Exhibit 99.1`

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:

Steve Schein

VP Investor Relations

812-491-4209

sschein@vectren.com

Nonutility Strategies

Reinvest Earnings in Core Businesses

Invest in Gas Storage Assets

Develop and Market New Coal

Reserves

Grow Energy Infrastructure Services

Positioned For Growth

Goals

Increase utility earnings at an

average annual rate of 3.5% to
4%

Increase nonutility earnings at an

average annual rate of 10+%

Increase Vectren EPS at an

average annual rate of 5+%

Provide a total return to

shareholders of 9+%

Utility Strategies

Grow Rate Base

Achieve Decoupling / Conservation

Oriented Tariffs

Achieve Timely Rate Relief

Manage Capital Structure

Manage O&M

Earn Allowed Return

F.B. Culley

A.B. Brown

Utility Business – Power Generation

Generation Portfolio

Coal-fired base units – 1,056 MW

Nearly 90% available in 2005

Burns 3+ million tons of coal annually

Affiliate agreements in place for 90% of

coal needs

80% scrubbed for SO2 and 90% for

NOx

Gas-fired peak-use turbines – 295 MW

Additional 125 MW required

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 was $625,000

Supportive Regulation

Senate Bill 29 Environmental Recovery

NOx - $255 million – Aug. 2001

Multi-pollutant - $110 million – Feb. 2006

Normal Temperature Adjustment implemented in Indiana - Oct. 2005

ProLiance Service Agreement extended through 2011 - Apr. 2006

Indiana Decoupling Settlement Agreement filed & pending approval - Aug.

2006

South Gas & Electric Rate Case Filed - Sep. 2006

Settlements achieved last 3 gas rate cases

IGCC Generating Facility Petition Filed - Sep. 2006

Ohio Decoupling/Conservation Order - Sep. 2006

Ohio Decoupling/Conservation Order

Rate mechanism that aligns utility and customer by supporting conservation

Creation of additional conservation programs for low-income customers

Two year program - $2.0 million Vectren contribution

Sales Reconciliation Rider (SRR)

Recovers 100% of difference between weather normalized actual base revenues

and the base revenues approved in the last rate case, as adjusted for customer
additions (residential and general service customers)

The differences calculated monthly, deferred without carrying costs, subsequent

recovery via SRR, to be recovered over annual tracker filed each November 1st

SRR will be implemented October 1, 2006

Gas

Increase - $10.4 million

ROE - 11.75%

Equity ratio - 47%

Rate Base - $118.5 million

NOI - $9.4 million

Decoupling/Conservation

Adjustment

Bare Steel/Cast Iron Replacement

Tracker

Electric

Increase - $76.7 million

ROE - 12.00%

Equity ratio - 47%

Rate Base - $1,017.8 million

NOI - $82.2 million

FERC return/periodic recovery on

new transmission investments

Environmental recovery under

Senate Bill 29 expected to continue

Opposition

& Rebuttal
Hearings

Sept.

2006

File with

IURC

Settlement

Negotiations

Post Hearing

Briefs

Final Rate

Order

New Rates

in Effect

Procedural Timeline

Case in

Chief
Hearing

Summary of Vectren South Rate Filings

6% Rate Base Growth

VUHI Capital Structure

Common

Equity

Long-Term Debt

45%

10%

2006

Estimate

(1) Other Capital includes customer

deposits, ITC and deferred taxes.

Other ⁽¹⁾

$1,175

$160

$200

$100

$ 80

(in millions)

Growing Rate Base (2006-2009)

Total Utility Cap Ex

Major Expenditures

IGCC Plant

Environmental

Electric Transmission

Steel/Cast Iron (Replacement)

Southern

Natural

Tennessee Gas

Texas Gas

Texas Eastern

Trunkline Gas

ANR

Columbia Gas

Columbia Gulf

Midwestern Gas

Panhandle

Eastern

ProLiance Pipeline Access

ProLiance Energy (1996)

Storage & Transportation Optimization

75% of earnings stream

32 Bcf firm – 2005/06 heating season

35 Bcf firm – 2006/07 heating season ¹

45 Bcf firm – 2007/08 heating season

1) Does not include 5 Bcf of Liberty Gas Storage scheduled

to be partially operational in late 2006.

Retail Gas Marketing

1,300 Commercial and Industrial customers

Wholesale Services

Vectren and Citizens gas supply agreement extended until

2011

Utilities, municipals, power generators & other marketers

Midstream Investments

Two Intrastate pipelines

Four storage fields

100 + employees – Indianapolis, Ind.

