CONFIDENTIAL
THIS DOCUMENT CONTAINS OPERATIONAL AND FINANCIAL INFORMATION, WHICH IS
CONFIDENTIAL AND SHOULD ONLY BE DISCUSSED WITH NISOURCE INC. PERSONNEL WHO
REQUIRE SUCH KNOWLEDGE WITHIN THE SCOPE OF THEIR EMPLOYMENT. THIS MATERIAL MAY
NOT BE RELEASED OR ITS CONTENTS DISCUSSED OUTSIDE THE COMPANY UNLESS AUTHORIZED
BY A MEMBER OF NISOURCE'S SENIOR MANAGEMENT.
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-5S
ANNUAL REPORT
For the Year Ended December 31, 2004
Filed pursuant to the Public Utility Holding Company Act of 1935
NISOURCE INC.
COLUMBIA ENERGY GROUP
(Name of registered holding company)
801 E 86th Avenue
Merrillville, Indiana 46410
================================================================================
TABLE OF CONTENTS
Page or
Exhibit No.
-----------
Item 1. System Companies and Investment Therein as of December 31, 2004................................... 3
Item 2. Acquisitions or Sales of Utility Assets........................................................... 10
Item 3. Issue, Sale, Pledge, Guarantee or Assumption of System Securities................................. 10
Item 4. Acquisition, Redemption or Retirement of System Securities........................................ 11
Item 5. Investments in Securities of Nonsystem Companies.................................................. 13
Item 6. Officers and Directors............................................................................ 15
Item 7. Contributions and Public Relations................................................................ 47
Item 8. Service, Sales and Construction Contracts......................................................... 49
Item 9. Wholesale Generators and Foreign Utility Companies................................................ 51
Item 10. Financial Statements and Exhibits................................................................. 53
Consolidating Financial Statements............................................................. 56
Signature of Registrant's Officer.............................................................. 176
Exhibits:
A. Annual Reports Under the Securities Exchange Act of 1934................................... 178
B. Index to Corporate Organization and By-laws Exhibits Filed Pursuant to the Public Utility
Holding Company Act of 1935............................................................... 179
C. Indentures and Contracts................................................................... 191
D. Tax Allocation Agreement for 2002.......................................................... 192
E. Other Documents Prescribed by Rule or Order................................................ 203
F. Report of Independent Public Accountants................................................... 204
G. Organizational Chart of Exempt Wholesale Generators or Foreign Utility Holding Companies... 204
H. Financial Statements of Exempt Wholesale Generators or Foreign Utility Holding Companies... 204
I. Debt Acquisition Schedule.................................................................. 205
2
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2004
% OF VOTING ISSUER OWNER'S
NUMBER OF POWER OR BOOK BOOK
COMMON INTEREST VALUE VALUE
TIER NAME OF COMPANY (COMPANY ABBREVIATION) SHARES HELD HELD ($000) $000) TYPE OF BUSINESS
---- ------------------------------------------------------- ----------- ----------- --------- --------- ------------------------
NISOURCE INC.(NSI) Holding Company
1 Bay State Gas Company(BSG) 100 100 553,812 553,812 Gas utility
Unsecured Debt(f) - - 277,592 277,592
Subsidiaries:
2 Bay State GPE, Inc.(BGP) 1,000 100 39 39 Electric generation
2 Northern Utilities, Inc.(NUI) 100 100 117,935 117,935 Gas utility
Unsecured Debt(f) - - 74,307 74,307
1 Columbia Energy Group(CEG) 100 100 2,962,805 6,619,442 Holding company
Subsidiaries:
2 Columbia Accounts Receivable Corporation(CAR) 10 100 10,105 10,105 Trade receivables
2 Columbia Assurance Agency, Inc.(CAA) 850 100 34 34 Insurance
2 Columbia Atlantic Trading Corporation(CAT) 308 100 3,873 3,873 Gas-related ventures
Unsecured Debt(f) - - 4,000 4,000
2 Columbia Deep Water Services Company(CDW) 1 100 1,034 1,034 Gas pipeline development
2 Columbia Energy Services Corporation(CES) 2,500 100 (67,494) (67,494) Energy-related services
Unsecured Debt(f) - - 60,680 60,680
2 Columbia Gas of Kentucky, Inc.(CKY) 952,248 100 77,548 77,548 Gas utility
Unsecured Debt(f) - - 36,250 36,250
Subsidiary:
3 Central Kentucky Transmission Company(CKT)(a) 100 100 - - Gas pipeline
2 Columbia Gas of Maryland, Inc.(CMD) 2,883 100 26,819 26,819 Gas utility
Unsecured Debt(f) - - 16,480 16,480
2 Columbia Gas of Ohio, Inc.(COH) 6,369,585 100 469,728 469,728 Gas utility
Unsecured Debt(f) - - 431,468 431,468
Subsidiary:
3 Columbia of Ohio Receivables
Corporation(COR)(b) 1,000 100 25,071 25,071 Financing subsidiary
2 Columbia Gas of Pennsylvania, Inc.(CPA) 1,805,112 100 227,888 227,888 Gas utility
Unsecured Debt(f) - - 209,072 209,072
2 Columbia Gas of Virginia, Inc.(CVA) 1,306,106 100 196,684 196,684 Gas utility
Unsecured Debt(f) - - 136,723 136,723
2 Columbia Gas Transmission Corporation(TCO) 1,934 100 1,497,452 1,497,452 Gas pipeline and storage
Secured Debt(g) - - 257,000 257,000
Subsidiary:
3 Columbia Hardy Corporation(CHC)(c) 100 100 - - Gas storage
2 Columbia Gulf Transmission Company(CGT) 1,933 100 175,535 175,535 Gas pipeline and storage
Unsecured Debt(f) - - 58,312 58,312
2 Columbia Network Services Corporation(CNS) 900 100 5,386 5,386 Holding company
Subsidiary:
3 CNS Microwave, Inc.(CMC) 110 100 - - Telecommunications
2 Columbia Remainder Corporation(REM) 100 100 (227) (227) Holding company
Subsidiary:
3 Haverstraw Bay, LLC(HBL)* - 100 - - Power generation
2 NiSource Insurance Corporation Limited(NIC) 14,800 100 9,812 9,812 Insurance
3
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2004
(continued)
% OF VOTING ISSUER OWNER'S
NUMBER OF POWER OR BOOK BOOK
COMMON INTEREST VALUE VALUE
TIER NAME OF COMPANY (COMPANY ABBREVIATION) SHARES HELD HELD ($ 000) ($000) TYPE OF BUSINESS
---- ------------------------------------------------------- ----------- ----------- --------- --------- ------------------------
1 ENERGYUSA, INC.(IN)(EIN) 1,000 100 (87,173) (87,173) Holding company
Unsecured Debt(f) - - 34,363 34,363
Subsidiaries:
2 EnergyUSA Commercial Energy Services, Inc.(ECE) 1,000 100 (9,463) (9,463) Energy-related services
Unsecured Debt(f) 5,261 5,261
2 EnergyUSA, Inc.(MA)(EUS) 10,000 100 (4,717) (4,717) Propane company
2 EnergyUSA-TPC Corp.(ETP) 100 100 (19,422) (19,422) Gas marketing
Unsecured Debt(f) - - 42,449 42,449
2 NI Energy Services Transportation, Inc.(NST) 1,000 100 453 453 Gas pipeline
2 NI Fuel Company, Inc.(NFU) 1,000 100 (11,022) (11,022) Oil and gas exploration
2 NI-TEX, Inc.(NTX) 1,000 100 (2,685) (2,685) Holding company
Subsidiary:
Laredo Nueces Pipeline Company* - 50 - - Gas pipeline
1 GRANITE STATE GAS TRANSMISSION, INC.(GSG) 29,900 100 12,259 12,259 Interstate gas pipeline
Unsecured Debt(f) - - 6,586 6,586
1 IWC RESOURCES CORPORATION(IWR)*(D) 1,000 100 585,229 585,229 -
Subsidiaries:
2 Harbour Water Corporation(HWC)*(d) 1,000 100 10,205 10,205 -
2 Indianapolis Water Company(IWC)*(d) 500 100 584,644 584,644 -
2 Irishman's Run Acquisition Corporation(IRA)*(d) 1,000 100 172 172 -
2 IWC Morgan Water Corporation(IWM)*(d) 1,000 100 3,504 3,504 -
2 Liberty Water Corporation(LWC)*(d) 200 100 37 37 -
2 The Darlington Water Works Company(DWC)*(d) 27 100 370 370 -
1 KOKOMO GAS AND FUEL COMPANY(KGL) 478,248 100 41,116 41,116 Gas utility
Subsidiary:
2 KGF Trading Company(KGF)* 100 100 - - Gas brokering
1 NI ENERGY SERVICES, INC.(NES) 1,000 100 (5,090) (5,090) Holding company
Unsecured Debt(f) - - 47,231 47,231
Subsidiaries:
2 Crossroads Pipeline Company(NCP) 1,000 100 7,660 7,660 Interstate gas pipeline
Unsecured Debt(f) - - 14,591 14,591
2 NESI Power Marketing, Inc.(NPM)(e) - 100 - - Power marketing
1 NISOURCE CAPITAL MARKETS, INC.(NCM) 1,000 100 29,663 29,663 Financing subsidiary
1 NISOURCE CORPORATE SERVICES COMPANY(NCS) 4,000 100 (11,310) (11,310) Management services
Unsecured Debt(f) - - 69,270 69,270
1 NISOURCE DEVELOPMENT COMPANY, INC.(NDC) 1,000 100 (87,129) (87,129) Holding company
Unsecured Debt(f) - - 179,238 179,238
Subsidiaries:
2 Cardinal Property Management, Inc.(CPM) 1,000 100 50 50 Real estate services
2 JOF Transportation Company(JOF) 1,000 100 4,447 4,447 Holding company
2 Lake Erie Land Company(LEL) 1,000 100 63,643 63,643 Real estate
Subsidiary:
3 SCC Services, Inc.(SCC) 1,000 100 (3,068) (3,068) Real estate
4
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2004
(continued)
% OF VOTING ISSUER OWNER'S
NUMBER OF POWER OR BOOK BOOK
COMMON INTEREST VALUE VALUE
TIER NAME OF COMPANY (COMPANY ABBREVIATION) SHARES HELD HELD ($000) ($000) TYPE OF BUSINESS
---- ---------------------------------------------------- ----------- ----------- ------- -------- ---------------------------
2 NDC Douglas Properties, Inc.(NDP) 1,000 100 19,226 19,226 Affordable housing projects
2 South Works Power Company(SWP)* 1,000 100 - - Holds a lease
1 NiSource Energy Technologies, Inc.(NET) 100 100 (11,032) (11,032) Holding company
Unsecured Debt(f) - - 22,898 22,898
1 NiSource Finance Corp.(NFC) 100 100 (220,003) (220,003) Financing subsidiary
1 NiSource Retail Services, Inc.(NRS) 100 100 (852) (852) Energy-related services
Unsecured Debt(f) - - 1,297 1,297
1 Northern Indiana Fuel and Light Company, Inc.(NIF) 275,000 100 53,362 53,362 Gas utility
Subsidiary:
2 Northern Indiana Trading Company, Inc.(NIT) 1,000 100 5,959 5,959 Gas brokering
1 Northern Indiana Public Service Company(NIP) 73,282,258 100 1,156,193 1,156,193 Electric and gas utility
Unsecured Debt(f) - - 494,897 494,897
Subsidiary:
2 NIPSCO Receivables Corporation(NRC) 1,000 100 50,884 50,884 Financing subsidiary
1 PEI Holdings, Inc.(PRI) 1,000 100 (106,901) (106,901) Energy-related projects
Unsecured Debt(f) - - 83,503 83,503
Subsidiaries:
2 Whiting Clean Energy, Inc.(WCE) 1,000 100 (80,542) (80,542) Power generation project
2 Whiting Leasing LLC(WLC) - 100 16,492 16,492 Financing subsidiary
Note: All debt amounts exclude the current portion of long-term debt.
