Slide 1: Midwest Utility Seminar April 6, 2006
Midwest Utility Seminar April 6, 2006
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current
Slide 3: NiSource Today: Strategic Location with Growth Opportunities
NiSource Today Strategic Location with Growth Opportunities Super Regional Regulated Energy Company 3rd Largest Gas Distribution Company in U.S. 4th Largest Gas Pipeline Company in U.S. One of the Largest Gas Storage Networks in U.S. Mid Size Regional Electric Business 100% of Operating Income from
Slide 4: Balanced Portfolio Operating Income
Balanced Portfolio Operating Income 100% Of Operating Income From Regulated Businesses Gas Distribution Gas Transmission Electric Operations 40 33 27 Gas Transmission 34% Gas Distribution 37% Electric Operations 29% 4
Slide 5: Gas Distribution Operations
Gas Distribution Operations Third Largest Gas Distribution Company in the U.S. 3.3 Million Customers - 9 States and Growing at a Rate of 1 to 1.5% Per Year Added Approximately 27,600 New Customers in 2005 Delivered Over 850 Bcf of Gas in 2005 Favorable Overall Regulatory Environment Customer Choice
Slide 6: Electric Operations
Electric Operations Vertically Integrated Utility Customer Growth at Over 1% Per Year Low Cost Portfolio of Coal-Fired Generation (3,059 MW) Additional 323 MW of Gas-Fired Peaking Capacity SO2 and NOx Compliant 450,000 Customers Sales of Approximately 18,000 GWh Annually Indiana 6
Slide 7: Other Operations: Whiting Clean Energy
Other Operations Whiting Clean Energy (WCE) Net 525 MW Combined Cycle Gas Cogeneration Facility, Capable of Producing 2.2M lbs/hr of Process Steam 2 GE Frame 7 - 166MW Each & 1 Steam Turbine - 213MW with Heat Rate of Approx. 8,000 Merchant Plant Produces Electricity to Sell in the Wholesale Market a
Slide 8: Transmission and Storage Operations
Transmission and Storage Operations One of the Largest Integrated Systems in U.S. Columbia Gulf / TCO Low Cost Transporter to Mid-Atlantic and NE Markets 7.5 Bcf/day Peak Day Capacity Serve Customers in 19 States Access to Diverse Supply Sources Large Market Area Storage Position Average Contract Te
Slide 9: NiSource Business Focus: Four-Point Platform For Growth
NiSource Business Focus Four-Point Platform For Growth Pipeline/Storage Expansion & Commercial Growth Regulatory & Commercial Initiatives Financial Management Process & Expense Management Long-Term Sustainable Growth 9
Slide 10: Regulatory and Commercial Initiatives
Regulatory and Commercial Initiatives Bay State Gas Received Approval for a $11.1 Million Rate Increase Renewed Pilot Program for Customer Choice at Columbia Gas of Kentucky New Northern Indiana ARP Program Effective Through April 30, 2010 NIPSCO MISO Charges can be Deferred as of July 31, 2006 10
Slide 11: Financial Management
Financial Management NiSource Completed Refinancing of $2.4 Billion in Long-Term Debt in 2005 $43 Million of Annual Interest Expense Savings Working Capital Funding: New 5-year $1.25 Billion Credit Agreement Additional $300 Million Short-Term Credit Facility 11
Slide 12: Financial Management: Interest Expense
Financial Management Interest Expense (Millions of Dollars) 2001 2002 2003 2004 2005 2006E Interest Expense 592 516 465 404 421 381 12
Slide 13: Process and Expense Management
Process and Expense Management 10-Year Outsourcing Agreement with IBM IBM to Provide Business Process and Support Services 10-year Agreement Provides NiSource with Approximately $395 Million in Net Operating and Capital Savings Additional Savings Opportunities (e.g. Work Management) 13
Slide 14: Pipeline Expansion and Commercial Growth
Pipeline Expansion and Commercial Growth Two Part Strategy Maximize Value from Existing Storage and Pipeline Assets Disciplined Investment in Storage and Pipeline Expansion Projects 14
Slide 15: Pipeline Expansion and Commercial Growth: Major Growth Opportunities
Pipeline Expansion and Commercial Growth Millennium 2007-08 Hardy Storage 2007-08 Eastern Market Expansion II 2009 - 2010 Eastern Market Expansion I 2009 Appalachian Basin Expansion East Lateral Expansion Major Growth Opportunities 15
Slide 16: NiSource Today: Strategic Location with Growth Opportunities
NiSource Today Strategic Location with Growth Opportunities Super Regional Regulated Energy Company Strategic Assets Overlay a Growth Market From the Midwest to New England Low Business Risk Profile - - 100% Regulated - - 3.7 Million Distribution Customers Stronger/De-levered Balance Sheet with Stab
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