NiSource AGA Resource Management Workshop Forecasting and Planning Washington, D.C. September 22, 2015 Ken Lockhart Director, Operations Planning

NiSource Overview Who we are? 7 Gas & Electric Distribution Companies NIPSCO (Gas and Electric) 800K Gas Customers & 500k Electric Customers Columbia Gas of Ohio 1.4M Customers Columbia Gas of Kentucky 140k Customers Columbia Gas of Pennsylvania 400k Customers Columbia Gas of Maryland 30k Customers Columbia Gas of Virginia 200k Customers Columbia Gas of Massachusetts 300k Customers

NiSource Journey 2006 – Cross Functional Team Formed Team Goals Improve data analysis and data integrity Develop a new process of forecasting and planning work/resources Eliminate work forecasting and planning in silo’s Utilize field resources across boundaries Improved Decision Making Performance Improvement Work Plans that meet long term financial strategies

NiSource Journey - 2007 2007 - Implementation New Departments Created Business Intelligence Team Operations Planning Team Centralized Scheduling and Dispatch Purchased/Built a Data Warehouse Work Plans developed using Excel spreadsheets Started slowly; one state out of six states Focused on process, roles and responsibilities Worked diligently at stakeholder buy-in Field Managers still the captain of the ship Planning Leaders are the navigators Field Managers and Front Line Leadership key to implementation “Plan the Work, Work the Plan, hit the Budget”

NiSource Journey – 2008 thru 2011 Began to have success and rolled out to additional business units Work Plan spreadsheet grew to 43 tabs of data for each location Data Warehouse began to populate historical information into the Work Plans Excel Tools developed to forecast, predict and analyze Cost to add new employee (including fleet, uniforms and tools) Assignable hour models (forecasting productive time for assignable work) Staffing models to determine resource requirements Transition plans for aging workforce and shifting work Operations Planning grew from three to nine full time employee’s Engaging Field Operations monthly; reviewing past month actual and two months future work plans Reporting out at VP/GM Staff & Budget meetings Discussing variances to work plan and budget Very Manual Process

NiSource Journey – 2012 thru 2014 Invest in labor (more Planning Leaders) or technology? Hired a Consultant to collaborate on… Business Requirements Software Selection Outlined business and functional requirements Identified browser based planning software solutions Performed best practice visits and gather further data Made a decision and implemented browser based planning software Developed browser based software that feeds the Data Warehouse Reporting from Work Plans Intra-month work plan analysis

NiSource Journey - 2015 Planning staff is at 12 full time employees Planning for all business units with the exception of NIPSCO Electric Strong ties to state Presidents, Regulatory Staffs, Finance and Field Operations Building 5-year grass roots work plans and identifying gaps sooner than ever Collaborating with Presidents and their regulatory staffs to identify solutions for gaps

Questions