* Company was inactive at December 31, 2004
(a) Central Kentucky Transmission Company (CKT) was organized in Delaware on
9/9/2004 and is a subsidiary of Columbia Gas of Kentucky, Inc. (CKY).
(b) Columbia of Ohio Receivables Corporation (COR) was organized in Delaware
on 5/4/2004 and is a subsidiary of Columbia Gas of Ohio, Inc. (COH).
(c) Columbia Hardy Corporation (CHC) was organized in West Virginia on
9/23/2004 and is a subsidiary of Columbia Gas Transmission Corporation
(TCO).
(d) NiSource Inc. (NSI) sold the water utility assets of Indianapolis Water
Company (IWC) and other assets of IWC Resources Corporation (IWR) on
4/30/2002.
(e) NESI Power Marketing, Inc. (NPM) was dissolved on 5/25/2004.
(f) Unsecured debt is presented on pages 6 - 9.
(g) Secured debt is presented on page 9.
5
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2004
(continued)
NOTE (f) UNSECURED DEBT
PRINCIPAL ISSUER OWNER'S
NAME OF COMPANY AMOUNT OWED BOOK VALUE BOOK VALUE
(ISSUER) SECURITY OWNED BY REGISTRANT ($000) ($000) ($000)
--------------- ---------------------------- ----------- ---------- ----------
BSG Intercompany Notes:
5.58% due December 20, 2019 35,000 35,000 35,000
5.94% due December 20, 2024 35,000 35,000 35,000
5.40% due December 31, 2059 50,000 50,000 50,000
2.12% Money Pool 157,592 157,592 157,592
--------- --------- ---------
277,592 277,592 277,592
--------- --------- ---------
NUI Intercompany Notes:
4.8% due December 31, 2059 60,000 60,000 60,000
2.12% Money Pool 14,307 14,307 14,307
--------- --------- ---------
74,307 74,307 74,307
--------- --------- ---------
CAT Intercompany Notes:
7.22% due June 14, 2014 2,000 2,000 2,000
7.22% due October 28, 2014 2,000 2,000 2,000
--------- --------- ---------
4,000 4,000 4,000
--------- --------- ---------
CES Intercompany Notes:
2.12% Money Pool 60,680 60,680 60,680
--------- --------- ---------
CKY Intercompany Notes:
8.00% due March 1, 2006 8,000 8,000 8,000
7.55% due November 28, 2007 5,805 5,805 5,805
7.82% due November 28, 2010 5,805 5,805 5,805
7.28% due March 1, 2011 5,030 5,030 5,030
7.92% due November 28, 2015 5,805 5,805 5,805
8.12% due November 28, 2025 5,805 5,805 5,805
--------- --------- ---------
36,250 36,250 36,250
--------- --------- ---------
CMD Intercompany Notes:
7.55% due November 28, 2007 2,495 2,495 2,495
7.82% due November 28, 2010 2,495 2,495 2,495
7.92% due November 28, 2015 2,495 2,495 2,495
8.12% due March 1, 2016 6,500 6,500 6,500
8.12% due November 28, 2025 2,495 2,495 2,495
--------- --------- ---------
16,480 16,480 16,480
--------- --------- ---------
6
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2004
(continued)
NOTE (f) UNSECURED DEBT (CONTINUED)
PRINCIPAL ISSUER OWNER'S
NAME OF COMPANY AMOUNT OWED BOOK VALUE BOOK VALUE
(ISSUER) SECURITY OWNED BY REGISTRANT ($000) ($000) ($000)
--------------- ---------------------------- ----------- ---------- ----------
COH Intercompany Notes:
8.20% due March 1, 2006 25,000 25,000 25,000
7.90% due March 1, 2006 35,000 35,000 35,000
7.55% due November 28, 2007 36,394 36,394 36,394
7.82% due November 28, 2010 36,394 36,394 36,394
7.92% due November 28, 2015 36,394 36,394 36,394
7.50% due July 15, 2022 100,000 100,000 100,000
8.12% due November 28, 2025 36,394 36,394 36,394
2.12% Money Pool 125,892 125,892 125,892
--------- --------- ---------
431,468 431,468 431,468
--------- --------- ---------
CPA Intercompany Notes:
7.90% due March 1, 2006 10,000 10,000 10,000
7.55% due November 28, 2007 17,843 17,843 17,843
7.82% due November 28, 2010 17,843 17,843 17,843
7.28% due March 1, 2011 11,000 11,000 11,000
8.12% due March 1, 2013 35,000 35,000 35,000
7.89% due March 1, 2014 20,000 20,000 20,000
7.92% due November 28, 2015 17,843 17,843 17,843
7.89% due March 1, 2016 20,000 20,000 20,000
8.12% due November 28, 2025 17,843 17,843 17,843
2.12% Money Pool 41,700 41,700 41,700
--------- --------- ---------
209,072 209,072 209,072
--------- --------- ---------
CVA Intercompany Notes:
7.55% due November 28, 2007 12,835 12,835 12,835
7.82% due November 28, 2010 12,835 12,835 12,835
7.28% due March 1, 2011 10,000 10,000 10,000
6.81% due March 1, 2012 15,000 15,000 15,000
6.73% due March 1, 2013 10,000 10,000 10,000
7.89% due March 1, 2014 10,000 10,000 10,000
7.92% due November 28, 2015 12,835 12,835 12,835
8.12% due March 1, 2016 21,000 21,000 21,000
8.12% due November 28, 2025 12,835 12,835 12,835
2.12% Money Pool 19,383 19,383 19,383
--------- --------- ---------
136,723 136,723 136,723
--------- --------- ---------
7
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2004
(continued)
NOTE (f) UNSECURED DEBT (CONTINUED)
PRINCIPAL ISSUER OWNER'S
NAME OF COMPANY AMOUNT OWED BOOK VALUE BOOK VALUE
(ISSUER) SECURITY OWNED BY REGISTRANT ($000) ($000) ($000)
--------------- ---------------------------- ----------- ---------- ----------
CGT Intercompany Notes:
7.55% due November 28, 2007 9,578 9,578 9,578
7.82% due November 28, 2010 9,578 9,578 9,578
7.65% due March 1, 2014 20,000 20,000 20,000
7.92% due November 28, 2015 9,578 9,578 9,578
8.12% due November 28, 2025 9,578 9,578 9,578
--------- --------- ---------
58,312 58,312 58,312
--------- --------- ---------
EIN Intercompany Notes:
2.12% Money Pool 34,363 34,363 34,363
--------- --------- ---------
ECE Intercompany Notes:
5.25% due December 31, 2059 5,261 5,261 5,261
--------- --------- ---------
ETP Intercompany Notes:
2.12% Money Pool 42,449 42,449 42,449
--------- --------- ---------
GSG Intercompany Notes:
2.12% Money Pool 6,586 6,586 6,586
--------- --------- ---------
NES Intercompany Notes:
2.12% Money Pool 47,231 47,231 47,231
--------- --------- ---------
NCP Intercompany Notes:
2.12% Money Pool 14,591 14,591 14,591
--------- --------- ---------
NCS Intercompany Notes:
7.55% due November 28, 2007 2,246 2,246 2,246
7.82% due November 28, 2010 2,246 2,246 2,246
7.33% due March 1, 2014 12,700 12,700 12,700
7.92% due November 28, 2015 2,246 2,246 2,246
8.12% due November 28, 2025 2,246 2,246 2,246
2.12% Money Pool 47,586 47,586 47,586
--------- --------- ---------
69,270 69,270 69,270
--------- --------- ---------
NDC Intercompany Notes:
2.12% Money Pool 179,238 179,238 179,238
--------- --------- ---------
8
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2004
(continued)
NOTE (f) UNSECURED DEBT (CONTINUED)
PRINCIPAL ISSUER OWNER'S
NAME OF COMPANY AMOUNT OWED BOOK VALUE BOOK VALUE
(ISSUER) SECURITY OWNED BY REGISTRANT ($000) ($000) ($000)
--------------- ---------------------------- ----------- ---------- ----------
NET Intercompany Notes:
2.12% Money Pool 22,898 22,898 22,898
--------- --------- ---------
NRS Intercompany Notes:
2.12% Money Pool 1,297 1,297 1,297
--------- --------- ---------
NIP Intercompany Notes:
2.12% Money Pool 494,897 494,897 494,897
--------- --------- ---------
PRI Intercompany Notes:
2.12% Money Pool 83,503 83,503 83,503
--------- --------- ---------
2,306,468 2,306,468 2,306,468
========= ========= =========
NOTE (g) SECURED DEBT
PRINCIPAL ISSUER OWNER'S
NAME OF COMPANY AMOUNT OWED BOOK VALUE BOOK VALUE
(ISSUER) SECURITY OWNED BY REGISTRANT ($000) ($000) ($000)
--------------- ---------------------------- ----------- ---------- ----------
TCO Intercompany Notes:
7.05% Due November 28, 2007 128,500 128,500 128,500
7.32% Due November 28, 2010 128,500 128,500 128,500
------- ------- -------
257,000 257,000 257,000
======= ======= =======
9
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
ACQUISITIONS
NAME OF COMPANY CONSIDERATION GIVEN ($ IN MILLIONS) DESCRIPTION OF TRANSACTION
--------------- -------------------------------------- --------------------------
None
SALES
NAME OF COMPANY CONSIDERATION RECEIVED ($ IN MILLIONS) DESCRIPTION OF TRANSACTION
--------------- -------------------------------------- ----------------------------------------------
NIP 1.67 Sale of part of Circuit #13807
TCO 1.20 Line 8000 in West Virginia was sold to Eastern
American Energy Corporation. The net book value
was $1.2M.
