EVANSVILLE, Ind., April 20 /PRNewswire-FirstCall/ -- Vectren Fuels
(Fuels), the wholly owned coal mining operations subsidiary of Vectren
Corporation (NYSE: VVC), has begun the process of opening two new underground
mines near Vincennes, Ind. The first mine is expected to be fully operational
by early 2009, with the second mine to open the following year. The
southwestern Indiana mines will provide an estimated 425 local jobs to
contract miners.
Both reserves are ideally located within 50 miles of eight coal-fired
power plants and sit immediately adjacent to the CSX mainline railroad to
easily serve neighboring facilities. Combined production is projected at five
million tons annually, with the majority to be used at Vectren's A.B. Brown
and F.B. Culley power plants in Posey and Warrick counties. This development
will help replace the company's Cypress Creek surface mine in Boonville, Ind.,
whose reserves will be depleted within the next two to three years.
"This project allows Vectren to not only continue using Indiana coal to
serve our customers in southwestern Indiana, but also provide a number of good
jobs," said Vectren Chairman, President and CEO Niel Ellerbrook. "Our coal
mining operations have been successful, and I'm confident this venture will
continue that trend as recent advancements in clean-coal technologies for
electric generation suggest continuing demand for coal."
The mineral rights for the reserves, which are estimated at 80 million
tons of recoverable number-five coal at 11,200 BTU (British thermal units) and
6-pound sulfur dioxide, were purchased from Templeton Coal Company. The investment should begin production in the coming years as Fuels works
to obtain permits and construct surface and underground facilities.
Once in production, the two new mines, combined with Fuels' existing
underground mine, Prosperity, near Petersburg, Ind., will yield approximately
eight million tons of coal per year. The combination of the new Vincennes-
area mines and Prosperity places Fuels' total mining operations within 50
miles of 13 southwestern Indiana coal-fired generation facilities.
About Vectren
Vectren Corporation (NYSE: VVC) is an energy holding company headquartered
in Evansville, Ind. Vectren's energy delivery subsidiaries provide gas and/or
electricity to more than one million customers in adjoining service
territories that cover nearly two-thirds of Indiana and west central Ohio.
Vectren's nonutility subsidiaries and affiliates currently offer energy-
related products and services to customers throughout the Midwest and
Southeast. These include gas marketing and related services; coal production
and sales; and energy infrastructure services. To learn more about Vectren,
visit .
Safe Harbor for Forward Looking Statements
This document contains forward-looking statements, which are based on
management's beliefs and assumptions that derive from information currently
known by management. Vectren wishes to caution readers that actual results
could differ materially from those contained in this document. Additional
detailed information concerning a number of factors that could cause actual
results to differ materially from the information that is provided to you is
readily available in our annual report on Form 10-K filed with the Securities
and Exchange Commission on Feb. 16, 2006.
SOURCE Vectren Corporation

Comments