Power Point

Forward-Looking Statements

Statements contained or incorporated by reference in these slides regarding
future events and developments are “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933. Forward-looking
statements are based on management’s beliefs and assumptions that derive
from information currently known by management. Because such statements
are based on expectations and not historical facts, actual results may differ
materially from those projected in the particular statements. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this document, or in the case of documents
incorporated by reference, as of the date of those documents.

Additional detailed information concerning a number of factors that could
cause actual results to differ materially from the information that is provided
to you here is readily available in our annual report on Form 10-K filed with
the Securities and Exchange Commission on February 16, 2006.

Contact:

Vectren Corporation

Steven M. Schein

VP – Investor Relations

812-491-4209

sschein@vectren.com

Vectren Corporation

Vectren North
(Indiana Gas)

Vectren South
(SIGECO) - Gas

Vectren Utility
Holdings Inc.

Vectren Energy
Delivery of Ohio
(VEDO)

Vectren
Enterprises

Energy Marketing
and Services

Mining Operations

Energy
Infrastructure
Services

Net Income

Utility

Nonutility &
Corporate

30%

70%

12 months ended 12/31/05

Market Capitalization

Assets

Operating Revenues

Employees

Utility Customers

$ 2.1 billion

$ 3.9 billion

$ 2.0 billion

1,800

1.1 million

Vectren South
(SIGECO) - Electric

Vectren Today – NYSE: VVC

Premier Midwestern utility based
in Evansville, Ind.

Complementary nonutility
business portfolio

Superior dividend record with 46
years of consecutive increases

Net Income By Business Unit

NTA implemented Oct 2005 reducing impact of weather on Indiana gas customer margin

Gas base rate increases added incremental revenue of $33.8 million

Recovery of electric environmental expenditures added incremental revenue of $8.7 million,
net of operating expenses

ProLiance – earnings increased $15.9 million

Mining operations - earnings increased $4.9 million

Haddington provided a $6.5 million pretax net gain on 2005 transaction

Vectren Foundation funded additional $6.5 million pretax

2006 Gas Utility Outlook

Manage impact of high natural gas costs

Implement conservation rider / Decoupling mechanisms

–

Target implementation by mid-year

Key Assumptions:

–

Gas Cost impact on 2006 Utility budget of $0.08 - $0.12 range

–

Average commodity cost of gas @ $9.00

•

Decline in average use per customer @ 3% (normal 1.0%)

•

Customer growth @ 0.7% (normal 1.0% +)

•

Increase in bad debt expense

•

Increase in short-term interest expense

•

Additional O&M – Call center

–

Normal weather – NTA in Indiana (60 to 65% gas margin protected)

2006 Electric Utility Outlook

Key Assumptions:

–

Implementation of Multi-pollutant tracker - $110 million

–

Average use per customer increase @ 1%

–

Customer growth @ 1.1%

Generation Portfolio

–

Coal-fired base units

•

1,056 MW - nearly 90% availability in 2005

•

Gas-fired peak-use turbines – 295 MW

–

Affiliate agreements in place for 90% of coal needs

–

80% Scrubbed for SO2 and 90% for NOx

Wholesale Power Marketing

–

Functions within the regulated electric utility operation

–

Markets surplus power from generating units through MISO

–

Maximum approved VaR is $1.5 million - 2005 peak VaR was $625,000

Energy Marketing &
Services Net Income

2006 Energy Marketing & Services Outlook

ProLiance continues to be driven
by storage and capacity
optimization

–

Assumed volatility reduced in 2006

–

Firm storage volume growth of 25%
to 35 Bcf

Source outlook slightly higher
than 2005

–

Customer growth to 180,000 at
year-end

–

Conservatively hedged for weather
due to unprecedented gas costs

ProLiance Energy Outlook

Settlement to extend ProLiance asset optimization
arrangement with Vectren’s utilities and Citizens’ Gas and
Coke Utility until 2011 filed with the Indiana Commission –
Commission action expected 1^st quarter

Liberty Gas Storage (25% investment) is FERC approved and
Phase I should be operational in late summer – majority owner
is Sempra

Indiana Commission has approved the 50% owned Heartland
Gas Pipeline for construction to be operational in late summer

Grow as a major supplier to municipal, electric generation,
commercial and industrial customers