TCO 1.70 Brown's Creek and Lake storage fields in West
Virginia were sold to Cabot Oil and Gas
Corporation, net book value $3.6M
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES
On November 1, 2004, NiSource issued approximately 6.8 million shares of common
stock upon the settlement of the forward stock purchase contracts comprising a
component of NiSource's SAILS(SM). NiSource received approximately $144.4
million in satisfaction of the SAILS(SM) holders' obligation under the stock
purchase contracts, which was used to pay down short-term borrowings. Effective
November 1, 2004, the interest rate on the $144.4 million of debentures that
comprised the debt component of the SAILS(SM) was reset to 3.628% per annum. The
debentures mature November 1, 2006.
10
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES
Name of Company
Acquiring, Redeeming Number of Principal Consideration Held or Commission
Name of Issuer and Type of Issue or Retiring Securities Shares Amount ($000) ($000) Retired Authorization
------------------------------------------- ---------------------- --------- ------------- ------------- ------- --------------
BSG
Medium Term Note - 7.625% Due 06-19-23 BSG - 10,000 10,381 Retired Exempt Rule 42
Subsidiary:
NUI
Medium Term Note - 6.93% Due 09-01-04 NUI - 833 833 Retired Exempt Rule 42
NCM
Medium Term Note - 7.39% Due 04-01-04 NCM - 50,000 50,000 Retired Exempt Rule 42
Medium Term Note - 7.40% Due 04-02-04 NCM - 30,000 30,000 Retired Exempt Rule 42
NFC
Unsecured Debt, Floating Rate Notes,
Due 05-04-05 NFC - 250,000 250,000 Retired Exempt Rule 42
NIP
Redeemable Preferred Stock 8.35% NIP 12,000 1,200 1,200 Retired Exempt Rule 42
Redeemable Preferred Stock 7-3/4% NIP 5,554 555 555 Retired Exempt Rule 42
Medium Term Note - 6.60% Due 07-08-04 NIP - 4,000 4,000 Retired Exempt Rule 42
Medium Term Note - 6.58% Due 07-09-04 NIP - 5,000 5,000 Retired Exempt Rule 42
Medium Term Note - 6.50% Due 07-22-04 NIP - 23,000 23,000 Retired Exempt Rule 42
Medium Term Note - 7.53% Due 07-08-15 NIP - 10,000 10,377 Retired Exempt Rule 42
Medium Term Note - 7.63% Due 07-07-23 NIP - 15,000 15,573 Retired Exempt Rule 42
Medium Term Note - 7.64% Due 07-10-23 NIP - 15,000 15,573 Retired Exempt Rule 42
Medium Term Note - 7.62% Due 07-13-23 NIP - 5,000 5,191 Retired Exempt Rule 42
Medium Term Note - 7.47% Due 08-11-23 NIP - 5,000 5,187 Retired Exempt Rule 42
Medium Term Note - 7.40% Due 08-17-23 NIP - 10,500 10,889 Retired Exempt Rule 42
Medium Term Note - 7.41% Due 08-17-23 NIP - 30,000 31,110 Retired Exempt Rule 42
Medium Term Note - 7.42% Due 01-18-24 NIP - 12,000 12,445 Retired Exempt Rule 42
Medium Term Note - 7.42% Due 01-19-24 NIP - 8,550 8,867 Retired Exempt Rule 42
11
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (continued)
Name of Company
Acquiring, Redeeming Number of Principal Consideration Held or Commission
Name of Issuer and Type of Issue or Retiring Securities Shares Amount ($000) ($000) Retired Authorization
------------------------------------------- ---------------------- --------- ------------- ------------- ------- --------------
TCO
Unsecured Debt TCO - 21 21 Retired Exempt Rule 42
WCE
Unsecured Debt WCE - 2,647 2,647 Retired Exempt Rule 42
12
ITEM 5. INVESTMENTS IN SECURITIES OF NON SYSTEM COMPANIES
% of Voting Book
Power or Number of Value
Investor Investee Type of Investment Interest Held Shares Owned ($000) Type of Business
-------- --------------------------------------- ------------------- ------------- ------------ ------ -----------------------------
CAT Millennium Pipeline Company, L.P.*(e) Limited Partnership 21.0 N/A *** Gas pipeline development
CAT Millennium Pipeline Management Company,
L.L.C.(c)(e)* LLC Membership 21.0 N/A *** Gas pipeline development
management services
CES NewPower Holding, Inc. Common Shares 1.0 602,200 *** Energy-related services
CHC Hardy Storage Company, LLC LLC Membership 50.0 N/A *** Gas storage
JOF Chicago South Shore & South Bend
Railroad Co.(b) General Partnership 40.0 N/A *** Rail freight venture
JOF Illinois Indiana Development Company,
LLC* LLC Membership 40.0 N/A *** Rail freight venture
NDC N Squared Aviation, LLC* LLC Membership 33.3 N/A *** Aircraft leasing
NDC The Wellingshire Joint Venture(b) General Partnership 50.0 N/A *** Real Estate
NDP Bittersweet Pointe Associates, L.P.* Limited Partnership 99.0 N/A *** Affordable housing projects
NDP Douglas Pointe Associates, L.P.* Limited Partnership 99.0 N/A *** Affordable housing projects
NDP Douglas Pointe II Associates, L.P.* Limited Partnership 99.0 N/A *** Affordable housing projects
NDP Douglas Pointe III Associates L.L.C.* Limited Partnership 99.0 N/A *** Affordable housing projects
NDP Dunedin I LLC* LLC Membership 99.0 N/A *** Affordable housing projects
NDP Dunedin II LLC* LLC Membership 99.0 N/A *** Affordable housing projects
NDP Hebron Pointe LLC* LLC Membership 99.0 N/A *** Affordable housing projects
NDP House Investments - Midwest Corporate
Tax Credit Fund, L.P.* Limited Partnership 12.2 N/A *** Affordable housing projects
NDP Kingsmill Development Co., LLC* Limited Partnership 99.9 N/A *** Affordable housing projects
NDP Prestwick Square of Fort Wayne
Associates, L.P.* Limited Partnership 98.0 N/A *** Affordable housing projects
NDP Robertson's Building, LLC* LLC Membership 99.0 N/A *** Affordable housing projects
NDP Woodland Crossing, LLC* LLC Membership 99.0 N/A *** Affordable housing projects
NET Acumentrics Corporation Common Shares 3.1 333,333 *** Fuel cell development
NET Broadwing Corporation(d) Common Shares 2.7 135,007 *** Networking services
NET Capstone Turbine Corporation Common Shares 0.1 11,574 *** Produces microturbine systems
NET Corning Incorporated Common Shares 0.1 23,796 *** Telecommunications
NET Covance Inc. Common Shares 0.1 4,483 *** Drug development services
NET Cypress Semiconductor Corporation Common Shares 0.4 533,182 *** Produces semiconductors
NET Distributed Energy Systems Corp. Common Shares 0.1 5,868 *** System integration and
hydrogen generation business
NET EnerTek Partners, L.P.* Limited Partnership 16.5 N/A *** New energy technology
NET Evergreen Solar, Inc. Common Shares 0.1 23,689 *** Produces markets solar power
products
NET MOSAIC Energy, LLC* LLC Membership 32.6 N/A *** Fuel cell development
NET Nth Power Technologies Fund II, L.P.* Limited Partnership 4.1 N/A *** New energy technology
NET Nth Power Technologies Fund II-A, L.P.* Limited Partnership 5.4 N/A *** New energy technology
NET Quest Diagnostics Incorporated Common Shares 0.1 4,482 *** Diagnostic testing and
related services for
healthcare industry
NET SunPower Corporation**(a) Preferred Shares - N/A *** Developer of solar cells
NET Utech Climate Challenge Fund, L.P.* Limited Partnership 17.9 N/A *** New energy technology
NFU Bristol Resources Production Company,
L.L.C.* LLC Membership 64.0 N/A *** Oil and gas exploration
TCO Millennium Pipeline Company, L.P.*(e) Limited Partnership 47.5 N/A *** Gas pipeline development
TCO Millennium Pipeline Management Company,
L.L.C.(c)(e)* LLC Membership 47.5 N/A *** Gas pipeline development
management services
13
ITEM 5. INVESTMENTS IN SECURITIES OF NON SYSTEM COMPANIES (continued)
* All investments shown as limited partnerships are limited partnership
interests with no voting power. All LLC interests are in manager-managed
LLC's in which NiSource is not the manager.
** The interest in the preferred shares are non-voting.
*** Confidential treatment requested.
(a) The SunPower Corporation was sold on 11/09/04.
(b) NiSource does not consolidate either general partnership because it does
not control either partnership, directly or indirectly and does not have an
interest greater than 50%. All interests comprising these partnerships are
general partnership interests. For Chicago South Shore & South Bend
Railroad Co., there is another general partner who has a 60% general
partnership interest. For the Wellingshire Joint Venture, the other general
partner owns a 50% general partnership interest.
(c) Millennium Pipeline Management Company, L.L.C. holds a 1% general partner
interest in Millennium Pipeline Company, L.P.
(d) Broadwing Corporation was formerly Corvis Corp., changed 10/8/04
(e) In the second quarter of 2004, a NiSource affiliate purchased an additional
interest in the Millennium Pipeline Project raising the company's interest
in the project above the 50% threshold. NiSource plans to transfer the
additional interest to other sponsors in the first half of 2005. As the
company's combined interest above the 50% threshold is temporary, NiSource
did not consolidate the Millennium Pipeline Project entities.
14
ITEM 6. OFFICERS AND DIRECTORS
PART I. NAMES, PRINCIPAL BUSINESS ADDRESS AND POSITIONS HELD AS OF DECEMBER 31,
2004
The names, principal address and positions held as of December 31, 2004 of the
officers and directors of System companies is presented in the tables on the
following pages. The principal business address of each officer and director is
indicated in such tables by the numbers (1) through (20). The addresses
associated with these number designations are shown in the following address
key. The symbols used to indicate the positions held by officers and directors
are shown in the position symbol key below.
