Date: Thu, 18 Dec 1997 21:24:29 GMT Server: Apache/1.2.0 Last-Modified: Fri, 26 Sep 1997 18:33:23 GMT ETag: "a6ecc-785a-342bfff3" Content-Length: 30810 Accept-Ranges: bytes Connection: close Content-Type: text/html 1997 News Releases






















1997

Sep 15, Indiana Energy, Inc. Receives Favorable Ruling Regarding ProLiance Energy, LLC
Jul 25, John Worthen Joins Indiana Energy's Board
Jul 25, Consolidated Earnings
May 27, Energy Management Alliance Formed
Apr 28, Organizational Changes
Apr 25, Consolidated Earnings
Jan 31, Consolidated Earnings
Jan 22, Quarterly Dividend
Jan 22, Indiana Energy's Fiscal Year Highlights


1996

Nov 1, Consolidated Earnings
Oct 18, Indiana Gas Plans Appeal
Jul 26, Consolidated Earnings
Apr 26, Management Changes
Apr 26, Consolidated Earnings
Mar 18, Utilities Form New Gas Management Company
Jan 26, Quarterly Dividend
Jan 26, Consolidated Earnings

September 15, 1997

Indiana Energy, Inc.
Receives Favorable Ruling
Regarding ProLiance Energy, LLC

INDIANAPOLIS -- On September 12, 1997, the Indiana Utility Regulatory Commission issued the decision in the complaint proceeding relating to the gas supply and portfolio administration agreements between ProLiance Energy, LLC and Indiana Gas Company, Inc. and ProLiance and Citizens Gas & Coke Utility. The Commission concluded that these agreements are consistent with the public interest. The management of Indiana Energy, Inc. believes that the decision is supportive of the utilities' relationship with ProLiance in all material respects. ProLiance is an Indianapolis, Indiana based marketer of energy and related services and was formed in March of 1996 by affiliates of Indiana Energy and Citizens Gas.

This decision is particularly important because the Commission has recognized that significant customer benefits can be achieved if utilities are encouraged to work toward innovative customer solutions in the changing energy marketplace. As a result of ProLiance's provision of service to Indiana Gas and Citizens Gas, in excess of $50 million in gas costs savings will be realized for the customers of those utilities over the initial four and one-half year term of the utilities' agreements. Further, the Commission has recognized that benefits for investors are appropriate when risks are being assumed by those investors.

As a result of this decision, Indiana Energy has determined that a substantial portion of the reserve it had previously recorded for earnings associated with ProLiance's gas supply and gas marketing business will be adjusted downward. This will have the effect of increasing Indiana Energy's 1997 net income by approximately $3 million.

The Commission’s decision suggests that all material provisions of the agreements between ProLiance and the utilities are reasonable. In the decision the Commission acknowledged that the utilities’ purchases of gas commodity from ProLiance at index prices, as compared to ProLiance’s actual cost, is not unreasonable. The Commission also acknowledged that the amounts paid by ProLiance to the utilities for the prospect of using pipeline entitlements if and when they are not required to serve the utilities’ firm customers, and the fees paid by the utilities to ProLiance for portfolio administration services are not unreasonable. Nevertheless, with respect to each of these matters, the Commission concluded that additional findings in the gas cost adjustment process would be appropriate and directed that these matters be considered further in the pending, consolidated gas cost adjustment proceeding involving Indiana Gas and Citizens Gas. The Commission has not yet established a schedule for conducting these additional proceedings.


July 25, 1997

Ball State University President
John Worthen Joins
Indiana Energy's Board

INDIANAPOLIS -- John E. Worthen, president of Ball State University, has been elected to the boards of directors of Indiana Energy, Inc. and Indiana Gas Company, Inc. Worthen, 64, fills positions that were vacated earlier this year.

Indiana Energy is a diversified energy company and is the parent company for Indiana Gas, a natural gas distribution company that serves about 479,000 customers in the southern two-thirds of Indiana and IEI Investments, Inc., a non-regulated ventures holding company of energy related investments.

"In order to remain a leader in the energy industry, Indiana Energy needs both a strong management team and an experienced board," said Lawrence Ferger, chairman, president and chief executive officer of Indiana Energy. "John's leadership and years of experience directing large institutions is a solid fit for our company. We are delighted he has joined our board."

Worthen joined Ball State as president in 1984, following his successful career at Indiana University of Pennsylvania, as president from 1979 to 1984. He also held various senior administrative positions at University of Delaware from 1966 to 1979 where he was

vice president for student affairs and administration during his final five years of distinguished service at the university.

A graduate of Northwestern University, Worthen also holds an M.A. degree from Columbia University and an Ed.D. from Harvard University.

