ý
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
VECTREN
CORPORATION
|
INDIANA
|
35-2086905
|
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification No.)
|
|
One
Vectren Square
|
47708
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
|
Common
- Without Par
|
New
York Stock Exchange
|
Common
Stock - Without Par Value
|
76,252,552
|
January
31, 2007
|
Class
|
Number
of Shares
|
Date
|
AFUDC:
allowance for funds used during construction
|
MMBTU:
millions of British thermal units
|
APB:
Accounting Principles Board
|
MW:
megawatts
|
EITF:
Emerging Issues Task Force
|
MWh
/ GWh: megawatt hours / thousands of megawatt hours (gigawatt
hours)
|
FASB:
Financial Accounting Standards Board
|
NOx:
nitrogen oxide
|
FERC:
Federal Energy Regulatory Commission
|
OUCC:
Indiana Office of the Utility Consumer Counselor
|
IDEM:
Indiana Department of Environmental Management
|
PUCO:
Public Utilities Commission of Ohio
|
IURC:
Indiana Utility Regulatory Commission
|
SFAS:
Statement of Financial Accounting Standards
|
MCF
/ BCF: thousands / billions of cubic feet
|
USEPA:
United States Environmental Protection Agency
|
MDth
/ MMDth: thousands / millions of dekatherms
|
Throughput:
combined gas sales and gas transportation
volumes
|
Item
|
Page
|
|||||
Number
|
Number
|
|||||
Part
I
|
||||||
1
|
Business
|
4
|
||||
1A
|
Risk
Factors
|
10
|
||||
1B
|
Unresolved
Staff Comments
|
14
|
||||
2
|
Properties
|
14
|
||||
3
|
Legal
Proceedings
|
16
|
||||
4
|
Submission
of Matters to Vote of Security Holders
|
16
|
||||
Part
II
|
||||||
5
|
Market
for the Company’s Common Equity, Related Stockholder Matters, and Issuer
Purchases of Equity Securities
|
16
|
||||
6
|
Selected
Financial Data
|
17
|
||||
7
|
Management's
Discussion and Analysis of Results of Operations and Financial
Condition
|
18
|
||||
7A
|
Qualitative
and Quantitative Disclosures About Market Risk
|
43
|
||||
8
|
Financial
Statements and Supplementary Data
|
45
|
||||
9
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
88
|
||||
9A
|
Controls
and Procedures, including Management’s Assessment of Internal Controls
over Financial ReportingControls
and Procedures
|
88
|
||||
9B
|
Other
Information
|
88
|
||||
|
||||||
Part
III
|
||||||
10
|
Directors,
Executive Officers and Corporate Governance
|
88
|
||||
11
|
Executive
Compensation
|
89
|
||||
12
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters.
|
89
|
||||
13
|
Certain
Relationships, Related Transactions and Director
Independence
|
89
|
||||
14
|
Principal
Accountant Fees and Services
|
90
|
||||
|
||||||
Part
IV
|
||||||
15
|
Exhibits
and Financial Statement Schedules
|
90
|
||||
Signatures
|
95
|
|||||
Mailing
Address:
One
Vectren Square
Evansville,
Indiana 47708
|
Phone
Number:
(812)
491-4000
|
Investor
Relations Contact:
Steven
M. Schein
Vice
President, Investor Relations
sschein@vectren.com
|
||
Date
of summer peak load
|
8/10/2006
|
|
7/25/2005
|
|
7/13/2004
|
|
8/27/2003
|
|
8/5/2002
|
|
Total
load at peak (1)
|
1,325
|
|
1,315
|
|
1,222
|
|
1,272
|
|
1,258
|
|
Generating
capability
|
1,351
|
|
1,351
|
|
1,351
|
|
1,351
|
|
1,351
|
|
Firm
purchase supply
|
107
|
|
107
|
|
105
|
|
32
|
|
82
|
|
Interruptible
contracts
|
62
|
|
76
|
|
51
|
|
95
|
|
95
|
|
Total
power supply capacity
|
1,520
|
|
1,534
|
|
1,507
|
|
1,478
|
|
1,528
|
|
Reserve
margin at peak
|
15%
|
|
17%
|
|
23%
|
|
16%
|
|
21%
|
(1) |
The
total load at peak is increased 25 MW in 2006, 2005, 2003, and 2002
from
the total load actually experienced. The additional 25 MW represents
load
that would have been incurred if Summer Cycler program had not been
activated. The 25 MW is also included in the interruptible contract
portion of the Company’s total power supply capacity in those years. On
the date of peak in 2004, Summer Cycler program was not
activated.
|
Year
Ended December 31,
|
||||||||||
Avg.
Cost Per
|
2006
|
|
2005
|
|
2004
|
|
2003
|
|
2002
|
|
Ton
|
|
$
37.51
|
|
$
30.27
|
|
$
27.06
|
|
$
24.91
|
|
$
23.50
|
MWh
|
|
18.44
|
|
14.94
|
|
13.06
|
|
11.93
|
|
11.00
|
Current
Rating
|
||
Standard
|
||
Moody’s
|
&
Poor’s
|
|
Utility
Holdings, Indiana Gas and SIGECO senior unsecured debt
|
Baa1
|
A-
|
Utility
Holdings commercial paper program
|
P-2
|
A-2
|
Cash
|
|
Common
Stock Price Range
|
|||||
|
|
|
Dividend
|
|
High
|
|
Low
|
2006
|
|||||||
First
Quarter
|
0.305
|
|
$
28.00
|
|
$
25.60
|
||
|
Second
Quarter
|
|
0.305
|
|
27.52
|
|
25.24
|
|
Third
Quarter
|
|
0.305
|
|
28.42
|
|
26.00
|
|
Fourth
Quarter
|
|
0.315
|
|
29.25
|
|
26.67
|
2005
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
$
0.295
|
|
$
27.95
|
|
$
25.82
|
|
Second
Quarter
|
|
0.295
|
|
28.98
|
|
26.01
|
|
Third
Quarter
|
|
0.295
|
|
29.46
|
|
26.50
|
|
Fourth
Quarter
|
|
0.305
|
|
28.75
|
|
25.00
|
Year
Ended December 31,
|
||||||||||||||||
(In
millions, except per share data)
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
Operating
Data:
|
||||||||||||||||
Operating
revenues
|
$
|
2,041.6
|
$
|
2,028.0
|
$
|
1,689.8
|
$
|
1,587.7
|
$
|
1,523.8
|
||||||
Operating
income
|
$
|
220.5
|
$
|
213.1
|
$
|
199.5
|
$
|
196.0
|
$
|
211.3
|
||||||
Net
income
|
$
|
108.8
|
$
|
136.8
|
$
|
107.9
|
$
|
111.2
|
$
|
114.0
|
||||||
Average
common shares outstanding
|
75.7
|
75.6
|
75.6
|
70.6
|
67.6
|
|||||||||||
Fully
diluted common shares outstanding
|
76.2
|
76.1
|
75.9
|
70.8
|
67.9
|
|||||||||||
Basic
earnings per share
|
|
|
|
|
|
|||||||||||
on common stock
|
$
|
1.44
|
$
|
1.81
|
$
|
1.43
|
$
|
1.58
|
$
|
1.69
|
||||||
Diluted
earnings per share
|
|
|
|
|
|
|||||||||||
on common stock
|
$
|
1.43
|
$
|
1.80
|
$
|
1.42
|
$
|
1.57
|
$
|
1.68
|
||||||
Dividends
per share on common stock
|
$
|
1.23
|
$
|
1.19
|
$
|
1.15
|
$
|
1.11
|
$
|
1.07
|
||||||
|
|
|
|
|
|
|||||||||||
Balance
Sheet Data:
|
|
|
|
|
|
|||||||||||
Total
assets
|
$
|
4,091.6
|
$
|
3,868.1
|
$
|
3,586.9
|
$
|
3,353.4
|
$
|
3,136.5
|
||||||
Long-term
debt, net
|
$
|
1,208.0
|
$
|
1,198.0
|
$
|
1,016.6
|
$
|
1,072.8
|
$
|
954.2
|
||||||
Redeemable
preferred stock
|
$
|
-
|
$
|
-
|
$
|
0.1
|
$
|
0.2
|
$
|
0.3
|
||||||
Common
shareholders' equity
|
$
|
1,174.2
|
$
|
1,143.3
|
$
|
1,094.8
|
$
|
1,071.7
|
$
|
869.9
|
Year
Ended December 31,
|
||||||||
(In
millions, except per share data)
|
2006
|
|
2005
|
|
2004
|
|||
Net
income
|
|
$
108.8
|
|
$
136.8
|
|
$
107.9
|
||
|
Attributed
to:
|
|
|
|
|
|
|
|
|
|
Utility
Group
|
|
$ 91.4
|
|
$
95.1
|
|
$ 83.1
|
|
|
Nonutility
Group
|
|
18.1
|
|
48.2
|
|
26.4
|
|
|
Corporate
& Other
|
|
(0.7)
|
|
(6.5)
|
|
(1.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
|
$
1.44
|
|
$
1.81
|
|
$
1.43
|
||
|
Attributed
to:
|
|
|
|
|
|
|
|
|
|
Utility
Group
|
|
$
1.21
|
|
$
1.26
|
|
$
1.10
|
|
|
Nonutility
Group
|
|
0.24
|
|
0.64
|
|
0.35
|
|
|
Corporate
& Other
|
|
(0.01)
|
|
(0.09)
|
|
(0.02)
|
Year
Ended December 31,
|
||||||||||
(In
millions, except per share data)
|
2006
|
|
2005
|
|
2004
|
|||||
OPERATING
REVENUES
|
||||||||||
Gas
utility
|
$
|
1,232.5
|
$
|
1,359.7
|
$
|
1,126.2
|
||||
Electric
utility
|
422.2
|
421.4
|
371.3
|
|||||||
Other
|
1.8
|
0.7
|
0.5
|
|||||||
Total
operating revenues
|
1,656.5
|
1,781.8
|
1,498.0
|
|||||||
OPERATING
EXPENSES
|
||||||||||
Cost
of gas sold
|
841.5
|
973.3
|
778.5
|
|||||||
Cost
of fuel & purchased power
|
151.5
|
144.1
|
116.8
|
|||||||
Other
operating
|
239.0
|
241.3
|
220.4
|
|||||||
Depreciation
& amortization
|
151.3
|
141.3
|
127.8
|
|||||||
Taxes
other than income taxes
|
64.2
|
65.2
|
58.2
|
|||||||
Total
operating expenses
|
1,447.5
|
1,565.2
|
1,301.7
|
|||||||
OPERATING
INCOME
|
209.0
|
216.6
|
196.3
|
|||||||
OTHER
INCOME
|
||||||||||
Equity
in earnings of unconsolidated affiliates
|
-
|
-
|
0.2
|
|||||||
Other
– net
|
7.6
|
5.9
|
7.1
|
|||||||
Total
other income
|
7.6
|
5.9
|
7.3
|
|||||||
Interest
expense
|
77.5
|
69.9
|
67.4
|
|||||||
INCOME
BEFORE INCOME TAXES
|
139.1
|
152.6
|
136.2
|
|||||||
Income
taxes
|
47.7
|
57.5
|
53.1
|
|||||||
NET
INCOME
|
$
|
91.4
|
$
|
95.1
|
$
|
83.1
|
||||
BASIC
EARNINGS PER SHARE
|
$
|
1.21
|
$
|
1.26
|
$
|
1.10
|
Year
Ended December 31,
|
||||||||||
(In
millions)
|
2006
|
2005
|
2004
|
|||||||
Gas
utility revenues
|
$
|
1,232.5
|
$
|
1,359.7
|
$
|
1,126.2
|
||||
Cost
of gas sold
|
841.5
|
973.3
|
778.5
|
|||||||
Total
gas utility margin
|
$
|
391.0
|
$
|
386.4
|
$
|
347.7
|
||||
Margin
attributed to:
|
||||||||||
Residential
& commercial customers
|
$
|
330.2
|
$
|
333.2
|
$
|
297.7
|
||||
Industrial
customers
|
48.0
|
48.3
|
45.7
|
|||||||
Other
customers
|
12.8
|
4.9
|
4.3
|
|||||||
Sold
& transported volumes in MMDth attributed to:
|
||||||||||
Residential
& commercial customers
|
97.7
|
112.9
|
114.5
|
|||||||
Industrial
customers
|
84.9
|
87.2
|
85.8
|
|||||||
Total
sold & transported volumes
|
182.6
|
200.1
|
200.3
|
Year
Ended December 31,
|
||||||||||
(In
millions)
|
|
2006
|
|
2005
|
|
2004
|
||||
Electric
utility revenues
|
$
|
422.2
|
$
|
421.4
|
$
|
371.3
|
||||
Cost
of fuel & purchased power
|
151.5
|
144.1
|
116.8
|
|||||||
Total
electric utility margin
|
$
|
270.7
|
$
|
277.3
|
$
|
254.5
|
||||
Margin
attributed to:
|
||||||||||
Residential
& commercial customers
|
$
|
162.9
|
$
|
170.8
|
$
|
157.3
|
||||
Industrial
customers
|
70.2
|
66.9
|
63.7
|
|||||||
Municipal
& other customers
|
24.0
|
19.8
|
18.6
|
|||||||
Subtotal:
Retail & firm wholesale
|
$
|
257.1
|
$
|
257.5
|
$
|
239.6
|
||||
Asset
optimization
|
$
|
13.6
|
$
|
19.8
|
$
|
14.9
|
||||
Electric
volumes sold in GWh attributed to:
|
||||||||||
Residential
& commercial customers
|
2,789.7
|
2,933.2
|
2,830.9
|
|||||||
Industrial
customers
|
2,570.4
|
2,575.9
|
2,511.2
|
|||||||
Municipal
& other customers
|
644.4
|
689.9
|
645.9
|
|||||||
Total
retail & firm wholesale volumes sold
|
6,004.5
|
6,199.0
|
5,988.0
|
Year
Ended December 31,
|
||||||||||
(In
millions)
|
|
2006
|
|
2005
|
|
2004
|
||||
Off-system
sales
|
$
|
14.2
|
$
|
15.3
|
$
|
8.7
|
||||
Transmission
system sales
|
3.5
|
4.5
|
4.6
|
|||||||
Other
|
(4.1
|
)
|
0.0
|
1.6
|
||||||
Total
asset optimization
|
$
|
13.6
|
$
|
19.8
|
$
|
14.9
|
· |
the
Company’s project to achieve environmental compliance by investing in
clean coal technology;
|
· |
the
Company’s investment of $258 million in capital
costs;
|
· |
a
mechanism whereby, prior to an electric base rate case, the Company
recovers through a rider that is updated every six months, an 8%
return on
its weighted capital costs for the project; and
|
· |
ongoing
recovery of operating costs, including depreciation and purchased
emission
allowances, related to the clean coal technology now that facilities
are
placed into service.
