Vectren 2010 Annual Report Download - page 30

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per day. In addition to its company owned storage delivery capabilities, SIGECO has contracted with ProLiance for 0.5 BCF of
interstate pipeline storage service with a maximum peak day delivery capability of 19,200 MMBTU per day. SIGECO's gas
delivery system includes 3,200 miles of distribution and transmission mains, all of which are located in Indiana.
The Ohio operations own and operate three liquefied petroleum (propane) air-gas manufacturing plants, all of which are located
in Ohio. The plants can store 0.5 million gallons of propane, and the plants can manufacture for delivery 52,200 MCF of
manufactured gas per day. In addition to its propane delivery capabilities, the Ohio operations have contracted for 11.8 BCF of
natural gas delivery service with a maximum peak day delivery capability of 246,100 MMBTU per day. While the Company still
has title to this delivery capability, it has released it to those retail gas marketers now supplying the Ohio operations with natural
gas, and those suppliers are responsible for the demand charges. The Ohio operations’ gas delivery system includes 5,500
miles of distribution and transmission mains, all of which are located in Ohio.
Electric Utility Services
SIGECO's installed generating capacity as of December 31, 2010, was rated at 1,298 MW. SIGECO's coal-fired generating
facilities are the Brown Station with two units of 490 MW of combined capacity, located in Posey County approximately eight
miles east of Mt. Vernon, Indiana; the Culley Station with two units of 360 MW of combined capacity, and Warrick Unit 4 with
150 MW of capacity. Both the Culley and Warrick Stations are located in Warrick County near Yankeetown, Indiana. SIGECO's
gas-fired turbine peaking units are: two 80 MW gas turbines (Brown Unit 3 and Brown Unit 4) located at the Brown Station; two
Broadway Avenue Gas Turbines located in Evansville, Indiana with a combined capacity of 115 MW (Broadway Avenue Unit 1,
50 MW and Broadway Avenue Unit 2, 65 MW); and two Northeast Gas Turbines located northeast of Evansville in Vanderburgh
County, Indiana with a combined capacity of 20 MW. The Brown Unit 3 and Broadway Avenue Unit 2 turbines are also
equipped to burn oil. Total capacity of SIGECO's six gas turbines is 295 MW, and they are generally used only for reserve,
peaking, or emergency purposes due to the higher per unit cost of generation. In 2009, SIGECO, with IURC approval,
purchased a landfill gas electric generation project in Pike County, Indiana with a total capability of 3 MW.
SIGECO's transmission system consists of 993 circuit miles of 345Kv, 138Kv and 69Kv lines. The transmission system also
includes 34 substations with an installed capacity of 4,863 megavolt amperes (Mva). The electric distribution system includes
4,265 pole miles of lower voltage overhead lines and 366 trench miles of conduit containing 1,981 miles of underground
distribution cable. The distribution system also includes 96 distribution substations with an installed capacity of 2,966 Mva and
54,000 distribution transformers with an installed capacity of 2,331 Mva.
SIGECO owns utility property outside of Indiana approximating nine miles of 138,000 volt electric transmission line which is
located in Kentucky and which interconnects with Louisville Gas and Electric Company's transmission system at Cloverport,
Kentucky.
Nonutility Properties
Subsidiaries other than the utility operations have no significant properties other than the ownership and operation of coal
mining property in Indiana which is identified in Item 1.
Property Serving as Collateral
SIGECO's properties are subject to the lien of the First Mortgage Indenture dated as of April 1, 1932, between SIGECO and
Bankers Trust Company, as Trustee, and Deutsche Bank, as successor Trustee, as supplemented by various supplemental
indentures.
ITEM 3. LEGAL PROCEEDINGS
The Company is party to various legal proceedings and audits and reviews by taxing authorities and other government agencies
arising in the normal course of business. In the opinion of management, there are no legal proceedings or other regulatory
reviews or audits pending against the Company that are likely to have a material adverse effect on its financial position, results
of operations, or cash flows. See the notes to the consolidated financial statements regarding commitments and contingencies,
environmental matters, and rate and regulatory matters. The consolidated condensed financial statements are included in “Item
8 Financial Statements and Supplementary Data.”