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) August 15, 2003
VECTREN CORPORATION
(Exact name of registrant as specified in its charter)
Commission Registrant, State of Incorporation, I.R.S Employer
File No. Address, and Telephone Number Identification No.
---------- ----------------------------------- ------------------
1-15467 Vectren Corporation 35-2086905
(An Indiana Corporation)
20 N.W. Fourth Street,
Evansville, Indiana 47708
(812) 491-4000
1-16739 Vectren Utility Holdings, Inc. 35-2104850
(An Indiana Corporation)
20 N.W. Fourth Street,
Evansville, Indiana 47708
(812) 491-4000
Item 5. Other Events and Regulation FD Disclosure
The following is an update on regulatory matters in Ohio.
As reported on Form 8-K filed on August 4, 2003, Vectren Energy
Delivery of Ohio, Inc. (VEDO), a utility subsidiary of Vectren
Corporation, as required for Ohio gas utilities, is in the midst of a
biannual audit of its gas acquisition practices in connection with the
gas cost recovery (GCR) mechanism. On August 15, 2003, a third-party
consulting firm engaged by the staff of the Public Utilities Commission
of Ohio (PUCO) filed with the PUCO its audit report. The audit report
details that firm's review of VEDO's gas acquisition practices for the
biannual period commencing November 1, 2000 (the first day of
operations by VEDO) through October 31, 2002. The report recommends a
gas cost disallowance of approximately $7.0 million for the two year
period, which is comprised of: (1) $3.8 million representing an alleged
under compensation for unutilized pipeline capacity; (2) $2 million for
alleged excess supply resources that VEDO obtained to meet an alleged
higher than necessary design peak day demand; and (3) $1.2 million
representing pipeline refunds and penalties allegedly due to customers.
This GCR audit also represents the initial opportunity for regulatory
consideration of the Portfolio Administration Agreement between VEDO
and ProLiance Energy, LLC, a joint venture between a Company affiliate
and a subsidiary of Citizens Gas & Coke Utility.
The Company believes that VEDO's gas acquisition practices that are the
subject of the audit were reasonable. VEDO is now scheduled to file its
response to the audit report with the PUCO in October 2003. If a
regulatory hearing is necessary, it would likely not occur before
November 2003. After that hearing, the PUCO will consider all of the
evidence on the matter and make a determination on the merits.
Throughout this process, VEDO will engage in efforts with the
participants in the proceeding to resolve disputed issues outside of
administrative litigation. If such efforts are not successful and the
PUCO were to adopt the findings in the report, resulting in the
recommended gas cost disallowance, the Company believes that it will
not have a material effect on the Company's results of operations or
financial condition. Any disallowance, to the extent it relates to the
ProLiance gas portfolio relationship with VEDO, will be shared by the
Company's partner in ProLiance. The Company can provide no assurance as
to the ultimate outcome of this proceeding.
In connection with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, the Company is hereby filing cautionary
statements identifying important factors that could cause actual results of the
Company and its subsidiaries, including Vectren Utility Holdings, Inc., Indiana
Gas Company, Inc. and Southern Indiana Gas and Electric Company, to differ
materially from those projected in forward-looking statements of the Company and
its subsidiaries made by, or on behalf of, the Company and its subsidiaries.
Item 7. Exhibits
99-1 Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the
Private Securities Litigation Reform Act of 1995
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.
VECTREN CORPORATION
VECTREN UTILITY HOLDINGS, INC.
August 18, 2003
By: /s/ M. Susan Hardwick
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M. Susan Hardwick
Vice President and Controller