $51.9 million for the nine months ended September
30, 2004, compared to $51.1 million in the prior year. Earnings increased due to
the return on additional NOx related environmental expenditures which were
partially offset by reduced wholesale power activities. Management estimates
that mild weather decreased nine-month earnings an estimated $5.0 million after
tax, compared to an increase in 2003 earnings of $1.4 million.
Gas utility margins were $45.2 million and $241.8 million for the three and nine
months ended September 30, 2004. Gas utility margin increased in the third
quarter by $1.5 million or 3 percent. Year-to-date gas margins declined $7.1
million or 3 percent. The quarterly increase is primarily due to increased base
rates in the Vectren South service territory and a $0.7 million charge recorded
in the 2003 third quarter associated with the findings of the Public Utility
Commission of Ohio (PUCO) in a gas cost recovery audit proceeding. These
increases were offset by the effects of weather which decreased gas utility
margin an estimated $1.4 million compared to the same period last year. Heating
weather for the nine months ended September 30, 2004, was 9 percent warmer than
normal and 13 percent warmer than last year. Management estimated an unfavorable
impact on year-to-date gas utility margin of $11.7 million compared to last
year.
Electric retail and firm wholesale utility margins were $71.2 million and $191.2
million for the three and nine months ended September 30, 2004. This represents
an increase over the same periods last year of $4.7 million and $15.7 million,
respectively. Margins increased $4.5 million quarter over quarter and $12.4
million for the nine month period due to an increase in retail electric rates
for the recovery of NOx related environmental expenditures. Margin from
residential and commercial customers (excluding the effects of NOx recovery)
decreased $2.5 million for the quarter due primarily to the estimated effect of
weather and increased $5.2 million for the nine months due to both weather and
increased usage. Excluding the effects of NOx recovery, margins from industrial
customers increased $1.2 million for the quarter and $3.9 million for the nine
months as compared to 2003. Cooling weather for the quarter was 24 percent
cooler than normal and 18 percent cooler than last year. Cooling weather for the
nine-month period was 10 percent cooler than normal and 11percent warmer than
last year. The estimated decrease in margin due to weather was $2.3 million for
the quarter and the estimated increase in margin for the nine month period was
$1.0 million. As the recovery under the NOx rider is a volumetric charge, it is
also estimated that the mild weather has reduced the level of NOx recovery by
approximately $0.5 million year-to-date.
Electric wholesale margins primarily result from asset optimization activities
derived from generation capacity in excess of that needed to serve native load
and firm wholesale customers. Net wholesale margins increased $1.6 million for
the three month periods and decreased $5.2 million for the nine month periods,
compared to last year. The change in margin both for the quarter and
year-to-date is due largely to variations in unutilized capacity. Increases in
demand by native load customers and scheduled outages of owned generation
related to the installation of environmental compliance equipment reduced the
availability of excess power, lowering year-to-date wholesale margins.
Other operating expenses and depreciation expense for the three and nine months
ended September 30, 2004, collectively increased $3.3 million and $9.6 million,
respectively, compared to 2003. For the quarter, NOx related operating expenses
increased $2.7 million (other operating expenses of $0.8 million and
depreciation of $1.9 million). For the nine months, NOx related operating
expenses increased $6.7 million (other operating expenses of $2.9 million and
depreciation of $3.8 million). The remaining increase in other operating
expenses is primarily due to higher labor and benefit costs. The remaining
increase in depreciation expense is primarily due to normal additions to utility
plant.
For the three and nine months ended September 30, 2004, total other income
(expense) increased $0.1 million and $2.8 million, respectively, compared to
2003. The nine month increase was primarily attributable to 2003 charges related
to the Company's investments in BABB International, a pre-tax charge of $3.9
million.
For the three and nine months ended September 30, 2004, interest expense
decreased $0.3 million and increased $0.7 million as compared to 2003. The
increase in year-to-date interest expense reflects the July 2003 issuance of
long-term debt.