Approximate sales volumes of 1 Bcf per day

Balanced book approach - VaR capped at $2.5 mm

Stand alone $300 mm credit facility plus

$100 mm surge

JV – 61% owned by VVC – governance 50/50

Total VVC Investment 6/30/06: $116 mm

Vectren Source (2001)

Retail Gas Marketing in “Choice” States

Operates in Ohio, Indiana, Georgia and New York

Customer count approximately 150,000

Steady, organic customer growth

Annual volumes have grown from 1.8 Bcf in 2002 to

12.4 Bcf in 2005

ProLiance serves as agent for commodity purchases

40 full time employees, in-house call center

100% owned by Vectren

Total Assets 06/30/06: $23 mm

Cypress Creek

Prosperity

Supplies Vectren’s generating plants

approximately 3 mm tons annually

90+% of Vectren’s requirement

Affiliate contracts on file with regulators

Markets coal to other utilities and industrial

accounts

Staff of 4 plus 300 contract mining employees

Regulatory support of Indiana coal generation

100% owned by Vectren

Total Assets 06/30/06: $120 mm

Prosperity Mine

Underground mine – mid-sulfur 3.3 lbs

~35 mm tons of reserves at 12/31/06

Mines ~3 mm tons per year

Cypress Creek Mine

Surface mine – high-sulfur 7.5 lbs

~3 mm tons of reserves at 12/31/06

Mines ~1.4 mm tons per year

Coal Mining Operations (1997)

Glen Ayr & Oaktown Project (2006)

Two Mines – 80 mm Tons of Reserves

Located 8 miles north of Vincennes, Ind.

Competitive location to minimize

transportation costs

Within 50 miles of 8 coal-fired plants

Adjacent to mainline rail service

Within 10 miles of proposed Duke/Vectren

IGCC plant

Coal quality – Projected high-sulfur 6.0 lbs

5 mm tons projected to be mined annually

when fully operational

Land acquisition, permitting, rail access and

mine development estimated at 2 ½ years

Mine development and equipment costs

estimated at $125 mm

425 new mining jobs

Wabash River

Newton (S)

Gibson (SU)

Edwardsport

Merom (S)

Hutsonville

Petersburg (S)

Ratts

Prosperity

Glen Ayr/Oaktown

Rockport

Henderson (S)

Brown (S)

Warrick (SU)

Culley (S)

Vincennes

Washington

Evansville

(S) Scrubbed plant

(SU) Scrubber under

construction

Power plant

Mine site

Indiana Southern

Rail Road

CSX Rail Road

Cities

Legend

Energy Systems Group (1995)

Construction - Performance Contracting

Designs & installs facility improvements that pay for

themselves from energy and operational savings

Hospitals, schools, governments

Veterans Administration

Four military base program centers

O&M Contracts

Three energy centers

Energy coaching and facility management for K-12

school districts

Renewable Energy Projects - Renewable natural gas and waste to energy

Johnson City, TN (Oct. 2006)

Atlanta, GA (proposed)

St. Lucie, FL (Program manager)

Business strategy focused on developing recurring

revenues and territory expansion

170 employees in 14 states

100% owned by Vectren

Total assets 06/30/06: $38 mm

Miller Pipeline (2000)

Gas Pipeline Construction and Repair

Expand work in cast iron and bare steel replacement

programs

Growth opportunities

Pipeline Integrity Act

Pending Distribution Integrity Act

Geographic expansion and strategic acquisition

Waste Water Construction and Repair

EPA mandates related to storm sewers in major

municipalities provide significant opportunities

Vectren purchased Duke Energy’s 50% of Miller on

July 1, 2006 and is now 100% owned by Vectren

Major customers – Duke, NiSource, Citizens & Vectren

One of the largest gas distribution contractors in the

Midwest

Over 50 years of construction experience

Over 1,200 employees

Exit non-core businesses (Reliant)

Meter reading & line locating

Total VVC Investment 06/30/06: $30 mm (before acquisition)

Corporate Structure

Vectren

Corporation

Vectren Utility

Holdings Inc.

Vectren

Enterprises

Energy Marketing

and Services

Coal Mining

Other

Businesses

Energy

Infrastructure
Services

ProLiance

Energy (61%)

Vectren Source

Coal Mining

Operations

Synfuels

Miller Pipeline

Other

Haddington

Energy (13%)

Broadband *

Pace Carbon

Synfuels (8%)

Energy Systems

Group

Vectren North

(Indiana Gas)

Vectren South

(SIGECO) - Gas

Vectren Energy

Delivery of Ohio
(VEDO)

Vectren South

(SIGECO) - Electric

NOTE: Ownership Percentage in ( )

* Sale of Vectren’s interest in Broadband is expected to close Q4 2006.

Energy Delivery

Vectren Utility Holdings, Inc. (VUHI) - The Company’s wholly owned subsidiary serves as the intermediate holding company for its three operating public utilities: Indiana Gas Company, Inc. (Indiana Gas

Company, Inc. (Indiana Gas), Southern Indiana Gas and Electric Company (SIGECO) and the Ohio operations. VUHI also has other assets that provide information technology and other services to thethree utilities.

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.

Natural Gas

Electric

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.

