Slide 1: COVID-19 Supplemental Investor Update
COVID-19 Supplemental Investor Update May 26, 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: Primary Focus on Customer and Employee Safety and Health
Primary Focus on Customer and Employee Safety and Health • Following CDC and local guidelines intended to ensure the health and safety of our employees and customers • Activated Incident Command Structure to coordinate strategy, execution and communication across all seven states • For Customers ▪ S
Slide 4: Rate Design and Recovery Mechanisms/Trackers Help Mitigate Impacts
Rate Design and Recovery Mechanisms/Trackers Help Mitigate Impacts % Retail Margins by Customer Class Expected Customer Demand (During State Shutdowns) 9% 15% • Lower commercial and industrial sales 26% 22% • Increased residential sales 26% Rate Design 35% • Gas Segment ◦ Residential ~75% Fixed 69%
Slide 5: COVID-19 Weather Normalized April Volume Impacts
COVID-19 Weather Normalized April Volume Impacts • As an off peak month…April sales volumes are less than 8% of total annual volumes for both gas and Gas and Electric Margin Impact by electric Customer Class ($M) April 2020 vs. April 2019 • April 2020 sales volume declines vs. prior year (month/annu
Slide 6: Actions Underway to Mitigate 2020/2021 Headwinds from COVID-19
Actions Underway to Mitigate 2020/2021 Headwinds from COVID-19 COVID-19 Impact Base Case Assumptions • Customer load and demand changes highly concentrated in 2020 during Estimated COVID Related state shutdowns; assumes current state level reopen plans and a gradual NOEPS* Impacts recovery into norm
Slide 7: Reopening Progress for Each State of Operation
Reopening Progress for Each State of Operation Ohio • May 19: Stay at home no longer an Virginia • June 10: Stay at home expires order, only a recommendation • Phase 1: May 15 – retail, outdoor • May 12: retail dining, worship at 50% capacity, • May 15: outdoor dining and personal personal services
Slide 8: Constructive Regulatory Approaches to COVID-19
Constructive Regulatory Approaches to COVID-19 Company Status Petition filed with IURC on May 8, 2020 for deferral of expenses and lost revenues, seeking NIPSCO to establish a bad debt tracker. Order requested by July 15th. Engaging with peer utilities and PUCO, planning Columbia Gas of Ohio to file
Slide 9: Monitoring Health & Economic Indicators to Inform Mitigation Strategy
Monitoring Health & Economic Indicators to Inform Mitigation Strategy Public Health Macroeconomic Internal perspectives May dictate need to redeploy shelter- Looking for consumer confidence, NiSource is well positioned for in-place (major driver of economic demand, and business distress to a current
Slide 10: Key Takeaways
Key Takeaways • Continued Focus on Customer and Employee Safety and Health • Currently no Significant Impacts to Supply Chain or Operating Activities • Proactively Managing Impacts to our Business Plan – O&M Reductions Underway – Regulatory Solutions – in dialogue across all jurisdictions – Organiza
Slide 11: Appendix: COVID-19 Update
Appendix: COVID-19 Update
Slide 12: Bad Debt Recovery Mechanisms
Bad Debt Recovery Mechanisms Bad Debt Expense Tracked Company Included in Base Incremental Tracked Filing Rates* Expense 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 on
Slide 13: 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