SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 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): December 15, 2000

                    SOUTHERN INDIANA GAS AND ELECTRIC COMPANY

             (Exact Name of Registrant as Specified in Its Charter)

                                     INDIANA

                 (State or Other Jurisdiction of Incorporation)

         1-3553                                              35-0672570
(Commission File Number)                       (IRS Employer Identification No.)


                              20 N.W. Fourth Street
                            Evansville, Indiana 47741
               (Address of Principal Executive Offices)(Zip Code)

       Registrant's Telephone Number, Including Area Code: (812) 465-5300





Item 5.  Other Events.

Vectren  Corporation  provides update on potential impact of Increased Gas Costs
and Gas Cost Adjustment Proceedings.


     Commodity  prices for natural  gas  purchases  during the winter  months of
calendar year 2001 have unexpectedly  increased  significantly over the past few
months,  primarily due to the  expectation of a colder winter,  which has led to
increased demand and tighter  supplies.  Since our utility  subsidiaries  charge
their  customers  the actual cost they pay for the natural gas  purchased on the
customers' behalf,  their profit margin on gas sales should not be impacted.  In
2001,  they  may  experience  higher  working  capital  requirements,  increased
expenses,  including interest costs and uncollectibles,  and possibly some level
of price  sensitive  reduction  in volumes  sold.  To the  extent  significantly
increased  prices are accompanied by colder than normal weather,  higher volumes
may be sold providing  increased margins as an offset to the unfavorable results
mentioned.

     On October 11,  2000,  Indiana Gas Company,  Inc., a subsidiary  of Vectren
Corporation,  filed for  approval  of its  quarterly  gas cost  adjustment.  The
Indiana Utility Regulatory  Commission has issued an interim order approving the
request by Indiana Gas for a gas cost adjustment factor for December,  2000. The
Commission will determine the January and February,  2001 gas cost adjustment in
a subsequent  order.  That order will address the claim by the Office of Utility
Consumer  Counselor  that a portion  of the  requested  gas cost  adjustment  be
disallowed  because Indiana Gas should have entered into additional  commitments
for this  winter's  gas supply in late 1999 and early  2000.  In  procuring  gas
supply for this winter, Indiana Gas followed established practices. Accordingly,
we  believe  that the Office of Utility  Consumer  Counselor's  claim is without
merit or  precedent  and that it is unlikely  to be accepted by the  Commission.
There can, however, be no assurance as to the ultimate outcome.

                                   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.


                                       SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
                                       (Registrant)


Dated: December 15, 2000               By:/s/ M. Susan Hardwick
                                          --------------------------------------
                                          M. Susan Hardwick
                                          Vice President and Controller