Vectren Ohio Pending Gas Rate Case
The Company issued its initial pre-filing notice with the PUCO on April 16,
2004, and requested an increase in its base rates of approximately $25 million
to cover the ongoing cost of operating, maintaining and expanding its gas
distribution business in west central Ohio. This marks the first request to
increase base rates since 1991. Since that time, investments made to serve
customers have exceeded $135 million. If approved, the typical residential
customer who uses natural gas to heat his/her home would see a bill increase of
less than 8 percent. The filing also includes a proposed conservation tariff,
which, if approved, will enable the Company to proactively support conservation
and promote home weatherization and the reduction of energy consumption. In late
May, the Company filed its formal application for an increase in base rates.
Based on the PUCO's regulatory process, the Commission staff report relating to
the Company's request is expected to be submitted in late October. Based upon
the PUCO's actions in other proceedings, the Company would expect a litigated
resolution of this case late in the first quarter of 2005.
Discussion of Vectren Enterprise Nonregulated Results (All amounts following in
this section are after tax)
Nonregulated Group earnings were $5.9 million for the quarter, an increase of
$0.2 million over the prior year. The Company's three primary nonregulated
businesses, Energy Marketing and Services, Coal Mining and Utility
Infrastructure Services, each improved their earnings contribution from 2003.
The third quarter 2003 includes $2.6 million in earnings from the sale of the
Company's investment in Genscape, Inc.
Nonregulated earnings for the nine months ended September 30, 2004, were $17.2
million compared to $17.6 million in the prior year. The Company's three primary
nonregulated businesses, Energy Marketing and Services, Coal Mining, and Utility
Infrastructure Services, contributed $21.5 million in 2004, compared to $18.1
million in 2003. The 2004 nine month earnings reflect charges of $6.0 million
related to the write-down of the Company's broadband businesses, which were
partially offset by net gains from the Company's investment in Haddington Energy
Partners. The 2003 nine month earnings reflect after-tax gains on the divesture
of businesses, including Genscape, totaling $1.4 million.
Energy Marketing and Services
Net income generated by Energy Marketing and Services for the three months ended
September 30, 2004, was $1.1 million compared to $0.2 million in 2003. Net
income generated by Energy Marketing and Services for the nine months ended
September 30, 2004, was $9.1 million compared to $9.4 million in 2003.
ProLiance Energy contributed quarterly earnings of $1.6 million in 2004 compared
to $0.6 million in 2003. ProLiance contributed year-to-date earnings in 2004 of
$10.2 million, compared to $10.7 million in 2003. The three month increase was
primarily due to gains from storage optimization. The nine month decrease
results principally from unprecedented volatility in gas prices in March 2003
that did not repeat in 2004. Earnings at Energy Systems Group increased for the
quarter by $0.6 million due to better sales growth in the first six months of
the year. Current construction backlog stands at $32 million. Vectren Source
operations contributed an earnings increase for the year-to-date period of $1.0
million. The increase was principally due to increased customers and margins per
unit of throughput, partially offset by additional costs associated with
entering the Georgia market in the third quarter of 2004.
Coal Mining
Coal Mining net income for the three months ended September 30, 2004, was $3.7
million compared to $2.8 million in 2003. Coal Mining net income for the nine
months ended September 30, 2004, was $11.1 million compared to $9.7 million in
2003.
Mining operations have increased earnings for the quarter and year-to-date by
$1.0 million and $1.8 million, respectively. The increases were primarily due to
improved mining operations. This resulted from improved affiliate pricing,
improved market prices for coal and better mining conditions. Synfuel-related
results for the quarter, which include earnings from Pace Carbon and synfuel
processing fees, were generally flat for the quarter and have decreased $0.4
million year-to-date. The decrease was the result of less synthetic fuel
production due to feed stock problems at one of Pace Carbon's four plants, which
is currently being relocated.
Utility Infrastructure Services
Infrastructure's income for the quarter was $1.4 million, an improvement of $1.2
million from 2003. Infrastructure's results year-to-date were $1.3 million, an
improvement of $2.3 million over 2003. The increase in earnings reflects
continued increases in utility construction and repair spending during the
second and third quarter of 2004.
