-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, I8Dvu9YiPjcuesepwpouvtLb500vKP739HlJXoGhUDjc/fUvZyk3D0AUQn2UYnQH yibC2Q+pyNYpLt1qHwzm3A== 0001096385-04-000104.txt : 20040826 0001096385-04-000104.hdr.sgml : 20040826 20040826103750 ACCESSION NUMBER: 0001096385-04-000104 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040825 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040826 DATE AS OF CHANGE: 20040826 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VECTREN UTILITY HOLDINGS INC CENTRAL INDEX KEY: 0001129542 STANDARD INDUSTRIAL CLASSIFICATION: GAS & OTHER SERVICES COMBINED [4932] IRS NUMBER: 352104850 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16739 FILM NUMBER: 04997683 BUSINESS ADDRESS: STREET 1: 20 NW 4TH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 BUSINESS PHONE: 8124914000 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VECTREN CORP CENTRAL INDEX KEY: 0001096385 STANDARD INDUSTRIAL CLASSIFICATION: GAS & OTHER SERVICES COMBINED [4932] IRS NUMBER: 352086905 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15467 FILM NUMBER: 04997682 BUSINESS ADDRESS: STREET 1: 20 NW FOURTH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 BUSINESS PHONE: 8124914000 MAIL ADDRESS: STREET 1: 20 NW FOURTH ST CITY: EVANSVILLE STATE: IN ZIP: 47708 8-K 1 vvc8k_sigeco-bond.txt 8-K TO RELEASE FINANCIAL INFORMATION ON SOUTHERN INDIANA GAS SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) August 25, 2004 VECTREN CORPORATION (Exact name of registrant as specified in its charter) Commission Registrant, State of Incorporation, I.R.S Employer File No. Address, and Telephone Number Identification No. ---------- ----------------------------------- ------------------ 1-15467 Vectren Corporation 35-2086905 (An Indiana Corporation) 20 N.W. Fourth Street, Evansville, Indiana 47708 (812) 491-4000 1-16739 Vectren Utility Holdings, Inc. 35-2104850 (An Indiana Corporation) 20 N.W. Fourth Street, Evansville, Indiana 47708 (812) 491-4000 Former name or address, if changed since last report: N/A Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 7.01. Regulation FD Disclosure Included herein is certain financial information related to Southern Indiana Gas & Electric Company (SIGECO), a wholly owned subsidiary of Vectren Utility Holdings, Inc. (VUHI). VUHI is a wholly owned subsidiary of Vectren Corporation (the Company). The SIGECO financial information includes Balance Sheet data as of June 30, 2004 and December 31, 2003, Statement of Income data for the three and six months ended June 30, 2004 and 2003, Statement of Cash Flows data for the six months ended June 30, 2004 and 2003, and other information. This unaudited financial information should not be considered a complete set of financial statements prepared in accordance with accounting principles generally accepted in the United States. Such information will be included in Appendix B to a Preliminary Reoffering Circular of 1993 Series B Warrick County, Indiana Adjustable Rate Environmental Improvement Revenue Bonds. The information is included as Exhibit 99-1 to the Current Report. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby furnishing cautionary statements identifying important factors that could cause actual results of the Company and its subsidiaries, including Vectren Utility Holdings, Inc., and Southern Indiana Gas and Electric Company, to differ materially from those projected in forward-looking statements of the Company and its subsidiaries made by, or on behalf of, the Company and its subsidiaries. These cautionary statements are attached as Exhibit 99-2. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. VECTREN CORPORATION VECTREN UTILITY HOLDINGS, INC. August 25, 2004 By: /s/ M. Susan Hardwick ---------------------------------------- M. Susan Hardwick Vice President and Controller INDEX TO EXHIBITS The following Exhibits are furnished as part of this Report to the extent described in Item 7.01: Exhibit Number Description 99-1 Appendix B to Preliminary Reoffering Circular of 1993 Series B Warrick County, Indiana Adjustable Rate Environmental Improvement Revenue Bonds 99-2 Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995 EX-99.1 FINANCIALS 2 vvc8k_exh99-1.txt FINANCIAL EXHIBIT FOR SOUTHERN INDIANA GAS & ELECTRIC EX 99-1 The interim financial statements of Southern Indiana Gas and Electric Company (SIGECO, Vectren South, or the Company) included below have been prepared without audit. The Company believes that the information in these interim financial statements reflects all adjustments necessary to fairly state the results of the periods reported. These interim financial statements should be read in conjunction with the Company's audited annual financial statements for the year ended December 31, 2003. Additional information on the Company's material commitments and contingencies and rate and regulatory