State of Indiana
Indiana Utility Regulatory Commission
302 W. Washington Street
Room E306
Indianapolis, Indiana 46204
August 17, 2000
Mr. Jonathan G. Katz, Secretary
Securities & Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Re: Vectren Corporation, File Number 70-9703
Dear Mr. Katz:
The Indiana Utility Regulatory Commission (IURC) received an inquiry
regarding our ability to continue to monitor possible cross-subsidization issues
between Vectren Corporation's (VECTREN) subsidiaries Indiana Gas Company, Inc.
(Indiana Gas) and Vectren Energy Delivery Company of Ohio, Inc. (VEDO) as a
result of the acquisition of the Dayton Power & Light Company's (DPL) gas
distribution assets by Indiana Gas and VEDO. The IURC believes, based on Indiana
Code 8-1-2-49, that Vectren, Indiana Gas and VEDO are "affiliated interests" as
contemplated by the statutes and, as such, Indiana Gas must file any contract
between it and Vectren, and/or VEDO. Specifically, Indiana Code 8-1-2-49
provides, in part, that:
(I)f it be found that any such contract is not in the public interest,
the Commission after investigation and hearing is -- authorized to
disapprove such contract.
Based on this statutory authority, and other related statutes, the
Commission believes that it has the jurisdiction to monitor the activities of
Indiana Gas to ensure that cross-subsidization between Indiana Gas and VEDO or
any other affiliate does not occur.
The foregoing opinion is given with the understanding that Vectren's
Indiana and Ohio utility businesses will be separately operated and that Indiana
Gas and VEDO will not be merged into a single company. The Commission reserves
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the right to alter this opinion in the event that there are material changes
between Vectren and its affiliates or this Commission's statutory authority.
Finally, the Commission advises that Indiana Gas has operated in Indiana as
a gas utility continuously since 1945 and under our regulatory purview.
Sincerely,
William D. McCarty
Chairman
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