Vectren Utility Holdings Issues Unsecured Senior Notes

EVANSVILLE, Ind., April 7 /PRNewswire-FirstCall/ -- Today, Vectren Corporation
(NYSE: VVC) announced that its subsidiary, Vectren Utility Holdings, Inc.
("VUHI"), has sold through a private placement, $100 million of 6.28% senior
notes, due April 7, 2020 to institutional investors. The proceeds received
from the issuance of the senior notes will be used to reduce VUHI's
outstanding short-term debt and for other corporate purposes.

"We are pleased to have been able to execute this 11-year long-term debt issue
to support our utility operations at an attractive interest rate during a
period of sustained volatility in the financial markets," said Jerome A.
Benkert, Jr., Vectren's Executive Vice President and CFO. "This transaction,
coupled with the successful issuance of $150 million of privately-placed
long-term debt by Vectren Capital Corp. ("Vectren Capital") on March 11 to
support nonutility operations, significantly improves Vectren's available
liquidity and reduces reliance on its short-term credit facilities."

On March 11, 2009, Vectren Capital entered into a similar private placement
arrangement where various institutional investors purchased $150 million of
its senior notes in the following 5, 7 and 10 year tranches: (i) $30 million
of 6.37% Series A due 2014, (ii) $60 million of 6.72% Series B due 2016 and
(iii) $75 million of 7.30% Series C due 2019.

The VUHI and Vectren Capital senior notes will not be registered under the
Securities Act of 1933, or any state securities laws. These senior notes will
not be offered or sold in the United States absent registration or an
exemption from the registration requirements of the Securities Act of 1933 and
any securities laws. This announcement is neither an offer to sell nor a
solicitation of an offer to buy the senior notes.

About Vectren

Vectren Corporation is an energy holding company headquartered in Evansville,
Indiana. Vectren's energy delivery subsidiaries provide gas and/or
electricity to over 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 Midwest and Southeast. These include
gas marketing and related services; coal production and sales and energy
infrastructure services. To learn more about Vectren, visitwww.vectren.com.

Forward-Looking Information

All statements other than statements of historical fact included in this news
release are forward-looking statements made in good faith by the company and
are intended to qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. Such statements are based on
management's beliefs, as well as assumptions made by and information currently
available to management and include such words as "believe", "anticipate",
"endeavor", "estimate", "expect", "objective", "projection", "forecast",
"goal", and similar expressions intended to identify forward-looking
statements. Vectren cautions readers that the assumptions forming the basis
for forward-looking statements include many factors that are beyond Vectren's
ability to control or estimate precisely and actual results could differ
materially from those contained in this document. Factors that could cause
Vectren's results to differ materially from those contemplated in any
forward-looking statements include, among others, the following:

Factors affecting utility operations such as unusual weather conditions;
catastrophic weather-related damage; unusual maintenance or repairs;
unanticipated changes to fossil fuel costs; unanticipated changes to gas
transportation and storage costs, or availability due to higher demand,
shortages, transportation problems or other developments; environmental or
pipeline incidents; transmission or distribution incidents; unanticipated
changes to electric energy supply costs, or availability due to demand,
shortages, transmission problems or other developments; or electric
transmission or gas pipeline system constraints. Increased competition in the
energy industry, including the effects of industry restructuring and
unbundling. Regulatory factors such as unanticipated changes in rate-setting
policies or procedures, recovery of investments and costs made under
traditional regulation, and the frequency and timing of rate increases.
Financial, regulatory or accounting principles or policies imposed by the
Financial Accounting Standards Board; the Securities and Exchange Commission;
the Federal Energy Regulatory Commission; state public utility commissions;
state entities which regulate electric and natural gas transmission and
distribution, natural gas gathering and processing, electric power supply; and
similar entities with regulatory oversight. Economic conditions including the
effects of an economic downturn, inflation rates, commodity prices, and
monetary fluctuations. Economic conditions surrounding the current recession,
which may be more prolonged and more severe than cyclical downturns, including
significantly lower levels of economic activity; uncertainty regarding energy
prices and the capital and commodity markets; decreases in demand for natural
gas, electricity, coal, and other nonutility products and services; impacts on
both gas and electric large customers; lower residential and commercial
customer counts; higher operating expenses; and further reductions in the
value of certain nonutility real estate and other legacy investments.
Increased natural gas and coal commodity prices and the potential impact on
customer consumption, uncollectible accounts expense, unaccounted for gas and
interest expense. Changing market conditions and a variety of other factors
associated with physical energy and financial trading activities including,
but not limited to, price, basis, credit, liquidity, volatility, capacity,
interest rate, and warranty risks. Direct or indirect effects on the
company's business, financial condition, liquidity and results of operations
resulting from changes in credit ratings, changes in interest rates, and/or
changes in market perceptions of the utility industry and other energy-related
industries. The performance of projects undertaken by the company's
nonutility businesses and the success of efforts to invest in and develop new
opportunities, including but not limited to, the company's coal mining, gas
marketing, and energy infrastructure strategies. Factors affecting coal
mining operations including MSHA guidelines and interpretations of those
guidelines; geologic, equipment, and operational risks; sales contract
negotiations and interpretations; supplier and contract miner performance; the
availability of key equipment, contract miners and commodities; availability
of transportation; and the ability to access/replace proven and probable coal
reserves. Employee or contractor workforce factors including changes in key
executives, collective bargaining agreements with union employees, aging
workforce issues, work stoppages, or pandemic illness. Legal and regulatory
delays and other obstacles associated with mergers, acquisitions and
investments in joint ventures. Costs, fines, penalties and other effects of
legal and administrative proceedings, settlements, investigations, claims,
including, but not limited to, such matters involving compliance with state
and federal laws and interpretations of these laws. Changes in or additions
to federal, state or local legislative requirements, such as changes in or
additions to tax laws or rates, environmental laws, including laws governing
greenhouse gases, mandates of sources of renewable energy, and other
regulations.

More detailed information about these factors is set forth in Vectren's
filings with the Securities and Exchange Commission, including Vectren's 2008
annual report on Form 10-K filed on February 19, 2009. The company undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as a result of changes in actual results, changes in assumptions, or
other factors affecting such statements.

SOURCE Vectren Corporation

Media, Chase Kelley, +1-812-491-4128, kckelley@vectren.com; or Investor, Steve
Schein, +1-812-491-4209, sschein@vectren.com, both of Vectren Corporation