Address:
--------------------------------------------------------------------------------
1. 801 East 86th Avenue, Merrillville, Indiana 46410
2. 200 Civic Center Drive, Columbus, Ohio 43215
3. 12801 Fair Lakes, Parkway, Fairfax, Virginia 22030
4. 325 West Road, Portsmouth, Pennsylvania 03801
5. 10 G Street, Suite 580, Washington DC 20002
6. Mintflower Place, 3rd Floor, 8 Par-La-Ville Road, Hamilton Bermuda HMNX
7. 67 Suncrest Terrace, PO Box 131, Colchester, Vermont, 05446
8. 2 Church Street, PO Box HM1022, Hamilton Bermuda HMDX
9. 5501 Frantz Road, Dublin Ohio 43017
10. 300 Friberg Pkwy, Westborough, Massachusetts 01581
11. 900 East Blvd, Kokomo, Indiana 46902
12. 220 E. Seventh Street, Auburn, Indiana 46706
13. 2001 Mercer Road, Lexington, Kentucky 40512
14. 1010 Sand Creek Drive, Chesterton, Indiana 46304
15. 501 Technology Drive, Canonsburg, Pennsylvania 15317
16. 2603 Augusta, Houston, Texas, 77057
17. 995 Belmont Street, Brockton, Massachusetts 02301
18. 1700 MacCorkle Avenue, S.E. Charleston, West Virginia 25314
19. 48 Wall Street, New York, New York 10005
20. 8585 Broadway #301, Merrillville, Indiana 46410
15
ITEM 6. OFFICERS AND DIRECTORS (continued)
POSITION KEY CODE
AC Assistant Controller
AD Alternate Director
AS Assistant Secretary
AT Assistant Treasurer
C Controller
CAO Chief Accounting Officer
CEO Chief Executive Officer
CFO Chief Financial Officer
CIO Chief Information Officer
COB Chairman of the Board
COO Chief Operating Officer
D Director
EVP Executive Vice President
GC General Counsel
GM General Manager
MGF Master Gas Fitter
MGP Master Gas Plumber
P President
PB Principal Broker
S Secretary
SVP Senior Vice President
T Treasurer
VC Vice Chairman
VP Vice President
16
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME BSG BGP NUI
------------------------- -------- ----- -----
Charles E. Shafer II (2) VP VP
Daniel D. Gavito (1) VP VP
Danny G. Cote (10) D, GM D, GM D, GM
David A. Monte (2) VP VP
David J. Vajda (1) VP, T VP, T VP, T
Edward A. Santry (15) VP VP
Francis Corkery (17) MGF, MGP
Gail W. Harowski (1) VP VP
Gary W. Pottorff (1) S S S
James H. Keshian (10) AS AS AS
Jeffrey W. Grossman (1) VP VP VP
John M. O'Brien (2) AC AC AC
Kathryn I. Shroyer (2) VP VP VP
M. Carol Fox (2) VP VP
Robert G. Kriner (2) C C C
Scott C. MacDonald (4) VP
Stephen H. Bryant (10) D, P D, P D, P
Thomas Olesen (2) VP VP
Vincent V. Rea (1) AT AT AT
Violet Sistovaris (1) VP
17
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME CEG CAR CAT CDW CAA CES CKT
-------------------------- ----- ----- ----- ----- ----- ----- -----
Carl W. Levander (3) VP VP
David J. Vajda (1) VP, T VP, T VP, T VP, T VP, T VP, T VP, T
Gary W. Pottorff (1) S S S S S S S
Glen L. Kettering (3) D, P D, P
Jeffrey W. Grossman (1) VP VP VP VP VP D, VP VP
John M. O'Brien (2) AC AC AC AC AC AC AC
Karen D. Townsend (3) C C
Michael D. Watson (3) VP
Michael W. O'Donnell (1) D, P D, P D, P D, P
Reed D. Robinson (18) VP
Robert G. Kriner (2) C
Samuel W. Miller Jr. (1) D
Scott C. MacDonald (4) P
Sherry H. Gavito (1) D
Victor Gaglio (18) VP
Vincent H. DeVito (2) C C C C
Vincent V. Rea (1) AT AT AT AT AT AT AT
William Harris Marple (18) D D, VP
18
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME CNS CMC REM NIC
--------------------------- ----- ----- ----- ---------
Alan D. Burns (18) P P
Arthur A. Paquin (1) D
Charlene M. A. Washburn (6) D
David J. Vajda (1) VP, T VP, T VP, T AD, VP, T
Dawna Ferguson (6) AS
Gary W. Pottorff (1) S S S AS
Glen L. Kettering (3) D D
Graham Lamb (6) AD
Jeffrey W. Grossman (1) VP VP P D, P
John M. O'Brien (2) AC AC AC
Kathryn Westover (7) D
Michael Ashford (8) S
Michael W. O'Donnell (1) D
Patrick Theriault (7) D
Richard N. Farmer (18) AS
Timothy R. Bucci (1) D, VP
Victor M. Gaglio (18) VP VP
Vincent H. Devito (2) C C C
Vincent V. Rea (1) AT AT AT
William Harris Marple (18) D D
19
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME CKY COR CMD COH CPA CVA
-------------------------- ------ -------- ---- ----- ---- -----
Charles E. Shafer II (2) VP VP VP VP VP
Charlotte P. Kessler (1) D
Daniel D. Gavito (1) VP VP VP VP VP
David A. Monte (2) VP VP VP VP VP
David J. Vajda (1) VP, T D, VP, T VP, T VP, T VP, T VP, T
Douglas G. Borror (9) D
Edward A. Santry (15) VP VP VP
Gail W. Harowski (1) VP VP VP VP VP
Gary W. Pottorff (1) S S S S S S
Jeffrey W. Grossman (1) VP VP VP VP VP VP
Joel L. Hoelzer (2) VP VP
John M. O'Brien (2) AC AC AC AC AC AC
John W. Partridge, Jr. (2) D, P
Joseph W. Kelly (13) D, P
Kathleen O'Leary (3) D, P
Kathryn I. Shroyer (2) VP VP VP VP VP
M. Carol Fox (2) VP VP VP VP VP
Mark D. Wyckoff (1) D, GM D, GM
Michael W. O'Donnell (1) D, P
Orlando Figueroa (19) D
Peggy H. Landini (3) D, GM
Robert G. Kriner (2) C C C C C C
Shawn L. Patterson (15) D, GM D, GM
Terrence J. Murphy (15) D, P D, P
Thomas Olesen (2) VP VP VP VP VP
Vincent V. Rea (1) AT AT AT AT AT AT
Violet Sistovaris (1) VP VP VP VP VP
20
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME TCO CHC CGT
------------------------------------------------------------
Carl W. Levander (3) VP VP
David J. Vajda (1) VP, T VP, T VP, T
Edward A. Santry (15) VP VP
Gail W. Harowski (1) VP VP
Gary W. Pottorff (1) S S S
Glen L. Kettering (3) D, P D, P D, P
Jeffrey W. Grossman (1) VP VP VP
John M. O'Brien (2) AC AC AC
Karen D. Townsend (2) C, AT C C
Michael D. Watson (3) VP VP
Reed D. Robinson (18) VP VP
Richard N. Farmer (18) AS AS
Thomas Olesen (2) VP VP
Victor M. Gaglio (18) VP VP
Vincent V. Rea (1) AT AT AT
William Harris Marple (18) D, VP D, VP D, VP
21
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME EIN ECE EUS ETP NST NTX NFU
--------------------------------------------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T VP, T VP, T VP, T VP, T
Gail W. Harowski (1) VP
Gary W. Pottorff (1) S S S S S S S
James H. Keshian (10) AS
Jeffrey W. Grossman (1) VP VP VP VP VP VP VP
Joel L. Hoelzer (2) VP
John M. O'Brien (2) AC AC AC AC AC AC AC
John W. Patridge Jr. (2) D, P
Mark D. Wyckoff (1) D, GM
Mitchell E. Hershberger (1) C
Peter T. Disser (1) VP VP
R. Douglas Walker (1) VP
Samuel W. Miller Jr. (1) D D D D D D
Sherry H. Gavito (1) P P P P D, P
Thomas Olesen (2) VP
Vincent H. DeVito (2) C C C C C C
Vincent V. Rea (1) AT AT AT AT AT AT AT
22
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME GSG
-------------------------------------------
Carl W. Levander (3) VP
David J. Vajda (1) VP, T
Edward A. Santry (15) VP
Gail W. Harowski (1) VP
Gary W. Pottorff (1) S
Glen L. Kettering (3) D, P
Jeffrey W. Grossman (1) VP
John M. O'Brien (2) AC
Karen D. Townsend (2) C
Michael D. Watson (3) VP
Reed D. Robinson (18) VP
Thomas Olesen (2) VP
Victor M. Gaglio (18) VP
Vincent V. Rea (1) AT
William Harris Marple (18) D, VP
NAME IWR* IWC* HWC* IRA* IWM* DWC* LWC*
--------------------------------------------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T VP, T VP, T VP, T VP, T
Gary W. Pottorff (1) S S S S S S S
Jeffrey W. Grossman (1) VP VP VP VP VP VP VP
John M. O'Brien (2) AC AC AC AC AC AC AC
Samuel W. Miller Jr.(1) D D D D D D D
Sherry H. Gavito (1) P P P P P P P
Vincent H. Devito (2) C C C C C C C
Vincent V. Rea (1) AT AT AT AT AT AT AT
23
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME KGL KGF NIT NIF
------------------------------------------------------------------------
Charles E. Shafer II (2) VP VP
Daniel D. Gavito (1) VP VP
David A. McFatridge (11) VP, GM VP VP, GM VP
David A. Monte (2) VP VP VP VP
David J. Vajda (1) VP, T VP, T VP, T VP
David W. Fox (11) AS, AT AS, AT
Donald D. Grogg (12) AS, AT AS, AT
Edward F. Hemingway III (12) VP
Gail W. Harowski (1) VP VP VP VP
Gary W. Pottorff (1) S S S S
Jeffrey W. Grossman (1) VP VP VP VP
Joel Hoelzer (2) VP VP VP VP
John M. O'Brien (2) AC AC AC AC
Linda E. Miller (1) C C C C
M. Carol Fox (2) VP VP VP VP
Mark T. Maassel (1) D, P D, P D, P D, P
R. Douglas Walker (1) VP VP
Thomas Olesen (2) VP VP VP VP
Timothy A. Dehring (1) D, GM D, GM D, GM D, GM
Vincent V. Rea (1) AT AT
Violet Sistovaris (1) VP VP VP VP
24
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME NES NCP
--------------------------------------------------
Carl W. Levander (3) VP
David J. Vajda (1) VP, T VP, T
Gail W. Harowki (1) VP
Gary W. Pottorff (1) S S
Glen L. Kettering (3) D, P
Jeffrey W. Grossman (1) VP VP
Joel L. Hoelzer (2) VP
John M. O'Brien (2) AC AC
Karen D. Townsend (2) C, AT
Michael Watson (3) VP
Michael W. O'Donnell (1) D
Reed D. Robinson (18) VP
Richard N. Farmer (18) AS
Samuel W. Miller Jr. (1) D
Sherry H. Gavito (1) P
Thomas Olesen (2) VP
Victor M. Gaglio (18) VP
Vincent H. DeVito (2) C
Vincent V. Rea (1) AT AT
William Harris Marple (18) D, VP
25
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME NCM NDC CPM LEL SCC JOF NDP
---------------------------------------------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T VP, T VP, T VP, T VP, T
Gail W. Harowski (1) P P
Gary W. Pottorff (1) S S S S S S S
Jeffrey W. Grossman (1) VP VP VP VP VP VP VP
Jerry D. Mobley (13) P P
John M. O'Brien (2) AC AC AC AC AC AC AC
John M. Palmer (14) C C
Michael W. O'Donnell (1) D, P D, P D D D, P D
Patricia K. Locascio (1) GM, PB GM
Samuel W. Miller Jr. (1) D D
Vincent H. DeVito (2) C C C C C
Vincent V. Rea (1) AT AT AT AT AT AT AT
NAME NFC
--------------------------------------------
David J. Vajda (1) VP, T
Gary W. Pottorff (1) S
Jeffrey W. Grossman (1) VP
John M. O'Brien (2) AC
Michael W. O'Donnell (1) D, P
Vincent H. DeVito (2) C
Vincent V. Rea (1) AT
26
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME NIP SWP NET NRC NRS
--------------------------------------------------------------------------------------
Charles E. Shafer II (2) VP
Daniel D. Gavito (1) VP
David A. Monte (2) VP
David J. Vajda (1) VP, T VP, T VP, T D, VP, T VP, T
Frank A. Venhuizen (1) VP
Gail W. Harowski (1) VP VP
Gary W. Pottorff (1) S S S S S
Jeffrey W. Grossman (1) VP VP VP VP VP
Jerry L. Godwin (1) D, VP, COO D
Jerome B. Weeden (1) VP
Joel L. Hoelzer (2) VP VP VP
John M. O'Brien (2) AC AC AC AC AC
Linda E. Miller (1) C C
M. Carol Fox (2) VP
Mark T. Maassel (1) D, P D, P
Michael L. Zdyb (1) VP
Michael W. O'Donnell (1) D, P
Mitchell E. Hershberger (1) C
Orlando Figueroa (19) D
Peter T. Disser (1) VP
Robert G. Kriner (2) C
Samuel W. Miller Jr. (1) D D
Scott C. MacDonald (4) VP D, P
Sherry H. Gavito (1) D
Thomas Olesen (2) VP VP
Timothy A. Dehring (1) D, GM D, GM
William M. O'Malley (1) VP
Violet Sistovaris (1) VP
Vincent H. DeVito (2) C
Vincent V. Rea (1) AT AT AT AT AT
Vittorio E. Pareto (1) VP
27
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME NCS NSI
------------------------------------------------------------
Arthur A. Paquin (1) VP VP
Arthur E. Smith Jr. (1) SVP SVP
Arthur J. Decio (1) D
Barbara S. McKay (1) VP VP
Carolyn Y. Woo (1) D
Charles E. Shafer II (2) VP
Daniel D. Gavito (1) VP
David J. Vajda (1) VP, T VP, T
Dennis E. Foster (1) D
Dennis E. Senchak (1) VP VP, AT, AS
Edward A. Santry (15) VP
Gail W. Harowski (1) VP
Gary L. Neale (1) D, COB, CEO D, COB, CEO
Gary W. Pottorff (1) S S
Genevieve A. Tuchow (2) VP
Herbert H. Tate Jr. (1) VP
Ian M. Rolland (1) D
Jeffrey W. Grossman (1) VP VP, C, CAO
Joel L. Hoelzer (2) VP
John M. O'Brien (2) AC
John W. Thompson (1) D
Karen A. Lohss (1) VP
Karl Brack (18) VP
Kristen L. Falzone-Scott (1) VP
M. Carol Fox (2) VP
Mark D. Wyckoff (1) SVP SVP
Meg A. Brown (2) VP
28
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME CONT'D. NCS CONT'D. NSI CONT'D.