In addition to Ferger and Worthen, Indiana Energy's board includes Niel C. Ellerbrook, executive vice president, treasurer and chief financial officer of Indiana Energy and executive vice president and chief financial officer of Indiana Gas; Paul T. Baker, senior vice president and chief operating officer of Indiana Gas; Loren K, Evans, retired vice chairman and director of Arvin Industries; Otto N. Frenzel III, chairman, executive committee National City Bank, Indiana; Anton H. George, president, Indianapolis Motor Speedway Corporation and Hulman & Co.; Don E. Marsh, president, chairman and chief executive officer and director, Marsh Supermarkets, Inc.; Fred A. Poole, General Manager, United Air Lines Maintenance Center; Richard P. Rechter, chairman of the board, Rogers Group, Inc.; James C. Shook, president The Shook Agency; and Jean L. Wojtowicz, owner and president Cambridge Capital Management Corporation.


July 25, 1997

Indiana Energy, Inc.
Announces Dividend Increase; Reports Consolidated Earnings

INDIANAPOLIS--The board of directors of Indiana Energy, Inc., the parent company of Indiana Gas Company, Inc. and other subsidiaries, today declared a cash dividend increase of 1 cent per share of common stock. This 3.5-percent increase raises the quarterly dividend to 29 1/2 cents from 28 1/2 cents per share. Fiscal year 1997 marks the 25th consecutive year that dividends paid to shareholders have increased. The dividend is payable September 1, 1997, to shareholders of record August 15, 1997.

Indiana Energy, Inc. reported consolidated net income of $6.5 million for the third quarter of fiscal 1997, which ended June 30, 1997, as compared to net income of $2.8 million for the same period in 1996. Earnings per average common share for the current quarter were 29 cents, compared to 13 cents per share for the same quarter last year. The 16-cent increase per share is primarily attributable to cooler weather and a gain on the sale of certain nonutility assets.

Net income for the 12 months ended June 30, 1997, was $42.2 million, compared to $43.9 million for the same period last year. Earnings per share for the current 12 months were $1.87, compared to $1.95 per share for the same period last year. The 8-cent decrease per share is due primarily to higher operating expenses, including depreciation and operation and maintenance. Higher depreciation expense resulted from additions to utility plant to serve new customers and to maintain dependable service to existing customers. Higher operation and maintenance expenses resulted in part from the acceleration of several distribution system maintenance projects into the last portion of fiscal year 1996. The acceleration of these projects was made possible by higher earnings attributable to colder than normal weather during the 1996 heating season. Despite weather 7 percent warmer than the same period last year, margin for the current 12 months remained approximately the same due to additions of new residential and commercial customers, as well as the recognition of revenues associated with the recovery of certain gas costs which had been recognized as expenses in the prior period.

Summary of Consolidated Earnings Data
Three Months Ended June 30
(In Thousands Except Per Share Data) 1997 1996
Utility Operating Revenues $ 83,733 $ 91,211
Net Income $ 6,466 $ 2,802
Earnings Per Average Common Share $ .29 $ .13
Average Common Shares Outstanding 22,581 22,501
NOTE: Net income for the three-month period ended June 30 is not indicative of net income for an annual period due to the seasonal sales of gas for space heating purposes.
Twelve Months Ended June 30
(In Thousands Except Per Share Data) 1997 1996
Utility Operating Revenues $ 534,430 $ 525,272
Net Income $ 42,172 $ 43,911
Earnings Per Average Common Share $ 1.87 $ 1.95
Average Common Shares Outstanding 22,554 22,534

May 27, 1997

Indiana Energy, Citizens Gas & Coke and SIGCORP Sign Letter of Intent to Form an Energy Management Alliance

INDIANAPOLIS - Indiana Energy, Inc., the holding company of Indiana Gas Company, Inc., Citizens By-Products Coal Company, the unregulated subsidiary of Citizens Gas & Coke Utility, and SIGCORP, the holding company of Southern Indiana Gas and Electric Company, have agreed to form a jointly owned entity for the purpose of providing comprehensive energy management solutions through performance contracting.

The new entity, Energy Systems Group, LLC (ESG), will provide a total package of products, services and skills to help energy users achieve enhanced energy and operational performance. The packages will provide for improvements to be paid for from savings generated within existing operating budgets. ESG will assume the responsibilities of Energy Systems Group, Inc. an energy related performance contracting firm of SIGCORP. The new entity will begin operations sometime this summer with offices in Indianapolis and Evansville.

Indiana Gas provides natural gas and related services to about 470,000 residential, commercial and industrial customers in 48 of Indiana’s 92 counties. Citizens Gas serves about 250,000 natural gas customers in Marion County. Southern Indiana Gas and Electric Company serves more than 122,000 electric customers and 106,000 natural gas customers in 10 southwestern Indiana counties.

The companies do not intend to issue further news releases regarding this transaction until after the execution of a definitive agreement.