|
· |
either
repower Culley Unit 1 (50 MW) with natural gas and equip it with
SCR
control technology for further reduction of nitrogen oxide, or cease
operation of the unit by December 31,
2006;
|
· |
operate
the existing SCR control technology recently installed on Culley
Unit 3
(287 MW) year round at a lower emission rate than that currently
required
under the NOx SIP Call, resulting in further nitrogen oxide
reductions;
|
· |
enhance
the efficiency of the existing scrubber at Culley Units 2 and 3 for
additional removal of sulphur dioxide
emissions;
|
· |
install
a baghouse for further particulate matter reductions at Culley Unit
3 by
June 30, 2007;
|
· |
conduct
a Sulphuric Acid Reduction Demonstration Project as an environmental
mitigation project designed to demonstrate an advance in pollution
control
technology for the reduction of sulfate emissions; and
|
· |
pay
a $600,000 civil penalty.
|
Year
Ended December 31,
|
||||||||||
(In
millions, except per share amounts)
|
2006
|
|
2005
|
|
2004
|
|||||
NET
INCOME
|
$
|
18.1
|
$
|
48.2
|
$
|
26.4
|
||||
BASIC
EARNINGS PER SHARE
|
$
|
0.24
|
$
|
0.64
|
$
|
0.35
|
||||
NET
INCOME ATTRIBUTED TO:
|
||||||||||
Energy
Marketing & Services
|
$
|
14.9
|
$
|
29.7
|
$
|
16.6
|
||||
Mining
Operations
|
5.0
|
5.3
|
0.4
|
|||||||
Energy
Infrastructure Services
|
4.6
|
0.3
|
1.8
|
|||||||
Other
Businesses
|
(1.1
|
)
|
1.2
|
(4.5
|
)
|
|||||
Synfuels-related
|
(5.3
|
)
|
11.7
|
12.1
|
(In
millions)
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|||||||
Utility
Group
|
$
|
297.4
|
$
|
323.6
|
$
|
351.8
|
$
|
281.7
|
$
|
222.7
|
||||||
Nonutility
Group
|
74.7
|
108.8
|
72.8
|
26.1
|
31.5
|
|||||||||||
Total
capital expenditures & investments
|
$
|
372.1
|
$
|
432.4
|
$
|
424.6
|
$
|
307.8
|
$
|
254.2
|
(In
millions)
|
Total
|
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
Thereafter
|
|||||||||
Long-term
debt (1)
|
$
|
1,256.3
|
$
|
24.0
|
$
|
-
|
$
|
-
|
$
|
47.5
|
$
|
250.0
|
$
|
934.8
|
||||||||
Short-term
debt
|
464.8
|
464.8
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Long-term
debt interest commitments
|
986.7
|
75.3
|
73.4
|
73.4
|
73.4
|
69.0
|
622.2
|
|||||||||||||||
Firm
commodity purchase commitments
|
124.3
|
96.7
|
21.4
|
3.3
|
2.9
|
-
|
-
|
|||||||||||||||
Plant
purchase commitments (2)
|
392.4
|
66.4
|
113.0
|
115.0
|
70.0
|
28.0
|
-
|
|||||||||||||||
Operating
leases
|
18.3
|
7.7
|
4.6
|
2.6
|
1.5
|
0.9
|
1.0
|
|||||||||||||||
Total
|
$
|
3,242.8
|
$
|
734.9
|
$
|
212.4
|
$
|
194.3
|
$
|
195.3
|
$
|
347.9
|
$
|
1,558.0
|
(1) |
Certain
long-term debt issues contain put and call provisions that can be
exercised on various dates before maturity. These provisions allow
holders
to put debt back to the Company at face value or the Company to call
debt
at face value or at a premium. Long-term debt subject to tender during
the
years following 2006 (in millions) is $20.0 in 2007, zero in 2008,
$80.0
in 2009, $10.0 in 2010, $30.0 in 2011 and zero
thereafter.
|
(2) |
The
settlement period of these utility & nonutility plant obligations is
estimated.
|
· |
Factors
affecting utility operations such as unusual weather conditions;
catastrophic weather-related damage; unusual maintenance or repairs;
unanticipated changes to fossil fuel costs; unanticipated changes
to gas
supply costs, or availability due to higher demand, shortages,
transportation problems or other developments; environmental or pipeline
incidents; transmission or distribution incidents; unanticipated
changes
to electric energy supply costs, or availability due to demand, shortages,
transmission problems or other developments; or electric transmission
or
gas pipeline system
constraints.
|
· |
Increased
competition in the energy environment including effects of industry
restructuring and unbundling.
|
· |
Regulatory
factors such as unanticipated changes in rate-setting policies or
procedures, recovery of investments and costs made under traditional
regulation, and the frequency and timing of rate
increases.
|
· |
Financial,
regulatory or accounting principles or policies imposed by the Financial
Accounting Standards Board; the Securities and Exchange Commission;
the
Federal Energy Regulatory Commission; state public utility commissions;
state entities which regulate electric and natural gas transmission
and
distribution, natural gas gathering and processing, electric power
supply;
and similar entities with regulatory
oversight.
|
· |
Economic
conditions including the effects of an economic downturn, inflation
rates,
commodity prices, and monetary fluctuations.
|
· |
Increased
natural gas commodity prices and the potential impact on customer
consumption, uncollectible accounts expense, unaccounted for gas
and
interest expense.
|
· |
Changing
market conditions and a variety of other factors associated with
physical
energy and financial trading activities including, but not limited
to,
price, basis, credit, liquidity, volatility, capacity, interest rate,
and
warranty risks.
|
· |
The
performance of projects undertaken by the Company’s nonutility businesses
and the success of efforts to invest in and develop new opportunities,
including but not limited to, the realization of synfuel income tax
credits and the Company’s coal mining, gas marketing, and energy
infrastructure strategies.
|
· |
Direct
or indirect effects on the Company’s business, financial condition,
liquidity and results of operations resulting from changes in credit
ratings, changes in interest rates, and/or changes in market perceptions
of the utility industry and other energy-related
industries.
|
· |
Employee
or contractor workforce factors including changes in key executives,
collective bargaining agreements with union employees, aging workforce
issues, or work stoppages.
|
· |
Legal
and regulatory delays and other obstacles associated with mergers,
acquisitions and investments in joint
ventures.
|
· |
Costs
and other effects of legal and administrative proceedings, settlements,
investigations, claims, and other matters, including, but not limited
to,
those described in Management’s Discussion and Analysis of Results of
Operations and Financial
Condition.
|
· |
Changes
in federal, state or local legislative requirements, such as changes
in
tax laws or rates, environmental laws and
regulations.
