Vectren 2010 Annual Report Download - page 23

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21
Personnel
As of December 31, 2010, the Company and its consolidated subsidiaries had 3,800 employees. Of those employees, 800 are
subject to collective bargaining arrangements negotiated by Utility Holdings. This total also includes 1,700 employees at Miller
Pipeline, of which 1,500 are subject to collective bargaining arrangements.
Utility Holdings
In June 2010, the Company reached a three year labor agreement with Local 702 of the International Brotherhood of Electrical
Workers, ending June 30, 2013.
In April 2010, the Company reached a three year agreement with Local 175 of the Utility Workers Union of America. The labor
agreement is retroactively effective to November 1, 2009 and ends October 31, 2012.
In September 2009, the Company reached a three year agreement with Local 135 of the Teamsters, Chauffeurs,
Warehousemen, and Helpers Union, ending September 2012.
In December 2008, the Company reached a three-year labor agreement, ending December 1, 2011 with Local 1393 of the
International Brotherhood of Electrical Workers and United Steelworkers of America Locals 12213 and 7441.
Miller Pipeline
Miller Pipeline negotiates various trade agreements through contractors associations. The two main associations are the
Distribution Contractors Association and the Pipe Line Contractors Association. These trade agreements are with a variety of
construction unions including Laborer’s International Union of North America, International Union of Operating Engineers,
United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, and Teamsters. The trade
agreements through the DCA have varying expirations ranging from 2012 to 2015. The trade agreements through the
PLCA recently expired. Miller and the unions continue working under the expired agreements while negotiations continue. In
addition, Miller has various project agreements and small local agreements. These agreements expire upon completion of a
specific project or on various dates throughout the year.
ITEM 1A. RISK FACTORS
Investors should consider carefully the following factors that could cause the Company’s operating results and financial
condition to be materially adversely affected. New risks may emerge at any time, and the Company cannot predict those risks
or estimate the extent to which they may affect the Company’s businesses or financial performance.
Vectren is a holding company, and its assets consist primarily of investments in its subsidiaries.
Dividends on Vectren’s common stock depend on the earnings, financial condition, capital requirements and cash flow of its
subsidiaries, principally Utility Holdings and Enterprises, and the distribution or other payment of earnings from those entities to
Vectren. Should the earnings, financial condition, capital requirements, or cash flow of, or legal requirements applicable to them
restrict their ability to pay dividends or make other payments to the Company, its ability to pay dividends on its common stock
could be limited and its stock price could be adversely affected. Vectren’s results of operations, future growth, and earnings and
dividend goals also will depend on the performance of its subsidiaries. Additionally, certain of the Company’s lending
arrangements contain restrictive covenants, including the maintenance of a total debt to total capitalization ratio, which could
limit its ability to pay dividends.
Deterioration in general economic conditions may have adverse impacts.
The industries in which the Company operates and serves continue to be impacted by economic uncertainty. Economic
conditions may have some negative impact on both gas and electric large customers and wholesale power sales. This impact
may continue to include volatility and unpredictability in the demand for natural gas and electricity, tempered growth strategies,
significant conservation measures, and perhaps even further plant closures or bankruptcies. Economic conditions may also
cause reductions in residential and commercial customer counts and lower Company revenues. It is also possible that an
uncertain economy could continue to affect costs including pension costs, interest costs, and uncollectible accounts expense.
Economic declines may be accompanied by a decrease in demand for products and services offered by nonutility operations
and therefore lower revenues for those products and services. The current economic conditions may continue to have some