matters are updated in quarterly reports on Form 10-Q filed by Vectren Corporation (Vectren) and Vectren Utility Holdings, Inc. (VUHI), the parent companies of SIGECO. Vectren and VUHI make available their Securities and Exchange Commission filings and recent annual reports free of charge through Vectren's website at www.vectren.com. Because of the seasonal nature of the Company's utility operations, the results shown on a quarterly basis are not necessarily indicative of annual results. FREQUENTLY USED TERMS MCF/MMCF/BCF: thousands/millions/ MWh/GWh: megawatt hours/thousands billions of cubic feet of megawatt hours (gigawatt hours) MDth/MMDth: thousands/millions of NOx: nitrogen oxide dekatherms MMBTU: millions of British thermal USEPA: United States Environmental units Protection Agency MW: megawatts Throughput: combined gas sales and gas transportation volumes FINANCIAL INFORMATION SOUTHERN INDIANA GAS AND ELECTRIC COMPANY CONDENSED BALANCE SHEETS (Unaudited - In thousands) - ------------------------------------------------------------------------------- June 30, December 31, 2004 2003 - ------------------------------------------------------------------------------- ASSETS Utility Plant Original cost $1,721,296 $1,659,527 Less: accumulated depreciation & amortization 742,483 719,787 - ------------------------------------------------------------------------------- Net utility plant 978,813 939,740 - ------------------------------------------------------------------------------- Current Assets Cash & cash equivalents 4,338 3,675 Accounts receivable-less reserves of $1,484 & $1,202, respectively 38,136 38,817 Receivables due from other Vectren companies 35 76 Accrued unbilled revenues 23,266 28,162 Inventories 38,452 37,214 Recoverable fuel & natural gas costs 2,402 3,900 Prepayments & other current assets 21,105 4,875 - ------------------------------------------------------------------------------- Total current assets 127,734 116,719 - ------------------------------------------------------------------------------- Investment in unconsolidated affiliates 150 150 Other investments 10,361 10,474 Non-utility property-net 3,668 3,769 Goodwill 5,557 5,557 Regulatory assets 50,723 54,625 Other assets - 688 - ------------------------------------------------------------------------------- TOTAL ASSETS $1,177,006 $1,131,722 =============================================================================== SOUTHERN INDIANA GAS AND ELECTRIC COMPANY CONDENSED BALANCE SHEETS (Unaudited - In thousands) - ------------------------------------------------------------------------------- June 30, December 31, 2004 2003 - ------------------------------------------------------------------------------- LIABILITIES & SHAREHOLDER'S EQUITY Capitalization Common Shareholder's Equity Common stock (no par value) $ 128,258 $ 128,258 Retained earnings 259,657 266,911 - ------------------------------------------------------------------------------- Total common shareholder's equity 387,915 395,169 - ------------------------------------------------------------------------------- Cumulative, redeemable preferred stock 112 228 Long-term debt payable to third parties- net of current maturities & debt subject to tender 193,656 216,330 Long-term debt payable to VUHI 148,484 148,484 - ------------------------------------------------------------------------------- Total capitalization 730,167 760,211 - ------------------------------------------------------------------------------- Current Liabilities Accounts payable 19,612 18,437 Accounts payable to affiliated companies 8,830 8,312 Payables to other Vectren companies 12,246 11,456 Accrued liabilities 40,042 38,619 Short-term borrowings - 830 Short-term borrowings payable to VUHI 124,243 82,929 Current maturities of long-term debt 32,775 - Long-term debt subject to tender - 9,975 - ------------------------------------------------------------------------------- Total current liabilities 237,748 170,558 - ------------------------------------------------------------------------------- Deferred Income Taxes & Other Liabilities Deferred income taxes 116,267 109,951 Regulatory liabilities & other removal costs 49,873 48,153 Deferred credits & other liabilities 42,951 42,849 - ------------------------------------------------------------------------------- Total deferred credits & other liabilities 209,091 200,953 - ------------------------------------------------------------------------------- TOTAL LIABILITIES & SHAREHOLDER'S EQUITY $1,177,006 $1,131,722 ===============================================================================
