EX 99-1



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

FOR IMMEDIATE RELEASE
February 4, 2005

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

                  Settlement reached on Vectren Energy Delivery
                     of Ohio natural gas base rate increase

Dayton, Ohio -- Vectren Corporation (NYSE: VVC), announced today that its
utility subsidiary, Vectren Energy Delivery of Ohio (VEDO), has entered into a
settlement agreement with the staff of the Public Utilities Commission of Ohio
(PUCO) and other parties regarding the proposed changes to the base rates and
charges for VEDO's gas distribution business in 17 west central Ohio counties.

The settlement agreement was filed today with the PUCO who will now review the
settlement and determine if the settlement strikes a reasonable balance between
the interests of customers and VEDO's interests. Approval by the PUCO is
necessary before the settlement can become effective.

The settlement agreement provides for either a $15.7 or $16.6 million increase
in VEDO's base distribution rates to cover the ongoing cost of operating,
maintaining and expanding the approximate 5,200-mile distribution system used to
serve more than 310,000 customers, as well as fund customer conservation
programs. To the extent no party to the case opposes the settlement, the
settlement will provide for an increase of $16.6 million, reflecting $2 million
of conservation program funding, a level that is higher than is included in the
$15.7 million increase amount. The $16.6 million option (reflecting greater
conservation program expenditures) results in an approximate 4.5 percent
increase in the total average bill for residential customers who heat their
homes with natural gas.

Terms of the settlement agreement include:
     o    a rate increase of $16.6 million or $15.7 million;
     o    an authorized return on equity (ROE) of 10.6 percent;
     o    an overall cost of capital of 8.94 percent; o a return on rate base of
          about $245 million;
     o    a new rate design which includes a larger monthly customer service
          charge, intended to provide the company with greater certainty of
          fixed cost recovery; and
     o    recovery of annual pipeline integrity compliance costs.

All parties in the case have either signed the settlement or announced they will
not contest the settlement with the exception of the Ohio Office of Consumers'
Counsel (OCC) and the Community Action Partnership. Those two parties may or may
not oppose the settlement.

VEDO filed the case in April 2004, and requested an increase of $25 million.
Under Ohio law, VEDO's application was subjected to an audit and examination by
the PUCO as well as the other parties to the PUCO proceeding. The request to
increase base rates was the first by VEDO, or its predecessor company, since
1991. Over the past 13 years, investments made to safely and reliably serve VEDO
customers have exceeded $135 million. Other operating costs have increased as
well.

"We have worked cooperatively with all the parties in the rate proceeding and
within our service area to craft a balanced settlement," said VEDO President
Steve Bramlage. "The increase will help us address escalation in the cost of
infrastructure improvements and increased costs of labor, health care, and other
costs of operation. We believe the settlement, as a package, strikes a
reasonable balance between our interests and the interests of our residential,
commercial and industrial customers in Southwest Ohio."

VEDO's rate increase application and the settlement agreement address VEDO's
"non-gas" costs only, which are listed as "Base Rate Charges" on a customer's
bill. These costs represent between 25 and 30 cents of every dollar paid by
customers for their gas service. These "non-gas" costs are incurred by VEDO to
build, operate and maintain the pipes, other equipment and systems that are used
to supply natural gas through VEDO's system to its customers. Through actions by
the PUCO in accordance with Ohio's laws and regulations, VEDO obtains
compensation for its non-gas costs.

The remaining 70 to 75 cents of each dollar paid to VEDO by its customers
represents the cost of the natural gas that VEDO must purchase to meet the
demands of its customers. That gas is purchased in the competitive wholesale
market by VEDO on behalf of its customers subject to review by the PUCO under
Ohio's Gas Cost Recovery (GCR) procedures. Under Ohio law and regulations, VEDO
and other Ohio natural gas utilities are not allowed to make a profit on the
cost of gas.

VEDO serves all or a portion of Auglaize, Butler, Champaign, Clark, Clinton,
Darke, Fayette, Greene, Highland, Logan, Madison, Miami, Montgomery, Pickaway,
Preble, Shelby and Warren 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
www.vectren.com.