ex99.2

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

2007 EPS Growth

Indiana/Ohio conservation orders in

place full year

South electric and gas rate cases

implemented in late summer

~ 8% growth in Operations EPS –

excluding settlement between
ProLiance and Huntsville

Earnings Guidance

2006 EPS

Initial Guidance

–

Vectren Operations - $1.59 to $1.78

–

Synfuels - $0.16 to $0.17

–

Total - $1.75 to $1.95

Nonrecurring Items

–

Synfuel loss – ($0.04) to ($0.05)

–

ProLiance/Huntsville Settlement – ($0.09)

Decoupling/conservation orders in place in Indiana and Ohio

–

Incremental margin impact of $8 to $12 million depending on average

customer use

2006 O & M savings of $1.5 million related to AMT project

–

Continued implementation of Asset Management Transformation (AMT)

project designed to reduce costs by $9 million annually by 2010

Expanded ProLiance gas storage

–

5 Bcf of Liberty Gas Storage capacity to be fully operational in 2007

–

Invested in additional capacity near Liberty Gas Storage and leased storage

from Texas Gas & Heartland Pipeline

Acquired access to 80 million tons of coal reserves

–

2 underground mines to be fully operational by 2011

Continued to narrow focus of nonutility businesses

–

Acquired 100% of Miller Pipeline, exited meter reading and line locating

businesses and sold broadband investment

Doing What We Said

Recent regulatory approvals

–

Timely recovery of environmental expenditures – Senate Bill 29

•

NOx - $255 million – Aug 2001

•

Multi-pollutant - $110 million – Feb 2006

–

Normal Temperature Adjustment – Indiana – Oct 2005

–

ProLiance service agreement extended through 2011 – Apr 2006

–

Ohio Conservation/Decoupling order – Sep 2006

–

Indiana Conservation/Decoupling order – Dec 2006

Current regulatory initiatives

–

South gas and electric rate cases filed – Sep 2006

•

Expect orders to be in place late summer 2007

•

Settlements achieved last 3 gas rate cases

Equitable Regulatory Environment

Conservation Orders In Place

align u

Indiana and Ohio Commissions approved Vectren rate mechanisms that

tility and customers by promoting conservation

–

IURC approval on December 1, 2006 – North gas territory – 550,000

customers

–

PUCO approval on September 13, 2006 – Ohio gas territory – 315,000

customers

–

Expect approval for South gas territory via base rate filing – 110,000

customers

Comprehensive conservation programs to benefit customers in Indiana

and Ohio

New conservation oriented rates designed to stabilize gas utility gross

margin from declining usage by providing Vectren the opportunity to
recover the costs approved in last rate orders

–

Actual customer usage will be compared to average use per customer (AUPC)