|
At
December 31,
|
|||||||
2006
|
2005
|
||||||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
& cash equivalents
|
$
|
32.8
|
$
|
20.4
|
|||
Accounts
receivable - less reserves of $3.1 &
|
|||||||
$2.8,
respectively
|
198.6
|
197.8
|
|||||
Accrued
unbilled revenues
|
146.5
|
240.6
|
|||||
Inventories
|
163.5
|
144.6
|
|||||
Recoverable
fuel & natural gas costs
|
1.8
|
15.4
|
|||||
Prepayments
& other current assets
|
172.7
|
106.4
|
|||||
Total
current assets
|
715.9
|
725.2
|
|||||
Utility
Plant
|
|||||||
Original cost
|
3,820.2
|
3,632.0
|
|||||
Less: accumulated depreciation & amortization
|
1,434.7
|
1,380.1
|
|||||
Net
utility plant
|
2,385.5
|
2,251.9
|
|||||
Investments
in unconsolidated affiliates
|
181.0
|
214.7
|
|||||
Other
investments
|
74.5
|
111.6
|
|||||
Nonutility
property - net
|
294.4
|
240.3
|
|||||
Goodwill
- net
|
237.8
|
207.1
|
|||||
Regulatory
assets
|
163.5
|
89.9
|
|||||
Other
assets
|
39.0
|
27.4
|
|||||
TOTAL
ASSETS
|
$
|
4,091.6
|
$
|
3,868.1
|
At
December 31,
|
|||||||
2006
|
2005
|
||||||
LIABILITIES
& SHAREHOLDERS' EQUITY
|
|||||||
Current
Liabilities
|
|||||||
Accounts
payable
|
$
|
180.0
|
$
|
159.0
|
|||
Accounts
payable to affiliated companies
|
89.9
|
162.3
|
|||||
Refundable
fuel & natural gas costs
|
35.3
|
7.6
|
|||||
Accrued
liabilities
|
147.2
|
156.6
|
|||||
Short-term
borrowings
|
464.8
|
299.9
|
|||||
Current
maturities of long-term debt
|
24.2
|
0.4
|
|||||
Long-term
debt subject to tender
|
20.0
|
53.7
|
|||||
Total
current liabilities
|
961.4
|
839.5
|
|||||
Long-term
Debt - Net of Current Maturities &
|
|||||||
Debt
Subject to Tender
|
1,208.0
|
1,198.0
|
|||||
Deferred
Income Taxes & Other Liabilities
|
|||||||
Deferred
income taxes
|
260.7
|
227.3
|
|||||
Regulatory
liabilities
|
291.1
|
272.9
|
|||||
Deferred
credits & other liabilities
|
195.8
|
186.7
|
|||||
Total
deferred credits & other liabilities
|
747.6
|
686.9
|
|||||
Minority
Interest in Subsidiary
|
0.4
|
0.4
|
|||||
Commitments
& Contingencies (Notes 3, 12-14)
|
|||||||
Common
Shareholders' Equity
|
|||||||
Common
stock (no par value) – issued & outstanding
|
|||||||
76.1
and 76.0, respectively
|
525.5
|
528.1
|
|||||
Retained
earnings
|
643.6
|
628.8
|
|||||
Accumulated
other comprehensive loss
|
5.1
|
(13.6
|
)
|
||||
Total
common shareholders' equity
|
1,174.2
|
1,143.3
|
|||||
TOTAL
LIABILITIES & SHAREHOLDERS' EQUITY
|
$
|
4,091.6
|
$
|
3,868.1
|
Year
Ended December 31,
|
||||||||||
2006
|
|
2005
|
|
2004
|
||||||
OPERATING
REVENUES
|
||||||||||
Gas
utility
|
$
|
1,232.5
|
$
|
1,359.7
|
$
|
1,126.2
|
||||
Electric
utility
|
422.2
|
421.4
|
371.3
|
|||||||
Energy
services & other
|
386.9
|
246.9
|
192.3
|
|||||||
Total
operating revenues
|
2,041.6
|
2,028.0
|
1,689.8
|
|||||||
OPERATING
EXPENSES
|
||||||||||
Cost
of gas sold
|
841.5
|
973.3
|
778.5
|
|||||||
Cost
of fuel & purchased power
|
151.5
|
144.1
|
116.8
|
|||||||
Cost
of energy services & other
|
248.7
|
191.0
|
143.5
|
|||||||
Other
operating
|
341.8
|
282.2
|
252.0
|
|||||||
Depreciation
& amortization
|
172.3
|
158.2
|
140.1
|
|||||||
Taxes
other than income taxes
|
65.3
|
66.1
|
59.4
|
|||||||
Total
operating expenses
|
1,821.1
|
1,814.9
|
1,490.3
|
|||||||
OPERATING
INCOME
|
220.5
|
213.1
|
199.5
|
|||||||
OTHER
INCOME
|
||||||||||
Equity
in earnings of unconsolidated affiliates
|
17.0
|
45.6
|
20.6
|
|||||||
Other
– net
|
(2.7
|
)
|
6.2
|
4.6
|
||||||
Total
other income
|
14.3
|
51.8
|
25.2
|
|||||||
Interest
expense
|
95.6
|
83.9
|
77.7
|
|||||||
INCOME
BEFORE INCOME TAXES
|
139.2
|
181.0
|
147.0
|
|||||||
Income
taxes
|
30.3
|
44.1
|
39.0
|
|||||||
Minority
interest
|
0.1
|
0.1
|
0.1
|
|||||||
NET
INCOME
|
$
|
108.8
|
$
|
136.8
|
$
|
107.9
|
||||
AVERAGE
COMMON SHARES OUTSTANDING
|
75.7
|
75.6
|
75.6
|
|||||||
DILUTED
COMMON SHARES OUTSTANDING
|
76.2
|
76.1
|
75.9
|
|||||||
EARNINGS
PER SHARE OF COMMON STOCK:
|
||||||||||
BASIC
|
$
|
1.44
|
$
|
1.81
|
$
|
1.43
|
||||
DILUTED
|
$
|
1.43
|
$
|
1.80
|
$
|
1.42
|
Year
Ended December 31,
|
||||||||||
2006
|
|
2005
|
|
2004
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||||
Net
income
|
$
|
108.8
|
$
|
136.8
|
$
|
107.9
|
||||
Adjustments
to reconcile net income to cash from operating activities:
|
||||||||||
Depreciation
& amortization
|
172.3
|
158.2
|
140.1
|
|||||||
Deferred
income taxes & investment tax credits
|
1.4
|
(8.6
|
)
|
5.9
|
||||||
Equity
in earnings of unconsolidated affiliates
|
(17.0
|
)
|
(45.6
|
)
|
(20.6
|
)
|
||||
Provision
for uncollectible accounts
|
15.3
|
15.1
|
11.9
|
|||||||
Expense
portion of pension & postretirement benefit cost
|
10.7
|
10.7
|
11.8
|
|||||||
Other
non-cash charges - net
|
11.4
|
1.9
|
8.3
|
|||||||
Changes
in working capital accounts:
|
||||||||||
Accounts
receivable & accrued unbilled revenue
|
108.9
|
(102.9
|
)
|
(84.0
|
)
|
|||||
Inventories
|
(17.6
|
)
|
(71.9
|
)
|
0.4
|
|||||
Recoverable/refundable
fuel & natural gas costs
|
41.3
|
3.5
|
8.9
|
|||||||
Prepayments
& other current assets
|
(21.2
|
)
|
36.1
|
(10.2
|
)
|
|||||
Accounts
payable, including to affiliated companies
|
(71.6
|
)
|
101.2
|
42.5
|
||||||
Accrued
liabilities
|
(23.2
|
)
|
27.4
|
11.2
|
||||||
Unconsolidated
affiliate dividends
|
35.8
|
18.8
|
22.3
|
|||||||
Changes
in noncurrent assets
|
(25.8
|
)
|
(6.9
|
)
|
(3.5
|
)
|
||||
Changes
in noncurrent liabilities
|
(19.3
|
)
|
(5.4
|
)
|
(14.9
|
)
|
||||
Net
cash flows from operating activities
|
310.2
|
268.4
|
238.0
|
|||||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||||
Proceeds
from:
|
||||||||||
Long-term
debt - net of issuance costs
|
92.8
|
274.2
|
32.4
|
|||||||
Stock
option exercises & other stock plans
|
-
|
-
|
4.5
|
|||||||
Requirements
for:
|
||||||||||
Dividends
on common stock
|
(93.1
|
)
|
(90.5
|
)
|
(87.3
|
)
|
||||
Retirement
of long-term debt
|
(124.4
|
)
|
(88.5
|
)
|
(70.7
|
)
|
||||
Redemption
of preferred stock of subsidiary
|
-
|
(0.1
|
)
|
(0.1
|
)
|
|||||
Net
change in short-term borrowings
|
164.9
|
(112.5
|
)
|
139.5
|
||||||
Other
activity
|
(0.6
|
)
|
(0.6
|
)
|
-
|
|||||
Net
cash flows from financing activities
|
39.6
|
(18.0
|
)
|
18.3
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||||
Proceeds
from:
|
||||||||||
Unconsolidated
affiliate distributions
|
2.0
|
6.9
|
3.2
|
|||||||
Other
collections
|
3.4
|
4.3
|
9.3
|
|||||||
Requirements
for:
|
||||||||||
Capital
expenditures, excluding AFUDC equity
|
(281.4
|
)
|
(231.6
|
)
|
(252.5
|
)
|
||||
Unconsolidated
affiliate investments
|
(16.7
|
)
|
(19.2
|
)
|
(18.2
|
)
|
||||
Other
investments
|
(44.7
|
)
|
-
|
(3.8
|
)
|
|||||
Net
cash flows from investing activities
|
(337.4
|
)
|
(239.6
|
)
|
(262.0
|
)
|
||||
Net
increase (decrease) in cash & cash equivalents
|
12.4
|
10.8
|
(5.7
|
)
|
||||||
Cash
& cash equivalents at beginning of period
|
20.4
|
9.6
|
15.3
|
|||||||
Cash
& cash equivalents at end of period
|
$
|
32.8
|
$
|
20.4
|
$
|
9.6
|
||||
Cash
paid during the year for:
|
||||||||||
Interest
|
$
|
92.9
|
$
|
79.6
|
$
|
75.3
|
||||
Income
taxes
|
36.3
|
48.1
|
26.6
|
Common
Stock
|
Accumulated
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
Other
|
|
|
|
|||||
|
|
|
|
|
|
Retained
|
|
Comprehensive
|
|
|
|
|||||
|
|
Shares
|
|
Amount
|
|
Earnings
|
|
Income
(Loss)
|
|
Total
|
||||||
Balance
at January 1, 2004
|
75.6
|
$
|
520.4
|
$
|
562.4
|
$
|
(11.1
|
)
|
$
|
1,071.7
|
||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
107.9
|
107.9
|
||||||||||||||
Minimum
pension liability adjustments &
|
||||||||||||||||
other
- net of tax
|
(0.1
|
)
|
(0.1
|
)
|
||||||||||||
Comprehensive
income of unconsolidated
|
||||||||||||||||
affiliates
- net of $2.6 in tax
|
(3.8
|
)
|
(3.8
|
)
|
||||||||||||
Total
comprehensive income
|
104.0
|
|||||||||||||||
Common
stock:
|
||||||||||||||||
Stock
option exercises & other stock plans
|
0.2
|
4.5
|
4.5
|
|||||||||||||
Dividends
($1.15 per share)
|
(87.3
|
)
|
(87.3
|
)
|
||||||||||||
Other
|
0.1
|
1.9
|
1.9
|
|||||||||||||
Balance
at December 31, 2004
|
75.9
|
526.8
|
583.0
|
(15.0
|
)
|
1,094.8
|
||||||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
136.8
|
136.8
|
||||||||||||||
Minimum
pension liability adjustments &
|
||||||||||||||||
other
- net of $0.1 in tax
|
0.2
|
0.2
|
||||||||||||||
Cash
flow hedges
|
||||||||||||||||
unrealized
gains(losses) - net of $2.9 in tax
|
4.2
|
4.2
|
||||||||||||||
reclassifications
to net income- net of $0.2 in tax
|
(0.2
|
)
|
(0.2 | ) | ||||||||||||
Comprehensive
income of unconsolidated
|
||||||||||||||||
affiliates
- net of $1.8 in tax
|
(2.8
|
)
|
(2.8
|
)
|
||||||||||||
Total
comprehensive income
|
138.4
|
|||||||||||||||
Common
stock:
|
||||||||||||||||
Dividends
($1.19 per share)
|
(90.5
|
)
|
(90.5
|
)
|
||||||||||||
Other
|
0.1
|
1.3
|
(0.5
|
)
|
0.8
|
|||||||||||
Balance
at December 31, 2005
|
76.0
|
528.1
|
628.8
|
(13.6
|
)
|
1,143.3
|
||||||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
108.8
|
108.8
|
||||||||||||||
Minimum
pension liability adjustments &
|
||||||||||||||||
other
- net of $5.4 in tax
|
7.9
|
7.9
|
||||||||||||||
Cash
flow hedge
|
||||||||||||||||
unrealized
gains(losses) - net of $1.7 in tax
|
