NiSource AGA Resource Management Workshop Obtaining Executive Support for Resource Management Washington, D.C. September 22, 2015 Ken Lockhart Director, Operations Planning

Resource Management Managing……. understanding the variables that impact our operations and influencing those variables to achieve a desired outcome. Requires Knowing where you want to be Knowing where you are currently at Charting a course to get there Communicating the course Executing

Key Stakeholders to Involve Field Operations Leadership Financial Planning Regulatory Leaders State Business Leaders Corporate Executives Everyone will need to man their oar

Key Stakeholder Engagement Field Operations Develop Work Plans at a grass roots level Focused on Execution and Continuous Improvement Establish Performance Targets/Goals Financial Planning Understand operations challenges and risks Be engaged in the development of the Work Plan strategies Regulatory Leaders Be engaged in the development of the Work Plan strategies Develop regulatory strategies

Field Operations - Operationalize Build a grass roots budget from a workplan Review for risks, assumptions, and achievability Adjust Review P&L Options Done “Approved” Request New Goal “Approved” High High High On On Okay Low Low Plan based on history, trends, known events – build initial work plan with input from Field Ops Planners & budgeting work to allocate $s Planning solicit input from : Regulatory, Compliance, etc. Planning / budget review Align budget $’s with plan $’s Solicit input / develop strategies, recommendations Present to VP of Gas Operations P&L Options should include State Regulatory and Finance Team and Regulatory Strategy and Support Adjust – based on input from VP Gas Operations Review by Planning Leaders, Field Operations and Budgeting

Shared Services Operations - Operationalize Build a grass roots budget Review and Communicate for Company increases > 3% Coverage by Regulatory Programs, Revenue, Offsetting Expense Adjust P&L Options (delay timing) Review- Cancel or Adjust Goal “Approved” Done “Approved” Create Visibility and Assure Coverage of Year over Year Increases Hurt Hurt Check for No Okay Yes Budgeting with input from stakeholders on $’s and monthly spreads Obey Commandments Assess Achievability Functional Reviews on by Company Basis with Budget Sponsor Communication to State Finance and Regulatory Team Assess Achievability Must Understand Increased Costs and Timing

Tool - Waterfall Chart Year over Year 2015 to Grass Roots 2016

Functional Business Executive Understand challenges and risks Lead the effort by business segment Engage in problem solving with all key stakeholders Present Resource and Financial request to the Executive Council Follow up with all key stakeholders

Corporate Executives Understand the challenges for execution Explore all key business strategies Review Profit and Loss scenarios Approve or provide guidance to Operations and Financial Planning

Questions