approved in last general rate order

–

The difference between actual AUPC (weather normalized) and approved

AUPC will be recognized as margin recovered or to be refunded

2006 decline in residential AUPC ~ 14% from last rate cases

2007 estimated incremental revenue between $8 and $12 million

Future Presents Opportunity

Growing gas and electric utility

–

5% rate base growth

Equitable regulatory decisions

–

Conservation tariffs in Indiana & Ohio

–

NTA in Indiana

–

Senate Bill 29 recovery of environmental expenditures

Successful nonutility operations

–

3 business segments - closely linked to core utility operations

–

3 year CAGR of over 18%

–

Targeted future growth of 10%+ achievable

Strong financial profile

–

S&P: A- and Moody’s: Baa1

Superior dividend record

–

47 consecutive years increased dividends - 12/1/06 increase of 3.3%

Attractive total shareholder return

–

Target 9 to 10%

2007 Utility Outlook

~ 6% EPS growth in utility operations

5 year rate base growth - 5% CAGR

Conservation/Decoupling orders stabilize earnings & reduce risk

Rate increases for Indiana South gas and electric territories by

late summer

Rate increases and progressive regulatory approaches will be

pursued to achieve allowed returns at each utility

South Electric Rate Relief

–

Pre-hearing conference estimated order date - September 11, 2007

–

2007 Margin impact - $7 to $11 million

–

FERC approved rates for new transmission expenditures

–

Proposed 50/50 sharing above or below $10.5 million Wholesale Power

Marketing margin

–

Senate Bill 29 recovery expected to continue

South Gas Rate Relief

–

Pre-hearing conference estimated order date - August 1, 2007

–

2007 Margin impact - $3 to $4 million

–

Conservation/Decoupling mechanism to be implemented

–

Bare steel/Cast iron tracker for new expenditures

2007 Rate Relief Effective Late Summer

2007 Gas Utility Margin Growth

Key Assumptions

Indiana and Ohio Conservation/Decoupling orders in place in 2006

South gas rate case & decoupling achieved in late summer

NTA in place in Indiana, normal weather in Ohio

–

~ $400,000 of margin at risk per +/- 1% of normal HDD

Residential customer growth ~ 1%

Large customer margins flat year over year

2007 Electric Utility Margin Growth

Key Assumptions

Continued recovery of Senate Bill 29 environmental expenditures

South electric rate case achieved in late summer

Normal weather

–

~ $100,000 of margin at risk per +/- 1% of normal HDD

–

~ $300,000 of margin at risk per +/- 1% of normal CDD

Residential customer growth ~ 1%

Large customer margins flat year over year

2007 Other Utility Projections

Key Assumptions

O & M growth below 3%

Depreciation ~ 8% - growing capital expenditures plus amortization

Interest ~ 3% - higher short-term debt balances

Effective tax rate for 2007 ~39%

Earnings growth based on significant capital expenditures

–

Timely recovery through rate relief or tracking

–

Rate base grows at 5% CAGR through 2011

Senate Bill 29 recovery for multi-pollutant continues and expected for

new generation

Requesting tracking recovery of Bare steel/Cast iron programs

VUHI Capital Expenditures

5.2% Rate Base Growth

VUHI Capital Structure

Common

Equity

Long-Term Debt

45%

10%

2006

Estimate

1) Includes customer deposits, ITC,

deferred taxes and other.

Other ¹

2006 Rate Base ($mm)

North - Gas$ 761

Ohio - Gas

$ 257

South - Gas$ 119

South - Electric

$1,018

Growing Rate Base (2006-2011)

Disciplined growth

Reinvest earnings in primary businesses

Develop gas storage opportunities

Develop and market new coal reserves

Grow Energy Infrastructure Services

Target 10%+ annual growth from key operating companies

Proven Success with Operating Companies

Grow leased or owned storage capacity

–

Added 2 Bcf of seasonal storage for winter of ’06-’07

–

Will add 6 Bcf high deliverability storage plus another 4 Bcf of seasonal

storage for the winter of ’07-’08

–

Hedged storage spreads for winter of ’06-’07 exceed expectations

–

20% of seasonal summer/winter spreads ’07-’08 are currently hedged

Invest in gas midstream assets

–

Heartland Gas Pipeline started service in late ’06

–

Liberty Gas Storage Phase I to be completed in the 2^nd quarter of ’07

–

Liberty expansion in planning stage and expected to be filed with FERC in

’07

Grow wholesale and retail gas marketing business

–

Number one ranking in ’06 Mastiogale annual customer satisfaction survey

–

~95% customer retention in ’06

ProLiance Energy

Grow revenue

–

90+% of coal is pre-sold for ’07

–

4 to 5% average price increase in ’07 locked in

–

Mine an additional 200,000 tons in ’07

Manage costs

–

40+% of diesel fuel planned for ’07 is hedged below average ’06 costs

–

Full year of more efficient high wall mining at Cypress Creek in ’07

Develop new mines

–

Expect permit approvals to build out Oaktown Fuels Mines #1 and #2 in

’07

–

Planning to break ground for new mines in late ’07

–

Expect new production to start in ’09, reaching 5 million tons per year by

2011

–

With Prosperity Mine continuing and Cypress Creek depleted, total annual

production will reach 8 million tons

Mining Operations

Grow performance contracting (construction) business

–

Record sales year in ’06 will lead to record year-end backlog of $65+ million

–

New offices adding business in the Mid-Atlantic and South

–

Continued focus on energy conservation in the public sector will continue

Grow operations business

–

Added new operating agreement with Baltimore Public Schools in ’06

–

Negotiating for two new large operating agreements to become effective in

’07

–

Use operating agreements to facilitate repeat performance contracting

business

Grow renewable energy business

–

Completed landfill gas project in Johnson City, TN in late ’06

–

Right to develop sizable landfill gas project in the southeast for ’08

production

–

Acting as project manager for waste to energy project in St. Lucie County, FL

Energy Systems Group

Grow through acquisition

–

Completed purchase of remaining 50% of Miller from Duke Energy in ’06

–

Made two small Midwestern acquisitions in ’06

–

Look for additional small complementary acquisitions

Grow through existing customer penetration and territory expansion

–

Entered new market segments for two large East Coast customers

•

Construction of new mains and services and cast iron replacement

–

Adding distribution maintenance crews in the East and South

–

Continued focus on transmission construction

Positioned to grow through aging infrastructure replacement

–

Bare steel and cast iron replacement programs

–

Mandated pipeline and likely distribution integrity programs

–

EPA mandated upgrades in storm and waste-water sewer systems

Miller Pipeline

Synfuels

Manage oil price risk

–

’07 is the last year for the synfuel tax credit

–

Hedged 100% of planned ’07 production using call spreads

–

“Mark to market” accounting on spreads could impact timing

of earnings recognition

–

Variability of earnings predicated upon price paid per tax

credit which is impacted by the phase out range, inflation
factor, and actual production volumes

Reinvest earnings into existing operating companies

Look for opportunistic acquisition opportunities

Includes $125 million for the start up of new mines

Excludes payments for synfuel tax credits

Nonutility CapEx and Investments

5% rate base growth

~90% gas margin subject to conservation tariffs

~65% gas margin subject to NTA

~50% of electric Cap Ex expected to be recovered under Senate Bill 29

Nonutility 3-yr CAGR of over 18%

–

Business Environment and outlook for EMS, CM and EIS are all good

S&P : A- and Moody’s : Baa1

47 Consecutive years of increased dividends paid

–

12/1/06 increase of 3.3%

Average annual EPS growth of 5% or more

2006 & 2007 EPS Guidance