------------------------------------------------------------
Michael W. O'Donnell (1) EVP, CFO EVP, CFO
Patricia M. Lawicki (1) VP, CIO
Paul J. Newman (1) VP
Peter V. Fazio Jr. (1) EVP, GC EVP, GC
Rebecca T. Sczudlo (5) VP
Reginald L. Carter (2) VP
Rene P. Dartez (16) VP
Richard L. Thompson (1) D
Robert J. Welsh (20) D
Robert C. Skaggs Jr. (1) P, EVP P
Roger A. Young (1) D
Ronald G. Plantz (1) AC
S. LaNette Zimmerman (1) EVP EVP
Samuel W. Miller Jr. (1) EVP, COO EVP, COO
Scott C. MacDonald (4) VP
Sherry H. Gavito (1) VP
Stephen P. Adik (1) D
Steven A. Barkauskas (1) VP
Steven C. Beering (1) D
Thomas Olesen (2) VP
Vincent H. DeVito (2) C
Vincent V. Rea (1) AT
Violet Sistovaris (1) VP
29
ITEM 6. OFFICERS AND DIRECTORS (continued)
NAME PRI WCE WLC
----------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T
Gail W. Harowski (1) VP VP
Gary W. Pottorff (1) S S S
Jeffrey W. Grossman (1) VP VP VP
Joel L. Hoelzer (2) VP VP VP
John M. O'Brien (2) AC AC AC
Mitchell E. Hershberger (1) C C C
Peter T. Disser (1) VP VP VP
Samuel W. Miller Jr. (1) D D
Thomas Olesen (2) VP VP
Vincent V. Rea (1) AT AT AT
* Company was inactive at December 31, 2004.
30
ITEM 6. OFFICERS AND DIRECTORS (continued)
PART II. FINANCIAL CONNECTIONS AS OF DECEMBER 31, 2004
NAME OF OFFICE NAME AND LOCATION OF FINANCIAL INSTITUTION POSITION HELD APPLICABLE EXEMPTION
-------------------- ------------------------------------------ ------------- --------------------
David A. McFatridge Community First Bank of Howard Co. Director Rule 70 (c)
VP & General Manager Kokomo, Indiana
Kokomo Gas & Fuel
31
ITEM 6. OFFICERS AND DIRECTORS (continued)
PART III (a). COMPENSATION OF OFFICERS AND DIRECTORS
EXECUTIVE COMPENSATION
OFFICER NOMINATION AND COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION
The Officer Nominating and Compensation Committee's compensation policy is
designed to relate total compensation (base salary, annual incentives and
long-term stock-based compensation) to corporate performance, while remaining
competitive with the compensation practices of competitors in the energy
industry and, to a lesser extent, general industry. This policy applies to all
of the Named Officers, including the Chief Executive Officer, as of December 31,
2004. The Committee discusses and considers executive compensation matters, then
makes recommendations to the full board of directors, which takes the final
action on these matters. The board accepted all of the Committee's
recommendations in 2004. All decisions involving Chief Executive Officer
compensation are made by the Committee based on the Corporate Governance
Committee's report on its evaluation of the Chief Executive Officer's
performance.
The Committee has engaged Hewitt Associates, an independent compensation
consulting firm, to advise it and provide surveys of comparative compensation
practices for (1) a group of energy-oriented companies, including gas, electric
or combination utility companies, diversified energy companies and companies
with gas marketing, transmission and distribution operations and energy services
operations, and (2) a diversified group of companies representing general
industry. The 2004 executive compensation comparative groups consisted of 35 and
36 companies, respectively, from which data was available to Hewitt and which
the Committee believed to be competitors of the Company for executive talent.
The comparative compensation groups include most, but not all, of the companies
that make up the Dow Jones Utilities Index used in the Stock Price Performance
Graph and consist of a larger number of companies than contained in the index.
The Committee may change the companies contained within the comparative
compensation groups in future years if information about any company included in
a group is not available, any companies included in a group are no longer
competitors for executive talent, or if the Committee determines that different
energy or other types of companies are competitors of the Company. For 2005
compensation, the energy industry comparative group was amended to replace
previously included, diversified energy companies with companies whose
businesses are more reflective of the Company's current business profile and
strategy as a regulated utility that generates its operating income form the
sale, distribution, transportation and storage of natural gas and the
generation, transmission and distribution of electricity.
The Committee considers the surveys and advice provided by Hewitt in
determining each executive's base salary, annual incentives and long-term
stock-based compensation. The Committee's philosophy is to set base salaries and
performance-based annual incentives between the 50th and 75th percentile of the
energy and general industry comparative groups. The annual cash-based
compensation is supplemented with restricted or contingent stock awards and
option grants under the Long-Term Incentive Plan, again between the 50th and
75th percentile of the comparative groups, to emphasize long-term stock price
appreciation and the concomitant increased stockholder value. The mix of
compensation allows an executive's annual total compensation to fluctuate
according to the Company's financial performance and value delivered to
stockholders. In 2004, the target for total compensation of the executive
officers was set between the 50th and the 75th percentile of the relevant
comparative compensation groups.
In establishing Mr. Neale's base salary for 2004, the Committee reviewed
information provided by Hewitt regarding chief executive officer compensation
practices of comparable utility and energy companies and general industry. The
Committee determined that Mr. Neale's base salary would be set between the 50th
and 75th percentile of salaries in the comparative group, giving regard to Mr.
Neale's proven abilities and strong performance with the Company since joining
it as Executive Vice President and Chief Operating Officer in 1989. As with the
other executives, Mr. Neale's annual incentive under the NiSource Corporate
Incentive Plan was based on the Company's performance against financial
performance targets established by the Committee. The target for Mr. Neale's
total compensation was set between the 50th and the 75th percentile of the
relevant comparative compensation groups, dependent on the Company's financial
performance. As part of his total compensation package, Mr. Neale also received
stock options and contingent stock in 2004 under the Company's Long-Term
Incentive Plan.
Because the value of the options and contingent stock is a function of the
price growth of the Company's stock, the amount Mr. Neale would realize from his
options and contingent stock is directly related to increases in stockholder
value.
32
ITEM 6. OFFICERS AND DIRECTORS (continued)
The Committee determines annual incentive targets for all executive
officers in accordance with the NiSource Corporate Incentive Plan. Annual
incentives awarded to each of the Named Officers (including the Chief Executive
Officer) are based on overall corporate performance, and to a lesser extent
individual performance of the executive. The NiSource Corporate Incentive Plan
establishes a trigger amount of financial performance (below which no annual
incentive is paid) and a maximum level (above which no additional annual
incentive is paid). Additionally, a profit sharing contribution of between 0.5%
and 1.5% of an employee's eligible earnings may be made to an employee's account
in the Company's Retirement Savings Plan on behalf of all eligible employees,
including the executive officers, based on the identical overall corporate
financial performance measure.
In 2004, the trigger was based on basic earnings per share from continuing
operations (after accounting for the cost of the incentive plan). The range of
awards and levels of awards (as a percent of base salary), if the financial
performance trigger was achieved, were as follows:
INCENTIVE AT INCENTIVE AT
TRIGGER MAXIMUM
-------------- -------------
Chief Executive Officer.............................................. 40.0% 120.0%
President and Executive Vice President, Chief Operating Officer...... 35.0% 105.0%
Other Executive Vice Presidents and Senior Vice Presidents........... 32.5% 97.5%
Other Vice Presidents................................................ 20.0% to 25.0% 60.0% to 75.0%
For 2004, the Company did not achieve the trigger amount of basic earnings
per share from continuing operations necessary to result in payments under the
NiSource Corporate Incentive Plan, although basic earnings per share from net
income did reach the expected amount. In light of these circumstances, the
Committee approved payment of a bonus to the Company's employees and to the
executive officers at the minimum amount of each participant's incentive range.
