SOURCE: Vectren Corporation

Vectren Corporation

May 11, 2011 18:04 ET

Vectren Efforts to Shape Energy Policy Focused on Protecting Customers

EVANSVILLE, IN--(Marketwire - May 11, 2011) - Speaking at Wednesday's annual Vectren Corporation (NYSE: VVC) shareholders' meeting, President and CEO Carl L. Chapman discussed a number of industry issues facing Vectren and how the company is developing cost effective business strategies that will meet future challenges and at the same time protect its customers.

As additional energy regulations are developed, Vectren is positioned to not only comply, but is engaged on all levels working to develop reasonable outcomes for customers, Chapman said.

"We have completed important environmental investments to help our area maintain its attainment status and ensure our electric generation fleet can serve our customers into the future," Chapman said. "We have aggressively added emission equipment to ensure we have one of the best-controlled coal fleets in the country. New, more stringent rules have been coming for years, and we are ready for them. Now, some in the industry are calling for delays or changes to the rules. Our industry needs to agree to clean coal standards, make necessary plant modifications and prepare to serve the next generation of customers."

An April 2011 report released by the American Gas Association (AGA) and the Potential Gas Committee (PGC) said the United States possesses substantially higher natural gas resources than previously estimated. The reported resources are the highest in the PGC's 46-year history -- exceeding by more than three percent the previous record-high assessment from year-end 2008. Domestic natural gas reserves and estimates of undiscovered resources continue to grow due to the emergence and advancement of key technologies that are able to unlock gas production from sources such as shale formations. Shale gas refers to natural gas trapped below the earth in various rock formations. New technology allows producers to drill into the earth and break apart the rock using hydraulic fracturing (fracking), which allows the gas to flow to the surface.

"The confirmation of increased natural gas supplies, primarily from shale deposits, is great news for our customers," Chapman said. "These deposits should provide years of known supply to the market, which should lead to price stability and lower bills for our customers. The success of our gas conservation programs combined with lower commodity prices sends a good bill-management message to customers. We are advocating that shale gas must be developed in an environmentally responsible manner and continue to be accessible allowing the development of existing and new discoveries."

Further, additional pipeline safety measures are being considered by Congress.

"The gas industry and Vectren have and will continue to fully support the safe delivery of natural gas," added Chapman. "Existing safety programs have us replacing thousands of miles of pipelines over the next two decades. As new legislation unfolds, it must ensure the maintenance of safe gas systems that can be operated in the most cost effective manner reasonably possible."

Chapman encouraged shareholders to stay vigilant on these complex issues in the months and years ahead.

About Vectren
Vectren Corporation (NYSE: VVC) is an energy holding company headquartered in Evansville, Ind. Vectren's energy delivery subsidiaries provide gas and/or electricity to more than one million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren's nonutility subsidiaries and affiliates currently offer energy-related products and services to customers throughout the U.S. These include infrastructure services, energy services, coal mining and energy marketing. To learn more about Vectren, visit http://www.vectren.com.

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