April 28, 1997

Indiana Energy, Indiana Gas Announce Organizational Changes

INDIANAPOLIS - The boards of directors of Indiana Energy and Indiana Gas elected Niel C. Ellerbrook as president and chief operating officer of Indiana Energy and president of Indiana Gas effective Oct. 1, 1997. L. A. Ferger will continue as chairman and chief executive officer of both companies.

Also effective Oct. 1, 1997, the Indiana Gas board elected Paul T. Baker as executive vice president and chief operating officer of Indiana Gas. Carl L. Chapman was also elected president of IEI Investments, a subsidiary of Indiana Energy that will expand its focus on serving unregulated energy markets.

"These actions by the boards continue the process of management succession at our company," Ferger said. "These are steps in a series of changes that will be taking place over the next several months to provide for an orderly transition to a new management team in contemplation of my normal retirement approximately two years from now. These steps are also part of the process of adapting our corporate structure to the changing business environment and focusing the management team on current and future challenges and opportunities."


April 25, 1997

Indiana Energy, Inc.
Reports Consolidated Earnings; Dividend Unchanged

INDIANAPOLIS--Indiana Energy, Inc., the parent company of Indiana Gas Company, Inc. and other subsidiaries, reported consolidated net income of $24.3 million for the second quarter of fiscal 1997, which ended March 31, 1997, as compared to net income of $26.2 million for the same period in 1996. Earnings per average common share for the current quarter were $1.07, compared to $1.16 per share for the same quarter last year. The 9-cent decrease per share is primarily attributable to weather 12 percent warmer than the same period last year and 7 percent warmer than normal. The effects of the warmer weather were offset somewhat by lower operation and maintenance expenses, as well as the addition of new residential and commercial customers.

Net income for the 12 months ended March 31, 1997, was $38.5 million, compared to $45.3 million for the same period last year. Earnings per share for the current 12 months were $1.71, compared to $2.01 per share for the same period last year. The 30-cent decrease per share is primarily attributable to weather 8 percent warmer than the same period last year and 2 percent warmer than normal, offset somewhat by the addition of new residential and commercial customers. Higher operation and maintenance expenses, resulting in part from the acceleration of several distribution system maintenance projects into the last half of fiscal year 1996, also contributed to the decline in earnings for the period. The acceleration of these projects was made possible by higher earnings attributable to colder than normal weather during the 1996 heating season.

The board of directors of Indiana Energy today also declared a cash dividend of 28 1/2 cents per share of common stock. This is unchanged from the previous quarter. The dividend is payable June 1, 1997, to shareholders of record May 15, 1997.

Summary of Consolidated Earnings Data
Three Months Ended March 31
(In Thousands Except Per Share Data) 1997 1996
Utility Operating Revenues $ 215,695 $ 222,553
Net Income $ 24,349 $ 26,234
Earnings Per Average Common Share $ 1.07 $ 1.16
Average Common Shares Outstanding 22,580 22,535
NOTE: Net income for the three-month period ended March 31 is not indicative of net income for an annual period due to the seasonal sales of gas for space heating purposes.
Twelve Months Ended March 31
(In Thousands Except Per Share Data) 1997 1996
Utility Operating Revenues $ 541,908 $ 517,142
Net Income $ 38,508 $ 45,333
Earnings Per Average Common Share $ 1.71 $ 2.01
Average Common Shares Outstanding 22,534 22,549


January 31, 1997

Indiana Energy, Inc.
Reports Consolidated Earnings

INDIANAPOLIS­­Indiana Energy, Inc., the parent company of Indiana Gas Company, Inc. and other subsidiaries, reported consolidated net income of $17.3 million for the first quarter of fiscal 1997, which ended December 31, 1996, as compared to net income of $19.1 million for the same period in 1995. Earnings per average common share for the current quarter were 77 cents, compared to 85 cents per share for the same quarter last year. The 8-cent decrease per share is primarily attributable to normal weather for the quarter as compared to the prior year which was 9 percent colder than normal.

Net income for the 12 months ended December 31, 1996, was $40.4 million, compared to $41.2 million for the same period last year. Earnings per share for the current 12 months were $1.79, compared to $1.83 per share for last year. The twelve-month earnings reflect increased margin attributable to weather that was 5 percent colder than normal as compared to the prior year which was about normal, and the addition of new customers. Nonutility income increased as well as a result of the operations of Indiana Energy's gas marketing affiliates. These increases, however, were offset by increased operating expenses, including the acceleration of several distribution system projects into fiscal 1996 permitted by higher earnings attributable to the colder than normal weather.