The bonus payments were made in February and March 2005. No profit sharing
contributions were made to the Company's Retirement Savings Plan accounts.
Under the Long-Term Incentive Plan, the Committee may award stock options,
stock appreciation rights, performance units, restricted stock awards, and
contingent stock awards. The Committee considers base salaries of the executive
officers, prior awards under the Long-Term Incentive Plan, and the Company's
total compensation target in establishing long-term incentive awards. For
purposes of determining the number of options and/or shares to be granted to
reach total target compensation, options granted to executive officers are
valued, at the time of the grant, using the Black-Scholes option pricing model,
and restricted stock awards and contingent stock awards granted to executive
officers are valued using Hewitt's present value pricing model. In 2004, stock
options and restricted or contingent stock were awarded to each of the Named
Officers, and the number of awards of options and restricted or contingent stock
granted to each Named Officer was based on the aforementioned considerations.
The actual compensation value of stock options and the restricted and contingent
shares will depend on actual stock price appreciation and total stockholder
return.
The Committee's compensation policy is designed to ensure that the
executives' total compensation packages align with and support the Company's
business objectives while also aligning the interests of the executive officers
with the interests of its stockholders. In that regard, the Committee believes
that compensation packages should emphasize long-term growth and stability,
while continuing to provide shorter-term incentives. As such, the Company's
long-term stock-based compensation is more focused on grants of restricted stock
and contingent stock, with longer vesting and holding periods as compared with
stock options.
The target ratio of the value of the contingent or restricted stock awards
to option grants for 2004 was approximately 75% to 25%. For 2005 compensation,
the Company temporarily varied from the previously mentioned target ratio by
providing long-term incentive award value only in the form of stock options that
vested immediately and require a minimum one-year holding period prior to
exercise. The value of the stock options was determined at approximately 60% of
the value that would otherwise have been awarded through a combination of stock
options and restricted or contingent stock.
In 2004, grants of restricted and contingent stock under the Long Term
Incentive Plan were made pursuant to a Time Accelerated Restricted Stock Award
Program ("TARSAP"). Generally under the plan, restrictions with respect to the
TARSAP awards lapse six years from the date of the grant: however, if at the
33
ITEM 6. OFFICERS AND DIRECTORS (continued)
end of a three year performance cycle the Company meets both a peer group target
(a 60% percentile for relative total stockholder return ranking) and an absolute
target (a 12% annualized compound total stockholder return), the restrictions
with respect to the awards would lapse on the third anniversary of the grants.
The six-year lapse period on awards of contingent stock is reduced on a pro rata
basis for an executive if he or she terminates employment, without cause, on or
after attaining age 55 with ten years of service, or if he or she dies or
becomes disabled to a minimum of three years to the extent that the end of the
six-year period would extend beyond age 62. Due to the age-related restrictions
within the TARSAP, the restrictions on the 2004 awards for Messrs. Neale and
O'Donnell and Ms. Zimmerman would lapse over a period of three years in the
event of retirement, disability or death. In the event of a change in control,
all restrictions on the awards immediately lapse five business days after the
event.
The TARSAP provides a compensation component that encourages stable,
long-term growth and aligns the interests of the executives with that of the
stockholders. For the three-year performance cycle commencing on January 1,
2004, the peer-group-relative performance target was based on a total
stockholder return ranking within the 60th percentile and the absolute target
was set at an annualized compound total stockholder return of at least 12%. The
peer group for the grants to date under the TARSAP is the same as the
energy-oriented comparative group used for measuring overall annual
compensation.
Section 162(m) of the Internal Revenue Code provides that annual
compensation in excess of $1,000,000 paid to the chief executive officer or any
of the other Named Officers, other than compensation meeting the definition of
"performance based compensation," will not be deductible by a corporation for
federal income tax purposes. Because the portion of total compensation that
constitutes stock options is performance-based and certain executives have
agreed to limitations on the amount of other types of grants under the Long-Term
Incentive Plan which can vest in any year, the Committee does not anticipate
that the limits of Section 162(m) will materially affect the deductibility of
compensation paid by the Company in 2004. However, the Committee will continue
to review the deductibility of compensation under Section 162(m) and related
regulations.
The Committee believes that its overall executive compensation program has
been successful in providing competitive compensation sufficient to attract and
retain highly qualified executives, while at the same time encouraging the
executive officers to strive toward the creation additional stockholder value.
Officer Nomination and Compensation Committee
Steven C. Beering, Chairman
Arthur J. Decio
John W. Thompson
Robert J. Welsh
March 14, 2005
34
ITEM 6. OFFICERS AND DIRECTORS (continued)
COMPENSATION OF EXECUTIVE OFFICERS
Summary. The following table summarizes compensation for services to
NiSource and its subsidiaries for the years 2004, 2003 and 2002 awarded to,
earned by or paid to the Chief Executive Officer and the four other most highly
compensated executive officers as of December 31, 2004 (collectively these
individuals constitute the "Named Officers").
SUMMARY COMPENSATION TABLE
LONG-TERM COMPENSATION
------------------------------------
AWARDS PAYOUTS
------------------------ ---------
ANNUAL COMPENSATION(1) SECURITIES LONG-TERM
-------------------------------- RESTRICTED UNDERLYING INCENTIVE
OTHER ANNUAL STOCK OPTIONS/ PLAN ALL OTHER
SALARY BONUS COMPENSATION AWARD(S) SARS PAYOUTS COMPENSATION
NAME AND PRINCIPAL POSITION YEAR ($) ($)(2) ($)(3) ($)(4) (#) ($)(5) ($)(6)
--------------------------- ---- ------- ------- ------------ ---------- ---------- --------- ------------
Gary L. Neale,..................... 2004 950,000 380,000 6,156 5,207,849 353,352 2,084,462 8,628
Chairman and Chief 2003 950,000 436,050 62,620 4,586,120 373,157 0 9,950
Executive Officer 2002 950,000 361,000 105,943 -- 194,064 0 18,827
Robert C. Skaggs, Jr. (7).......... 2004 425,000 148,750 385 720,463 48,883 201,152 28,890
President 2003 325,000 111,800 0 335,360 27,287 0 18,000
2002 310,000 105,000 0 0 18,550 0 16,525
Samuel W. Miller, Jr............... 2004 500,000 175,000 0 720,463 48,883 0 12,350
Executive Vice President and 2003 500,000 200,500 29 815,720 66,372 0 2,600
Chief Operating Officer 2002 166,666 166,550 466 204,387(8) 0 0 0
Michael W. O'Donnell............... 2004 400,000 130,000 593 1,018,926 69,135 638,867 27,805
Executive Vice President and 2003 400,000 149,200 0 897,300 73,009 384,694 26,080
Chief Financial Officer 2002 400,000 123,500 12,183 -- 25,472 492,339 24,000
S. LaNette Zimmerman............... 2004 325,000 105,624 0 641,211 43,506 775,168 16,315
Executive Vice President, 2003 325,000 121,225 0 565,340 46,000 465,475 16,315
Human Resources and 2002 304,166 98,000 2,583 -- 20,047 582,776 1,221
Communications
----------
(1) Compensation deferred at the election of the Named Officer is reported in
the category and year in which such compensation was earned.
(2) All bonuses are paid pursuant to the NiSource Corporate Incentive Plan.
For further discussion of the bonuses paid for 2004 please refer to the
Officer Nomination and Compensation Committee Report on Executive
Compensation.
(3) The 2003 amount for Mr. Neale includes $10,462 for financial advisory
services, $14,159 for fair market value gain resulting from the purchase
of a company vehicle and $9,479 for taxes paid by the Company as a result
of such gain. The 2002 amount shown for Mr. Neale includes $73,076 paid to
Mr. Neale to buy back unused vacation days.
(4) Represents restricted and contingent stock awarded under the Company's
Time Accelerated Restricted Stock Award Program ("TARSAP"). The amounts
shown for 2003 and 2004 are based on the closing sale price of the
Company's common stock on December 31, 2003 and December 31, 2004,
respectively, as reported on the New York Stock Exchange Composite
Transactions Tape. Vesting of restricted stock under the Long Term
Incentive Plan in prior years
35
ITEM 6. OFFICERS AND DIRECTORS (continued)
were performance based and are shown under the Long-Term Incentive Plan
Payouts column. See Note 5 below. As of December 31, 2004, the total
shares outstanding under the TARSAP (including those shares held by the
Named Officers) was 1,251,844 with an aggregate value of $28,517,006,
based on the Company's closing market price on such date ($22.78). For
more information regarding the restricted and contingent stock awards
under the TARSAP please see the Long-Term Incentive Plan Table and its
accompanying footnotes on page 19.
(5) The payouts shown are based on the value, at date of vesting, of
restricted stock awarded under the Long-Term Incentive Plan which vested
during the years shown. Total shares of restricted stock and contingent
stock held (assuming 100% vesting) and aggregate market value at December
31, 2004 (based on the closing sale price of the common stock on that date
as reported on the New York Stock Exchange Composite Transactions Tape)
for the Named Officers were as follows: Mr. Neale, 1,016,671 shares valued
at $23,159,765; Mr. Miller, 82,669 shares valued at $1,883,200; Mr.
Skaggs, 59,596 shares valued at $1,357,597; Mr. O'Donnell, 108,206 shares
valued at $2,464,933; and Ms. Zimmerman, 71,063 shares valued at
$1,618,815. Dividends on the restricted and contingent stock are paid in
cash to the Named Officers.
(6) "All Other Compensation" represents Company contributions to the 401(k)
Plan of $6,094 for Mr. Neale, $15,690 for Mr. Skaggs, $12,350 for Mr.
Miller, $16,080 for Mr. O'Donnell, and $16,315 for Ms. Zimmerman. The
amount shown for Mr. Neale also includes $2,534 term insurance costs for
2004. The amount shown for 2004 for Messrs. Skaggs and O'Donnell also
includes $13,200 and $11,725, respectively, paid to the Savings
Restoration Plan for NiSource Inc. and Affiliates.
(7) Mr. Skaggs became President of the Company on October 26, 2004. The
amounts shown include compensation received by Mr. Skaggs as the Company's
Executive Vice President, Regulated Revenue.
(8) The amount shown represents a grant of restricted stock made to Mr. Miller
in connection with the commencement of his employment with the Company.
The amount shown is based on the closing sale price of the Company's
common stock on September 1, 2002, as reported on the New York Stock
Exchange Composite Transactions Tape.
Option Grants in 2004. The following table sets forth information
concerning the grants of options to purchase common stock made during 2004 to
the Named Officers. No stock appreciation rights were awarded during 2004.