(2.6
|
)
|
(2.6
|
)
|
||||||||||||
reclassifications
to net income- net of $0.7 in tax
|
(1.0
|
)
|
(1.0
|
)
|
||||||||||||
Comprehensive
income of unconsolidated
|
||||||||||||||||
affiliates
- net of $4.3 in tax
|
6.4
|
6.4
|
||||||||||||||
Total
comprehensive income
|
119.5
|
|||||||||||||||
Adoption
of SFAS 158 - net of $5.2 in tax
|
8.0
|
8.0
|
||||||||||||||
Common
stock:
|
||||||||||||||||
Dividends
($1.23 per share)
|
(93.1
|
)
|
(93.1
|
)
|
||||||||||||
Adoption
of SFAS 123R
|
(4.1
|
)
|
(4.1
|
)
|
||||||||||||
Other
|
0.1
|
1.5
|
(0.9
|
)
|
0.6
|
|||||||||||
Balance
at December 31, 2006
|
76.1
|
$
|
525.5
|
$
|
643.6
|
$
|
5.1
|
$
|
1,174.2
|
1. |
Organization
and Nature of Operations
|
2. |
Summary
of Significant Accounting
Policies
|
A. |
Principles
of Consolidation
|
B. |
Cash
& Cash Equivalents
|
C. |
Inventories
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
Gas
in storage – at average cost
|
$
|
73.0
|
$
|
73.3
|
|||
Materials
& supplies
|
29.5
|
30.2
|
|||||
Fuel
(coal & oil) for electric generation
|
31.2
|
19.4
|
|||||
Gas
in storage – at LIFO cost
|
26.5
|
18.8
|
|||||
Other
|
3.3
|
2.9
|
|||||
Total
inventories
|
$
|
163.5
|
$
|
144.6
|
D. |
Utility
Plant & Depreciation
|
At
December 31,
|
|||||||||||||
(In
millions)
|
2006
|
|
|
|
2005
|
|
|||||||
Original
Cost
|
|
Depreciation
Rates
as a
Percent
of
Original
Cost
|
|
Original
Cost
|
|
Depreciation
Rates
as a
Percent
of
Original
Cost
|
|||||||
Gas
utility plant
|
$
|
1,956.1
|
3.6
|
%
|
$
|
1,879.1
|
3.5
|
%
|
|||||
Electric
utility plant
|
1,685.5
|
3.7
|
%
|
1,611.4
|
3.7
|
%
|
|||||||
Common
utility plant
|
45.2
|
2.6
|
%
|
44.2
|
2.6
|
%
|
|||||||
Construction
work in progress
|
133.4
|
-
|
97.3
|
-
|
|||||||||
Total
original cost
|
$
|
3,820.2
|
$
|
3,632.0
|
Year
Ended December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
|
2004
|
||
AFUDC
– borrowed funds
|
$
2.6
|
$
1.6
|
$
1.6
|
||||
AFUDC
– equity funds
|
1.5
|
0.3
|
1.6
|
||||
Total
AFUDC
|
$
4.1
|
$
1.9
|
$
3.2
|
E. |
Nonutility
Property
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
|
|||
Computer
hardware & software
|
$
|
107.7
|
$
|
105.6
|
|||
Land
& buildings
|
73.4
|
69.5
|
|||||
Coal
mine development costs & equipment
|
59.7
|
50.0
|
|||||
Vehicles &
equipment
|
33.0
|
1.1 | |||||
All
other
|
20.6
|
14.1
|
|||||
Nonutility
property - net
|
$
|
294.4
|
$
|
240.3
|
F. |
Goodwill
|
G. |
Regulation
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
Future
amounts recoverable from ratepayers related to:
|
|||||||
Benefit
obligations
|
$
|
46.7
|
$
|
-
|
|||
Income
taxes
|
13.3
|
11.1
|
|||||
Asset
retirement obligations & other
|
5.2
|
1.7
|
|||||
65.2
|
12.8
|
||||||
Amounts
deferred for future recovery related to:
|
|||||||
Demand
side management programs
|
27.7
|
26.7
|
|||||
MISO-related
costs
|
17.1
|
9.4
|
|||||
Cost
recovery riders & other
|
4.7
|
2.5
|
|||||
49.5
|
38.6
|
||||||
Amounts
currently recovered through base rates related to:
|
|||||||
Unamortized
debt issue costs
|
23.1
|
20.2
|
|||||
Premiums
paid to reacquire debt
|
6.0
|
6.5
|
|||||
Demand
side management programs & other
|
3.3
|
4.5
|
|||||
32.4
|
31.2
|
||||||
Amounts
currently recovered through tracking mechanisms related
to:
|
|||||||
Ohio
authorized trackers
|
10.3
|
5.6
|
|||||
Indiana
authorized trackers
|
6.1
|
1.7
|
|||||
16.4
|
7.3
|
||||||
Total
regulatory assets
|
$
|
163.5
|
$
|
89.9
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
Advances
from rate-payers related to:
|
|||||||
Cost
of removal
|
$
|
270.6
|
$
|
251.4
|
|||
Asset
retirement obligations
|
11.3
|
11.6
|
|||||
281.9
|
263.0
|
||||||
Amounts
currently amortizing related to:
|
|||||||
Interest
rate hedging proceeds (See Note 15)
|
6.1
|
6.8
|
|||||
Amounts
deferred for future settlement related to:
|
|||||||
MISO-related
costs
|
3.1
|
3.1
|
|||||
Total
regulatory liabilities
|
$
|
291.1
|
$
|
272.9
|
H. |
Asset
Retirement Obligations
|
I. |
Impairment
Review of Long-Lived Assets
|
J. |
Comprehensive
Income
|
2004
|
2005
|
2006
|
||||||||||||||||||||
Beginning
|
|
Changes
|
|
End
|
|
Changes
|
|
End
|
|
Changes
|
|
End
|
|
|||||||||
|
|
of
Year
|
|
During
|
|
of
Year
|
|
During
|
|
of
Year
|
|
During
|
|
of
Year
|
|
|||||||
(In
millions)
|
|
Balance
|
|
Year
|
|
Balance
|
|
Year
|
|
Balance
|
|
Year
|
|
Balance
|
||||||||
Unconsolidated
affiliates
|
$
|
10.5
|
$
|
(6.4
|
)
|
$
|
4.1
|
$
|
(4.6
|
)
|
$
|
(0.5
|
)
|
$
|
10.7
|
10.2
|
||||||
Pension
& other benefit costs
|
(29.2
|
)
|
(0.1
|
)
|
(29.3
|
)
|
0.3
|
(29.0
|
)
|
26.5
|
(2.5
|
)
|
||||||||||
Cash
flow hedges
|
-
|
-
|
-
|
6.7
|
6.7
|
(6.0
|
)
|
0.7
|
||||||||||||||
Deferred
income taxes
|
7.6
|
2.6
|
10.2
|
(1.0
|
)
|
9.2
|
(12.5
|
)
|
(3.3
|
)
|
||||||||||||
Accumulated
other
comprehensive
income (loss)
|
$
|
(11.1
|
)
|
$
|
(3.9
|
)
|
$
|
(15.0
|
)
|
$
|
1.4
|
$
|
(13.6
|
)
|
$
|
18.7
|
$
|
5.1
|
K. |
Revenues
|
L. |
Excise
and Utility Receipts Taxes
|
M. |
Use
of Estimates
|
N. |
Other
Significant Policies
|
Year
Ended December 31,
|
|||||||
(In
millions, except per share amounts)
|
2005
|
|
2004
|
||||
Net
Income as reported:
|
$
|
136.8
|
$
|
107.9
|
|||
Share-based
employee compensation included in reported net income-net of
tax
|
2.1
|
1.7
|
|||||
Total
share-based employee compensation expense determined under fair
value
|
|||||||
based
method for all awards-net of tax
|
(2.8
|
)
|
(2.6
|
)
|
|||
Pro
forma
|
$
|
136.1
|
$
|
107.0
|
|||
Basic
earnings per share as reported:
|
$
|
1.81
|
$
|
1.43
|
|||
Basic
earnings per share pro forma:
|
1.80
|
1.42
|
|||||
Diluted
earnings per share as reported:
|
$
|
1.80
|
$
|
1.42
|
|||
Diluted
earnings per share pro forma:
|
1.79
|
1.41
|
3. |
Investments
in Unconsolidated
Affiliates
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
ProLiance
Energy, LLC
|
$
|
146.7
|
$
|
136.5
|
|||
Haddington
Energy Partnerships
|
13.8
|
10.8
|
|||||
Reliant
Services, LLC
|
2.8
|
29.3
|
|||||
Utilicom
Networks, LLC & related entities
|
-
|
11.7
|
|||||
Pace
Carbon Synfuels, LP
|
-
|
9.6
|
|||||
Other
partnerships & corporations
|
17.7
|
16.8
|
|||||
Total
investments in unconsolidated affiliates
|
$
|
181.0
|
$
|
214.7
|
Year
Ended December 31,
|
||||||||||
(in
millions)
|
|
2006
|
|
2005
|
|
2004
|
||||
Summarized
Statement of Income information:
|
||||||||||
Revenues
|
$
|
2,506.2
|
$
|
3,237.0
|
$
|
2,573.8
|
||||
Margin
|
106.3
|
116.0
|
74.0
|
|||||||
Operating
income
|
74.5
|
87.1
|
43.2
|
|||||||
ProLiance's
earnings
|
57.9
|
86.0
|
42.6
|
As
of December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
Summarized
balance sheet information:
|
|||||||
Current
assets
|
$
|
641.3
|
$
|
870.2
|
|||
Noncurrent
assets
|
41.5
|
50.7
|
|||||
Current
liabilities
|
445.0
|
698.2
|
|||||
Noncurrent
liabilities
|
1.8
|
3.3
|
|||||
Equity
|
236.0
|
219.4
|
4. |
Miller
Pipeline Corporation
Acquisition
|
5. |
Other
Investments
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
Leveraged
leases
|
$
|
31.0
|
$
|
32.6
|
|||
Convertible
notes receivable from Utilicom-related entities (See Note
3)
|
-
|
33.1
|
|||||
Other
investments
|
43.5
|
45.9
|
|||||
Total
other investments
|
$
|
74.5
|
$
|
111.6
|
6. |
Income
Taxes
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
Noncurrent
deferred tax liabilities (assets):
|
|||||||
Depreciation
& cost recovery timing differences
|
$
|
297.0
|
$
|
288.3
|
|||
Leveraged
leases
|
20.8
|
24.8
|
|||||
Regulatory
assets recoverable through future rates
|
21.0
|
19.3
|
|||||
Demand
side management programs
|
8.4
|
7.7
|
|||||
Other
comprehensive income
|
2.5
|
(9.2
|
)
|
||||
Alternative
minimum tax carryforward
|
(42.1
|
)
|
(47.4
|
)
|
|||
Employee
benefit obligations
|
(39.2
|
)
|
(36.0
|
)
|
|||
Net
operating loss & other carryforwards
|
(10.1
|
)
|
(1.7
|
)
|
|||
Regulatory liabilities to be settled through future rates | (7.7 | ) | (8.2 | ) | |||
Other
– net
|
10.1
|
(10.3
|
)
|
||||
Net
noncurrent deferred tax liability
|
260.7
|
227.3
|
|||||
Current
deferred tax (assets)/liabilities:
|
|||||||
Deferred
fuel costs-net
|
(1.8
|
)
|
7.6
|
||||
Other
– net
|
(1.8
|
)
|
-
|
||||
Net
current deferred tax (asset)/liability
|
(3.6
|
)
|
7.6
|
||||
Net
deferred tax liability
|
$
|
257.1
|
$
|
234.9
|
Year
Ended December 31,
|
||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2004
|
|||||
Current:
|
||||||||||
Federal
|
$
|
18.2
|
$
|
37.9
|
$
|
24.1
|
||||
State
|
10.7
|
14.8
|
9.0
|
|||||||
Total
current taxes
|
28.9
|
52.7
|
33.1
|
|||||||
Deferred:
|
||||||||||
Federal
|
7.0
|
(6.0
|
)
|
3.8
|
||||||
State
|
(3.6
|
)
|
(0.2
|
)
|
4.3
|
|||||
Total
deferred taxes
|
3.4
|
(6.2
|
)
|
8.1
|
||||||
Amortization
of investment tax credits
|
(2.0
|
)
|
(2.4
|
)
|
(2.2
|
)
|
||||
Total
income tax expense
|
$
|
30.3
|
$
|
44.1
|
$
|
39.0
|
Year
Ended December 31,
|
||||||||||
2006
|
|
2005
|
|
2004
|
||||||
Statutory
rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||
State
and local taxes-net of federal benefit
|
5.7
|
5.5
|
5.9
|
|||||||
Synfuel
tax credits
|
(9.6
|
)
|
(12.3
|
)
|
(11.6
|
)
|
||||
Adjustment
of income tax accruals
|
(2.0
|
)
|
(1.9
|
)
|
(0.1
|
)
|
||||
Tax
law change
|
(2.5