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY CONDENSED STATEMENTS OF INCOME (Unaudited - In thousands) - -------------------------------------------------------------------------------------- Three Months Six Months Ended June 30, Ended June 30, 2004 2003 2004 2003 - -------------------------------------------------------------------------------------- OPERATING REVENUES Electric utility $ 89,061 $ 75,170 $177,858 $158,711 Gas utility 15,560 14,430 63,567 65,957 - -------------------------------------------------------------------------------------- Total operating revenues 104,621 89,600 241,425 224,668 - -------------------------------------------------------------------------------------- COST OF OPERATING REVENUES Fuel for electric generation 23,777 20,560 46,637 41,311 Purchased electric energy 6,777 3,753 11,234 8,333 Cost of gas sold 9,948 8,603 47,763 50,014 - -------------------------------------------------------------------------------------- Total cost of operating revenues 40,502 32,916 105,634 99,658 - -------------------------------------------------------------------------------------- TOTAL OPERATING MARGIN 64,119 56,684 135,791 125,010 OPERATING EXPENSES Other operating 30,206 26,756 60,197 52,712 Depreciation & amortization 13,185 11,698 29,706 23,274 Income taxes 4,955 2,778 11,301 12,400 Taxes other than income taxes 3,050 2,672 6,555 5,959 - -------------------------------------------------------------------------------------- Total operating expenses 51,396 43,904 107,759 94,345 - -------------------------------------------------------------------------------------- OPERATING INCOME 12,723 12,780 28,032 30,665 Other income-net 760 472 1,722 1,162 Interest expense 6,260 6,255 12,485 12,382 - -------------------------------------------------------------------------------------- NET INCOME 7,223 6,997 17,269 19,445 - -------------------------------------------------------------------------------------- Preferred stock dividends 2 5 9 14 - -------------------------------------------------------------------------------------- NET INCOME APPLICABLE TO COMMON SHAREHOLDER $ 7,221 $ 6,992 $ 17,260 $ 19,431 ======================================================================================
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY CONDENSED STATEMENTS OF CASH FLOWS (Unaudited-In thousands) Six Months Ended June 30 - ---------------------------------------------------------------------------- 2004 2003 - ---------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES $ 50,181 $ 50,198 - ---------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Requirements for: Dividends to parent (24,514) (10,919) Redemption of preferred stock (116) (116) Dividends on preferred stock (2) (9) Net change in short-term borrowings 40,484 (6,704) - ---------------------------------------------------------------------------- Net cash flows from financing activities 15,852 (17,748) - ---------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Requirements for capital expenditures, excluding AFUDC equity (65,440) (28,896) - ---------------------------------------------------------------------------- Net cash flows from investing activities (65,440) (28,896) - ---------------------------------------------------------------------------- Net increase in cash & cash equivalents 593 3,554 Cash & cash equivalents at beginning of period 3,675 2,145 - ---------------------------------------------------------------------------- Cash & cash equivalents at end of period $ 4,268 $ 5,699 ============================================================================ SEGMENT INFORMATION Information related to the Company's business segments is summarized below: - ------------------------------------------------------------------------------- Three Months Six Months Ended June 30, Ended June 30, (In thousands) 2004 2003 2004 2003 - ------------------------------------------------------------------------------- Revenues Electric Utility Services $ 89,061 $75,170 $177,858 $158,711 Gas Utility Services 15,560 14,430 63,567 65,957 - ------------------------------------------------------------------------------- Total Revenues $104,621 $89,600 $241,425 $224,668 =============================================================================== Profitability Measure Operating Income Electric Utility Services $ 13,155 $12,151 $ 26,502 $ 27,682 Gas Utility Services (432) 629 1,530 2,983 - ------------------------------------------------------------------------------- Total Operating Income $ 12,723 $12,780 $ 28,032 $ 30,665 =============================================================================== RESULTS OF OPERATIONS EXECUTIVE SUMMARY OF RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the unaudited condensed financial statements and notes thereto and the quarterly reports filed on Form 10-Q of both Vectren and VUHI. Earnings for the second quarter of 2004 were $7.2 million compared to $6.9 million for the same quarter last year. The $0.3 million increase was primarily due to the return on additional NOx related environmental expenditures and weather, offset by results from wholesale power activities and increased maintenance costs. Earnings were $17.3 million for the six months ended June 30, 2004, compared to $19.4 million in the prior year. The $2.1 million decrease was primarily due to lower margins from wholesale power activities and increased maintenance costs. This decrease was partially offset by the return on additional NOx related expenditures and increased electric customer usage. The Company estimates that weather favorably impacted second quarter earnings by approximately $2.4 million after tax and year-to-date results by $1.5 million after tax. The Company generates revenue primarily from the delivery of natural gas and electric service to its customers. The primary source of cash flow results from the collection of customer bills and the payment for goods and services procured for the delivery of gas and electric services. The results are impacted by weather patterns in its service territory and general economic conditions both in its service territory as well as nationally. Vectren has in place a disclosure committee that consists of senior management as well as financial management. The committee is actively involved in the preparation and review of SIGECO's parent companies' SEC filings. SIGNIFICANT FLUCTUATIONS Margin Margin generated from the sale of natural gas and electricity to small customers (generally residential and commercial customers) is seasonal and impacted by weather patterns in its service territory. Margin generated from sales to large customers (generally industrial and other contract and firm wholesale customers) is impacted by overall economic conditions. Margin is also impacted by the collection of state mandated taxes which fluctuate with gas costs and also some level of price sensitive fluctuation in volumes sold. Electric generating asset optimization activities are primarily affected by market conditions, the level of excess generating capacity, and electric transmission availability. Following is a discussion and analysis of margin generated from regulated utility operations. Electric Utility Margin (Electric Utility Revenues less Fuel for Electric Generation and Purchased Electric Energy) Electric Utility margin by revenue type follows: Three Months Six Months Ended June 30, Ended June 30, ------------------ ------------------- (In thousands) 2004 2003 2004 2003 - -------------------------------------------------------------------------------- Residential & commercial $40,199 $29,440 $ 75,663 $ 62,734 Industrial 15,770 12,791 30,216 25,126 Municipalities & other 4,277 4,640 8,808 9,083 - -------------------------------------------------------------------------------- Total retail & firm wholesale 60,246 46,871 114,687 96,943 Asset optimization (1,739) 3,986 5,300 12,124 - -------------------------------------------------------------------------------- Total electric utility margin $58,507 $50,857 $119,987 $109,067 ================================================================================ Retail & Firm Wholesale Margin Electric retail and firm wholesale utility margins were $60.2 million and $114.7 million for the three and six months ended June 30, 2004. This represents an increase over the same period last year of $13.4 million and $17.7 million, respectively. Margins increased $3.9 million quarter over quarter and $7.6 million for the six month periods due to an increase in retail electric rates related to the recovery of NOx related expenditures. Excluding the effects of NOx recovery, margins from industrial customers increased $1.8 million for the quarter and $2.8 million for the year to date over 2003, which reflects some economic recovery. Margin from small customers (excluding the effects of NOx) increased over $8 million for both the quarter and year to date due to weather and increased usage. Weather for the quarter was 20% warmer than normal and 111% warmer than last year. Weather for the six months was also 20% warmer than normal and 114% warmer than last year. The estimated increase in margin due to weather was $4.0 million and $3.3 million for the three and six month periods, respectively, compared to the prior year. Due to the above factors, volumes sold increased 9% to 3.1 GWh for the six months ended June 30, 2004, compared to 2.8 GWh in 2003. Margin from Asset Optimization Activities Periodically, generation capacity is in excess of that needed to serve native load and firm wholesale customers. The Company markets this unutilized capacity to optimize the return on its owned generation assets. Substantially all of these contracts are integrated with portfolio requirements around power supply and delivery and are short-term purchase and sale transactions that expose the Company to limited market risk. Following is a reconciliation of asset optimization activity:
Three Months Six Months Ended June 30, Ended June 30, -------------------- -------------------- (In thousands) 2004 2003 2004 2003 - ------------------------------------------------------------------------------------ Beginning of Period Net Asset Optimization Position $ 3,388 $ (363) $ (424) $ (718) Statement of Income Activity Net mark-to-market (losses) gains (2,066) (54) 773 869 Net realized gains recognized 327 4,040 4,527 11,255 - ------------------------------------------------------------------------------------ Asset optimization margin (1,739) 3,986 5,300 12,124 - ------------------------------------------------------------------------------------ Net cash paid (received) & other adjustments 532 (3,584) (2,695) (11,367) - ------------------------------------------------------------------------------------ End of Period Net Asset Optimization Position $ 2,181 $ 39 $ 2,181 $ 39 ====================================================================================
Net wholesale margins declined $5.7 million and $6.8 million for the three and six month periods as compared to last year. The decrease in margin both for the quarter and year-to-date is due largely to less excess capacity. Increases in demand by native load customers and scheduled outages of owned generation related to the installation of environmental compliance equipment reduced the availability of excess power, lowering wholesale margins. Following is information regarding asset optimization activities included in Electric utility revenues and Fuel for electric generation in the Statements of Income:
Three Months Six Months Ended June 30, Ended June 30, -------------------- --------------------- In thousands) 2004 2003 2004 2003 - ------------------------------------------------------------------------------------ Activity related to: Sales contracts $ 30,800 $ 21,006 $ 42,710 $ 68,243 Purchase contracts (28,108) (14,982) (34,113) (51,723) Net mark-to-market (losses) gains (2,066) (54) 773 869 - ------------------------------------------------------------------------------------ Net asset optimization revenue 626 5,970 9,370 17,389 - ------------------------------------------------------------------------------------ Fuel for electric generation 2,365 1,984 4,070 5,265 - ------------------------------------------------------------------------------------ Asset optimization margin $ (1,739) $ 3,986 $ 5,300 $ 12,124 ====================================================================================
Gas Utility Margin (Gas Utility Revenues less Cost of Gas Sold) Gas Utility margin and throughput by customer type follows: Three Months Six Months Ended June 30, Ended June 30, ---------------- ------------------- (In thousands) 2004 2003 2004 2003 - ---------------------------------------------------- -------------------------- Residential & commercial $4,330 $4,783 $12,769 $13,110 Contract 940 820 2,217 2,368 Other 342 224 818 465 - ------------------------------------------------------------------------------- Total gas utility margin $5,612 $5,827 $15,804 $15,943 =============================================================================== Volumes in MDth: Sold to residential & commercial customers 1,241 1,425 7,144 7,976 Sold & transported to contract customers 4,415 4,185 9,682 10,109 - ------------------------------------------------------------------------------- Total throughput 5,656 5,610 16,826 18,085 =============================================================================== Gas utility margins were $5.6 million and $15.8 million for the three and six months ended June 30, 2004 and generally unchanged from the prior year. Year-to-date heating weather was 5% warmer than normal and 11% warmer than last year, causing a decline in margin of $0.7 million compared to the six months ended June 30, 2003. Gas sold and transported volumes were 7% less in the six months ended June 30, 2004, compared to the prior year. The decreased throughput was primarily attributable to weather and partially offset by customer growth and a 5% increase in volumes for contract customers for the second quarter 2004 compared to 2003. The average cost per dekatherm of gas purchased for the six months ended June 30, 2004, was $6.00 compared to $5.90 in 2003. OPERATING EXPENSES Other operating For the three and six months ended June 30, 2004, other operating expenses increased $3.5 million and $7.5 million, respectively, compared to 2003. For the quarter and year-to-date, additional NOx related operating expenses were $1.6 million and $2.2 million, respectively. For the quarter and year-to-date, maintenance increases were $1.7 million and $2.0 million, respectively, due primarily to planned turbine maintenance. Both the quarterly and year-to-date periods are also affected by higher labor and benefit costs and increased corporate charges for use of assets. Year-to-date bad debt expense is $0.8 