OPTION/SAR GRANTS IN LAST FISCAL YEAR
INDIVIDUAL GRANTS
NUMBER OF
SECURITIES
UNDERLYING PERCENT OF TOTAL GRANT DATE
OPTIONS/SARS OPTIONS/SARS EXERCISE PRESENT
GRANTED GRANTED TO OR BASE VALUE
------------ EMPLOYEES IN PRICE EXPIRATION ----------
NAME (#)(1) FISCAL YEAR (2) ($/SH)(3) DATE ($)(4)
---- ------------ ---------------- --------- ---------- ----------
Gary L. Neale.................. 353,352 16.3 21.86 12/31/13 1,667,821
Robert C. Skaggs, Jr. ......... 48,883 2.25 21.86 12/31/13 230,727
Samuel W. Miller, Jr. ......... 48,883 2.25 21.86 12/31/13 230,727
Michael W. O'Donnell........... 69,135 3.19 21.86 12/31/13 326,317
S. LaNette Zimmerman........... 43,506 2.01 21.86 12/31/13 205,348
36
ITEM 6. OFFICERS AND DIRECTORS (continued)
----------
(1) All options granted in 2004 are fully exercisable commencing one year from
the date of grant. Vesting may be accelerated as a result of certain
events relating to a change in control of the Company. The exercise price
may be paid by delivery of already owned shares of common stock and any
tax withholding obligations related to exercise may be paid by delivery of
already owned shares of common stock or by reducing the number of shares
of common stock received on exercise, subject to certain conditions.
(2) Based on an aggregate of 2,168,200 options granted to all employees in
2004.
(3) The options were granted on January 1, 2004 at the average of high and low
sale prices of the common stock on December 31, 2004 as reported on the
New York Stock Exchange Composite Transactions Tape.
(4) Grant date present value is determined using the Black-Scholes option
pricing model. The assumptions used in the Black-Scholes option pricing
model for the January 1, 2004 grants (expiring December 31, 2013) were as
follows: expected volatility -- (30%) (estimated stock price volatility
for the term of the grant); risk-free rate of return -- (4.15%) (the rate
for a ten-year U.S. treasury); discount for risk of forfeiture -- (10%;)
estimated annual dividend -- ($0.92;) expected option term -- ten years;
and vesting -- 100% one year after date of grant. No assumption was made
relating to non-transferability. Actual gains, if any, on option exercises
and common shares are dependent on the future performance of the common
stock and overall market condition. The amounts reflected in this table
may not be achieved.
Option Exercises in 2004. The following table sets forth certain
information concerning the exercise of options or stock appreciation rights
during 2004 by each of the Named Officers and the number and value of
unexercised options and stock appreciation rights at December 31, 2004.
AGGREGATE OPTION EXERCISES IN LAST FISCAL YEAR
AND FISCAL YEAR-END OPTION VALUES
NUMBER OF SECURITIES VALUE OF UNEXERCISED
UNDERLYING UNEXERCISED IN-THE-MONEY
SHARES OPTIONS/SARS AT OPTIONS/SARS AT FISCAL
ACQUIRED ON VALUE FISCAL YEAR-END (#) YEAR-END ($)(1)
EXERCISE REALIZED ---------------------------- ----------------------------
NAME (#) ($) EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE
---- ----------- -------- ----------- ------------- ----------- -------------
Gary L. Neale............... 50,000 321,245 1,217,598 353,352 2,516,947 287,982
Robert C. Skaggs, Jr. ...... 0 0 61,167 48,883 108,337 39,840
Samuel W. Miller, Jr. ...... 66,372 130,753 0 48,883 0 39,840
Michael W. O'Donnell........ 0 0 129,303 69,135 258,453 56,345
S. LaNette Zimmerman........ 0 0 90,305 43,506 170,921 35,458
----------
(1) Represents the difference between the option exercise price and $22.675,
the average of high and low sale prices of the common shares on December
31, 2004, as reported on the New York Stock Exchange Composite
Transactions Tape.
37
ITEM 6. OFFICERS AND DIRECTORS (continued)
Long-Term Incentive Plan Awards in 2004. The following table sets forth
information concerning the shares of restricted stock and shares of contingent
stock awarded pursuant to the Long-Term Incentive Plan during 2004 to each of
the Named Officers.
NUMBER OF PERFORMANCE
SHARES, OR OTHER ESTIMATED FUTURE PAYOUTS UNDER
UNITS OR PERIOD UNTIL NON-STOCK PRICE-BASED PLANS(3)
OTHER MATURATION ------------------------------------------
NAME RIGHTS (#) OR PAYOUT THRESHOLD (#) TARGET (#) MAXIMUM (#)
---- ---------- ------------ ------------- ---------- -----------
Gary L. Neale (1).............. 228,615 3/6 years 228,615 228,615 228,615
Robert C. Skaggs, Jr. (1)...... 31,627 3/6 years 31,627 31,627 31,627
Samuel W. Miller, Jr. (2)...... 31,627 3/6 years 31,627 31,627 31,627
Michael W. O'Donnell (1)....... 44,729 3/6 years 44,729 44,729 44,729
S. LaNette Zimmerman (1)....... 28,148 3/6 years 28,148 28,148 28,148
----------
(1) The awards for Messrs. Neale, Skaggs and O'Donnell and Ms. Zimmerman
reflected above consist of grants of contingent stock under the Long Term
Incentive Plan which were made on January 1, 2004, pursuant to the
Company's Time Accelerated Restricted Stock Award Program ("TARSAP").
Restrictions with respect to the TARSAP awards lapse six years from the
date of the grant: however, if at the end of a three year performance
cycle the Company meets both a peer group target (a 60% percentile for
relative total stockholder return ranking) and an absolute target (a 12%
annualized compound total stockholder return), the restrictions with
respect to the awards will lapse on the third anniversary of the grants.
The six-year lapse period is reduced on a pro rata basis for an executive
if he or she terminates employment, without cause, on or after attaining
age 55 with ten years of service or if he or she dies or becomes disabled
to the extent that the end of the six-year period would extend beyond age
62, to a minimum of three years. Due to the age-related restrictions
within the TARSAP, the 2004 awards for Messrs. Neale and O'Donnell and Ms.
Zimmerman will lapse over a period of three years in the event of
retirement, disability or death. In the event of a change in control, all
restrictions on the awards immediately lapse five business days after the
event.
(2) The award for Mr. Miller reflected above consists of a grant of restricted
stock under the TARSAP. Restrictions with respect to the award will lapse
on December 31, 2009; however, if at the end of the three year performance
cycle (that began on January 1, 2004 and will end on December 31, 2006)
the Company meets both a peer group target (a 60% percentile for relative
total stockholder return ranking) and an absolute target (a 12% annualized
compound total stockholder return), the restrictions with respect to the
award will lapse on December 31, 2006. Upon the death or disability of the
grantee, the grantee will receive a distribution of the restricted stock
awarded on a pro rata basis based on a quarterly distribution schedule
contained in the restricted stock agreement between the Company and each
grantee with respect to each grant.
(3) In the case of each of the other Named Officers, the restrictions with
respect to both the restricted stock awards and the contingent stock
awards will lapse and the Named Officer will be entitled to the underlying
stock only to the extent that the value of shares for which the
restrictions lapse in any calendar year, when added to other
non-performance based compensation for that year, does not exceed
$999,999.
38
ITEM 6. OFFICERS AND DIRECTORS (continued)
PENSION PLAN AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
The following table shows estimated annual benefits, giving effect to the
Company's Pension Plan and Supplemental Executive Retirement Plan, payable upon
retirement to persons in the specified remuneration and years-of-service
classifications.
PENSION PLAN TABLE
YEARS OF SERVICE
--------------------------------------------------------------------
REMUNERATION 15 20 25 30 35
------------ --------- ----------- ----------- ----------- ----------
$ 300,000.......... $ 118,944 $ 158,592 $ 166,092 $ 173,592 $ 173,592
400,000.......... 163,944 218,592 228,592 238,592 238,592
500,000.......... 209,944 278,592 291,092 303,592 303,592
600,000.......... 253,944 338,592 353,592 368,592 368,592
700,000.......... 298,944 398,592 416,092 433,592 433,592
800,000.......... 343,944 458,592 478,592 498,592 498,592
900,000.......... 388,944 518,592 541,092 563,592 563,592
1,000,000.......... 433,944 578,592 603,592 628,592 628,592
1,100,000.......... 478,944 638,592 666,092 693,592 693,592
1,200,000.......... 523,944 698,592 728.592 758,592 758,592
1,300,000.......... 568,944 758,592 791,092 823,592 823,592
1,400,000.......... 613,944 818,592 855,592 888,592 888,592
1,500,000.......... 658,944 878,592 916,092 953,592 953,592
1,600,000.......... 703,944 938,592 978,592 1,018,592 1,018,592
1,700,000.......... 748,944 998,592 1,041,092 1,083,592 1,083,592
1,800,000.......... 793,944 1,058,592 1,103,592 1,148,592 1,148,592
1,900,000.......... 838,944 1,118,592 1,166,092 1,213,592 1,213,592
2,000,000.......... 883,944 1,178,592 1,228,592 1,278,592 1,278,592
The credited years of service for each of the Named Officers, pursuant to
the Pension Plan and Supplemental Executive Retirement Plan, are as follows:
Gary L. Neale -- 31 years; Samuel W. Miller, Jr.-- 2 years; Michael W. O'Donnell
-- 30 years; Robert C. Skaggs, Jr.-- 24 years; and S. LaNette Zimmerman -- 24
years.
Upon their retirement, regular employees and officers of the Company and
its subsidiaries which adopt the plan (including directors who are also
full-time officers) will be entitled to a monthly pension in accordance with the
provisions of the Company's pension plan, originally effective as of January 1,
1945. The directors who are not and have not been officers of the Company are
not included in the pension plan. The pensions are payable out of a trust fund
established under the pension plan with The Northern Trust Company, trustee. The
trust fund consists of contributions made by the Company and the earnings of the
fund. Over a period of years the contributions are intended to result in overall
actuarial solvency of the trust fund. The pension plan of the Company has been
determined by the Internal Revenue Service to be qualified under Section 401 of
the Internal Revenue Code.
The pension plan was amended and restated effective July 1, 2002 to add a
"cash balance feature." Participants in the plan as of December 31, 2001 were
entitled to elect to remain in the "final average pay feature" of the plan or to
begin participating in the new cash balance feature. Participants hired on and
after January 1, 2002 automatically participate in the cash balance feature. A
participant in the cash balance feature will have a benefit consisting of his or
her opening account balance (his or her accrued benefit under the final average
pay feature of the plan as of December 31, 2001, if any) plus annual pay and
interest credits to his or her cash balance account. Pay credits equal a
percentage of compensation based on the participant's combined age and service.
Interest is credited to his or her account based on the interest rate on 30-year
treasury securities, as determined by the Internal Revenue Service, for the
September immediately preceding the
39
ITEM 6. OFFICERS AND DIRECTORS (continued)
first day of each year, but not less than 4%. Upon retirement, termination of
employment or death, the participant or his or her beneficiary will receive a
benefit that is the equivalent of his or her cash balance account balance.
