EX 99-1
                                                    News
                                                    Release

                                                    Vectren Corporation
                                                    P.O. Box 209
                                                    Evansville, IN  47702-0209
FOR IMMEDIATE RELEASE
November 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 North natural gas
                           base rate increase approved

Vectren Corporation (NYSE: VVC) announced today that the Indiana Utility
Regulatory Commission (IURC) approved Vectren Energy Delivery of Indiana -
North's (Vectren North) base rate increase for its natural gas distribution
business in 49 central and southeastern Indiana counties. Vectren North will
implement the new distribution rates as of December 1.

The commission's ruling provides for a $24 million increase in Vectren North's
distribution rates to cover the ongoing cost of operating, maintaining and
expanding the approximately 12,000-mile distribution and storage system used to
serve more than 525,000 customers. The ruling results in an approximate 3.5
percent increase in the total average bill for residential customers who heat
their homes with natural gas.

Terms of the commission order 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 monthly customer charge,
          which is intended to address to some extent earnings volatility
          related to weather; and
     o    a pilot program and market study to determine potential benefits
          associated with gas demand side management programs.

This order completes a process initiated by Vectren North on March 19. The
decision approves the settlement agreement Vectren North filed last month with
several parties, including the Indiana Office of Utility Consumer Counselor
(OUCC), the Indiana Gas Industrial Group and the Citizens Action Coalition of
Indiana, Inc. (CAC).

The Pipeline Safety Improvement Tracker permits Vectren North to recover the
on-going costs associated with the federal Pipeline Safety Improvement Act of
2002, capped at $2.5 million per year. Costs in excess of the cap amounts are
deferred for future recovery.

This adjustment to distribution rates will be the first by Vectren North since
1991. Over the past 13 years investments made to serve Vectren North customers
have exceeded $270 million, and the amounts paid for taxes, health care, labor
and other operating costs have increased as well.

The settlement agreement addresses Vectren North's "non-gas" costs only. These
costs represent between 25 and 30 cents of every dollar paid by customers for
their gas service. These "non-gas" costs are incurred to build, operate and
maintain the pipes, other equipment and systems that are used to deliver gas
across Vectren North's system to its customers. The remaining 70 to 75 cents of
each dollar represent the cost of the gas used by customers. That gas is
purchased on the competitive wholesale market by Vectren North on behalf of its
customers, and its actions are subject to quarterly regulatory scrutiny under
the state's Gas Cost Adjustment (GCA) procedures to ensure its purchasing
actions are reasonable. Vectren North utilizes a portfolio approach to purchase
gas to reduce price volatility. Under Indiana regulation, Vectren North is not
allowed to make a profit on the cost of gas.

Vectren North (formerly known as Indiana Gas Co.) serves all or portions of
Adams, Allen, Bartholomew, Blackford, Boone, Clark, Clay, Clinton, Daviess,
Decatur, Delaware, Fayette, Floyd, Fountain, Grant, Greene, Hamilton, Hancock,
Hendricks, Henry, Huntington, Jackson, Jay, Jefferson, Johnson, Lawrence,
Madison, Marion, Martin, Miami, Monroe, Montgomery, Morgan, Orange, Owen, Parke,
Putnam, Randolph, Rush, Shelby, Tippecanoe, Tipton, Vermillion, Vigo, Wabash,
Warren, Wayne, Wells and White counties.

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
http://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.