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 yesterday 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 ExchangeCommission, the Public Utilities Commission of Ohio and the FederalCommunications Commission, which would authorize the transfer of radiolicenses held by DPL. DPL, based in Dayton, OH, agreed to sell itsretail gas distribution business originally to Indiana EnergyInc. last December for $425 million in an all-cash sale to beaccounted for as a purchase (see Daily GPI, Dec. 16, 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 inlate March by the merger of Indiana utility holding companies IndianaEnergy Inc. and SIGCORP Inc. The $1.9 billion holding company is thelargest combined utility in Indiana already (see Daily GPI, June 15, 1999). The company’s utility groupis composed of Southern Indiana Gas and Electric Co., Indiana GasCo. and Vectren Energy of Ohio. Vectren’s non-regulated subsidiariesand affiliates include energy marketing and management services, fiberoptic-based integrated communications services and utility-relatedservices.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.