Slide 1: COVID-19 Update
COVID-19 Update April 23, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of federal securities laws. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one
Slide 3: NiSource COVID-19 Immediate Actions
NiSource COVID-19 Immediate Actions • Following CDC (Centers for Disease Control) and local guidelines around social distancing to ensure the health and safety of our employees and customers. • Activated Incident Command Structure (ICS) to coordinate strategy, execution and communication across all
Slide 4: Incident Command Structure (ICS)
Incident Command Structure (ICS) Monitoring state by state conditions and determining steps to execute our plans safely for customers and employees • Assessing COVID cases, conditions and mandates by location • Implementing employee and customer health and mitigation plans • Rolling out technology t
Slide 5: COVID-19 Business Implications
COVID-19 Business Implications Key Areas of Focus: • Customer – impacts expected to lower revenue and cash flows • Sales volume declines (Commercial and Industrial) • Increased bad debt expense (due to shut-off moratorium and job losses) • Long-term customer attrition • Supply Chain – no material im
Slide 6: Customer Demand and Bad Debt
Customer Demand and Bad Debt Retail Margins by Customer Class • Customer Demand 9% • Expect lower commercial and industrial 15% sales 26% 22% • Potential for increased residential sales 26% 35% • Rate Design • Gas Segment 69% – Residential ~75% Fixed 59% 39% – Commercial ~45% Fixed • Electric Segmen
Slide 7: Liquidity and Financing Updates ($M)
Liquidity and Financing Updates ($M) • No Significant Long-Term Debt Maturities in 2020 or 2021 • Term Loan Actual Current Liquidity 03/31/2020 Maturity ▪ Refinanced $850M term loan on Revolving Credit Facility $1,850 Feb. 20, 2024 April 1, 2020 Accounts Receivable Programs* 459 Less: • Debt Issuanc
Slide 8: Pension Plan
Pension Plan • As of year-end 2019: ▪ Funding percentage: 98% ▪ Discount rate: 3.12% ▪ Expected 2020 contributions: $3M • Pension expense not impacted until pension plans are remeasured Drivers of expense: ▪ Discount rate ▪ 50bp change in discount rate = +/- ~$1M ▪ Asset valuations ▪ $100M change in
Slide 9: Key Takeaways
Key Takeaways • Continued Focus on Customer and Employee Safety and Health • Currently no Significant Impacts to Capital and Operating Plans • Proactively Assessing and Planning for Potential Impacts to our Long-Term Strategy and Plan • Rate Design and Periodic Base Rate Cases Mitigate Impacts • Lim
Slide 10: Appendix: COVID-19 Update
Appendix: COVID-19 Update
Slide 11: Bad Debt Recovery Mechanisms
Bad Debt Recovery Mechanisms Bad Debt Expense Company Included in Base Bad Debt Tracker Rates* Tracker Frequency Gas Distribution NIPSCO Gas Yes Gas cost only Quarterly Columbia Gas of Ohio Yes Gas cost and Annual delivery charge Columbia Gas of Pennsylvania Yes Partial Gas Cost only Quarterly Colum
Slide 12: Revenue and Weather Normalization Mechanisms
Revenue and Weather Normalization Mechanisms Revenue Decoupling/ Weather Company Normalization Normalization Gas Distribution NIPSCO Gas None None Straight Fixed Variable Rates for Columbia Gas of Ohio None Residential and Small Commercial Columbia Gas of Pennsylvania None Yes - Residential Columbia