Vectren 2014 Annual Report Download - page 31

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*OUIJTEJTDVTTJPOBOEBOBMZTJTUIF$PNQBOZBOBMZ[FTDPOUSJCVUJPOTUPDPOTPMJEBUFEFBSOJOHTBOEFBSOJOHTQFSTIBSFGSPNJUT
6UJMJUZ(SPVQBOE/POVUJMJUZ(SPVQTFQBSBUFMZTJODFFBDIPQFSBUFTJOEFQFOEFOUMZSFRVJSJOHEJTUJODUDPNQFUFODJFTBOECVTJOFTT
TUSBUFHJFTPGGFSTEJGGFSFOUFOFSHZBOEFOFSHZSFMBUFEQSPEVDUTBOETFSWJDFTBOEFYQFSJFODFTEJGGFSFOUPQQPSUVOJUJFTBOESJTLT
5IF6UJMJUZ(SPVQHFOFSBUFTSFWFOVFQSJNBSJMZGSPNUIFEFMJWFSZPGOBUVSBMHBTBOEFMFDUSJDTFSWJDFUPJUTDVTUPNFST5IFQSJNBSZ
TPVSDFPGDBTIGMPXGPSUIF6UJMJUZ(SPVQSFTVMUTGSPNUIFDPMMFDUJPOPGDVTUPNFSCJMMTBOEUIFQBZNFOUGPSHPPETBOETFSWJDFT
QSPDVSFEGPSUIFEFMJWFSZPGHBTBOEFMFDUSJDTFSWJDFT5IF$PNQBOZTFHSFHBUFTJUTSFHVMBUFEVUJMJUZPQFSBUJPOTCFUXFFOB(BT
6UJMJUZ4FSWJDFTPQFSBUJOHTFHNFOUBOEBO&MFDUSJD6UJMJUZ4FSWJDFTPQFSBUJOHTFHNFOU5IFBDUJWJUJFTPGBOESFWFOVFTBOEDBTI
GMPXTHFOFSBUFECZUIF/POVUJMJUZ(SPVQBSFHFOFSBMMZJNQBDUFECZGBDUPSTTJNJMBSUPUIPTFJNQBDUJOHUIFPWFSBMMVUJMJUZ
JOEVTUSZ*OBEEJUJPOUIFSFBSFPUIFSPQFSBUJPOTSFGFSSFEUPIFSFJOBT$PSQPSBUFBOE0UIFSUIBUJODMVEFVOBMMPDBUFEDPSQPSBUF
FYQFOTFTTVDIBTBEWFSUJTJOHBOEDIBSJUBCMFDPOUSJCVUJPOTBNPOHPUIFSBDUJWJUJFT
5IF$PNQBOZIBTJOQMBDFBEJTDMPTVSFDPNNJUUFFUIBUDPOTJTUTPGTFOJPSNBOBHFNFOUBTXFMMBTGJOBODJBMNBOBHFNFOU5IF
DPNNJUUFFJTBDUJWFMZJOWPMWFEJOUIFQSFQBSBUJPOBOESFWJFXPGUIF$PNQBOZbT4&$GJMJOHT
3FTVMUTGPSUIFZFBSFOEFE%FDFNCFSXFSFFBSOJOHTPGNJMMJPOPSQFSTIBSFDPNQBSFEUPFBSOJOHTPG
NJMMJPOPSQFSTIBSFGPSUIFZFBSFOEFE%FDFNCFSBOENJMMJPOPSQFSTIBSFGPSUIFZFBS
FOEFE%FDFNCFS3FTVMUTJODMVEFUIFPQFSBUJOHSFTVMUTBOEUIFMPTTPOUIFTBMFPG7FDUSFO'VFMTUISPVHIUIFEBUFPG
TBMFPG"VHVTUXIFOUIF$PNQBOZFYJUFEUIFDPBMNJOJOHCVTJOFTTUISPVHIUIFTBMFPG7FDUSFO'VFMT*O+VOF
1SP-JBODF)PMEJOHT--$1SP-JBODFPS1SP-JBODF)PMEJOHTFYJUFEUIFHBTNBSLFUJOHCVTJOFTTUISPVHIUIFEJTQPTJUJPOPGDFSUBJO
PGUIFOFUBTTFUTPGJUTFOFSHZNBSLFUJOHTVCTJEJBSZ1SP-JBODF&OFSHZ--$1SP-JBODF&OFSHZ0UIFSNJOPSPQFSBUJOHSFTVMUT
PGUIFSFNBJOJOH1SP-JBODFJOWFTUNFOUBSFSFGMFDUFEJOUIF0UIFS#VTJOFTTFTTFHNFOU*OFYDMVEJOHUIFMPTTPOUIF
EJTQPTJUJPOBOEZFBSUPEBUFSFTVMUTBUUSJCVUBCMFUP7FDUSFO'VFMTDPOTPMJEBUFEOFUJODPNFGPSUIFZFBSXBTNJMMJPOPS
