Vectren 2008 Annual Report Download - page 60

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 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 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.
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.