2. © 2008 OSIsoft, Inc. | Company Confidential Experiences in Implementation: Stretching PI to Cover Ten Years How NGT&S is Transforming PI System Utilization to Optimize Natural Gas Transmission and Storage Nancy Shifflet

3. 3 © 2008 OSIsoft, Inc. | Company Confidential NiSource Corporate Profile NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high- demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Subsidiaries: Bay State Gas Columbia Gas of Kentucky Columbia Gas of Maryland Columbia Gas of Ohio Columbia Gas of Pennsylvania Columbia Gas of Virginia Columbia Gas Transmission Columbia Gulf Transmission NiSource Retail Services Crossroads Pipeline Energy USA-TPC Kokomo Gas and Fuel NIFL

4. 4 © 2008 OSIsoft, Inc. | Company Confidential The Natural Gas Delivery System GATHERING TRANSMISSION STORAGE DISTRIBUTION

5. 5 © 2008 OSIsoft, Inc. | Company Confidential NiSource Gas Transmission & Storage Employees: 1,571 Total Payroll: $98 million Operating States: 17 Miles of Pipe: approximately 14,000 Compressor Stations: 100 Total Horsepower: About 1.1 million Annual Deliveries: About 1 trillion cubic feet Number of customers: 72 LDCs and a variety of commercial users Storage Fields: 37 in four states Total Storage Capacity: 590 billion cubic feet Total Working Gas: 253 billion cubic feet Peak Day Deliveries: 7.4 billion cubic feet (4.5 bcf from storage) State taxes paid annually: $58.6 million NGT&S Companies Columbia Gas Transmission Corp. Columbia Gulf Transmission Co. Crossroads Pipeline Granite State Gas Transmission Central Kentucky Gas Transmission Millennium Pipeline (partner) Hardy Storage Company (partner) Key Growth Projects Millennium Pipeline Hardy Storage and Transmission Eastern Market Expansion Appalachian Expansion Ohio Storage Expansion Project

6. 6 © 2008 OSIsoft, Inc. | Company Confidential NGT&S – Compressor Station/Equipment The first ‘in Service” Natural Gas Turbine In the US – 1951. Compressor Station Reciprocating Compressor Slug Catcher

7. 7 © 2008 OSIsoft, Inc. | Company Confidential NGT&S – History (1998) 1998 - Gas Control –Limited real time data availability Limited electronic historian Paper SCADA logs Physical archives –Fall 1998 - PI Arrives Long Term electronic historian Instantaneous $37,000 savings in mainframe and tape costs PI Client tools – PI ProcessBook & DataLink –300 hour time savings –Faster data request resolution

8. 8 © 2008 OSIsoft, Inc. | Company Confidential NGT&S – History (2000) Two Years later - 2000 –PI Data use has moved outside Gas Control Groups accessing PI Data –Environmental Health and Safety –Facility Planning –Field Services –Marketing

9. 9 © 2008 OSIsoft, Inc. | Company Confidential Natural Gas Pipeline Industry Challenges NGT&S Environmental Compliance Asset Performance Management Market Demands ‘OEM’ LAUF & Fuel Consumption

10. 10 © 2008 OSIsoft, Inc. | Company Confidential How PI Stretches OPC Compressor Engine Controls Gas Control Environmental Facility Planning Gas Control SCADA SCADA Electronic Measurement Compressor Services Pipeline Integrity Measurement Model EM Operations Support Weather Model OPC Field Services Gas Chromatograph GQ Gas Quality iFix Environmental Essential PI Enterprise Professional ACE/AF Data Users PI Optimization Analysts

11. 11 © 2008 OSIsoft, Inc. | Company Confidential Compliance Challenge PI Environmental State & Federal FERC

12. 12 © 2008 OSIsoft, Inc. | Company Confidential Why PI? What drove this increased use of PI? –Market and Operational Demands Marketing Requirements Operational Requirements –Tangible time and cost savings Targeted Training PI Client Tool Ease of Use Shared Expertise –PI provides connectivity, performance, scalability and ease of use

13. 13 © 2008 OSIsoft, Inc. | Company Confidential PI User Groups Gas Control –Gas Controllers –Monitoring Center –Facility Planning and Support Engineering Services –Gas Storage –Gas Quality –Compression –Automation and Electrical Field Services –Operations –Maintenance Environmental

14. 14 © 2008 OSIsoft, Inc. | Company Confidential Gas Control Usage: –Trending –Load Forecasting –Audit Support –FERC Reporting Tools: –PI Process Book – TCO and CGT System Books – Critically important to Gas Control operations –Forecasting, Spreadsheets

15. 15 © 2008 OSIsoft, Inc. | Company Confidential TCO System Book - Map

16. 16 © 2008 OSIsoft, Inc. | Company Confidential TCO System Book - PGUT

17. 17 © 2008 OSIsoft, Inc. | Company Confidential TCO System Book – Lan West

18. 18 © 2008 OSIsoft, Inc. | Company Confidential CGT System Book - Mainline

19. 19 © 2008 OSIsoft, Inc. | Company Confidential Gas Control DataLink Report Screenshot (1)

20. 20 © 2008 OSIsoft, Inc. | Company Confidential Gas Control DataLink Report Screenshot (2)

21. 21 © 2008 OSIsoft, Inc. | Company Confidential PI – When You Need It Natural Disaster – Tornado (no one injured at site)

22. 22 © 2008 OSIsoft, Inc. | Company Confidential PI - When You Need It

23. 23 © 2008 OSIsoft, Inc. | Company Confidential PI – When You Need It.

24. 24 © 2008 OSIsoft, Inc. | Company Confidential PI – When You Need It All compression was damaged and inoperable Communications were destroyed 25% capacity loss for pipeline What do we do? –Safety FIRST! –Get operations back –Provide data to Gas Control –iFix and PI Line Pressures Temporary Unit Status

25. 25 © 2008 OSIsoft, Inc. | Company Confidential Gas Storage

26. 26 © 2008 OSIsoft, Inc. | Company Confidential Gas Quality

27. 27 © 2008 OSIsoft, Inc. | Company Confidential Field Services - Operations

28. 28 © 2008 OSIsoft, Inc. | Company Confidential Environmental Permitting

29. 29 © 2008 OSIsoft, Inc. | Company Confidential Compression

30. 30 © 2008 OSIsoft, Inc. | Company Confidential Compression

31. 31 © 2008 OSIsoft, Inc. | Company Confidential Compression

32. 32 © 2008 OSIsoft, Inc. | Company Confidential Efficiency

33. 33 © 2008 OSIsoft, Inc. | Company Confidential Energy Cost (Concept) (CF$/mcf)*(7350BTU lhv/BHP hr)*(1cf/1000BTU hhv)*(1BTU hhv/0.915BTU lhv)*(BHP)*(1mcf/1000cf)

34. 34 © 2008 OSIsoft, Inc. | Company Confidential Compressor Station Fuel – KPIs (Concept)

35. 35 © 2008 OSIsoft, Inc. | Company Confidential PI Historian and SubSystems

36. 36 © 2008 OSIsoft, Inc. | Company Confidential NGT&S Summary NGT&S -Improvement requires measurement PI is our foundational structure for collecting, analyzing and presenting real time and associated data and formulating solutions Over the last ten years, PI has helped us meet our real time and associated data challenges and is expected to continue to do so.

37. 37 © 2008 OSIsoft, Inc. | Company Confidential Natural Gas Pipeline Industry Challenges NGT&S Environmental Compliance Asset Performance Management Market Demands ‘OEM’ LAUF & Fuel Consumption

38. 38 © 2008 OSIsoft, Inc. | Company Confidential