million higher than the prior year. Depreciation & amortization For the three and six months ended June 30, 2004, depreciation and amortization expenses increased $1.5 million and $6.4 million, respectively, compared to 2003. For the quarter and year-to-date, additional NOx related depreciation was $0.6 million and $1.9 million, respectively. The year-to-date increase also includes $3.6 million of additional depreciation resulting from a true-up of demand side management amortization to existing regulatory orders recorded in the first quarter of 2004. Remaining increases are primarily due to normal additions to utility plant. Taxes other than income taxes For the three and six months ended June 30, 2004, taxes other than income taxes increased $0.4 million and $0.6 million, respectively, compared to 2003. The quarter and year-to-date increases are primarily attributable to higher utility receipts taxes on higher electric sales, compared to the prior year. Income Taxes For the three months ended June 30, 2004, income taxes increased $2.2 million compared to 2003, and year-to-date have decreased $1.1 million, primarily due to fluctuation in income before taxes. Total Other Income-Net For the three and six months ended June 30, 2004, total other income (expense) increased $0.3 million and $0.6 million, respectively, compared to 2003. The increase was primarily attributable to charges in the second quarter of 2003 associated with the Culley settlement with the USEPA totaling $0.6 million. SELECTED ELECTRIC OPERATING STATISTICS
Three Months Six Months Twelve Months Ended June 30, Ended June 30, Ended June 30, ----------------------- ----------------------- ----------------------- 2004 2003 2004 2003 2004 2003 OPERATING REVENUES (In thousands): Residential $ 29,703 $ 20,401 $ 57,197 $ 46,397 $ 116,181 $ 108,017 Commercial 24,307 18,716 44,443 37,481 89,230 80,410 Industrial 27,586 23,449 53,104 44,500 101,350 91,823 Misc. Revenue 857 1,449 2,322 2,936 6,571 5,436 --------------------------------------------------------------------------- Total System 82,453 64,015 157,066 131,314 313,332 285,686 -------------------------------------------------------------- ------------ Municipals 5,982 5,185 11,421 10,008 22,947 21,331 Other Wholesale 626 5,970 9,371 17,389 18,562 32,900 --------------------------------------------------------------- ----------- $ 89,061 $ 75,170 $ 177,858 $ 158,711 $ 354,841 $ 339,917 =========================================================================== MARGIN (In thousands): Residential $ 23,181 $ 16,110 $ 44,236 $ 35,891 $ 90,295 $ 84,708 Commercial 17,018 13,330 31,427 26,843 63,694 58,476 Industrial 15,770 12,791 30,216 25,126 58,623 54,121 Misc. Revenue 825 1,428 2,254 2,857 6,457 5,278 --------------------------------------------------------------------------- Total System 56,794 43,659 108,133 90,717 219,069 202,583 --------------------------------------------------------------------------- Municipals 3,452 3,212 6,554 6,226 13,443 12,682 Other Wholesale (1,739) 3,986 5,300 12,124 11,453 21,712 ------------ -------------------------------------------------------------- $ 58,507 $ 50,857 $ 119,987 $ 109,067 $ 243,965 $ 236,977 =========================================================================== ELECTRIC SALES (In MWh): Residential 362,713 261,504 740,263 656,319 1,525,650 1,543,253 Commercial 397,388 328,998 728,331 662,844 1,487,614 1,448,478 Industrial 642,456 651,770 1,277,725 1,205,681 2,488,929 2,493,342 Misc. Sales 2,791 4,235 6,452 9,349 14,313 18,998 --------------------------------------------------------------------------- Total System 1,405,348 1,246,507 2,752,771 2,534,193 5,516,506 5,504,071 --------------------------------------------------------------------------- Municipals 157,985 145,936 310,212 279,748 631,388 606,836 Other Wholesale 593,800 576,700 1,105,114 2,025,050 3,385,254 7,100,763 --------------------------------------------------------------------------- 2,157,133 1,969,143 4,168,097 4,838,991 9,533,148 13,211,670 =========================================================================== AVERAGE CUSTOMERS: Residential 117,994 116,719 118,121 116,887 117,697 116,654 Commercial 17,044 16,975 17,042 16,955 17,026 16,948 Industrial 154 177 155 177 157 175 All others 21 21 21 21 21 22 --------------------------------------------------------------------------- 135,213 133,892 135,339 134,040 134,901 133,799 =========================================================================== WEATHER AS A % OF NORMAL: Cooling Degree Days 120% 57% 120% 56% 101% 104% Heating Degree Days 93% 105% 95% 106% 93% 107%
SELECTED GAS OPERATING STATISTICS