|
)
|
-
|
-
|
||||||
Amortization
of investment tax credit
|
(1.4
|
)
|
(1.3
|
)
|
(1.5
|
)
|
||||
Depletion
|
(1.6
|
)
|
(1.0
|
)
|
(0.6
|
)
|
||||
Other
tax credits
|
(0.5
|
)
|
(0.4
|
)
|
(0.6
|
)
|
||||
All
other-net
|
(1.3
|
)
|
0.8
|
-
|
||||||
Effective
tax rate
|
21.8
|
%
|
24.4
|
%
|
26.5
|
%
|
7. |
Retirement
Plans & Other Postretirement
Benefits
|
(In
Millions)
|
|
|
2005
Balance
|
|
2006
Balance
Pre
SFAS
158
|
|
Changes
Resulting
from
Adoption
of SFAS 158
|
|
2006
Ending Balance
|
|||||||
Other
Long-term Liabilities
|
||||||||||||||||
Net Amount Recognized Related To | ||||||||||||||||
Other
Benefit Obligations
|
$
|
(61.8
|
)
|
$
|
(60.6
|
)
|
$
|
4.5
|
$
|
(56.1
|
)
|
|||||
Pension
Obligations
|
(13.6
|
)
|
(15.7
|
)
|
(40.3
|
)
|
(56.0
|
)
|
||||||||
SERP
Obligations
|
(9.1
|
)
|
(9.5
|
)
|
(3.0
|
)
|
(12.5
|
)
|
||||||||
Additional
Minumum Pension Liability
|
(41.6
|
)
|
(28.2
|
)
|
28.2
|
-
|
||||||||||
$
|
(126.1
|
)
|
$
|
(114.0
|
)
|
$
|
(10.6
|
)
|
$
|
(124.6
|
)
|
|||||
Accrued
Liabilities
|
||||||||||||||||
Other
Benefit Obligations
|
$
|
-
|
$
|
-
|
$
|
(5.5
|
)
|
$
|
(5.5
|
)
|
||||||
SERP
Obligation
|
-
|
-
|
(0.8
|
)
|
(0.8
|
)
|
||||||||||
|
$ | - |
$
|
-
|
$
|
(6.3
|
)
|
$
|
(6.3
|
)
|
||||||
Other
Long-term Assets
|
||||||||||||||||
Prepaid
Pension Asset
|
$
|
3.1
|
$
|
4.2
|
$
|
(4.2
|
)
|
$
|
-
|
|||||||
Intangible
Asset
|
12.6
|
12.5
|
(12.5
|
)
|
-
|
|||||||||||
$
|
15.7
|
$
|
16.7
|
$
|
(16.7
|
)
|
$
|
-
|
||||||||
Regulatory
Assets
|
$
|
-
|
$
|
-
|
$
|
46.7
|
$
|
46.7
|
||||||||
Deferred
Income Taxes
|
$
|
11.8
|
$
|
6.4
|
$
|
(5.2
|
)
|
$
|
1.2
|
|||||||
Accumulated
Other Comprehensive Income
|
$
|
17.2
|
$
|
9.3
|
$
|
(8.0
|
)
|
$
|
1.3
|
(In
Millions)
|
As
Of December 31, 2006
|
Expected
to Amortized in 2007
|
|||||||||||
Pensions
|
|
Other
Benefits
|
|
Pensions
|
|
Other
Benefits
|
|||||||
Prior
Service Cost
|
$
|
12.9
|
$
|
(5.5
|
)
|
$
|
1.7
|
$
|
(0.8
|
)
|
|||
Unamortized
Actuarial Gain/(Loss)
|
35.4
|
(2.3
|
)
|
1.5
|
(0.1
|
)
|
|||||||
Transition
Obligation
|
-
|
8.7
|
-
|
1.1
|
|||||||||
48.3
|
0.9
|
$
|
3.2
|
$
|
0.2
|
||||||||
Less
Regualtory Asset Deferral
|
(45.9
|
)
|
(0.8
|
)
|
|||||||||
AOCI
Balance Before Taxes
|
$
|
2.4
|
$
|
0.1
|
|||||||||
Pension
Benefits
|
Other
Benefits
|
||||||||||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2004
|
|
2006
|
|
2005
|
|
2004
|
||||||||
Service
cost
|
$
|
6.0
|
$
|
5.6
|
$
|
6.6
|
$
|
0.6
|
$
|
0.7
|
$
|
0.9
|
|||||||
Interest
cost
|
14.1
|
13.8
|
13.4
|
3.9
|
4.5
|
5.3
|
|||||||||||||
Expected
return on plan assets
|
(13.5
|
)
|
(13.2
|
)
|
(13.5
|
)
|
(0.6
|
)
|
(0.6
|
)
|
(0.7
|
)
|
|||||||
Amortization
of prior service cost
|
1.8
|
1.6
|
0.9
|
(0.8
|
)
|
(0.6
|
)
|
-
|
|||||||||||
Amortization
of actuarial loss (gain)
|
2.4
|
1.8
|
1.0
|
-
|
(0.2
|
)
|
(0.2
|
)
|
|||||||||||
Amortization
of transitional (asset) obligation
|
-
|
(0.2
|
)
|
1.1
|
1.5
|
2.9
|
|||||||||||||
Net
periodic benefit cost
|
$
|
10.8
|
$
|
9.6
|
$
|
8.2
|
$
|
4.2
|
$
|
5.3
|
$
|
8.2
|
Pension
Benefits
|
Other
Benefits
|
||||||||||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2004
|
|
2006
|
|
2005
|
|
2004
|
||||||||
Discount
rate
|
5.50
|
%
|
5.75
|
%
|
6.00
|
%
|
5.50
|
%
|
5.75
|
%
|
6.00
|
%
|
|||||||
Rate
of compensation increase
|
3.25
|
%
|
3.50
|
%
|
3.50
|
%
|
3.25
|
%
|
3.50
|
%
|
3.50
|
%
|
|||||||
Expected
return on plan assets
|
8.25
|
%
|
8.25
|
%
|
8.50
|
%
|
8.25
|
%
|
8.25
|
%
|
8.50
|
%
|
|||||||
Expected
increase in Consumer Price Index
|
N/A
|
N/A
|
N/A
|
3.50
|
%
|
3.50
|
%
|
3.50
|
%
|
Pension
Benefits
|
Other
Benefits
|
||||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2006
|
|
2005
|
||||||
Benefit
obligation, beginning of period
|
$
|
255.4
|
$
|
241.1
|
$
|
72.0
|
$
|
92.8
|
|||||
Service
cost – benefits earned during the period
|
6.0
|
5.6
|
0.6
|
0.7
|
|||||||||
Interest
cost on projected benefit obligation
|
14.1
|
13.8
|
3.9
|
4.5
|
|||||||||
Plan
participants' contributions
|
-
|
-
|
1.7
|
1.4
|
|||||||||
Plan
amendments
|
2.1
|
-
|
-
|
(21.7
|
)
|
||||||||
Actuarial
loss (gain)
|
(10.2
|
)
|
6.3
|
(0.4
|
)
|
2.0
|
|||||||
Medicare
subsidy receipts
|
-
|
-
|
0.3
|
-
|
|||||||||
Benefits
paid
|
(12.0
|
)
|
(11.4
|
)
|
(8.6
|
)
|
(7.7
|
)
|
|||||
Benefit
obligation, end of period
|
$
|
255.4
|
$
|
255.4
|
$
|
69.5
|
$
|
72.0
|
|
|||||||||
Pension
Benefits
|
Other
Benefits
|
||||||||
2006
|
|
2005
|
|
2006
|
|
2005
|
|||
Discount
rate
|
5.85%
|
5.50%
|
5.85%
|
5.50%
|
|||||
Rate
of compensation increase
|
3.75%
|
3.25%
|
3.75%
|
3.25%
|
|||||
Expected
increase in Consumer Price Index
|
N/A
|
N/A
|
3.50%
|
3.50%
|
Pension
Benefits
|
Other
Benefits
|
||||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2006
|
|
2005
|
||||||
Plan
assets at fair value, beginning of period
|
$
|
173.6
|
$
|
161.2
|
$
|
7.4
|
$
|
8.3
|
|||||
Actual
return on plan assets
|
14.8
|
20.1
|
0.3
|
1.3
|
|||||||||
Employer
contributions
|
8.6
|
3.7
|
6.0
|
4.1
|
|||||||||
Plan
participants' contributions
|
-
|
-
|
1.7
|
1.4
|
|||||||||
Benefits
paid
|
(12.0
|
)
|
(11.4
|
)
|
(8.6
|
)
|
(7.7
|
)
|
|||||
Fair
value of plan assets, end of period
|
$
|
185.0
|
$
|
173.6
|
$
|
6.8
|
$
|
7.4
|
Pension
Benefits
|
Other
Benefits
|
||||||||||||
2006
|
|
2005
|
|
2006
|
|
2005
|
|||||||
Equity
securities
|
62
|
%
|
64
|
%
|
65
|
%
|
53
|
%
|
|||||
Debt
securities
|
33
|
%
|
33
|
%
|
31
|
%
|
37
|
%
|
|||||
Real
estate
|
5
|
%
|
3
|
%
|
-
|
-
|
|||||||
Short
term investments
|
-
|
-
|
4
|
%
|
10
|
%
|
|||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
Pension
Benefits
|
Other
Benefits
|
||||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2006
|
|
2005
|
||||||
Fair
value of plan assets, end of period
|
$
|
185.0
|
$
|
173.6
|
$
|
6.8
|
$
|
7.4
|
|||||
Benefit
obligation, end of period
|
(255.4
|
)
|
(255.4
|
)
|
(69.5
|
)
|
(72.0
|
)
|
|||||
Funded
status, end of period
|
(70.4
|
)
|
(81.8
|
)
|
(62.7
|
)
|
(64.6
|
)
|
|||||
Unrecognized
net loss (gain)
|
35.3
|
48.6
|
(2.2
|
)
|
(2.0
|
)
|
|||||||
Unrecognized
prior service cost
|
12.9
|
12.6
|
(5.5
|
)
|
(6.3
|
)
|
|||||||
Unrecognized
transitional (asset) obligation
|
-
|
-
|
8.7
|
9.9
|
|||||||||
Post
measurement date adjustments
|
1.2
|
1.0
|
1.1
|
1.2
|
|||||||||
Net
amount recognized, prior to adoption of SFAS 158
|
$
|
(21.0
|
)
|
$
|
(19.6
|
)
|
$
|
(60.6
|
)
|
$
|
(61.8
|
)
|
(In
millions)
|
2006
|
|
2005
|
||||
Minimum
pension liability adjustment, beginning of year
|
$
|
(41.6
|
)
|
$
|
(43.5
|
)
|
|
Change
in minimum pension liability adjustment included in:
|
|||||||
Other
comprehensive income before effect of taxes
|
13.4
|
(0.3
|
)
|
||||
Other
assets
|
-
|
2.2
|
|||||
Minimum
pension liability adjustment, prior to adoption of SFAS
158
|
$
|
(28.2
|
)
|
$
|
(41.6
|
)
|
8. |
Borrowing
Arrangements
|
At
December 31,
|
||||||||||
(In
millions)
|
2006
|
|
2005
|
|||||||
Utility
Holdings
|
||||||||||
Fixed Rate Senior Unsecured Notes | ||||||||||
2011,
6.625%
|
$
|
250.0
|
$
|
250.0
|
||||||
2013,
5.25%
|
100.0
|
100.0
|
||||||||
2015,
5.45%
|
75.0
|
75.0
|
||||||||
2018,
5.75%
|
100.0
|
100.0
|
||||||||
2031,
7.25%
|
-
|
100.0
|
||||||||
2035,
6.10%
|
75.0
|
75.0
|
||||||||
2036,
5.95%
|
100.0
|
-
|
||||||||
Total
Utility Holdings
|
700.0
|
700.0
|
||||||||
SIGECO
|
||||||||||
First
Mortgage Bonds
|
||||||||||
2016,
1986 Series, 8.875%
|
13.0
|
13.0
|
||||||||
2020,
1998 Pollution Control Series B, 4.50%, tax exempt
|
4.6
|
4.6
|
||||||||
2024,
2000 Environmental Improvement Series A, 4.65%, tax exempt
|
22.5
|
22.5
|
||||||||
2029,
1999 Senior Notes, 6.72%
|
80.0
|
80.0
|
||||||||
2030,
1998 Pollution Control Series B, 5.00%, tax exempt
|
22.0
|
22.0
|
||||||||
2015,
1985 Pollution Control Series A, current adjustable rate 4.06%,
tax
exempt,
|
||||||||||
auction
rate mode, 2006 weighted average: 3.53%
|
9.8
|
9.8
|
||||||||
2023,
1993 Environmental Improvement Series B, current adjustable rate
4.11%,
|
||||||||||
tax
exempt, auction rate mode, 2006 weighted average: 3.74%
|
22.6
|
22.6
|
||||||||
2025,
1998 Pollution Control Series A, current adjustable rate 4.11%,
tax
exempt,
|
||||||||||
auction
rate mode, 2006 weighted average: 3.08%
|
31.5
|
31.5
|
||||||||
2030,
1998 Pollution Control Series C, current adjustable rate 4.11%,
tax
exempt,
|
||||||||||
auction
rate mode, 2006 weighted average: 3.20%
|
22.2
|
22.2
|
||||||||
Total
SIGECO
|
228.2
|
228.2
|
At
December 31,
|
|||||
(In
millions)
|
2006
|
|
2005
|
Indiana
Gas
|
||||||||||
Senior Unsecured Notes | ||||||||||
2007,
Series E, 6.54%
|
6.5
|
6.5
|
||||||||
2013,
Series E, 6.69%
|
5.0
|
5.0
|
||||||||
2015,
Series E, 7.15%
|
5.0
|
5.0
|
||||||||
2015,
Series E, 6.69%
|
5.0
|
5.0
|
||||||||
2015,
Series E, 6.69%
|
10.0
|
10.0
|
||||||||
2025,
Series E, 6.53%
|
10.0
|
10.0
|
||||||||
2027,
Series E, 6.42%
|
5.0
|
5.0
|
||||||||
2027,
Series E, 6.68%
|
1.0
|
1.0
|
||||||||
2027,
Series F, 6.34%
|
20.0
|
20.0
|
||||||||
2028,
Series F, 6.36%
|
10.0
|
10.0
|
||||||||
2028,
Series F, 6.55%
|
20.0
|
20.0
|
||||||||
2029,
Series G, 7.08%
|
30.0
|
30.0
|
||||||||
Total
Indiana Gas
|
127.5
|
127.5
|
||||||||
Vectren
Capital Corp.