Summary of Consolidated Earnings Data
Three Months Ended December 31
(In Thousands Except Per Share Data) 1996 1995
Utility Operating Revenues $ 172,481 $ 154,309
Net Income $ 17,285 $ 19,093
Earnings Per Average Common Share $ .77 $ .85
Average Common Shares Outstanding 22,578 22,540
NOTE: Net income for the three-month period ended December 31 is not indicative of net income for an annual period due to the seasonal sales of gas for space heating purposes.
Twelve Months Ended December 31
(In Thousands Except Per Share Data) 1996 1995
Utility Operating Revenues $ 548,766 $ 445,057
Net Income $ 40,393 $ 41,175
Earnings Per Average Common Share $ 1.79 $ 1.83
Average Common Shares Outstanding 22,522 22,556


January 22, 1997

Quarterly Dividend

INDIANAPOLIS - The board of directors of Indiana Energy, Inc., the holding company of Indiana Gas Company, Inc. and other subsidiaries, today declared a cash dividend of 28 ½ cents per share of common stock. This is unchanged from the previous quarter. The dividend is payable March 1, 1997 to shareholders of record February 14, 1997.

Indiana Gas is a local gas distribution company serving more than 454,000 residential, commercial and industrial customers in 48 of Indiana's 92 counties.


January 22, 1997

Outstanding Results,Future Planning Highlight Indiana Energy's Fiscal Year

INDIANAPOLIS - Fiscal year 1996 was one of the most outstanding years in Indiana Energy, Inc.'s history. That was one of the messages Chairman, President and Chief Executive Officer L.A. Ferger conveyed to shareholders during the company's annual meeting today. Thanks to the coldest weather in a decade and continued service area growth, Indiana Energy, the holding company of Indiana Gas Company, Inc., experienced outstanding financial performance. The following are highlights of Ferger's comments about the fiscal year, which ended September 30, 1996:

  • The company earned record net income of $42 million, compared to $33 million in fiscal 1995, and record earnings of $1.87, compared to $1.46 the prior year (the previous record was $1.62 in 1993);
  • Margins increased from $185 million in fiscal 1995 to $210 million this year;
  • Weather was 8 percent colder than normal and 25 percent colder than fiscal 1995;
  • Return on equity was 14.6 percent, which not only exceeded the prior year's ROE of 11.9 percent, but exceeded the average of a peer group of utilities by 255 basis points;
  • The dividend paid was increased 3.6 percent;
  • There was a continued strong focus on managing Indiana Gas' core business; and
  • ProLiance Energy, LLC, was formed as a strategic alliance with Citizens Gas and Coke Utility of Indianapolis. ProLiance is primarily a natural gas supply and gas marketing business that also supplies products and services to other gas utilities and customers in Indiana and surrounding states. In fiscal 1996, gas marketing affiliates contributed 8 percent to consolidated net income.

Among the tough challenges faced by the company during fiscal 1996 were two regulatory proceedings that may affect the formation, operation and earnings of ProLiance. The company hopes to have a resolution of these issues during the first half of calendar 1997. The company continues to implement its program for investigating, and if necessary remediating former manufactured gas plant sites and believes that the proceeds of insurance settlements received to date will be adequate to fund its share of costs presently incurred or expected to be incurred in connection with that program. If future events require additional activities that are not presently foreseen, adverse judicial and regulatory decisions, which are in various stages of review or appeal, have limited the company's ability to recover the costs of those additional activities from ratepayers or insurers.

Ferger also provided some insight on the future. "Management, as well as employees of the company, are confronting the challenge of making sense of the future on a daily basis," said Ferger. "In order to excel in the evolving energy industry, we must focus on the key areas of competition, customers, cost effectiveness and culture. We are committed to identifying and meeting these challenges in a prudent, creative, cost-effective manner, and to building the same shareholder value in the future that we have in the past."

In a vote by shareholders, four directors were re-elected to three-year terms. They are: Niel C. Ellerbrook, vice president, treasurer and chief financial officer of Indiana Energy and senior vice president and chief financial officer of Indiana Gas; Loren K. Evans, retired vice chairman and director of Arvin Industries; Fred A. Poole, general manager of the United Air Lines Maintenance Center; and Jean L. Wojtowicz, owner and president of Cambridge Capital Management Corporation.

Following the shareholders' meeting, the board of directors elected Niel C. Ellerbrook executive vice president, treasurer and chief financial officer of Indiana Energy and executive vice president and chief financial officer of Indiana Gas. The other current officers of Indiana Energy and Indiana Gas were re-elected, and Robert E. Heidorn was elected assistant secretary and deputy general counsel of both Indiana Energy and Indiana Gas.

Other members of the board of directors are: L.A. Ferger; Paul T. Baker, senior vice president and chief operating office of Indiana Gas; Otto N. Frenzel III, chairman of the executive committee of National City Bank, Indiana; Anton H. George, president of the Indianapolis Motor Speedway and president of Hulman & Co.; Don E. Marsh, chairman, president, chief executive officer and director of Marsh Supermarkets, Inc.; Richard P. Rechter, chairman of the board of the Rogers Group; and James C. Shook, president of the Shook Agency.