Huntsville litigation

Mining Operations
Net Income

2006 Coal Mining Outlook

Mining operations reflect improved
pricing and continued strong
production

High oil prices may impact synfuel
tax credits in ‘06 and ‘07

–

2005 Synfuel earnings - $11.7 million

–

Credits are expected to phase out
ratably with NYMEX prices from $60 to
$74

–

Approximately one third of expected
tax credits are insured in 2006

–

Tax legislation is being considered that
would eliminate phase out risk for
2006

Coal Mined

3.6

3.2

4.4

Coal Mining Outlook

95% of 2006 production
contracted at fixed prices

2006 average price increase over
2005 – over 10%

Prosperity Mine is targeting to
increase reserve by 10 mm tons

Option on additional reserves

–

Option on 80 million tons - two
separate reserves

–

Due diligence period - expect decision
early 2^nd quarter

–

Target production in 2008

–

17 power plants within 50 miles of
reserves

Energy Infrastructure
Services Net Income

2006 Energy Infrastructure Services Outlook

ESG starting 2006 with strong
potential

–

Beginning 2006 backlog increased
to $50 million from $20 million

–

Year to date 2006 new contracts
are running $10 million ahead of
2005

Gas construction services at
Miller Pipeline expected to
grow over 10% in 2006

–

Geographic expansion

–

3 pipeline projects secured

–

Improved wastewater profitability

Vectren
Corporation

Vectren Utility
Holdings Inc.

Vectren
Enterprises

Energy Marketing
and Services

Coal Mining

Other Businesses

Energy
Infrastructure
Services

ProLiance Energy
(61%)

Vectren Source

Mining Operations

Synfuels

Reliant Services
(50%)

Other

Haddington
Energy (13%)

Broadband

Pace Carbon
Synfuels (8%)

Miller Pipeline

NOTE: Ownership Percentage in ( )

Energy Systems
Group

Vectren North
(Indiana Gas)

Vectren South
(SIGECO) - Gas

Vectren Energy
Delivery of Ohio
(VEDO)

Vectren South
(SIGECO) - Electric

Appendix

Corporate Structure

Overview

Vectren’s three operating utilities provide reliable
delivery service to 990,000 natural gas customers,
including 560,000 located in central and southern
Indiana, 112,000 located in southwestern Indiana,
and 318,000 located in west central Ohio.

Markets

57 counties in central and southern Indiana

17 counties in west central Ohio

Top Industrial Customers

ALCOA (Aluminum)

AE Staley (Grain Processing)

AK Steel (Steel)

Eli Lilly (Pharmaceuticals)

General Electric (Plastics)

General Motors (Automotive)

NUCOR (Steel)

Principal Industries

The principal industries include automotive
assembly, parts and accessories, feed, flour and
grain processing, metal casting, aluminum products,
appliance manufacturing, resin and plastic products,
gypsum products, electrical equipment, metal
specialties, glass, steel finishing, pharmaceutical and
nutritional products, gasoline and oil products, and
coal mining

Appendix

Energy Delivery – Natural Gas

Gas Delivery

The Company’s wholly owned subsidiary, Vectren
Utility Holdings, Inc. (VUHI), serves as the
intermediate holding company for its three
operating public utilities: Indiana Gas Company,
Inc. (Indiana Gas), formerly a wholly owned
subsidiary of Indiana Energy, Southern Indiana
Gas and Electric Company (SIGECO), formerly a
wholly owned subsidiary of SIGCORP, and the
Ohio operations. VUHI also has other assets that
provide information technology and other
services to the three utilities.

Indiana Gas provides natural gas distribution and
transportation services to a diversified customer
base in 49 of Indiana’s 92 counties. SIGECO
provides natural gas distribution and
transportation services to 8 counties in
southwestern Indiana, including counties
surrounding Evansville. The Ohio operations
provide natural gas distribution and
transportation services to 17 counties in west
central Ohio, including counties surrounding
Dayton.

Overview

Vectren provides reliable delivery service to 140,000
in southwestern Indiana.

Markets

6 counties in southwestern Indiana

Top Industrial Customers

AK Steel (Steel)

Berry Plastics (Plastics)

Bristol Myers (Pharmaceuticals/Food)

General Electric (Plastics)

PPG Industries (Automotive)

Toyota (Automotive)

Whirlpool (Metal Products)

Principal Industries

The principal industries include resin and plastic
products, aluminum smelting and recycling,
aluminum sheet products, automotive assembly,
steel finishing, appliance manufacturing,
pharmaceutical and nutritional products, automotive
glass, gasoline and oil products, and coal mining.

Appendix

Energy Delivery - Electric

Electric Delivery

The Company’s wholly owned subsidiary, Vectren
Utility Holdings, Inc. (VUHI), serves as the
intermediate holding company for its three
operating public utilities: Indiana Gas Company, Inc.
(Indiana Gas), formerly a wholly owned subsidiary
of Indiana Energy, Southern Indiana Gas and
Electric Company (SIGECO), formerly a wholly
owned subsidiary of SIGCORP, and the Ohio
operations. VUHI also has other assets that provide
information technology and other services to the
three utilities.

