Profile: NiSource Inc. (NI.N)

NiSource Inc. (NiSource) is an energy holding company whose subsidiaries provide natural gas, electricity, and other products and services to approximately 3.8 million customers located within a corridor that runs from the Gulf Coast through the Midwest to New England. NiSource is a natural gas distribution company operating east of the Rocky Mountains. NiSource’s principal subsidiaries include Columbia Energy Group (Columbia), a vertically-integrated natural gas distribution, transmission and storage holding company whose subsidiaries provide service to customers in the Midwest, the Mid-Atlantic and the Northeast; Northern Indiana Public Service Company (Northern Indiana), a vertically-integrated gas and electric company providing service to customers in northern Indiana, and Bay State Gas Company (Bay State), a natural gas distribution company serving customers in Massachusetts. It operates in four segments: Gas Distribution Operations, Gas Transmission and Storage Operations, Electric Operations, and Other Operations.

Gas Distribution Operations

NiSource’s natural gas distribution operations serve more than 3.3 million customers in seven states and operate approximately 57 thousand miles of pipeline. Through its wholly owned subsidiary, Columbia, NiSource owns five distribution subsidiaries that provide natural gas to approximately 2.2 million residential, commercial and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky and Maryland. NiSource also distributes natural gas to approximately 793 thousand customers in northern Indiana through three subsidiaries: Northern Indiana, Kokomo Gas and Fuel Company (Kokomo Gas) and Northern Indiana Fuel and Light Company (Northern Indiana Fuel and Light). Additionally, NiSource’s subsidiary Bay State distributes natural gas to approximately 291 thousand customers in Massachusetts.

Gas Transmission and Storage Operations

NiSource’s Gas Transmission and Storage Operations subsidiaries own and operate approximately 16 thousand miles of interstate pipelines, and operate an underground natural gas storage systems capable of storing approximately 629 billion cubic feet (Bcf) of natural gas. Through its subsidiaries, Columbia Gas Transmission Corporation (Columbia Transmission), Columbia Gulf Transmission Company (Columbia Gulf) and Crossroads Pipeline Company (Crossroads Pipeline), NiSource owns and operates an interstate pipeline network extending from offshore in the Gulf of Mexico to Lake Erie, New York and the eastern seaboard. Together, these companies serve customers in 16 northeastern, mid-Atlantic, midwestern and southern states and the District of Columbia.

Electric Operations

NiSource generates, transmits and distributes electricity through its subsidiary Northern Indiana to approximately 457 thousand customers in 20 counties in the northern part of Indiana, and engages in wholesale and transmission transactions. Northern Indiana owns four and has the ability to operate three coal-fired electric generating stations. The three operable facilities have a net capability of 2,574 megawatts. Northern Indiana also operates Sugar Creek, a CCGT plant with a 535 megawatts capacity rating, four gas-fired generating units located at Northern Indiana’s coal-fired electric generating stations with a net capability of 203 megawatts and two hydroelectric generating plants with a net capability of 10 megawatts. These facilities provide for a total system operating net capability of 3,322 megawatts. In May 2008, the Company purchased Sugar Creek. Northern Indiana’s transmission system, with voltages from 69,000 to 345,000 volts, consists of 2,782 circuit miles. Northern Indiana is interconnected with five neighboring electric utilities. During the year ended December 31, 2008, Northern Indiana generated 81.6% and purchased 18.4% of its electric requirements.

Other Operations

The Other Operations segment participates in energy-related services including gas marketing, power and gas risk management and ventures focused on distributed power generation technologies and fuel cells and storage systems. Additionally, the Other Operations segment is involved in real estate and other businesses.