Vectren 2012 Annual Report Download - page 31

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29
Workforce risks could affect Vectren’s financial results.
The Company is subject to various workforce risks, including but not limited to, the risk that it will be unable to attract and retain
qualified personnel; that it will be unable to effectively transfer the knowledge and expertise of an aging workforce to new
personnel as those workers retire; that it will be unable to react to a pandemic illness; and that it will be unable to reach
collective bargaining arrangements with the unions that represent certain of its workers, which could result in work stoppages.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Gas Utility Services
Indiana Gas owns and operates four active gas storage fields located in Indiana covering 58,100 acres of land with an estimated
ready delivery from storage capability of 5.6 BCF of gas with maximum peak day delivery capabilities of 143,500 MCF per
day. Indiana Gas also owns and operates three propane plants located in Indiana with the ability to store 1.5 million gallons of
propane and manufacture for delivery 33,000 MCF of manufactured gas per day. In addition to its company owned storage and
propane capabilities, Indiana Gas has contracted with ProLiance for 12.5 BCF of interstate natural gas pipeline storage service
with a maximum peak day delivery capability of 245,867 MMBTU per day. Indiana Gas’ gas delivery system includes 13,100
miles of distribution and transmission mains, all of which are in Indiana except for pipeline facilities extending from points in
northern Kentucky to points in southern Indiana so that gas may be transported to Indiana and sold or transported by Indiana
Gas to ultimate customers in Indiana.
SIGECO owns and operates three active underground gas storage fields located in Indiana covering 6,100 acres of land with an
estimated ready delivery from storage capability of 6.3 BCF of gas with maximum peak day delivery capabilities of 108,500 MCF
per day. In addition to its company owned storage delivery capabilities, SIGECO has contracted with ProLiance for 0.4 BCF of
interstate pipeline storage service with a maximum peak day delivery capability of 16,812 MMBTU per day. SIGECO's gas
delivery system includes 3,200 miles of distribution and transmission mains, all of which are located in Indiana.
During 2012, VEDO retired three propane plants, all of which were located in Ohio. The plants were capable of storing 0.5
million gallons of propane, and the plants could manufacture for delivery 52,200 MCF of manufactured gas per day. VEDO has
contracted for 11.8 BCF of natural gas delivery service with a maximum peak day delivery capability of 246,080 MMBTU per
day. While the Company still has title to this delivery capability, it has released it to those retail gas marketers now supplying
VEDO’s customers with natural gas, and those suppliers are responsible for the demand charges. VEDO’s 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, 2012, 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 1,014 circuit miles of 345Kv, 138Kv and 69Kv lines. The transmission system also
includes 37 substations with an installed capacity of 4,863 megavolt amperes (Mva). The electric distribution system includes
4,301 pole miles of lower voltage overhead lines and 381 trench miles of conduit containing 2,098 miles of underground