Broadband and Other Businesses
Broadband and other businesses reported a net loss of $0.3 million for the three
months ended September 30, 2004, compared to net earnings of $2.5 million in
2003. For the nine months ended September 30, 2004, these businesses reported a
net loss of $4.3 million, compared to a net loss of $0.5 million in 2003. These
decreases result primarily from the Company's broadband-related investments and
its 2003 sale of Genscape, offset by earnings from the Haddington Energy
Partners.
During 2004, the Company continued to evaluate strategic alternatives for its
broadband investments and concluded that it is unlikely that it would be making
additional investments. During the first and second quarter, the Company
recorded impairment charges associated with its broadband-related businesses and
investments, which totaled $6.0 million.
These decreases were partially offset by earnings from Haddington Energy
Partnerships. During the nine months ended September 30, 2004, these
partnerships sold their investments in SAGO Energy, LP, of which the Company's
earnings were $5.3 million. These earnings were partially offset by Haddington's
write-down of Nations Energy Holdings, of which the Company's portion was $3.5
million. In total, earnings from Haddington for the nine months ended September
30, 2004, are $2.1 million compared to a loss of $0.5 million in 2003.
Please SEE ATTACHED unaudited schedules for additional financial information
Live Webcast on November 1, 2004
Vectren Corporation officers will discuss third quarter 2004 earnings results
during a conference call for analysts scheduled at 2:30 p.m. EST (1:30 CST),
Monday, November 1, 2004. You are invited to listen to the live Webcast and view
the supporting slides by accessing the Investor Relations link on Vectren's Web
site at www.vectren.com. Interested parties may also view the slide presentation
and listen to the Webcast replay via Vectren's Web site beginning two hours
after the completion of the Webcast.
About Vectren
Vectren Corporation is an energy and applied technology holding Company
headquartered in Evansville, Indiana. Vectren's energy delivery subsidiaries
provide gas and/or electricity to over 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; and, utility infrastructure 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 Form 10-K filed with the Securities and Exchange
Commission on February 26, 2004.
Investor Contact Steven M. Schein, (812) 491-4209, sschein@vectren.com
Media Contact Jeffrey W. Whiteside, (812) 491-4205, jwhiteside@vectren.com
###
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except per share amounts)
(Unaudited)
Three Months Nine Months Twelve Months
Ended September 30 Ended September 30 Ended September 30
--------------------------------------------------------------------
2004 2003 2004 2003 2004 2003
-------------------- ---------------------- ----------------------
OPERATING REVENUE:
Gas utility $ 112,372 $ 114,985 $ 771,636 $ 788,729 $1,095,220 $1,112,627
Electric utility 102,339 95,485 280,197 254,196 361,695 333,911
Energy services and other 39,653 29,118 124,605 90,829 173,479 125,015
--------- --------- ---------- ---------- ---------- ----------
Total operating revenues 254,364 239,588 1,176,438 1,133,754 1,630,394 1,571,553
--------- --------- ---------- ---------- ---------- ----------
OPERATING EXPENSES:
Cost of gas sold 67,146 71,294 529,813 539,869 752,408 754,948
Fuel for electric generation 25,772 24,944 72,409 66,255 92,631 88,121
Purchased electric energy 5,345 4,152 16,578 12,485 20,265 16,197
