1. Sustainability In Northern Indiana Kelly Carmichael Director, Environmental Policy and Permitting South Shore Clean Cities Annual Meeting February 14, 2012

2. 2 Enhancing the Economic, Social and Environmental way we do business and finding Shared Value opportunities in northern Indiana. Economic Development Job Creation Environmental Improvement

3. Our Sustainability Mission 3 Implement Customer-Focused Energy Solutions Promote Strong, Stable Communities Steward the Environment Assure an Engaged, Aligned and Transparent Sustainability Approach

4. Customer Focused Energy Solutions Our Mission Implement Customer-Focused Energy Solutions Promote Strong, Stable Communities Steward the Environment Assure an Engaged, Aligned and Transparent Sustainability Approach 4 Residential Energy Savings Programs Appliance Recycling Free Online Home Energy Audit Appliance Rebate Home Energy Report Instant Savings on CFL Bulbs (new) A/C Cycling (new) Free In-Home Energy Audit (new) Apartment/Landlord Direct-Install (new) Expanded Low-Income Home Weatherization (available 2012) Expanded Elementary Education (new)

5. Customer Focused Energy Solutions 5 Commercial & Industrial Energy Savings Programs C&I Incentives for Upgrading to Efficient Equipment/Systems C&I Incentives for New Facility Construction/Expansion C&I Appliance/Equipment Rebates (available 2012) School Energy Audit/Improvement Program (available 2012) Builders and Developers Energy Savings Programs Builder and Developer Appliance Rebates Expanded New Home Construction Incentives (new)

6. $2 million investment to spur electric vehicle deployment Electric Vehicle Program – Phase I Available 2012 Program Highlights Voucher for in-home charging station Free overnight charging Installation of public charging stations This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement Customer Focused Energy Solutions 6 Charging will use Renewable Energy Credits for Electric Usage

7. 7 Net MeteringFeed-in Tariff Credit applied to bill, offsets individual usage NIPSCO buys electricity, customer receives a check Available to all NIPSCO electric customers (projects up to 1 MW) Available to all NIPSCO electric customers (projects from 5kW to 5 MW) Wind, solar or hydroWind, solar, hydro or biomass Expands existing net metering program Supports statewide policy and economic development Interconnection agreement required Credit equal to retail price per kWhBuy-back amounts vary Generate Your Own Power Gives customers the option to generate their own power from renewable energy Solar Feed-In likely fully subscribed Feed-in Tariff Buy-Back Amounts Wind 100 kW $0.17/kWh Wind 100 kW-2 MW$0.10/kWh Solar 10 kW$0.30/kWh Solar 10 kW-2 MW$0.26/kWh Biomass 5MW$0.106/kWh New Hydro 1 MW$0.12/kWh Customer Focused Energy Solutions

8. Green Power Rate (under construction) Customers can purchase renewable energy attributable to their usage Can elect 50%, 75% or 100% of monthly energy usage Costs passed through dollar-for-dollar (no markup) Customer Focused Energy Solutions 8

9. Strong, Stable Communities Supporting Economic Growth Our Mission Implement Customer-Focused Energy Solutions Promote Strong, Stable Communities Steward the Environment Assure an Engaged, Aligned and Transparent Sustainability Approach 9 Capital investment Over $200 million in 2011 Supporting over 430 different local businesses Local Philanthropy $5.2 million in charitable contributions Over 600 local organizations Next Generation of Leadership 193 scholarships to support Economic Development courses Ivy Tech partnership developing energy careers and skills Economic Development Annually invest over $1 million in economic development Partnered to help 100 businesses make new investments or expansions Created nearly 10,000 jobs in last decade

10. 10 $3 million investment in Clean Diesel Projects across northern Indiana Will reduce emissions by 30% - 90% per vehicle Working in collaboration with IDEM, EPA and South Shore Clean Cities to develop program Clean Diesel Vehicle Retrofits Environmental Stewardship This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement Our Mission Implement Customer-Focused Energy Solutions Promote Strong, Stable Communities Steward the Environment Assure an Engaged, Aligned and Transparent Sustainability Approach

11. 11 Replace or retrofit bucket trucks and other vehicles with hybrid technology Reduce emissions and improve fuel efficiency of NIPSCOs fleet of gasoline or diesel powered motor vehicles Hybrid Fleet Project Environmental Stewardship This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement

12. 12 Goal: Protect through acquisition and restoration high quality sensitive land with a focus on the Indiana Dunes National Lakeshore Establish a stakeholder process to identify high quality projects By 2Q 2012 complete plan for deployment of $1.5M to $2M Local Conservation and Land Acquisition Environmental Stewardship This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement

13. 13 Replace existing inefficient wood burning stoves and boilers with: Energy efficient natural gas boilers or furnaces EPA approved hydronic heaters Energy Star qualified geothermal heat pumps More efficient hearth appliances Implement in conjunction with EPA Burn Wise and State of Indiana programs Wood Stove and Boiler Conversions Environmental Stewardship This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement

14. Investing $800 million in environmental technology over next 8 years Contributes to hundreds of new jobs for locally contracted companies 100% of NIPSCO coal units will be scrubbed by 2018 Further reduces emissions and contributes to attainment designation for region Planned Environmental Investments Environmental Stewardship 14

15. Our approach to sustainability is simple – to build a cleaner, more efficient and affordable energy future. Going forward, we will continue to focus on and improve our sustainability efforts and identify areas for continuous improvement; our focus on sustainability is never ending. Bob Skaggs NiSource CEO Working Harder than Ever to Generate … … Sustainable Value for Our Stakeholders 15