Exhibit 99-2
News Release
Vectren Corporation
P.O. Box 209
Evansville, IN 47702-0209
October 31, 2000
For Immediate Release
Vectren and Cinergy Affiliate to Acquire Miller Pipeline Corp.
from NiSource
Evansville and Cincinnati -- Reliant Services, LLC, jointly and
equally owned by subsidiaries of Vectren Corporation (NYSE: VVC)
and Cinergy Corp. (NYSE:CIN) announced it has signed a definitive
agreement to purchase the common stock of Indianapolis-based
Miller Pipeline Corporation from NiSource, Inc. (NYSE:NI) for
approximately $68.3 million. Miller Pipeline is one of the
nation's premier natural gas distribution contractors with nearly
50 years of experience in the construction industry.
The acquisition will expand Reliant's utility services business
by adding underground pipeline construction, replacement and
repair to its current services of underground facility locating,
contract meter reading and installation of telecommunications and
electric facilities.
"This is a logical step in our strategy for growth. It both
complements our core business and strengthens our ability to
manage costs," said Niel C. Ellerbrook, Vectren's Chairman and
Chief Executive Officer. "Miller Pipeline and its strong
management team have grown revenues on average by 13% over the
last 3 years to nearly $73 million in 1999. We anticipate the
acquisition will be slightly accretive to earnings for Vectren in
its first year of operation."
"With their experience in underground pipeline construction,
including natural gas, water and wastewater, Miller is
strategically positioned to be a key player in the replacement of
the region's aging infrastructure," said James E. Rogers, vice
chairman, president and chief executive officer of Cinergy. "In
addition, Miller's growth will also come from general demand for
new infrastructure due to suburban growth and the
-more-
increasing demand of utilities for contractors with a large
regional presence. This acquisition is a great opportunity and
together, Miller Pipeline and Reliant are also well positioned to
continue expansion into fiber optic and electric facilities
installation."
NiSource, based in Merrillville, Ind., stated that the sale of
Miller Pipeline is consistent with the company's intent to divest
businesses outside of its core business as part of its merger
with Columbia Energy Group, which is expected to close Nov. 1,
2000.
The Miller Pipeline acquisition requires review by the United
States Department of Justice under the Hart Scott Rodino Act and
should be completed by the end of 2000.
More about Reliant Services
Reliant was formed in August 1998 and is owned as a joint venture
between Vectren and Cinergy.
Reliant currently provides utility-related services such as
underground facility locating, contract meter reading services
and electric and telecommunications installation services
throughout the Midwest region.
For more information about Reliant visit http://www.Reliant-
Services.com.
More About Miller Pipeline
Miller Pipeline was founded in 1953 (as a predecessor company)
and has grown to include three divisions
with approximately 110 construction crews and over 750 employees.
Miller Pipeline performs natural gas and water distribution and
transmission construction primarily in the Mid-Wwest region and
the repair and rehabilitation of gas, water and waste water
facilities nationwide. For more information about Miller
Pipeline visit http://www.Millerpipeline.com
More About Vectren
Vectren, headquartered in Evansville, Indiana, through its
regulated subsidiaries Indiana Gas and SIGECO, offers gas and/or
electricity to more than 650,000 customers in adjoining service
areas that cover nearly two-thirds of Indiana. Vectren's non-
regulated subsidiaries currently offer energy-related products
and services, fiber-optic based communication services, and
utility related services including materials management, debt
collections, locating, meter reading and trenching services to
customers throughout the surrounding region. In December 1999
(prior to its merger with SIGCORP, Inc. to form Vectren), Indiana
-more-
Energy, Inc. announced the planned acquisition of the natural gas
distribution business of Dayton Power
and Light Company. This acquisition is expected to close today
and bring Vectren's total customer count to nearly one million.
To learn more about Vectren visit vectren.com
More about Cinergy
Cinergy Corp. is one of the nation's leading diversified energy
companies, with a total enterprise value of $8.5 billion and
assets of $10 billion. Cinergy owns or operates nearly 20,000
megawatts of electrical and combined heat plant generation that
is either operational or under development domestically and
internationally. It also has 55,000 miles of electric and gas
transmission lines in the United States and abroad and
approximately 9,000 employees in nine countries. Its largest
operating companies, The Cincinnati Gas & Electric Company and
PSI Energy, Inc., serve more than 1.4 million electric customers
and 478,000 gas customers in Indiana, Ohio and Kentucky. In
addition to its U.S. operations, Cinergy owns and operates power
generation, transmission and distribution assets in the Czech
Republic, Spain, the United Kingdom, Zambia, Kenya, South Africa
and Estonia. Cinergy is also active in European gas and
electricity markets.
This news release may contain forward-looking statements
concerning our anticipation of future events that involve
inherent risks and uncertainties. A number of important factors
which are difficult to predict and many of which are beyond the
control of the company could cause actual results to differ
materially from those in the forward-looking statements. Forward-
looking statements may be significantly impacted by certain risks
and uncertainties, including, but not limited to, economic or
weather conditions affecting future sales, changes in markets for
energy services, changing energy market prices, legislative and
regulatory changes, including revised environmental requirements,
industry restructuring, availability and cost of capital and
other similar factors.
Investor Contacts: Steven M. Schein, VP/Investor Relations,
Vectren
(812) 491-4209, mail to: [email protected]
Steve Schrader, General Manager, Investor
Relations, Cinergy
(513) 287-1083, [email protected]
Dennis Senchak, VP, Investor Relations, NiSource
(219) 647-6085
Media Contact: Jeffrey W. Whiteside, VP/Corporate
Communications, Vectren
(812) 491-4205, [email protected]
Steve Brash, Manager, External Communications,
Cinergy
(513) 287-2226, [email protected]
Jeff Moore, VP/Finance and Administration, Reliant
Services, LLC
(317) 554-5082, [email protected]
Sally Anderson, Director, Corporate
Communications, NiSource
(219) 647-6203
Vectren Corporation, P.O. Box 209, Evansville, IN 47702-0209