SIGECO provides electric generation, transmission,
and distribution services to 6 counties in
southwestern Indiana, including counties
surrounding Evansville, and participates in the
wholesale power market.

Wholesale Power Marketing

Functions within the regulated electric utility
operation

Markets surplus power from generating units
through MISO

Maximum approved VaR is $1.5 million

Maximum VaR in 2005 was $625,000

Overview

Provides low-cost, reliable electric generation for
delivery to retail and firm wholesale customers in
Southwest Indiana. Optimizes assets by
marketing unutilized capacity to the open
market.

Markets

Southwest Indiana – Retail and Wholesale

Midwest – Wholesale

Generating Capacity

6 coal-fired base units – 1,056 MW

–

Brown – 2 units, 500 MW

–

Culley – 3 units, 406 MW

–

Warrick – 1 unit, 150 MW

–

Burn approximately 3 million tons of coal
annually

6 natural gas peaking units – 295 MW

Member of MISO

Has 6 interconnects

Appendix

Power Supply

Appendix

Environmental Recovery

NOx Compliance Expenditure

–

All $255 million of project costs included in rates

–

8% return on capital invested

–

Recovery of related O&M and Depreciation expense

Multi-pollutant Expenditures

–

Filed with IURC in May 2005

–

Settlement with Consumer Counselor filed October 20, 2005

•

$110 million expenditure

•

7.98% return on capital invested

•

Recovery of related O&M and Depreciation expense

•

Adjusted every 6 months

–

IURC review Q1 2006

Overview

Provides natural gas, and associated pricing and
management services, plus an owner operator of
midstream gas assets. Created as an unregulated
joint venture with Citizens Gas & Coke Utility - 61%
owned by Vectren, although governance is 50/50.

Strategy

ProLiance was formed as a natural gas marketer,
delivering reduced gas costs to the member
utilities. Continued growth comes through third
party marketing, exceptional customer service and
operational excellence. Long term growth is
enhanced by ownership of midstream assets and
resource optimization via transportation and
storage management and price arbitrage.

Four Business Lines

Retail Gas Marketing - Mid-size commercial and
industrial customers

Wholesale Services - Gas sales and resource
management for utilities, municipalities, power
generators, other marketers, including Vectren’s
three gas utilities, power supply and Vectren
Source

Midstream Assets - Owns and operates gas
storage and pipeline assets

Resource Optimization - Transportation and
storage management, and price arbitrage

Fast Facts

100+ employees headquartered in Indianapolis

35 BCF of firm gas storage

Asset ownership in 3 storage fields - White River,
Lee 8, and Liberty

Owner and developer of 2 intra-state pipelines -
Ohio Valley Hub and Heartland Gas Pipeline

Approximate sales volumes of 1 BCF per day

Operates in 17 Midwestern and Southeastern
states

70%+ of volume with 3rd-party customers

1,300 C&I customers

VaR capped at $2.5 million

Stand alone credit facility of $250 million and an
additional $112.5 million surge line

Total VVC Investment 12/31/05: $137 million

Appendix – Energy Marketing & Services

ProLiance Energy (1996)

Appendix – Energy Marketing & Services

Vectren Source (2001)

Overview

Provides natural gas and related services to nearly
130,000 residential and small commercial customers in
competitive markets in Indiana, Ohio and Georgia

Strategy

Vectren Source began operations to maintain the
customer relationship in a deregulated environment.
Flexible and efficient marketing channels minimize
customer acquisition costs and attain high retention
rates. Employs conservative supply planning and
hedging strategies to manage commodity risk.

Fast Facts

Annual volumes have grown from 1.8 Bcf in 2002 to
12.4 Bcf in 2005

State-of-the-art customer information and billing
system, forecasting and data warehouse decision
support tools

Full-service web capabilities from enrollment to bill
presentment and payment

33 full time employees, in-house call center

ProLiance Energy serves as agent for commodity
purchases, day-to-day operations and optimization
activities

Total Assets 12/31/05: $59 million

Overview

Owns two coal mines that sell coal to Vectren’s utility
operations and to other third parties. Both Indiana
mines are located within 50 miles of 17 power plants
and utilize contract miners. Also receives synfuels
processing fees from 3rd parties. Vectren purchases
more than 90% of coal requirement from Fuels.
Affiliate contracts are on file with regulators.