Cost of energy services and other 27,042 21,966 90,141 66,561 127,317 92,831
Other operating 59,160 57,193 187,773 179,395 242,107 234,020
Depreciation and amortization 36,218 32,930 103,617 96,742 135,531 128,200
Taxes other than income taxes 9,888 8,937 43,259 42,055 58,211 55,590
--------- --------- ---------- ---------- ---------- ----------
Total operating expenses 230,571 221,416 1,043,590 1,003,362 1,428,470 1,369,907
--------- --------- ---------- ---------- ---------- ----------
OPERATING INCOME 23,793 18,172 132,848 130,392 201,924 201,646
OTHER INCOME:
Equity in earnings of
unconsolidated affiliates 1,514 (2,227) 13,512 6,450 19,231 7,032
Other - net 2,870 8,329 (981) 6,174 5,791 8,679
--------- --------- ---------- ---------- ---------- ----------
Total other income 4,384 6,102 12,531 12,624 25,022 15,711
--------- --------- ---------- ---------- ---------- ----------
INTEREST EXPENSE 19,383 19,557 57,512 56,694 76,404 76,387
--------- --------- ---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 8,794 4,717 87,867 86,322 150,542 140,970
INCOME TAXES (926) (2,630) 19,975 19,158 38,486 31,019
MINORITY INTEREST IN SUBSIDIARY 25 21 53 54 65 440
PREFERRED DIVIDEND REQUIREMENT
OF SUBSIDIARY 2 4 11 18 16 25
--------- --------- ---------- ---------- ---------- ----------
NET INCOME $ 9,693 $ 7,322 $ 67,828 $ 67,092 $ 111,975 $ 109,486
========= ========= ========== ========== ========== ==========
AVERAGE COMMON SHARES OUTSTANDING 75,621 71,593 75,548 69,033 75,497 68,674
DILUTED COMMON SHARES OUTSTANDING 75,950 71,856 75,919 69,298 75,850 68,959
EARNINGS PER SHARE OF COMMON STOCK
BASIC:
EARNINGS PER SHARE OF COMMON
STOCK $ 0.13 $ 0.10 $ 0.90 $ 0.97 $ 1.48 $ 1.59
========= ========= ========== ========== ========== ==========
DILUTED:
EARNINGS PER SHARE OF COMMON
STOCK $ 0.13 $ 0.10 $ 0.89 $ 0.97 $ 1.48 $ 1.59
========= ========= ========== ========== ========== ==========
VECTREN UTILITY HOLDINGS
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except per share amounts)
(Unaudited)
Three Months Nine Months Twelve Months
Ended September 30 Ended September 30 Ended September 30
--------------------------------------------------------------------
2004 2003 2004 2003 2004 2003
-------------------- ---------------------- ----------------------
OPERATING REVENUE:
Gas utility $ 112,372 $ 114,985 $ 771,636 $ 788,729 $1,095,220 $1,112,627
Electric utility 102,339 95,485 280,197 254,196 361,695 333,911
Other 41 197 522 594 721 673
--------- --------- ---------- ---------- ---------- ----------
Total operating revenues 214,752 210,667 1,052,355 1,043,519 1,457,636 1,447,211
--------- --------- ---------- ---------- ---------- ----------
OPERATING EXPENSES:
Cost of gas sold 67,146 71,294 529,813 539,869 752,408 754,948
Fuel for electric generation 25,772 24,944 72,409 66,255 92,631 88,121
Purchased electric energy 5,345 4,152 16,578 12,485 20,265 16,197
Other operating 52,048 51,365 165,816 161,863 214,051 211,317
Depreciation and amortization 33,067 30,356 94,511 88,799 123,660 118,559
Taxes other than income taxes 9,657 9,200 42,401 41,782 57,245 54,945
--------- --------- ---------- ---------- ---------- ----------
Total operating expenses 193,035 191,311 921,528 911,053 1,260,260 1,244,087
--------- --------- ---------- ---------- ---------- ----------
OPERATING INCOME 21,717 19,356 130,827 132,466 197,376 203,124
OTHER INCOME (EXPENSE):
Equity in earnings (losses) of
unconsolidated affiliates (9) (35) 204 (453) 184 (1,380)
Other - net 2,338 2,238 3,723 956 7,529 1,558
--------- --------- ---------- ---------- ---------- ----------
Total other income (expense) 2,329 2,203 3,927 503 7,713 178
