Vectren 2008 Annual Report Download - page 22

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Personnel
As of December 31, 2008, the Company and its consolidated subsidiaries had 3,700 employees, of which 1,600 are
employees of Miller and 2,200 are subject to collective bargaining arrangements.
Utility Holdings
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.
In July 2007, the Company reached a three-year labor agreement with Local 702 of the International Brotherhood
of Electrical Workers, ending June 2010.
In November 2005, the Company reached a four-year agreement with Local 175 of the Utility Workers Union of
America, ending October 2009. In September 2005, the Company reached a four-year agreement with Local 135 of
the Teamsters, Chauffeurs, Warehousemen, and Helpers Union, ending September 2009.
Miller Pipeline
In 2008, the International Union of Operating Engineers reached an agreement with the Distribution Contractors
Association. The Company, through its wholly owned subsidiary, Miller, continues to honor national agreements
negotiated by the Distribution Contractors Association.
During 2006, Miller entered into several distributing and operating agreements with a variety of construction
unions including Laborers International Union of America, the Teamsters, and the United Association of
Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry. Miller negotiated these agreements
through the Distribution and Contractors Association and the Pipeline Contractors Association. These agreements
expire at various dates in 2009 through 2011. Agreements impacting Miller’s workforce expiring in 2009 involve
two local operator’s agreements and one local welder’s agreement. No national agreements impacting Miller’s
workforce expire in 2009.
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.
Continued deterioration in general economic conditions may have adverse impacts.
The current economic environment is challenging and uncertain. The consequences of a prolonged recession may
include a lower level of economic activity and uncertainty regarding energy prices and the capital and commodity
markets. Further, the risks associated with industries in which the Company operates and serves become more
acute in periods of a slowing economy or slow growth. Economic declines may be accompanied by a decrease in