|
||||||||||
Fixed
Rate Senior Unsecured Notes
|
||||||||||
2007,
7.83%
|
17.5
|
17.5
|
||||||||
2010,
4.99%
|
25.0
|
25.0
|
||||||||
2010,
7.98%
|
22.5
|
22.5
|
||||||||
2012,
5.13%
|
25.0
|
25.0
|
||||||||
2012,
7.43%
|
35.0
|
35.0
|
||||||||
2015,
5.31%
|
75.0
|
75.0
|
||||||||
Total
Vectren Capital Corp.
|
200.0
|
200.0
|
||||||||
Other
Long-Term Notes Payable
|
0.6
|
1.2
|
||||||||
Total
long-term debt outstanding
|
1,256.3
|
1,256.9
|
||||||||
Current
maturities of long-term debt
|
(24.2
|
)
|
(0.4
|
)
|
||||||
Debt
subject to tender
|
(20.0
|
)
|
(53.7
|
)
|
||||||
Unamortized
debt premium & discount - net
|
(3.8
|
)
|
(4.4
|
)
|
||||||
Fair
value of hedging arrangements
|
(0.3
|
)
|
(0.4
|
)
|
||||||
Total
long-term debt-net
|
$
|
1,208.0
|
$
|
1,198.0
|
Year
Ended December 31,
|
||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2004
|
|||||
Weighted
average commercial paper and bank loans
|
||||||||||
outstanding
during the year
|
$
|
256.1
|
$
|
304.5
|
$
|
211.4
|
||||
Weighted
average interest rates during the year
|
||||||||||
Commercial
paper
|
5.16
|
%
|
3.42
|
%
|
1.78
|
%
|
||||
Bank
loans
|
5.51
|
%
|
3.82
|
%
|
2.12
|
%
|
||||
At
December 31,
|
||||||||||
(In
millions)
|
2006
|
2005
|
||||||||
Commercial
paper
|
$
|
270.1
|
$
|
226.9
|
||||||
Bank
loans
|
194.7
|
73.0
|
||||||||
Total
short-term borrowings
|
$
|
464.8
|
$
|
299.9
|
9. |
Share-Based
Compensation and Adoption of SFAS
123R
|
Year
Ended December 31,
|
||||||||||
(in
millions)
|
2006
|
|
2005
|
|
2004
|
|||||
Total
cost of share-based compensation
|
$
|
3.2
|
$
|
4.5
|
$
|
4.0
|
||||
Less
capitalized cost
|
0.9
|
1.0
|
1.1
|
|||||||
Total
in other operating expense
|
2.3
|
3.5
|
2.9
|
|||||||
Less
income tax benefit in earnings
|
0.6
|
1.4
|
1.2
|
|||||||
After
tax effect of share-based compensation
|
$
|
1.7
|
$
|
2.1
|
$
|
1.7
|
Equity
Awards
|
Liability
Awards
|
||||||||||||
|
Wtd.
Avg.
|
|
|
||||||||||
|
|
Grant
Date
|
|
Wtd.
Avg.
|
|||||||||
|
Shares
|
Fair
value
|
Shares
|
Fair
value
|
|||||||||
Restricted
at January 1, 2006
|
17,369
|
$
|
26.42
|
336,216
|
$
|
27.16
|
|||||||
Granted
|
10,690
|
26.60
|
185,027
|
27.54
|
|||||||||
Vested
|
(84
|
)
|
27.62
|
(68,235
|
)
|
26.60
|
|||||||
Forfeited
|
(4,966
|
)
|
27.24
|
(76,823
|
)
|
24.46
|
|||||||
Restricted
at December 31, 2006
|
23,009
|
$
|
26.32
|
376,185
|
$
|
28.28
|
Weighted
average
|
|
Aggregate
|
|
||||||||||
|
|
|
|
|
|
Remaining
|
|
Intrinsic
|
|
||||
|
|
Shares
|
|
Exercise
|
|
Contractual
|
|
Value
|
|
||||
|
|
|
|
Price
|
|
Term
(years)
|
|
(In
millions)
|
|||||
Outstanding
at January 1, 2006
|
2,123,579
|
$
|
23.18
|
||||||||||
Granted
|
-
|
-
|
|||||||||||
Exercised
|
149,948
|
$
|
21.39
|
||||||||||
Forfeited
or expired
|
9,646
|
$
|
21.09
|
||||||||||
Outstanding
at December 31, 2006
|
1,963,985
|
$
|
23.33
|
5.3
|
$
|
9.7
|
|||||||
Exercisable
at December 31, 2006
|
1,696,803
|
$
|
22.89
|
4.9
|
$
|
9.1
|
10. |
Common
Shareholders’ Equity
|
11. |
Earnings
Per Share
|
Year
Ended December 31,
|
||||||||||
(In
millions, except per share data)
|
2006
|
|
2005
|
|
2004
|
|||||
Numerator:
|
||||||||||
Numerator
for basic and diluted EPS - Net income
|
$
|
108.8
|
$
|
136.8
|
$
|
107.9
|
||||
Denominator:
|
||||||||||
Denominator
for basic EPS - Weighted average
|
||||||||||
common
shares outstanding
|
75.7
|
75.6
|
75.6
|
|||||||
Conversion
of stock options and lifting of
|
||||||||||
restrictions
on issued restricted stock
|
0.5
|
0.5
|
0.3
|
|||||||
Denominator
for diluted EPS - Adjusted weighted
|
||||||||||
average
shares outstanding and assumed
|
||||||||||
conversions
outstanding
|
76.2
|
76.1
|
75.9
|
|||||||
Basic
earnings per share
|
$
|
1.44
|
$
|
1.81
|
$
|
1.43
|
||||
Diluted
earnings per share
|
$
|
1.43
|
$
|
1.80
|
$
|
1.42
|
12. |
Commitments
& Contingencies
|
13. |
Environmental
Matters
|
· |
the
Company’s project to achieve environmental compliance by investing in
clean coal technology;
|
· |
the
Company’s investment of $258 million in capital
costs;
|
· |
a
mechanism whereby, prior to an electric base rate case, the Company
recovers through a rider that is updated every six months, an 8%
return on
its weighted capital costs for the project; and
|
· |
ongoing
recovery of operating costs, including depreciation and purchased
emission
allowances, related to the clean coal technology now that facilities
are
placed into service.
|
· |
either
repower Culley Unit 1 (50 MW) with natural gas and equip it with
SCR
control technology for further reduction of nitrogen oxide, or cease
operation of the unit by December 31,
2006;
|
· |
operate
the existing SCR control technology recently installed on Culley
Unit 3
(287 MW) year round at a lower emission rate than that currently
required
under the NOx SIP Call, resulting in further nitrogen oxide
reductions;
|
· |
enhance
the efficiency of the existing scrubber at Culley Units 2 and 3 for
additional removal of sulphur dioxide
emissions;
|
· |
install
a baghouse for further particulate matter reductions at Culley Unit
3 by
June 30, 2007;
|
· |
conduct
a Sulphuric Acid Reduction Demonstration Project as an environmental
mitigation project designed to demonstrate an advance in pollution
control
technology for the reduction of sulfate emissions; and
|
· |
pay
a $600,000 civil penalty.
|
14. |
Rate
& Regulatory Matters
|
15. |
Derivatives
& Other Financial
Instruments
|
At
December 31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
(In
millions)
|
Carrying
Amount
|
|
Est.
Fair Value
|
|
Carrying
Amount
|
|
Est.
Fair Value
|
||||||
Long-term
debt
|
$
|
1,256.3
|
$
|
1,276.1
|
$
|
1,256.9
|
$
|
1,312.9
|
|||||
Short-term
borrowings & notes payable
|
464.8
|
464.8
|
299.9
|
299.9
|
16. |
Segment
Reporting
|
Year
Ended December 31,
|
|||||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2004
|
||||||||
Revenues
|
|||||||||||||
Utility Group | |||||||||||||
Gas
Utility Services
|
$
|
1,232.5
|
$
|
1,359.7
|
$
|
1,126.2
|
|||||||
Electric
Utility Services
|
422.2
|
421.4
|
371.3
|
||||||||||
Other
Operations
|
36.6
|
36.1
|
32.9
|
||||||||||
Eliminations
|
(34.8
|
)
|
(35.4
|
)
|
(32.4
|
)
|
|||||||
Total
Utility Group
|
1,656.5
|
1,781.8
|
1,498.0
|
||||||||||
Nonutility
Group
|
503.2
|
344.3
|
272.1
|
||||||||||
Eliminations
|
(118.1
|
)
|
(98.1
|
)
|
(80.3
|
)
|
|||||||
Consolidated
Revenues
|
$
|
2,041.6
|
$
|
2,028.0
|
$
|
1,689.8
|
|||||||
Profitability
Measures - Net Income
|
|||||||||||||
Gas
Utility Services
|
$
|
41.5
|
$
|
34.7
|
$
|
28.1
|
|||||||
Electric
Utility Services
|
41.6
|
50.4
|
47.9
|
||||||||||
Other
Operations
|
8.3
|
10.0
|
7.1
|
||||||||||
Utility
Group Net Income
|
|
91.4
|
|
95.1
|
|
83.1
|
|||||||
Nonutility
Group Net Income
|
18.1
|
48.2
|
26.4
|
||||||||||
Corporate
& Other Net Loss
|
(0.7
|
)
|
(6.5
|
)
|
(1.6
|
)
|
|||||||
Consolidated
Net Income
|
$
|
108.8
|
$ |
136.8
|
$
|
107.9
|
Year
Ended December 31,
|
||||||||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2004
|
|||||||||||
Amounts
Included in Profitability Measures
|
||||||||||||||||
Depreciation & Amortization |
|
|||||||||||||||
Utility Group |
|
|||||||||||||||
Gas
Utility Services
|
$
|
67.6
|
$
|
64.9
|
$
|
57.0
|
||||||||||
Electric
Utility Services
|
61.8
|
56.9
|
53.3
|
|||||||||||||
Other
Operations
|
21.9
|
19.5
|
17.5
|
|||||||||||||
Total
Utility Group
|
151.3
|
141.3
|
127.8
|
|||||||||||||
Nonutility
Group
|
21.0
|
16.0
|
12.0
|
|||||||||||||
Corporate
& Other
|
-
|
0.9
|
0.3
|
|||||||||||||
Consolidated
Depreciation & Amortization
|
$
|
172.3
|
$
|
158.2
|
$
|
140.1
|
Year
Ended December 31,
|
||||||||||||||||
(In
millions)
|
2006
|
2005
|
2004
|
|||||||||||||
Interest
Expense
|
||||||||||||||||
Utility
Group
|
||||||||||||||||
Gas
Utility Services
|
$
|
40.7
|
$
|
40.2
|
$
|
41.4
|
||||||||||
Electric
Utility Services
|
28.6
|
23.7
|
21.3
|
|||||||||||||
Other
Operations
|
8.2
|
6.0
|
4.7
|
|||||||||||||
Total
Utility Group
|
77.5
|
69.9
|
67.4
|
|||||||||||||
Nonutility
Group
|
20.0
|
14.6
|
11.3
|
|||||||||||||
Corporate
& Other
|
(1.9
|
)
|
(0.6
|
)
|
(1.0
|
)
|
||||||||||
Consolidated
Interest Expense
|
$
|
95.6
|
$
|
83.9
|
77.7
|
|||||||||||
Equity
in Earnings of Unconsolidated Affiliates
|
||||||||||||||||
Utility
Group: Other Operations
|
$
|
-
|
$
|
-
|
$
|
0.2
|
||||||||||
Nonutility
Group
|
17.0
|
45.6
|
20.4
|
|||||||||||||
Consolidated
Equity in Earnings of Unconsolidated Affiliates
|
$
|
17.0
|
$
|
45.6
|
$
|
20.6
|
||||||||||
Income
Taxes
|
||||||||||||||||
Utility
Group
|
||||||||||||||||
Gas
Utility Services
|
$
|
22.6
|
$
|
22.3
|
$
|
17.5
|
||||||||||
Electric
Utility Services
|
25.3
|
33.5
|
30.8
|
|||||||||||||
Other
Operations
|
(0.2
|
)
|
1.7
|
4.8
|
||||||||||||
Total
Utility Group
|
47.7
|
57.5
|
53.1
|
|||||||||||||
Nonregulated
Group
|
(17.6
|
)
|
(9.9
|
)
|
(13.6
|
)
|
||||||||||
Corporate
& Other
|
0.2
|
(3.5
|
)
|
(0.5
|
)
|
|||||||||||
Consolidated
Income Taxes
|
$
|
30.3
|
$
|
44.1
|
$
|
39.0
|
||||||||||
Capital
Expenditures
|
||||||||||||||||
