ex99.1

Hosted by:

Niel Ellerbrook – Chairman, President and CEO

Jerry Benkert – EVP and CFO

Carl Chapman – EVP and COO

Ron Christian –EVP, General Counsel and CAO

First Quarter 2006 Results

Conference Call and Webcast

April 27, 2006 – 3:00 pm ET

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.

Vectren Corporation

ntact:

Steven M. Schein

VP – Investor Relations

812-491-4209

sschein@vectren.com

Strong 1^st Quarter Results

Strong business unit performance – Utility and Nonutility

Warmer than normal weather

–

NTA mitigates weather impact on ~ 60% to 65% of gas heating load

High gas prices

–

Average cost per Dth for 3 months ended Mar. 31 @ $10.64 compared to $7.29

in same 2005 period.

Results in line with expectations

–

Synfuels 1^st quarter reserve of $0.03 EPS

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

Vectren South

(SIGECO) –
Elec.

Net Income By Business Unit

Vectren results excluding synfuels improve $3.9 million ($0.05 per share)

Utility operations decline $4.7 million

–

Lower volumes of gas sold due to customer response to high energy prices

–

Lower wholesale power results as a result of 2005 mark to market gains

Nonutility earnings increase $7.7 million

–

Another strong quarter of nonutility earnings growth with each business group

contributing earnings growth over 2005

Positioned for the Future

$110 Multi-pollutant order received in February

–

Ensures Vectren’s generating fleet will be 100% scrubbed for SO2

and 90% for NOx

Conservation-oriented rate tariffs and energy efficiency

programs under review

–

Settlement on file and in front of Ohio Commission

–

Indiana settlement dialogue in progress

ProLiance gas supply agreement approved

–

Extends service agreement to Indiana utilities until 2011

Exercised option on additional Indiana coal reserves

–

80 million tons of recoverable coal

Earnings guidance for Vectren, inclusive of reduced

synfuels

–

$1.65 to $1.80

Expected 2006 Synfuels-related contributions

–

$0.04 to $0.05

Utility Operations

Reduced gas margins result of higher gas prices and

warm weather

Conservation-oriented tariffs expected to offset

margin loss from customer response to high gas
costs

Normal Temperature Adjustment (NTA) in Indiana

2006 mark to market reduced wholesale power

marketing margins $2.7 million

O & M flat quarter over quarter

Depreciation reflects increased capital expenditures

Short-term interest rates slightly higher than

expected

Net Income

3 months ended March 31

Energy Marketing & Services

ProLiance – wholesale gas

marketing

–

Volatility in gas prices continued;

margin per Dth increased 80%+
over 2005

–

Earnings driven by storage

optimization opportunities

–

Storage transaction volume growth

of 3 Bcf or 10% over 2005

Source – retail gas marketing

–

Customer count approaching

150,000

–

Conservatively hedged for weather

due to unprecedented gas costs

Net Income & Tons Mined

3 Months ended March 31

Coal Mining Operations

Mining operations reflect

improved pricing and
increased tax benefits from
depletion

Operational costs increases

in steel, diesel, and
explosives offset by
increased revenue per ton

Slight decline in tons mined

due to timing of highwall
mining

90+% of 2006 production

contracted at fixed prices

New Mine Project Summary

Reserves located 8 miles north of Vincennes in Knox County,

Indiana

Located within 50 miles of 8 coal-fired plants and adjacent to

mainline rail service

Two mines, 80 million tons

Projected coal quality: 11,200 BTU; 6 lb Sulfur

Expect to mine 5 million tons annually

Creates 425 mining jobs

Estimated 2 ½ years for land acquisition, permitting, rail access

and mine development

Replaces 1+ million tons of Cypress Creek coal in 2009

Mine development and equipment costs estimated at $125 million

Glen Ayr/Oaktown Project – Location Map

Reliant Services gas

construction

–

Lower seasonal loss of $0.4

million compared to $1.0 million
in 2005

–

Improved earnings driven by

Miller Pipeline’s gas construction
division with large pipeline
projects in 1^st quarter

–

Additional large pipeline projects

started in the 2^nd quarter

–

Currently mobilizing crews to

new territories; geographic
expansion with acquisition of a
small construction company

–

Expect Q2 YTD profitability

Energy Infrastructure Services

ESG Performance Contracting

–

Lower seasonal loss of $0.8

million compared to $1.1 million
in 2005

–

Q1 2006 ending backlog

increased to $51 million from
$19 million in 2005

–

Over 50% of projects in backlog

are for schools and colleges
which are generally monetized in
the 2^nd and 3^rd quarters

–

Johnson City, TN landfill project

construction in progress for
mid-year operation

–

Expect Q2 YTD profitability

2006 Synfuels Outlook

Synfuels tax benefits expire at end of 2007

Current stock price reflects synfuels sunset

Credits are expected to phase out ratably with NYMEX prices

from approximately $60 to $74 per barrel

Approximately one third of expected tax credits are insured in

2006

Reserved $2.3 million 1^st quarter to reflect possible phase

out of tax credits earned in 1^st quarter

Tax legislation is being considered that would eliminate

phase out risk for 2006 but could increase the risk in 2007

AMT credit carryforward of approximately $47 million

Investment balance of $7.2 million is not currently impaired

$255

$373

$354

$435

$372

$270

Capital Expenditures and Investments

Major Utility Expenditures

Environmental Compliance

–

$230 million

Coal Fired Generation

–

$225 million

Bare Steel/Cast Iron

–

$170 million

Major Nonutility

Midstream Assets

Coal Reserves

Reconciliation of EBITDA to Net Income

Enterprise Value at December 31, 2005 @ $3.6 billion

–

Net Debt @ $1.5 billion

–

Market Capitalization @ $2.1 billion

Enterprise Value to EBITDA @ 8.5x

Enterprise Value to EBITDA (excluding synfuels) @ 8.2x

Expected synfuels-related

contribution reduced given
uncertainty

–

$0.04 to $0.05

Expected earnings excluding

synfuels unchanged

Most significant assumptions

–

Normal weather

–

High gas costs remain

–

Conservation tariffs achieved

–

Expected conversion of

backlog and construction
revenue at ESG and Reliant

–

Synfuels uncertainties

2006 EPS Guidance

46 Consecutive Years Increased

Dividends Paid

Vectren = Long-term Shareholder Value

Supportive Regulation

–

Multi-pollutant

–

NTA

–

ProLiance service agreement

–

Conservation-oriented rates

Consistent Dividend Policy

–

3.4% increase December 2005

–

$1.22 annualized rate

–

55% to 65% target payout

–

85%+ funded from utility

Long-term growth objectives

–

EPS growth greater than 5%

–

Total return between 9 to 9½%