Energy Systems Group to Upgrade Infrastructure at

SAN DIEGO, CA --(Marketwired - March 21, 2017) - Energy Systems Group (ESG), a leading energy services provider and wholly owned subsidiary of Vectren Corporation ( NYSE : VVC ), recently held a project kick-off meeting for a $70.3 million Energy Savings Performance Contract (ESPC), signed in December 2016, at Naval Base Coronado's Naval Air Station North Island (NAS North Island). With a mission to support the U.S. Navy Pacific Fleet and an emphasis on naval aviation, Naval Base Coronado serves as the home port for two Navy aircraft carriers, hosts 18 aviation squadrons, and supports 140 tenant commands. In an effort to increase energy resiliency and to reduce shore-based operational costs, NAS North Island sought upgrades to provide significant energy and water consumption savings while improving its energy supply and distribution capabilities.

"ESPCs, such as this one, help the Navy meet its energy reduction goals and provide infrastructure upgrades in order for us to remove the costly and older central steam and compressed air distribution systems at NAS North Island," stated Dave Curfman, assistant commander for Public Works, Naval Facilities Engineering Command.

The overhaul of this necessary infrastructure will enable NAS North Island to better serve the two Naval Air Systems Command's (NAVAIR) logistical and industrial operations commands onsite. This includes Fleet Readiness Center Southwest (FRCSW), a NAVAIR command focused on repairing and maintaining Navy and Marine Corps aircraft for rapid return to the fleet. The resiliency inherent in a more efficient water and energy infrastructure ensures FRCSW and the other NAS North Island tenant operations are able to complete their mission-critical work with a greater sense of water and energy surety at the shore facilities. Upon completion, the project is anticipated to result in energy savings of over 321,000 MMBtu (million British thermal unit) and will save over 36 million gallons of water annually. This project will generate over $187 million in savings over the contract term.

"We are excited about making significant progress towards our energy and water conservation goals," said Naval Base Coronado Commanding Officer Captain Scott Mulvehill. "We look forward to the day when the bulk of our aging steam distribution system can be abandoned to be replaced by new and efficient boilers and heating systems."

These upgrades will help Naval Base Coronado support the Department of the Navy's overall Shore Energy Management goal of reducing shore energy consumption by 50 percent by 2020 as well as Executive Order 13693 in reducing water intensity by 2 percent per year through 2025.

"We are honored to support the United States Navy by installing new energy infrastructure that will directly impact the important mission of Naval Base Coronado," said Steve Spanbauer, senior vice president of Energy Systems Group. "ESG will be responsible for the operation and maintenance of the new equipment, allowing the Navy to focus on its mission," added Spanbauer. "Further, this critical project helped the Navy exceed their Federal Performance Contracting Goal, and all of the energy and water infrastructure improvements are paid for from savings; this is good for the U.S. Navy, U.S. business, and the U.S. taxpayer."

Energy Systems Group (ESG) , a wholly owned subsidiary of Vectren Corporation ( NYSE : VVC ), is a leading energy services provider that specializes in energy efficiency, sustainability, and infrastructure improvement solutions in the government, education, healthcare, commercial, and industrial sectors. ESG is strongly positioned to develop projects across the full spectrum of federal contracting opportunities, including Energy Savings Performance Contracts with the U.S. Department of Energy and the U.S. Army Corp of Engineers. ESG is an industry leader in developing and implementing federal government projects under Utility Energy Services Contracts and through public / private partnerships such as Enhanced Use Leases. ESG also offers a full range of sustainable infrastructure solutions including waste-to-energy, distributed generation, and renewable energy. To learn more about ESG, visit www.energysystemsgroup.com .