Three-month-old Vectren Corp., the Indiana-based energy holdingcompany formed when Indiana Energy Inc.and Sigcorp Inc. joinedforces, now only awaits approval from various federal and statecommissions before it completes its acquisition of the natural gasdistribution assets of The Dayton Power and Light Co. (DPL).Vectren officials were notified last week that the U.S. Departmentof Justice has completed its investigation of the proposedacquisition, clearing a major roadblock for the company.

When completed, the acquisition will add nearly 305,000residential commercial, industrial and government customers toVectren’s customer base, which already numbers 650,000. Companyofficials say that the purchase of the gas distribution assets fromDPL is expected to grow the company’s earnings by 4% on averageover the next five years.

“We continue to make excellent progress toward the completion ofthe transaction,” said Vectren CEO Niel C. Ellerbrook. “We set outan aggressive schedule to complete the transaction and believe weare on track to achieve our goal of closing this summer.”

Still to come are approvals from the Securities and Exchange Commission, the Public Utilities Commission of Ohio and the Federal Communications Commission, which would authorize the transfer of radio licenses held by DPL. DPL, based in Dayton, OH, agreed to sell its retail gas distribution business originally to Indiana Energy Inc. last December for $425 million in an all-cash sale to be accounted for as a purchase (see NGI, Dec. 20, 1999).

Vectren’s service area cover nearly two-thirds of Indiana, andthe service area of DPL’s natural gas business is contiguous toVectren’s distribution system in East Central Indiana.

Vectren, headquartered in Evansville, IN, was officially formed in late March by the merger of Indiana utility holding companies Indiana Energy Inc. and SIGCORP Inc. The $1.9 billion holding company is the largest combined utility in Indiana already (see NGI, June 21, 1999). The company’s utility group is composed of Southern Indiana Gas and Electric Co., Indiana Gas Co. and Vectren Energy of Ohio. Vectren’s non-regulated subsidiaries and affiliates include energy marketing and management services, fiber optic-based integrated communications services and utility-related services.

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