SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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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
VECTREN CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
INDIANA
(State or Other Jurisdiction of Incorporation)
1-15467 35-2086905
(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
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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. 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.
VECTREN CORPORATION
(Registrant)
Dated: December 15, 2000 By:/s/ M. Susan Hardwick
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M. Susan Hardwick
Vice President and Controller