Power Supply

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

Culley #1 – 46 MW to be decommissioned 12/31/06

6 natural gas peaking units – 295 MW

Member of Midwest Independent Transmission

System Operator (MISO)

Has 6 interconnects

Vectren Utility Holdings, Inc. (VUHI) - The Company’s wholly owned subsidiary serves as the intermediate holding company

for its three operating public utilities: Indiana Gas Company, Inc. (Indiana Gas), Southern Indiana Gas and Electric Company
(SIGECO) and the Ohio operations. VUHI also has other assets that provide information technology and other services to the
three utilities.

Other Nonutility Businesses

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 as

opportunities arise.

Total VVC Investment 06/30/06: $14 million

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 – Sale of remaining interest expected to close

in Q4 2006.

Total VVC Investment 06/30/06: $12 million equity and

$34 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 Net Assets 06/30/06: $60 million

Vectren Synfuels

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 – Currently, has elected to opt out of

participation in the production of synfuels. To begin
utilizing Alternative Minimum Tax (AMT) credit carry
forward of approximately $50 million as early as 2006.

Tracking Investment and Margin Recovery

NOx Compliance Expenditures

All $255 mm of project costs currently 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 mm expenditure

7.98% return on capital invested

Recovery of related O&M and depreciation expense

Adjusted every 6 months

Commission order received February 22, 2006

Normal Temperature Adjustment

Implemented in Indiana October 2005

Impacts 60% to 65% of gas heating load during October-April

Adjusts distribution charge monthly for normal weather

Indiana Conservation/Energy Efficiency Program

Hearings and briefing on settlement completed in August - awaiting IURC

approval

Five year program

1^st year Vectren administers program and fronts up to $1.5 million

Years 2-5 independent administrator with annual program costs approximately $4.5

million, collected from customers through Energy Efficiency Rider (EER)

Sales Reconciliation Component (SRC) recovers margin difference

For Vectren North, recovers 85% of difference between weather normalized actual base

revenues and the base revenues approved in last rate case, as adjusted for customer
additions (Vectren North residential and general service customers; for Vectren South
SRC approved, but not effective until order received in next rate case)

The margin differences calculated monthly, deferred without carrying costs, subsequent

recovery via SCR, to be recovered over annual tracker

Quarterly ROE test to ensure returns not in excess of last rate case

Indiana Strategic Energy Plan

Build needed new power plants using “clean coal” technology

Make gas from coal versus importing natural gas

Unlock biomass and build on biofuels success

State Expansion/Growth

123 competitive deals announced in 2006

Commitments to create more than 15,600 new jobs

$3.9 billion in private capital investments

Larger deals announced in Vectren’s service territory

Honda selects Greensburg for new auto plant – 2,000 new employees

Sallie Mae opening operations in Muncie – 700 jobs

Pfizer expansion in Terre Haute – 450 new jobs

Nestle adds new facility in Anderson – 300 new jobs

American General Financial Services expansion in Evansville – 150 new jobs

Strong Economic Development - Indiana

Ohio commitment to economic growth – 2005 tax reform

Cut personal income tax by 21% over next five years

Eliminated business tax on new machinery, equipment and inventory

State Expansion/Growth

Annual survey ranks Ohio first in Midwest and second in nation for new and

expanded business facilities (Site Selection magazine)

57 private investments were made in Dayton region in 2005

Total value over $390 million

2,900 jobs created or retained

Larger deals announced in Vectren’s Dayton service territory

Clopay Corp. – 400 jobs

Alkermes, Inc – 275 jobs

Lastar Inc. – 105 jobs

Spartech Plastics – 90 jobs

Copeland Corp. – 60 jobs

Strong Economic Development - Ohio

Liberty

Expansion

Cameron

LNG

Creole

Trail LNG

2012

9.55 BCF/day

Development

& Proposed

Expansions

2009

5.9 BCF/day

Existing/Under

Construction

New LNG Supply

ProLiance - Liberty Storage Map

Liberty Gas Storage

Sempra Pipeline &

Storage (75%) and
ProLiance (25%)

Announced 5/16/05

17 Bcf underground gas

storage capacity

ProLiance 5 Bcf under

contract

Finalizing construction

Partially operational late

Q4 2006

Liberty Expansion

Sempra Pipeline &

Storage (75%) and
ProLiance (25%)

Announced 9/12/06

10-12 Bcf of potential

natural gas storage
capacity

FERC approval required

Generates synfuel tax credits resulting from the production of coal-based

synthetic fuels through its investment in Pace Carbon

Owns 1/12^th (8.3%) of Pace Carbon, which is an unconsolidated affiliate

accounted for using the equity method

Currently, Vectren has elected to opt out of its participation in the production

of synfuels

Estimated 45% phase out of credits generated year to date

2006 hedge in place minimizing exposure/opportunity

Recorded impairment charge totaling $9.5 million, or $5.7 million after tax

Current projection at $0.06 loss for 2006

Company has generated an Alternative Minimum Tax (AMT) credit carry forward of

approximately $50 million as of December 31, 2005

Company to begin utilizing AMT credits as early as 2006

Synfuels Update