--------- --------- ---------- ---------- ---------- ----------
INTEREST EXPENSE 16,747 17,079 50,173 49,459 66,849 66,855
--------- --------- ---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 7,299 4,480 84,581 83,510 138,240 136,447
INCOME TAXES 2,840 2,155 32,681 32,428 51,835 47,958
PREFERRED DIVIDEND REQUIREMENT
OF SUBSIDIARY 2 4 11 18 16 25
--------- --------- ---------- ---------- ---------- ----------
NET INCOME $ 4,457 $ 2,321 $ 51,889 $ 51,064 $ 86,389 $ 88,464
========= ========= ========== ========== ========== ==========
VECTREN CORPORATION 3 Months 9 Months 12 Months
HIGHLIGHTS Ended September 30 Ended September 30 Ended September 30
(millions, except per share amounts) ------------------------------------------------------------
(Unaudited) 2004 2003 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------
Reported Earnings:
Utility Group $ 4.5 $ 2.4 $ 51.9 $ 51.1 $ 86.4 $ 88.5
Non-regulated Group
Energy Marketing and Services 1.1 0.2 9.1 9.4 15.0 12.0
Mining 0.3 (0.7) 1.6 (0.2) 1.5 (1.0)
Synfuels related 3.4 3.5 9.5 9.9 12.9 13.8
----- ----- ------ ------ ------ -------
Total Coal Mining 3.7 2.8 11.1 9.7 14.4 12.8
Utility Infrastructure Services 1.4 0.2 1.3 (1.0) 1.5 (1.8)
Broadband - - (3.3) (1.2) (3.2) (1.1)
Other Businesses (0.3) 2.5 (1.0) 0.7 (0.4) 0.1
----- ----- ------ ------ ------- -------
Total Non-regulated Group 5.9 5.7 17.2 17.6 27.3 22.0
Corporate and Other (0.7) (0.8) (1.3) (1.6) (1.7) (1.0)
----- ----- ------ ------ ------ -------
Vectren Consolidated $ 9.7 $ 7.3 $ 67.8 $ 67.1 $112.0 $109.5
===== ===== ====== ====== ====== ======
Vectren Selected Highlights
12 months 12 months
Ended Ended
September 30 September 30
2004 2003
------------ ------------
Dividends Paid (per common
share, 12 months) $ 1.14 $ 1.10
Annualized Dividend $ 1.14 $ 1.10
Dividend Yield (at close) 4.5% 4.7%
Dividend Payout Ratio 77.0% 69.2%
Dividend to Book Value 8.0% 7.9%
Return on Average Shareholders' Equity 10.5% 11.5%
Book Value Per Share $14.21 $13.94
Market to Book Value (at close) 177% 169%
Common Stock Prices (VVC - NYSE)
High $25.87 $26.13
Low $22.73 $19.70
Close $25.18 $23.62
Price/Earnings Ratio (trailing) 17.0 14.8
Ratio of Total Debt to Total
Capitalization 56% 55%
Percent Internally Generated Funds
- Utility Group 59% 67%
Ratio of Earnings to Fixed Charges
- SEC Method
Consolidated 3.0 2.9
Utility Group 3.0 3.0
VECTREN CORPORATION
SELECTED GAS DISTRIBUTION 3 Months 9 Months 12 Months
OPERATING STATISTICS Ended September 30 Ended September 30 Ended September 30
--------------------------------------------------------------------
(Unaudited) 2004 2003 2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------
GAS OPERATING REVENUES (Thousands):
Residential $ 65,416 $ 67,991 $ 504,355 $ 522,487 $ 724,431 $ 738,827
Commercial 31,341 31,500 195,859 197,554 274,482 274,938
Contract 13,990 14,536 62,107 62,901 83,854 89,127
Miscellaneous Revenue 1,625 958 9,315 5,787 12,453 9,735
--------- --------- --------- --------- ---------- ----------
$ 112,372 $ 114,985 $ 771,636 $ 788,729 $1,095,220 $1,112,627
========= ========= ========= ========= ========== ==========
GAS MARGIN (Thousands):
Residential $ 28,210 $ 27,411 $ 154,299 $ 161,064 $ 219,077 $ 231,559
Commercial 7,309 7,348 44,522 46,272 63,348 67,130
Contract 9,668 9,721 38,549 37,900 53,057 53,304
Miscellaneous 39 (789) 4,453 3,624 7,330 5,686
--------- --------- --------- --------- ---------- ----------
$ 45,226 $ 43,691 $ 241,823 $ 248,860 $ 342,812 $ 357,679
========= ========= ========= ========= ========== ==========
GAS SOLD & TRANSPORTED (MDth):
