Vectren Natural Gas Marketing Company, ProLiance Energy, Expanding its Capacity to Serve Customers

EVANSVILLE, Ind., May 16 /PRNewswire-FirstCall/ -- Vectren Corporation announced today that ProLiance Energy, LLC, a gas marketing firm co-owned by Vectren and Citizens Gas and Coke Utility, is expanding its natural gas storage capacity to meet a growing regional customer demand.

Under the terms of the agreement, ProLiance Transportation and Storage, the asset development and ownership affiliate of ProLiance Energy, will acquire a 25 percent ownership in a project to construct, own and operate the Liberty Gas Storage natural gas storage facility under development in Calcasieu Parish, La. Sempra Pipelines & Storage, a subsidiary of Sempra Energy , will retain 75 percent ownership along with responsibility for development and operation of the facility.

ProLiance Energy also has entered into a binding precedent agreement with Liberty for a long-term contract for five to six billion cubic feet (bcf) of storage capacity, upon receipt of Liberty's permit from the Federal Energy Regulatory Commission.

"This announcement is significant as it allows ProLiance Energy to enhance its gas supply and storage portfolio, and it demonstrates that ProLiance Energy continues to be a strong and growing energy company serving its customer base of utilities, power generators, municipals, and industrial customers throughout the Midwest and Southeast," said Carl Chapman, Vectren's Executive Vice President and Chief Operating Officer.

Liberty Gas Storage will be located near the town of Sulphur, La., and will provide firm storage and related services to customers transporting natural gas on various interstate pipelines in the region. Liberty Gas Storage petitioned for authorization from the FERC to construct and operate the facility on Mar. 25, 2005. The facility, which will provide 17 Bcf of working gas capacity for storage, is expected to be in service in the second quarter of 2006. The project also will include surface facilities to allow for a maximum injection of 500 million cubic feet per day and maximum withdrawals of 1 Bcf per day.

Additionally, Liberty Gas Storage will be located near the Cameron and Port Arthur Pipelines, two new pipelines under development by Sempra Pipelines & Storage, connecting area Liquefied Natural Gas (LNG) regasification terminals to the interstate gas transmission system. FERC has granted Sempra a 7(c) permit to construct and operate the Cameron Pipeline, which recently concluded an open season to determine market interest. An application for the Port Arthur Pipeline's operating permit was filed with the FERC Feb. 28, 2005, and it concluded a successful open season in April 2005.

About Vectren

Vectren Corporation is an energy and applied technology holding company headquartered in Evansville, Indiana. Vectren's energy delivery subsidiaries provide gas and/or electricity to over one million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren's non-regulated 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 utility infrastructure services. To learn more about Vectren, visit http://www.vectren.com/ .

About ProLiance

ProLiance Energy, LLC is a natural gas marketer headquartered in Indianapolis, Indiana, with sales offices in Illinois, Kentucky, Michigan, Missouri, Ohio and Texas. ProLiance serves natural gas customers in 18 states in the Midwest and southeast. ProLiance is jointly owned by affiliates of Citizens Gas and Coke Utility and Vectren Corporation.