Utility
Group
|
||||||||||||||||
Gas
Utility Services
|
$
|
76.8
|
$
|
81.0
|
$
|
89.1
|
||||||||||
Electric
Utility Services
|
156.8
|
100.0
|
150.6
|
|||||||||||||
Other
Operations
|
24.8
|
29.9
|
27.9
|
|||||||||||||
Non-cash
costs & changes in accruals
|
(11.8
|
)
|
3.6
|
(25.4
|
)
|
|||||||||||
Total
Utility Group
|
246.6
|
214.5
|
242.2
|
|||||||||||||
Nonutility
Group
|
34.8
|
17.1
|
10.3
|
|||||||||||||
Consolidated
Capital Expenditures
|
$
|
281.4
|
$
|
231.6
|
$
|
252.5
|
||||||||||
Investments
in Equity Method Investees
|
||||||||||||||||
Nonutility
Group
|
$
|
16.7
|
$
|
19.2
|
$
|
18.2
|
At
December 31,
|
||||||||||
(In
millions)
|
2006
|
|
2005
|
|||||||
Assets
|
||||||||||
Utility Group |
|
|||||||||
Gas
Utility Services
|
$
|
1,953.6
|
$
|
2,030.8
|
||||||
Electric
Utility Services
|
1,277.6
|
1,176.0
|
||||||||
Other
Operations
|
225.9
|
188.9
|
||||||||
Eliminations
|
(16.3
|
)
|
(5.6
|
)
|
||||||
Total
Utility Group
|
3,440.8
|
3,390.1
|
||||||||
Nonutility
Group
|
639.7
|
542.4
|
||||||||
Corporate
& Other
|
466.7
|
369.1
|
||||||||
Eliminations
|
(455.6
|
)
|
(433.5
|
)
|
||||||
Consolidated
Assets
|
$
|
4,091.6
|
$
|
3,868.1
|
17. |
Additional
Operational & Balance Sheet
Information
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
Prepaid
gas delivery service
|
$
|
66.2
|
$
|
69.3
|
|||
Utilicom
receivable - current
|
44.6
|
-
|
|||||
Fair
market value of derivative instruments
|
15.6
|
2.6
|
|||||
Prepaid
taxes
|
12.3
|
5.3
|
|||||
Deferred
income taxes
|
3.6
|
-
|
|||||
Other
prepayments & current assets
|
30.4
|
29.2
|
|||||
Total
prepayments & other current assets
|
$
|
172.7
|
$
|
106.4
|
At
December 31,
|
|||||||
(In
millions)
|
2006
|
|
2005
|
||||
Refunds
to customers & customer deposits
|
$
|
43.0
|
$
|
36.7
|
|||
Accrued
taxes
|
31.6
|
34.2
|
|||||
Accrued
interest
|
16.8
|
17.2
|
|||||
Deferred
income taxes
|
-
|
7.6
|
|||||
Accrued
salaries & other
|
55.8
|
60.9
|
|||||
Total
accrued liabilities
|
$
|
147.2
|
$
|
156.6
|
Year
Ended December 31,
|
||||||||||
(In
millions)
|
2006
|
|
2005
|
|
2004
|
|||||
AFUDC
& capitalized interest
|
$
|
5.3
|
$
|
2.5
|
$
|
4.6
|
||||
Interest
income
|
4.0
|
3.8
|
3.0
|
|||||||
Synfuel-related
activity
|
(11.4
|
)
|
(1.9
|
)
|
-
|
|||||
Broadband
charges
|
(1.9
|
)
|
(1.1
|
)
|
(6.0
|
)
|
||||
Gain/loss
on sale of investments
|
(0.6
|
)
|
(0.1
|
)
|
0.4
|
|||||
All
other income
|
1.9
|
3.0
|
2.6
|
|||||||
Total
other – net
|
$
|
(2.7
|
)
|
$
|
6.2
|
$
|
4.6
|
18. |
Quarterly
Financial Data (Unaudited)
|
(In
millions, except per share amounts)
|
Q1
|
Q2
|
Q3
|
Q4
|
|||||||||
2006
|
|||||||||||||
Operating
revenues
|
$
|
774.5
|
$
|
317.5
|
$
|
340.5
|
$
|
609.1
|
|||||
Operating
income
|
91.5
|
28.5
|
28.4
|
72.1
|
|||||||||
Net
income
|
57.6
|
4.3
|
12.0
|
34.9
|
|||||||||
Earnings
per share:
|
|||||||||||||
Basic
|
$
|
0.76
|
$
|
0.06
|
$
|
0.16
|
$
|
0.46
|
|||||
Diluted
|
0.76
|
0.06
|
0.16
|
0.45
|
|||||||||
2005
|
|||||||||||||
Operating
revenues
|
$
|
677.2
|
$
|
326.2
|
$
|
310.8
|
$
|
713.8
|
|||||
Operating
income
|
95.2
|
29.2
|
29.9
|
58.8
|
|||||||||
Net
income
|
56.1
|
13.4
|
16.5
|
50.8
|
|||||||||
Earnings
per share:
|
|||||||||||||
Basic
|
$
|
0.74
|
$
|
0.18
|
$
|
0.22
|
$
|
0.67
|
|||||
Diluted
|
0.74
|
0.18
|
0.22
|
0.66
|
19. |
Impact
of Recently Issued Accounting Guidance
|
A
|
B
|
C
|
|||||||||||||||||
Plan
category
|
Number
of securities to be issued upon exercise of outstanding options,
warrants
and rights
|
Weighted
average exercise price of outstanding options, warrants and
rights
|
Number
of securities remaining available for future issuance under equity
compensation plans (excluding securities reflected in column
(a)
|
||||||||||||||||
Equity
compensation plans approved by
|
|||||||||||||||||||
security
holders
|
1,963,985
|
(1
|
)
|
$
|
23.33
|
(1
|
)
|
2,823,947
|
(2
|
)
|
|||||||||
Equity
compensation plans not approved
|
|||||||||||||||||||
by
security holders
|
-
|
-
|
-
|
||||||||||||||||
Total
|
1,963,985
|
$
|
23.33
|
2,823,947
|
(1) |
Includes
the following Vectren Corporation Plans: Vectren Corporation At-Risk
Compensation Plan and 1994 SIGCORP Stock Option
Plan.
|
(2) |
Future
issuances of shares awards can only be made under the Vectren Corporation
At-Risk Plan. Shares available for issuance under the At-Risk Plan
have
been reduced by the issuance of 167,100 restricted shares approved
by the
board of directors’ Compensation Committee, effective January 1,
2007.
|
Column
A
|
|
Column
B
|
|
Column
C
|
|
|
|
Column
D
|
|
Column
E
|
||||||
Additions
|
||||||||||||||||
|
Balance
at
|
|
Charged
|
|
Charged
|
|
Deductions
|
|
Balance
at
|
|
||||||
|
|
Beginning
|
|
to
|
|
to
Other
|
|
from
|
|
End
of
|
|
|||||
Description
|
|
of
Year
|
|
Expenses
|
|
Accounts
|
|
Reserves,
Net
|
|
Year
|
||||||
(In
millions)
|
||||||||||||||||
VALUATION
AND QUALIFYING ACCOUNTS:
|
||||||||||||||||
Year
2006 – Accumulated provision for
|
||||||||||||||||
uncollectible accounts
|
$
|
2.8
|
$
|
15.3
|
$
|
-
|
$
|
15.0
|
$
|
3.1
|
||||||
Year
2005 – Accumulated provision for
|
||||||||||||||||
uncollectible
accounts
|
$
|
2.0
|
$
|
15.1
|
$
|
-
|
$
|
14.3
|
$
|
2.8
|
||||||
Year
2004 – Accumulated provision for
|
||||||||||||||||
uncollectible accounts
|
$
|
3.2
|
$
|
11.9
|
$
|
-
|
$
|
13.1
|
$
|
2.0
|
||||||
OTHER
RESERVES:
|
||||||||||||||||
Year
2006 – Restructuring costs
|
$
|
2.4
|
$
|
-
|
$
|
-
|
$
|
0.7
|
$
|
1.7
|
||||||
Year
2005 – Restructuring costs
|
$
|
2.7
|
$
|
-
|
$
|
-
|
$
|
0.3
|
$
|
2.4
|
||||||
Year
2004 – Restructuring costs
|
$
|
3.2
|
$
|
-
|
$
|
-
|
$
|
0.5
|
$
|
2.7
|
Exhibit
Number
|
Document
|
31.1
|
Chief
Executive Officer Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
31.2
|
Chief
Financial Officer Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
32
|
Certification
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
Exhibit
Number
|
Document
|
21.1
|
List
of Company’s Significant Subsidiaries
|
23.1
|
Consent
of Independent Registered Public Accounting Firm
|
23.2
|
Consent
of Independent Auditors
|
99.1
|
ProLiance
Energy, LLC Consolidated Financial
Statements
|
2.1 |
Asset
Purchase Agreement dated December 14, 1999 between Indiana Energy,
Inc.
and The Dayton Power and Light Company and Number-3CHK with a commitment
letter for a 364-Day Credit Facility dated December 16,1999. (Filed
and
designated in Current Report on Form 8-K dated December 28, 1999,
File No.
1-9091, as Exhibit 2 and 99.1)
|
3.1 |
Amended
and Restated Articles of Incorporation of Vectren Corporation effective
March 31, 2000. (Filed and designated in Current Report on Form 8-K
filed
April 14, 2000, File No. 1-15467, as Exhibit
4.1.)
|
3.2 |
Amended
and Restated Code of By-Laws of Vectren Corporation as of February
1,
2007. (Filed and designated in Current Report on Form 8-K filed February
5, 2007, File No. 1-15467, as Exhibit 3.2.)
|
3.3 |
Shareholders
Rights Agreement dated as of October 21, 1999 between Vectren Corporation
and Equiserve Trust Company, N.A., as Rights Agent. (Filed and designated
in Form S-4 (No. 333-90763), filed November 12. 1999, File No. 1-15467,
as
Exhibit 4.)
|
4.1 |
Mortgage
and Deed of Trust dated as of April 1, 1932 between Southern Indiana
Gas
and Electric Company and Bankers Trust Company, as Trustee, and
Supplemental Indentures thereto dated August 31, 1936, October 1,
1937,
March 22, 1939, July 1, 1948, June 1, 1949, October 1, 1949, January
1,
1951, April 1, 1954, March 1, 1957, October 1, 1965, September 1,
1966,
August 1, 1968, May 1, 1970, August 1, 1971, April 1, 1972, October
1,
1973, April 1, 1975, January 15, 1977, April 1, 1978, June 4, 1981,
January 20, 1983, November 1, 1983, March 1, 1984, June 1, 1984,
November
1, 1984, July 1, 1985, November 1, 1985, June 1, 1986. (Filed and
designated in Registration No. 2-2536 as Exhibits B-1 and B-2; in
Post-effective Amendment No. 1 to Registration No. 2-62032 as Exhibit
(b)(4)(ii), in Registration No. 2-88923 as Exhibit 4(b)(2), in Form
8-K,
File No. 1-3553, dated June 1, 1984 as Exhibit (4), File No. 1-3553,
dated
March 24, 1986 as Exhibit 4-A, in Form 8-K, File No. 1-3553, dated
June 3,
1986 as Exhibit (4).) July 1, 1985 and November 1, 1985 (Filed and
designated in Form 10-K, for the fiscal year 1985, File No. 1-3553,
as Exhibit 4-A.) November 15, 1986 and January 15, 1987. (Filed and
designated in Form 10-K, for the fiscal year 1986, File No. 1-3553,
as
Exhibit 4-A.) December 15, 1987. (Filed and designated in Form 10-K,
for
the fiscal year 1987, File No. 1-3553, as Exhibit 4-A.) December
13, 1990.
(Filed and designated in Form 10-K, for the fiscal year 1990, File
No.
1-3553, as Exhibit 4-A.) April 1, 1993. (Filed and designated in
Form 8-K,
dated April 13, 1993, File No. 1-3553, as Exhibit 4.) June 1, 1993
(Filed
and designated in Form 8-K, dated June 14, 1993, File No. 1-3553,
as
Exhibit 4.) May 1, 1993. (Filed and designated in Form 10-K, for
the
fiscal year 1993, File No. 1-3553, as Exhibit 4(a).) July 1, 1999.