Residential 4,102 4,365 53,975 58,423 78,762 87,563
Commercial 2,591 2,646 22,161 24,025 31,499 34,832
Contract 17,458 18,053 65,286 66,940 91,117 94,381
--------- --------- --------- --------- ---------- ----------
24,151 25,064 141,422 149,388 201,378 216,776
========= ========= ========= ========= ========== ==========
AVERAGE GAS CUSTOMERS
Residential 869,780 860,958 878,973 871,724 879,539 873,151
Commercial 78,420 77,919 79,291 79,194 79,384 79,405
Contract 4,024 4,029 4,043 4,088 4,042 4,097
--------- --------- --------- --------- ---------- ----------
952,224 942,906 962,307 955,006 962,965 956,653
========= ========= ========= ========= ========== ==========
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 52% 110% 91% 105% 90% 105%
VECTREN CORPORATION
SELECTED ELECTRIC 3 Months 9 Months 12 Months
OPERATING STATISTICS Ended September 30 Ended September 30 Ended September 30
-------------------- -------------------- ----------------------
(Unaudited) 2004 2003 2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------
ELECTRIC OPERATING REVENUES (Thousands):
Residential $ 36,049 $ 36,100 $ 93,246 $ 82,497 $ 116,130 $ 103,990
Commercial 25,549 23,528 69,992 61,009 91,251 80,338
Industrial 27,792 23,829 80,896 68,329 105,313 91,968
Municipals 6,936 6,033 18,357 16,041 23,850 21,014
Miscellaneous Revenue 97 1,787 2,419 4,723 4,881 5,570
--------- --------- --------- --------- ---------- ----------
Total Retail 96,423 91,277 264,910 232,599 341,425 302,880
Net Wholesale Revenues 5,916 4,208 15,287 21,597 20,270 31,031
--------- --------- --------- --------- ---------- ----------
$ 102,339 $ 95,485 $ 280,197 $ 254,196 $ 361,695 $ 333,911
========= ========= ========= ========= ========== ==========
ELECTRIC MARGIN (Thousands):
Residential $ 28,231 $ 28,160 $ 72,467 $ 64,051 $ 90,366 $ 80,756
Commercial 18,136 16,807 49,563 43,650 65,023 57,870
Industrial 16,242 13,313 46,458 38,439 61,552 52,369
Municipals 4,218 3,600 10,772 9,826 14,061 12,466
Miscellaneous 74 1,805 2,329 4,662 4,727 5,452
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Total Retail 66,901 63,685 181,589 160,628 235,729 208,913
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Net Wholesale Margin 4,321 2,704 9,621 14,828 13,070 20,680
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$ 71,222 $ 66,389 $ 191,210 $ 175,456 $ 248,799 $ 229,593
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ELECTRICITY SOLD (MWh):
Residential 443,931 487,890 1,184,194 1,144,209 1,481,691 1,446,830
Commercial 419,410 413,247 1,147,741 1,076,091 1,493,777 1,408,794
Industrial 653,312 646,225 1,931,037 1,851,906 2,496,016 2,496,000
Municipals 176,549 169,814 486,761 449,562 638,123 591,014
Miscellaneous Sales 3,065 3,542 9,517 12,891 13,836 18,274
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Total Retail 1,696,267 1,720,718 4,759,250 4,534,659 6,123,443 5,960,912
Wholesale 1,231,131 1,014,188 2,336,245 3,039,238 3,602,197 5,453,431
--------- --------- --------- --------- --------- ----------
2,927,398 2,734,906 7,095,495 7,573,897 9,725,640 11,414,343
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AVERAGE ELECTRIC CUSTOMERS
Residential 118,020 117,010 118,087 116,929 117,949 116,718
Commercial 17,067 16,993 17,051 16,967 17,045 17,015
Industrial 154 162 154 172 155 173
All Others 21 21 21 21 21 22
--------- --------- ---------- --------- --------- ----------
135,262 134,186 135,313 134,089 135,170 133,928
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WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 52% 110% 91% 105% 90% 105%
Cooling Degree Days 76% 93% 90% 81% 89% 82%