SECURITIES AND EXCHANGE COMMISSION

                     Washington, DC   20549
                            FORM 8-K

                         CURRENT REPORT
        Pursuant to Section 13 of 15(d) of the Securities
                      Exchange Act of 1934
        Date of Report (Date of earliest event reported)
                         March 29, 2001

            SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
     (Exact name of registrant as specified in its charter)

         Indiana              1-3553            35-0672570
 ------------------      ----------------  -------------------
 (State of               (Commission File  (I.R.S. Employer
  Incorporation)          Number)           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

                               N/A
     (Former name or address, if changed since last report.)










ITEM 5.  Other Matters

Attached is a press release discussing the recent settlement
between the Indiana Gas Company, Inc. (IGC) (subsidiary company
of Vectren Corporation), the Indiana Office of the Utility
Consumer Counselor, and the Citizens Action Coalition of the
appeals surrounding the Indiana Utility Regulatory Commission's
January 4, 2001 order that disallowed $3.8 million of gas cost
recovery by IGC.  As detailed in the press release, the
settlement provides for immediate rate reductions to IGC
customers and for additional contributions to low-income
assistance programs to assist customers in paying heating bills.
The agreement provides that the $3.8 million disallowance, which
was recognized as a charge to IGC's 2000 fiscal year results,
will be satisfied by the contributions described in the press
release.  As a result of the disallowance and amounts previously
recognized, it is expected that the additional expense recorded
in 2001 will be less than $2 million.

Item 7.  Exhibits

99-1     Press Release
99-2     Forward Looking Statements










                           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.
March 29, 2001



                                By:  /s/ M. Susan Hardwick
                                M. Susan Hardwick
                                Vice President and Controller