(Filed
and designated in Form 10-Q, dated August 16, 1999, File No. 1-3553,
as
Exhibit 4(a).) March 1, 2000. (Filed and designated in Form 10-K
for the
year ended December 31, 2001, File No. 1-15467, as Exhibit 4.1.)
August 1,
2004. (Filed designated in Form 10-K for the year ended December
31, 2004,
File No. 1-15467, as Exhibit 4.1.) October 1, 2004. (Filed designated
in
Form 10-K for the year ended December 31, 2004, File No. 1-15467,
as
Exhibit 4.2.)
|
4.2 |
Indenture
dated February 1, 1991, between Indiana Gas and U.S. Bank Trust National
Association (formerly know as First Trust National Association, which
was
formerly know as Bank of America Illinois, which was formerly know
as
Continental Bank, National Association. Inc.'s. (Filed and designated
in
Current Report on Form 8-K filed February 15, 1991, File No. 1-6494.);
First Supplemental Indenture thereto dated as of February 15, 1991.
(Filed
and designated in Current Report on Form 8-K filed February 15, 1991,
File
No. 1-6494, as Exhibit 4(b).); Second Supplemental Indenture thereto
dated
as of September 15, 1991, (Filed and designated in Current Report
on Form
8-K filed September 25, 1991, File No. 1-6494, as Exhibit 4(b).);
Third
supplemental Indenture thereto dated as of September 15, 1991 (Filed
and
designated in Current Report on Form 8-K filed September 25, 1991,
File
No. 1-6494, as Exhibit 4(c).); Fourth Supplemental Indenture thereto
dated
as of December 2, 1992, (Filed and designated in Current Report on
Form
8-K filed December 8, 1992, File No. 1-6494, as Exhibit 4(b).); Fifth
Supplemental Indenture thereto dated as of December 28, 2000, (Filed
and
designated in Current Report on Form 8-K filed December 27, 2000,
File No.
1-6494, as Exhibit 4.)
|
4.3 |
Indenture
dated October 19, 2001, among Vectren Utility Holdings, Inc., Indiana
Gas
Company, Inc., Southern Indiana Gas and Electric Company, Vectren
Energy
Delivery of Ohio, Inc., and U.S. Bank Trust National Association.
(Filed and designated in Form 8-K, dated October 19, 2001, File No.
1-16739, as Exhibit 4.1); First Supplemental Indenture, dated October
19,
2001, between Vectren Utility Holdings, Inc., Indiana Gas Company,
Inc.,
Southern Indiana Gas and Electric Company, Vectren Energy Delivery
of
Ohio, Inc., and U.S. Bank Trust National Association. (Filed and
designated in Form 8-K, dated October 19, 2001, File No. 1-16739,
as
Exhibit 4.2); Second Supplemental Indenture, among Vectren Utility
Holdings, Inc., Indiana Gas Company, Inc., Southern Indiana Gas and
Electric Company, Vectren Energy Delivery of Ohio, Inc., and U.S.
Bank
Trust National Association. (Filed and designated in Form 8-K, dated
November 29, 2001, File No. 1-16739, as Exhibit 4.1); Third Supplemental
Indenture, among Vectren Utility Holdings, Inc., Indiana Gas Company,
Inc., Southern Indiana Gas and Electric Company, Vectren Energy Delivery
of Ohio, Inc., and U.S. Bank Trust National Association. (Filed and
designated in Form 8-K, dated July 24, 2003, File No. 1-16739, as
Exhibit
4.1); Fourth Supplemental Indenture, among Vectren Utility Holdings,
Inc.,
Indiana Gas Company, Inc., Southern Indiana Gas and Electric Company,
Vectren Energy Delivery of Ohio, Inc., and U.S. Bank Trust National
Association. (Filed and designated in Form 8-K, dated November 18,
2005, File No. 1-16739, as Exhibit 4.1). Form of Fifth Supplemental
Indenture, among Vectren Utility Holdings, Inc., Indiana Gas Company,
Inc., Southern Indiana Gas & Electric Company, Vectren Energy Delivery
of Ohio, Inc., and U.S. Bank Trust National Association. (Incorporated
by reference to Exhibit 4.1 to the Current Report on Form 8-K, dated
October 16, 2006, File No.
1-16739).
|
4.4 |
Note
purchase agreement, dated October 11, 2005, between Vectren Capital
Corp.
and each of the purchasers named therein. (Filed designated in Form
10-K
for the year ended December 31, 2005, File No. 1-15467, as Exhibit
4.4.)
|
10.1 |
Summary
description of Southern Indiana Gas and Electric Company's nonqualified
Supplemental Retirement Plan (Filed and designated in Form 10-K for
the
fiscal year 1992, File No. 1-3553, as Exhibit 10-A-17.) First Amendment,
effective April 16, 1997 (Filed and designated in Form 10-K for the
fiscal
year 1997, File No. 1-3553, as Exhibit
10.29.).
|
10.2 |
Southern
Indiana Gas and Electric Company 1994 Stock Option Plan (Filed and
designated in Southern Indiana Gas and Electric Company's Proxy Statement
dated February 22, 1994, File No. 1-3553, as Exhibit
A.)
|
10.3 |
Indiana
Energy, Inc. Unfunded Supplemental Retirement Plan for a Select Group
of
Management Employees as amended and restated effective December 1,
1998.
(Filed and designated in Form 10-Q for the quarterly period ended
December
31, 1998, File No. 1-9091, as Exhibit
10-G.)
|
10.4 |
Vectren
Corporation At Risk Compensation Plan effective May 1, 2001,(as amended
and restated s of May 1, 2006). (Filed and designated in Vectren
Corporation’s Proxy Statement dated March 15, 2006, File No. 1-15467, as
Appendix H.)
|
10.5 |
Vectren
Corporation Non-Qualified Deferred Compensation Plan, as amended
and
restated effective January 1, 2001. (Filed and designated in Form
10-K,
for the year ended December 31, 2001, File No. 1-15467, as Exhibit
10.32.)
|
10.6 |
Vectren
Corporation Change in Control Agreement between Vectren Corporation
and
Niel C. Ellerbrook dated as of March 1, 2005. (Filed and designated
in
Form 8-K dated March 1, 2005, File No. 1-15467, as Exhibit
99.1.)
|
10.7 |
Vectren
Corporation At Risk Compensation Plan specimen Restricted Stock Grant
Agreement for officers, effective January 1, 2005. (Filed and designated
in Form 8-K, dated January 1, 2005, File No. 1-15467, as Exhibit
99.1.)
|
10.8 |
Vectren
Corporation At Risk Compensation Plan specimen restricted stock grant
agreement for officers, effective January 1, 2006. (Filed and designated
in Form 8-K, dated February 27, 2006, File No. 1-15467, as Exhibit
99.1.)
|
10.9 |
Vectren
Corporation At Risk Compensation Plan specimen Stock Option Grant
Agreement for officers, effective January 1, 2005. (Filed and designated
in Form 8-K, dated January 1, 2005, File No. 1-15467, as Exhibit
99.2.)
|
10.10 |
Vectren
Corporation specimen employment agreement dated February 1, 2005.
(Filed
and designated in Form 8-K, dated February 1, 2005, File No. 1-15467,
as
Exhibit 99.1.)
|
10.11 |
Life
Insurance Replacement Agreement between Vectren Corporation and certain
named officers, effective December 31, 2006. (Filed and designated
in Form
8-K, dated December 31, 2006, File No. 1-15467 as Exhibit
99.1.)
|
10.12 |
Gas
Sales and Portfolio Administration Agreement between Indiana Gas
Company,
Inc. and ProLiance Energy, LLC, effective August 30, 2003. (Filed
and
designated in Form 10-K, for the year ended December 31, 2003, File
No.
1-15467, as Exhibit 10.15.)
|
10.13 |
Gas
Sales and Portfolio Administration Agreement between Southern Indiana
Gas
and Electric Company and ProLiance Energy, LLC, effective September
1,
2002. (Filed and designated in Form 10-K, for the year ended December
31,
2003, File No. 1-15467, as Exhibit 10.16.)
|
10.14 |
Coal
Supply Agreement for F.B. Culley Generating Station between Southern
Indiana Gas and Electric Company and Vectren Fuels, Inc., dated December
17, 1997 and effective January 1, 1998. (Filed and designated in
Form
10-K, for the year ended December 31, 2003, File No. 1-15467, as
Exhibit
10.18.) Portions of the document have been omitted pursuant to a
request
to a request for confidential treatment. Amendment 1, effective January
1,
2003, to Coal Supply Agreement between Southern Indiana Gas and Electric
Company and Vectren Fuels, Inc originally dated December 17, 1997.
(Filed
and designated in Form 10-K, for the year ended December 31, 2003,
File
No. 1-15467, as Exhibit 10.19.)
|
10.15 |
Coal
Supply Agreement for Generating Stations at Yankeetown, Warrick County,
Indiana, and West Franklin, Posey County, Indiana between Southern
Indiana
Gas and Electric Company and Vectren Fuels, Inc., dated January 19,
2000.
(Filed and designated in Form 10-K, for the year ended December 31,
2003,
File No. 1-15467, as Exhibit 10.20.) Amendment 1, effective January
1,
2004, to Coal Supply Agreement between Southern Indiana Gas and Electric
Company and Vectren Fuels, Inc originally dated January 19, 2000.
(Filed
and designated in Form 10-K, for the year ended December 31, 2003,
File
No. 1-15467, as Exhibit 10.21.)
|
10.16 |
Formation
Agreement among Indiana Energy, Inc., Indiana Gas Company, Inc.,
IGC
Energy, Inc., Indiana Energy Services, Inc., Citizens Gas & Coke
Utility, Citizens Energy Services Corporation and ProLiance Energy,
LLC,
effective March 15, 1996. (Filed and designated in Form 10-Q for
the
quarterly period ended March 31, 1996, File No. 1-9091, as Exhibit
10-C.)
|
10.17 |
Revolving
Credit Agreement (5 year facility), dated November 10, 2005, among
Vectren
Utility Holdings, Inc., and each of the purchasers named therein.
(Filed
and designated in Form 10-K, for the year ended December 31, 2005,
File
No. 1-15467, as Exhibit 10.24.)
|
10.18 |
Revolving
Credit Agreement (5 year facility), dated November 10, 2005, among
Vectren
Capital Corp., and each of the purchasers named therein. (Filed and
designated in Form 10-K, for the year ended December 31, 2005, File
No.
1-15467, as Exhibit 10.25.)
|
Signature
|
Title
|
Date
|
||
/s/
Niel C. Ellerbrook
|
Chairman,
President, Chief
Executive
Officer, &
|
February
16, 2007
|
||
Niel
C. Ellerbrook
|
Director
(Principal Executive
Officer)
|
|||
/s/
Jerome A. Benkert, Jr.
|
Executive
Vice President &
|
February
16, 2007
|
||
Jerome
A. Benkert, Jr.
|
Chief
Financial Officer
(Principal
Financial Officer)
|
|||
/s/
M. Susan Hardwick
|
Vice
President, Controller &
Assistant
Treasurer
|
February
16, 2007
|
||
M.
Susan Hardwick
|
(Principal
Accounting Officer)
|
|||
/s/
John M. Dunn
|
Director
|
February
16, 2007
|
||
John
M. Dunn
|
||||
/s/
John D. Engelbrecht
|
Director
|
February
16, 2007
|
||
John
D. Engelbrecht
|
||||
/s/
Anton H. George
|
Director
|
February
16, 2007
|
||
Anton
H. George
|
||||
/s/
Robert L. Koch II
|
Director
|
February
16, 2007
|
||
Robert
L. Koch II
|
||||
/s/
William G Mays
|
Director
|
February
16, 2007
|
||
William
G. Mays
|
||||
/s/
J. Timothy McGinley
|
Director
|
February
16, 2007
|
||
J.
Timothy McGinley
|
||||
/s/
Richard P. Rechter
|
Director
|
February
16, 2007
|
||
Richard
P. Rechter
|
||||
/s/
R. Daniel Sadlier
|
Director
|
February
16, 2007
|
||
R.
Daniel Sadlier
|
||||
/s/
Richard W. Shymanski
|
Director
|
February
16, 2007
|
||
Richard
W. Shymanski
|
||||
/s/
Michael L Smith
|
Director
|
February
16, 2007
|
||
Michael
L Smith
|
||||
/s/
Jean L Wojtowicz
|
Director
|
February
16, 2007
|
||
Jean
L.Wojtowicz
|