Strategy

Supplies Vectren generating plants with more than 3
million tons of coal annually. Fuels also markets coal
to other utilities and industrial accounts

Fast Facts

Staff of 4 in addition to 300 contract mining
employees

Proven reserves of 34 million tons

Factors that affect profits: geologic conditions, 3^rd
party sale prices, cost of explosives, dozer
productivity

Total Assets 12/31/05: $104 million

Mines

Prosperity Mine

–

Underground mine; mid-sulfur coal - 3.3
lbs SO2

–

Reserves of 30 million tons

–

Tons mined per year

2003 - 2.2 million tons

2004 - 2.5million tons

2005 - 3.0 million tons

Cypress Creek Mine

Surface mine; high-sulfur coal - 7.5 lbs SO2

Reserves of 4 million tons

Tons mined per year

2003 - 1.1 million tons

2004 - 1.1 million tons

2005 - 1.4 million tons

Appendix – Coal Mining

Vectren Fuels (1997)

Overview

Generates IRS Code Section 29 investment tax
credits relating to the production of coal-based
synthetic fuels through its investment in Pace
Carbon. Owns 1/12th (8.3%) of Pace Carbon,
which is an unconsolidated affiliate accounted for
using the equity method.

Strategy

Hold and defend through 2007 when tax credits
expire

Fast Facts

Owns and operates 4 plants

All machines were in service by 6/30/1998

Through 12/31/05, Vectren has claimed tax
credits of approximately $79 million

Synfuel Production

2003 - 7.4 million tons

2004 - 7.1million tons

2005 - 9.3 million tons

Synfuels Net Income (including losses, tax
benefits and tax credits)

2003 - $10.3 million

2004 - $ 9.0 million

2005 - $11.0 million

Prosperity Synfuel related fees (after-tax)

2003 - $3.5 million

2004 - $3.7 million

2005 - $1.3 million

Total VVC Investment 12/31/05: $10 million

Appendix – Coal Mining

Vectren Synfuels

Overview

Provides energy savings performance contracting
by implementing both demand and supply side
related improvements that pay for themselves
from energy and operational savings.

Strategy

ESG supports the utility core by offering ancillary
energy services. ESG is developing recurring
revenues through long-term operating contracts
and energy infrastructure investments.

Fast Facts

Providing energy performance contracting
services for Hospitals, Universities, Governments
& Schools

140 employees in 12 states

3 energy centers

4 military base program centers

Projects for 150 customers since inception

Numerous award winning projects

Total assets 12/31/05: $33 million

Appendix – Energy Infrastructure Services

Energy Systems Group (1995)

Overview

Provides underground construction and repair, facility
locating and meter reading services. Created as
unregulated joint venture with Cinergy – 50% owned by
Vectren. In 2000, Reliant purchased Miller Pipeline
Corporation, one of the nation’s premier natural gas
distribution contractors with over 50 years of experience
in the construction industry.

Strategy

Build on core business of providing construction,
maintenance and rehabilitation services primarily to gas,
waste water an

Markets

d water utilities.

Construction Division - Natural gas and water
distribution and transmission construction, repairs
and rehabilitation primarily in the Midwest, East
Coast and Southeastern United States

Utility Division - Rehabilitation, repair and
installation of waste water and water distribution
systems throughout the United States

Locating - Facility locating services for utilities in
Indiana, Ohio and Kentucky

Meter Reading – Meter reading services for Vectren
and other utilities

Major Customers

Vectren, Cinergy, Columbia Gas of Ohio, Louisville
Gas & Electric, NIPSCO

Fast Facts

Miller Pipeline is the 5^th largest gas
distribution contractor in the U.S. and the
largest in the Midwest

Over 1,200 employees

Pipeline Integrity Act should provide significant
construction division opportunities

Activities by the EPA related to storm sewers in
major municipalities should provide significant
utility division opportunities

Total VVC Investment 12/31/05: $29 million

Appendix – Energy Infrastructure Services

Reliant Services (1998)

Haddington Energy Partners

Overview – The company is a partner in equity
method investments that invest in
energy-related ventures. Haddington has two
remaining investments, a compressed air energy
project to be used for generating electricity in
Ohio and a liquefied natural gas facility in Texas.

Strategy – Continue to harvest energy
investments

Total VVC Investment 12/31/05: $11 million with
additional $2.5 commitment remaining

Broadband

Overview – The company is a minority owner of
a broadband business that provides bundled
cable television, high speed internet and
advanced local and long-distance phone services
in Evansville, Indiana

Strategy – Continue to assess strategic
alternatives

Total VVC Investment 12/31/05: $12 million
equity and $33 million convertible debt

Vectren Financial Group

Overview – Energy Realty and Southern Indiana
Properties hold investments in affordable
housing partnerships, leveraged leases, and real
estate notes

Strategy – Hold leveraged leases and affordable
housing partnerships. Exit real estate notes
upon refinancing

Total VVC Assets 12/31/05: $66 million

Appendix

Other Businesses