NiSource Gas Distribution System Regulation and Valve Maintenance Terry Nichols May 28, 2012

NiSource Business Units

NiSource Gas Distribution NiSource Gas Distribution’s local gas distribution companies (LDCs) operate the largest gas distribution system east of the Rocky Mountains with 2.5 million customers. This corridor includes over 40% of the nation's population and close to 50% of its natural gas consumption. 3

NiSource Gas Distribution Columbia Gas of Ohio 1.4M customers / 19,000 miles of pipe / based in Columbus Columbia Gas of Pennsylvania 414,000 customers / 9,300 miles of pipe / based in Canonsburg Columbia Gas of Massachusetts 300,000 customers / 4,800 miles of pipe / based in Westborough Columbia Gas of Virginia 240,000 customers / 4,800 miles of pipe / based in Chester Columbia Gas of Kentucky 142,000 customers / 2,500 miles of pipe / based in Lexington Columbia Gas of Maryland 33,000 customers / 750 miles of pipe / based in Canonsburg, PA

Northern Indiana PSC Northern Indiana Public Service Company (NIPSCO) 700,000 Gas Distribution Customers 458,000 Electric Customers Based in Merrillville Northern Indiana Fuel and Light (NIFL) 40,000 Gas Distribution Customers Based in Auburn Kokomo Gas and Fuel Company 35,000 Gas Distribution Customers Based in Kokomo All 3 Companies merged in 2011 to form the new NIPSCO.

NiSource Gas Transmission & Storage Pipeline About 16,000 miles Delivering 1.4 trillion cubic feet per year In 16 states Storage 640 Bcf of natural gas Compression 102 stations 1.1 million horsepower Serve customers in 16 states and the District of Columbia 6

Topic: Challenges Not Centralized – Local control and direction Operationally employees were making multiple trips to regulator stations Increased cost to operate Tasks were being performed by multiple departments Focus of employees on different segments of Inspection Two Person crew completing valve Inspections

Topic: Unique Processes Centralized Measurement and Regulation Function Responsible for all System Regulation and Large Customer Measurement Response test procedure implemented No longer procedurally required to do a complete tear down on a set schedule unless problem is detected Training Employees are now trained to perform task that were covered by other departments Valve Inspection completed by one person

Highlights that would be included in Roundtable Presentation Regulator Station Site Visit All inspections are now completed during one station visit by one employee Regulator response & Lock up tests Pressure check Critical valve inspection Atmospheric Station condition Valve Inspection One person inspection program Reduced cost Efficiency-more work covered by less employees

Conclusion Task Combination Complete inspection of Station results in: Efficiency Lower Cost Fewer Station visits Valve inspection by one Employee Lower costs Fewer employees needed to complete Inspection program