QFSTIBSF*OFYDMVEJOHUIFJNQBDUPGUIFMPTTPOEJTQPTJUJPOBOEPQFSBUJOHMPTTFTBUUSJCVUBCMFUPUIF$PNQBOZT
JOWFTUNFOUJO1SP-JBODFDPOTPMJEBUFEOFUJODPNFXBTNJMMJPOPSQFSTIBSF
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0O+VMZUIF$PNQBOZBOOPVODFEUIBUJUIBESFBDIFEBOBHSFFNFOUUPTFMMJUTXIPMMZPXOFEDPBMNJOJOHTVCTJEJBSZ
7FDUSFO'VFMTUP4VOSJTF$PBM--$4VOSJTF$PBMBO*OEJBOBCBTFEXIPMMZPXOFETVCTJEJBSZPG)BMMBEPS&OFSHZ$PNQBOZ
4VOSJTF$PBMPXOTBOEPQFSBUFTDPBMNJOFTJOUIF*MMJOPJT#BTJO0O"VHVTUUIFUSBOTBDUJPODMPTFE5PUBMDBTI
SFDFJWFEXBTBQQSPYJNBUFMZNJMMJPOJODMVTJWFPGBNJMMJPODIBOHFJOXPSLJOHDBQJUBMGSPN%FDFNCFSUISPVHI
DMPTJOH"U+VOFUIF$PNQBOZSFDPSEFEBOFTUJNBUFEMPTTPOUIFUSBOTBDUJPOJODMVEJOHDPTUTUPTFMMPGBQQSPYJNBUFMZ
NJMMJPOPSNJMMJPOBGUFSUBY"U%FDFNCFSUIFQSFUBYMPTTPGNJMMJPOXBTSFGMFDUFEJOUIF$POTPMJEBUFE
4UBUFNFOUPG*ODPNFBTBNJMMJPODIBSHFUPPUIFSPQFSBUJOHFYQFOTFPGGTFUCZNJMMJPOJOMPXFSEFQSFDJBUJPOFYQFOTFBT
EFQSFDJBUJPODFBTFEGPSUIFBTTFUTDMBTTJGJFEBTIFMEGPSTBMFBU+VOF5IFQSPDFFETSFDFJWFEOFUPGUSBOTBDUJPODPTUT
BOEFTUJNBUFEUBYQBZNFOUTUPUBMFENJMMJPOBOEXFSFVTFEUPSFUJSFNJMMJPOJOPVUTUBOEJOH7FDUSFO$BQJUBMCBOLUFSN
MPBOTBOEQBZEPXOPVUTUBOEJOHTIPSUUFSNEFCU3FTVMUTGSPNUIF$PBM.JOJOHTFHNFOU$PBM.JOJOHGPSUIFZFBSFOEFE
%FDFNCFSJODMVTJWFPGUIFBQQSPYJNBUFNJMMJPOMPTTPOUIFTBMFXBTBMPTTPGNJMMJPOOFUPGUBYDPNQBSFE
UPMPTTFTPGNJMMJPOBOENJMMJPOGPSUIFZFBSTFOEFE%FDFNCFSBOESFTQFDUJWFMZ
5ISPVHI+VOFUIF$PNQBOZSFDPSEFEJUTTIBSFPGMPTTFTSFMBUFEUPUIFTBMFPGDFSUBJOBTTFUTPG1SP-JBODFTTVCTJEJBSZ
1SP-JBODF&OFSHZ*OUIF$POTPMJEBUFE4UBUFNFOUTPG*ODPNFUIFMPTTPOUIFEJTQPTJUJPOPGUIFTFBTTFUTXBTBNJMMJPO
JNQBDUUP&RVJUZJOMPTTFTPGVODPOTPMJEBUFEBGGJMJBUFTBNJMMJPODIBSHFUP0QFSBUJOHFYQFOTFBOEBOJODPNFUBYCFOFGJU
SFGMFDUFEJO*ODPNFUBYFTPGNJMMJPO.PSFEFUBJMFEJOGPSNBUJPOBCPVU1SP-JBODF&OFSHZTTBMFPGDFSUBJOBTTFUTJTJODMVEFE
JO/PUFUPUIF$PNQBOZT$POTPMJEBUFE'JOBODJBM4UBUFNFOUTJODMVEFEJO*UFN*OBEEJUJPOUPUIFMPTTFTBTTPDJBUFEXJUIUIF
TBMFPGDFSUBJOBTTFUTUIF$PNQBOZSFDPSEFEJUTTIBSFPGPQFSBUJOHMPTTFTGSPN1SP-JBODFUISPVHI+VOFUPUBMJOH
NJMMJPOOFUPGUBY*OUPUBMUIF$PNQBOZTTIBSFPG1SP-JBODFTSFTVMUTSFGMFDUTBOFUMPTTPGNJMMJPOOFUPGUBYGPSUIF
QFSJPE+BOVBSZUISPVHI+VOF0QFSBUJOHMPTTFTGPS1SP-JBODFUPUBMFENJMMJPOOFUPGUBYGPSUIFZFBS