MOVE-IN QUEUE PROCESS Presented by: Kathy Oxby, Supervisor of Receivables Management, Vectren Teresa Cullum, Team Lead Receivables Management, Vectren

Consolidated Net Income* Vectren at a glance Three Year Average (’10-’12) Headquartered in Evansville, IN Fortune 1000 company 12th largest public company in Indiana (by 2012 revenue) NYSE: VVC $5.1 billion in assets (2013) $2.5 billion in revenues (2013) 5,500 employees (including nonutility companies) 850 of these employees are contract miners in southwestern Indiana Consolidated Net Income* Utility ~80% Non-utility ~20% Utility Net Income Gas ~45% Gas 55% Electric ~55%

Infrastructure Services Vectren Utility Nonutility Vectren North Indiana Gas Vectren South SIGECO - Electric SIGECO - Gas Vectren Ohio VEDO Infrastructure Services Energy Services Coal Mining Miller Pipeline Energy Systems Group Prosperity Mine Oaktown Mine 1 Oaktown Mine 2 (under development) Minnesota Limited Vectren at a glance * Jointly owned with a subsidiary of Citizens Energy Group

Vectren’s gas footprint Vectren Energy Delivery of Indiana – South 110,000 gas customers Vectren Energy Delivery of Indiana – North 570,000 gas customers Vectren Energy Delivery of Ohio 315,000 gas customers TOTAL Gas Customers = 995,000

Vectren’s electric footprint Power plants AB Brown FB Culley Warrick Unit 4 Blackfoot Clean Energy Plant Vectren Energy Delivery of Indiana – South 142,000 electric customers 1,300 Megawatts

DAISY-CHAINING

Background Revenue Goal: Write-off reduction Customer Service Goal: Avoid denial of service Issue: Customer disconnected -> New Customer but same tenant, calls for move-in (Daisy Chaining/Debt Avoidance) Challenges: The project impacted several departments. Customer Service buy-in was critical. First Call Resolution Extending service to the correct customer Customer Service inability to perform research

Vectren Move In Queue Process is Born Process Developed: Revenue Analyst provided the necessary data to support the need. A “queue” was created that would house the accounts that met a designed criteria. Designed criteria = Closed disconnect order with another party calling for move-in within 2 business days. Customer Service enters an “APP INFO” note in CIS, which initiates e-mail notification to Revenue

The Process (sample of e-mail notification)

Move-In Queue

The Back-Office Process Accounts are received via email in Revenue and assigned based on skillset Account is skip traced to identify who owns property. Validate tenants/occupancy Look for other debt – previous tenant – other addresses Critical element – verify this is valid Daisy Chaining/Debt Avoidance. If research identifies this is not, account is referred back to Customer Service to complete move in process Why are they responsible? Contact is made with person requesting service Prepare reconnect quote Offer Assistance Agency/Trustee/any location for their area that may assist Be flexible to retain customer

The Back-Office Process continued If the customer cannot or chooses not to pay; the account remains in the queue Account is flagged to come back to Revenue until service goes active All accounts are manually tracked to monitor effectiveness of this process.

Statistics Year $ Found $ Collected Justified Unjustified 2012 $34,724 $25,083 81 76 2013 $221,715 $176,914 888 119 2014 $170,390 $101,580 372 164 Totals $426,829 $303,577 1,341 359 74% 26%

MOVE-IN QUEUE SUMMARY Created to attempt to deter a portion of the debt avoidance activity that occurs as part of the utility business. It is in no way a stop-gap for all that occurs. Parameter is currently set at 2 days after disconnect order, but can be changed. 75% are valid debt avoidance with 71% of debt collected that is found = SUCCESSFUL PROJECT!!

Questions? Contact Information Kathy Oxby Vectren Receivables Management Supervisor koxby@vectren.com Phone: 812-491-4909 Teresa Cullum Vectren Receivables Management Team Lead tjcullum@vectren.com