Three Months Six Months Twelve Months Ended June 30, Ended June 30, Ended June 30, -------------------- -------------------- ------------------- 2004 2003 2004 2003 2004 2003 OPERATING REVENUES (In Thousands): Residential $ 9,303 $ 9,048 $ 41,729 $ 43,601 $ 65,974 $ 68,879 Commercial 4,232 3,873 16,916 17,671 27,713 27,510 Contract 1,688 1,305 4,132 4,261 5,416 5,556 Misc. Revenue 338 205 790 424 1,243 1,634 ------------------------------------------------------------------- $ 15,561 $ 14,431 $ 63,567 $ 65,957 $100,346 $103,579 =================================================================== MARGIN (In thousands): Residential $ 3,430 $ 3,863 $ 9,960 $ 10,311 $ 18,639 $ 19,710 Commercial 900 920 2,809 2,799 5,377 5,263 Contract 940 820 2,217 2,368 3,873 4,310 Misc. Revenue 342 224 818 465 1,283 845 ------------------------------------------------------------------- $ 5,612 $ 5,827 $ 15,804 $ 15,943 $ 29,172 $ 30,128 =================================================================== GAS SOLD & TRANSPORTED (In MDth): Residential 799 898 4,996 5,495 7,956 9,350 Commercial 442 527 2,148 2,481 3,707 4,300 Contract 4,415 4,185 9,682 10,109 18,625 19,692 ------------------------------------------------------------------- 5,656 5,610 16,826 18,085 30,288 33,342 =================================================================== AVERAGE CUSTOMERS: Residential 100,038 99,562 100,747 100,347 100,276 100,172 Commercial 9,944 9,984 10,027 10,072 9,999 10,052 Contract 156 213 157 214 162 210 ------------------------------------------------------------------- 110,138 109,759 110,931 110,633 110,437 110,434 =================================================================== WEATHER AS A % OF NORMAL: Heating Degree Days 93% 105% 95% 106% 93% 107%
EX-99.2 SAFE HARBOR 3 vvc8k_99-2.txt SAFE HARBOR STATEMENT EX 99-2 Cautionary Statement for Purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. A "safe harbor" for forward-looking statements is provided by the Private Securities Litigation Reform Act of 1995 (Reform Act of 1995). The Reform Act of 1995 was adopted to encourage such forward-looking statements without the threat of litigation, provided those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause the actual results to differ materially from those projected in the statement. Forward-looking statements have been and will be made in written documents and oral presentations of Vectren Corporation and its subsidiaries. Such statements are based on management's beliefs, as well as assumptions made by and information currently available to management. When used in Vectren Corporation and its subsidiaries' documents or oral presentations, the words "believe," "anticipate," "endeavor," "estimate," "expect," "objective," "projection," "forecast," "goal," and similar expressions are intended to identify forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements, factors that could cause Vectren Corporation and its subsidiaries' actual results to differ materially from those contemplated in any forward-looking statements included, among others, the following: o 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. o Increased competition in the energy environment including effects of industry restructuring and unbundling. o 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. o Financial or regulatory 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. o Economic conditions including the effects of an economic downturn, inflation rates, and monetary fluctuations. o 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. o The performance of projects undertaken by the Company's nonregulated businesses and the success of efforts to invest in and develop new opportunities, including but not limited to, the realization of Section 29 income tax credits and the Company's coal mining, gas marketing, and broadband strategies. o Direct or indirect effects on our business, financial condition or liquidity resulting from a change in our credit rating, changes in interest rates, and/or changes in market perceptions of the utility industry and other energy-related industries. o Discovery of material weakness in internal controls. o Employee or contractor workforce factors including changes in key executives, collective bargaining agreements with union employees, or work stoppages. o Legal and regulatory delays and other obstacles associated with mergers, acquisitions, and investments in joint ventures. o Costs and other effects of legal and administrative proceedings, settlements, investigations, claims, and other matters, including, but not limited to, those described in periodic filings made with Commission by Vectren Corporation and its subsidiaries, including Vectren Utility Holdings, Inc. o Changes in federal, state or local legislature requirements, such as changes in tax laws or rates, environmental laws and regulations. Vectren Corporation and its subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of changes in actual results, changes in assumptions, other factors affecting such statements. -----END PRIVACY-ENHANCED MESSAGE-----