1. Energy Efficiency Programs Presenter – Patty Terpin September 21, 2010 KEEA Conference 2010: The Future of Energy Efficiency in Pennsylvania

2. 2 Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Columbia Gas of Pennsylvania, Inc. with headquarters in Canonsburg, Pa., serves approximately 413,000 customers in 26 counties. It is one of the energy distribution companies of NiSource Inc. (NYSE: NI). NiSource distribution companies serve 3.8 million natural gas and electric customers primarily in seven states. About Columbia Gas of Pennsylvania, Inc.

3. 3 Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Implemented 1988 Mandated - Alphonso Deal Statute; Natural Gas Competition Act Funding Level – $3 Million Annually Recoverable in Rates Customers – Residential Low Income Measures – Audits, Education, Air Sealing; Insulation; Heating System Clean and Tune Energy Savings 23% Average Pre/Post Comparison Energy Savings 30% in 2008 !!! Success due to CAP Program/Energy Education Savings 60.75 MCF per year Average Customer saved $542.90 per year External Contractors – 10 Low Income Usage Reduction (LIURP)

4. 4 Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Implemented 1995 Voluntary Funding Level – $500,000 Annually (increase of $250,000 in 2010 Rate Case) Recoverable in Rates Customers – Residential Low Income Property Owners Measures – Emergency Repairs of Gas Lines and Heating Equipment Energy Savings – Not Tracked – Not an Energy Efficiency Program External Contractors – 30 HVAC/Plumbers Emergency Repair Program (ERP)

5. 5 Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Implemented 2008 Voluntary Funding Level – Shareholder Funded Customers – Residential – No Required Income Qualifications Measures – Educational Material; Brochures, Video, Web Site Energy Savings – Not Tracked External Contractors – 1 Fulfillment Organization Conservation Awareness Program

6. 6 Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Implemented 2008 Voluntary Funding Level – $750,000 Annually Recoverable in Rates Customers – Residential Moderate Low Income Measures – Energy Efficiency Audits, Programmable Thermostats, (Incentives added in 2010 Rate Case) Energy Savings – Not Currently Tracked External Contractors – 30 Energy Efficiency Auditors Income Qualified Energy Efficiency Program ( IQEEP ) Income Qualified Energy Efficiency Program ( IQEEP )

7. 7 Implemented 2009 PUC Encouraged Leveraging of Coordination of Programs Solidified Current Processes All Energy Efficiency Programs For Allegheny Power and Columbia Gas Streamlined Referral Processes Increase Refunds To All Programs Joint Delivery of Program Benefit With Existing Weatherization Contractors Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Joint Utility Usage Management Program

8. 8 Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Home Energy Efficiency Pilot Program Voluntary Design of Pilot by Stakeholders Group Funding Level – To Be Determined Recoverable in Rates Customers – Will Be Available To a Pilot Group of Residential Customers With No Income Requirements Measures/Components – To Be Determined Energy Savings – Will Be Tracked External Contractors Will Be Hired For The Delivery of HEEP Benefits Implementation 2011

9. 9 Questions? Thank you! Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs