Vectren 2012 Annual Report Download - page 63

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infrastructure services equipment, and renewable energy projects and increased capital expenditures within the Utility Group
primarily related to bare steel/cast iron replacement projects. Investing cash flow in 2011 was also impacted by the purchase of
Minnesota Limited and the sale of Vectren Source.
Forward-Looking Information
A “safe harbor” for forward-looking statements is provided by the Private Securities Litigation Reform Act of 1995 (Reform Act of
1995).The Reform Act of 1995 was adopted to encourage such forward-looking statements without the threat of litigation,
provided those statements are identified as forward-looking and are accompanied by meaningful cautionary statements
identifying important factors that could cause the actual results to differ materially from those projected in the statement.Certain
matters described in Management’s Discussion and Analysis of Results of Operations and Financial Condition are forward-
looking statements.Such statements are based on management’s beliefs, as well as assumptions made by and information
currently available to management.When used in this filing, the words “believe”, “anticipate”, “endeavor”, “estimate”, “expect”,
“objective”, “projection”, “forecast”, “goal”, “likely”, and similar expressions are intended to identify forward-looking
statements.In addition to any assumptions and other factors referred to specifically in connection with such forward-looking
statements, factors that could cause the Company’s actual results to differ materially from those contemplated in any forward-
looking statements include, among others, the following:
• 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.
• Catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, terrorist acts, cyber attacks,
or other similar occurrences could adversely affect Vectren’s facilities, operations, financial condition and results of
operations.
• 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 inflation rates, commodity prices, and monetary fluctuations.
• Economic conditions surrounding the current economic uncertainty, including increased potential for lower levels of
economic activity; uncertainty regarding energy prices and the capital and commodity markets; volatile changes in the
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.
• Volatile 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 infrastructure services, energy services, coal
mining, and energy marketing strategies.
• Factors affecting infrastructure services, including the level of success in bidding contracts; fluctuations in volume of
contracted work; unanticipated cost increases in completion of the contracted work; funding requirements associated with
multi-employer pension plans; changes in legislation and regulations impacting the industries in which the customers