Participants and beneficiaries are entitled to elect to receive payment of this
benefit pursuant to various alternatives including a lump sum option.
Pension benefits are determined separately under the final average pay
portion of the plan for each participant. The formula for a monthly payment for
retirement at age 65 is 1.7% of average monthly compensation multiplied by years
of service (to a maximum of 30 years) plus 0.6% of average monthly compensation
multiplied by years of service over 30. Average monthly compensation is the
average for the 60 consecutive highest-paid months in the employee's last 120
months of service. Covered compensation is defined as wages reported as W-2
earnings (up to a limit set forth in the Internal Revenue Code and adjusted
periodically) plus any salary reduction contributions made under the Company's
401(k) plan, minus any portion of a bonus in excess of 50% of base pay and any
amounts paid for unused vacation time and vacation days carried forward from
prior years. The benefits listed in the Pension Plan table are not subject to
any deduction for Social Security or other offset amounts.
The Company also has a Supplemental Executive Retirement Plan which
applies to those officers and other employees selected by the board of directors
to participate in the plan. Benefits from this plan are to be paid from the
general assets of the Company.
For each officer and employee who first participated in the Supplemental
Executive Retirement Plan prior to January 23, 2004, the Supplemental Executive
Retirement Plan provides a retirement benefit at age 65 of the greater of (i)
60% of five-year average pay (prorated for less than 20 years of service) and an
additional 0.5% of 5-year average pay per year for participants with between 20
and 30 years of service, less Primary Social Security Benefits or (ii) the
benefit formula under the Company's Pension Plan. In either case, the benefit is
reduced by the actual pension payable from the Company's Pension Plan and
benefits earned under the Pension Restoration Plan for NiSource Inc. and
Affiliates. In addition, the Supplemental Executive Retirement Plan provides
certain early retirement and disability benefits and pre-retirement death
benefits for the spouse of a participant.
For each officer and employee who first participates in the Supplemental
Executive Retirement Plan on and after January 23, 2004, the Supplemental
Executive Retirement Plan provides a credit into a notional account as of the
last day of each year beginning on or after January 1, 2004 equal to five
percent of the officer or employee's compensation. Interest will be credited to
the account until distribution upon termination of employment after five or more
years of service with the Company and its affiliates. In addition, the Officer
Nomination and Compensation Committee, subject to approval of the Board of the
Company, may authorize supplemental credits to an officer or employee's account
in such amounts and at such times, and subject to such specific terms and
provisions, as authorized by the Committee.
Mr. O'Donnell and Mr. Skaggs continue to participate in the Retirement
Plan of Columbia Energy Group Companies, a subsidiary of the Company. Mr.
O'Donnell has 30 credited years of service and Mr. Skaggs has 24 credited years
of service under this plan. The formula for a retiree's monthly retirement
benefit at age 65 under the Retirement Plan of Columbia Energy Group is (i)
1.15% of the retiree's final average compensation that does not exceed 1/2 of
the average Social Security wage base times years of service up to 30, plus (ii)
1.5% of the retiree's final average compensation in excess of 1/2 of the average
Social Security wage base times years of service up to 30, plus (iii) .5% of the
retiree's final average compensation times years of service between 30 and 40.
As of January 1, 2004, Mr. O'Donnell participates in the Supplemental Executive
Retirement Plan, described above, based on his service and compensation with the
Company and its affiliates from and after November 1, 2000.
Effective January 1, 2004, the Company assumed sponsorship of the Pension
Restoration Plan for Columbia Energy Group, renamed the plan the "Pension
Restoration Plan for NiSource Inc. and Affiliates," and broadened the plan to
include all employees of the Company and its affiliates whose benefits under the
applicable tax-qualified pension plan are limited by sections 415 and 401(a)(17)
of the Internal Revenue Code. The Pension Restoration Plan provides for a
supplemental retirement benefit equal to the difference between (i) the benefit
a participant would have received under the Retirement Plan had such benefit not
been limited by section 401(a)(17) of the Internal Revenue Code and reduced by
deferrals into the Company's Executive Deferred Compensation Plan, minus (ii)
the actual benefit received under the Retirement Plan. Messrs. Neale and Miller
and Ms. Zimmerman became participants in the Pension Restoration Plan effective
January 1, 2004. Messrs. O'Donnell and Skaggs were participants in the Pension
Restoration Plan prior to 2004. Benefits earned under the Pension Restoration
Plan are used to offset amounts earned under the Supplemental Executive
Retirement Plan.
40
ITEM 6. OFFICERS AND DIRECTORS (continued)
Effective January 1, 2004, the Company assumed sponsorship of the Savings
Restoration Plan for Columbia Energy Group, renamed the plan the "Savings
Restoration Plan for NiSource Inc. and Affiliates," and broadened the plan to
include all key management employees of the Company and its affiliates. The
revised Savings Restoration Plan provides for a supplemental benefit equal to
the difference between (i) the benefit an employee would have received under the
NiSource Inc. Retirement Savings Plan had such benefit not been limited by
sections 415 and 401(a)(17) of the Internal Revenue Code and reduced by his
deferrals into the Company's Executive Deferred Compensation Plan, minus (ii)
the actual benefit he received under the Savings Plan. Messrs. Neale and Miller
and Ms. Zimmerman became eligible to participate in the Savings Restoration Plan
effective January 1, 2004. Messrs. O'Donnell and Skaggs were participants in the
Savings Restoration Plan prior to 2004.
On July 15, 2002, the Company entered into an agreement with Ms. Zimmerman
which provides for an additional retirement benefit in the event Ms. Zimmerman's
employment with the Company terminates for reasons other than her involuntary
termination for good cause. In such event, Ms. Zimmerman's monthly retirement
benefit under the Supplemental Executive Retirement Plan will be computed upon
the assumption that her first day of service was January 1, 1981 and will be
reduced by the amount of her retirement benefit that she receives under the
pension plan of her previous employer. On December 3, 1996, the Company's board
of directors set March 3, 1974 as Mr. Neale's first day of service for purposes
of credit under the Executive Supplemental Retirement Plan.
CHANGE IN CONTROL AND TERMINATION AGREEMENTS
The Company has entered into Change in Control and Termination Agreements
with Mr. Neale and the other Named Officers. The Company believes that these
agreements are in the best interests of the stockholders, to insure that in the
event of extraordinary events, totally independent judgment is enhanced to
maximize stockholder value. The agreements can be terminated on three years'
notice and provide for the payment of specified benefits if the executive
terminates employment for good reason or is terminated by the Company for any
reason other than good cause within 24 months following certain changes in
control. Each of these agreements also provides for payment of these benefits if
the executive voluntarily terminates employment for any reason during a
specified one-month period within 24 months following a change in control or, in
the case of Mr. Neale, at any time during this 24 month period. No amounts will
be payable under the agreements if the executive's employment is terminated by
the Company for good cause (as defined in the agreements).
The agreements provide for the payment of two or three times the
executive's current annual base salary and target incentive bonus compensation.
The executive will also receive a pro rata portion of the executive's targeted
incentive bonus for the year of termination. The executive would also receive
benefits from the Company that would otherwise be earned during the applicable
two or three-year period following the executive's termination under the
Company's Supplemental Executive Retirement Plan and qualified retirement plans.
The Company will increase the payment made to the executive as necessary to
compensate the executive on an after-tax basis for any parachute penalty tax
imposed on the payment of amounts under the contracts.
During the applicable two or three-year period following the executive's
termination, the executive and his or her spouse or other dependents will
continue to be covered by applicable health or welfare plans of the Company. If
the executive dies during such two or three-year period following the
executive's termination, all amounts payable to the executive will be paid to a
named beneficiary.
The agreement with Mr. Neale provides for the same severance payments as
described above in the event his employment is terminated at any time by the
Company (other than for good cause) or due to death or disability, or if he
voluntarily terminates employment with good reason (as defined in the
agreement), even in the absence of a change in control.
In the event of a change in control, all stock options, restricted
stock awards and contingent stock awards which have been granted to each of the
Named Officers (including the Chief Executive Officer) under the Company's
Long-term Incentive Plan will immediately vest.
41
ITEM 6. OFFICERS AND DIRECTORS (continued)
COMPENSATION OF THE COMPANY'S DIRECTORS
The Company pays each director who is not receiving a salary from the
Company $30,000 for each year, $3,000 annually for each standing committee on
which the director sits, $1,000 annually for each chairmanship of the Executive,
the Environmental, Health and Safety, and the Public Affairs and Career
Development Committees, $10,000 annually for each chairmanship of the Audit, the
Corporate Governance and the Officer Nomination and Compensation Committees,
$1,200 for each board meeting attended and $750 per committee meeting attended.
Each nonemployee director shall also receive, as part of his or her annual
retainer, an annual award of restricted shares of common stock or restricted
stock units, or a combination thereof, equal to $20,000 to be granted in four
equal installments on the last business day of each calendar quarter. The number
of restricted shares of common stock or restricted stock units, as applicable,
constituting such quarterly grant shall be determined by dividing $5,000 by the
average of the high and low price of the Company's common stock on the last
business day of the relevant quarter.
The Company's Nonemployee Director Retirement Plan provides a retirement
benefit for each nonemployee director currently serving on the board who was
originally elected or appointed to the board prior to December 31, 2001, who has
completed at least five years of service on the board and who did not elect to
opt out of the plan during 2002. Directors who are first elected or appointed to
the board after 2001 are not eligible to participate in the Retirement Plan. The
benefit under the Retirement Plan is a monthly amount equal to one-twelfth of
the annual retainer for board service in effect at the time of the director's
retirement from the board and will be paid for 120 months, or the number of full
months of service the individual served as a nonemployee director of the
Company, whichever is less. Directors first elected prior to 2001 who elected to
opt out of the Retirement Plan in 2002 received, under the Company's Nonemployee
Director Stock Incentive Plan, restricted stock units of comparable value to the
present value of the retirement benefit such director had earned under the
Retirement Plan through June 30, 2002. Directors who elected to opt out of the
Retirement Plan and directors first elected after 2001 will not receive a
retirement benefit under the Retirement Plan, but instead may receive, at the
discretion of the Corporate Governance Committee, additional restricted shares
of common stock and/or restricted stock unit grants under the Company's
Nonemployee Director Stock Incentive Plan, as amended and restated effective
January 1, 2004, to ensure that the retirement benefit, together with other
compensation paid to the nonemployee director, delivers a competitive
compensation package. In 2004, Mr. Foster, who opted out of the Company's
Retirement Plan, and Mr. Richard L. Thompson, who was newly elected to the
board, each received a grant of restricted stock units having a value of
$23,274, representing $7,749 per year for each of the next three years, in lieu
of a retirement benefit under the Nonemployee Director Stock Incentive Plan.
In addition, upon election, re-election or appointment to the board, each
nonemployee director shall receive an award of restricted shares of common stock
or restricted stock units equal to $30,000 for each year of the term for which
such director has been elected, re-elected or appointed. The number of
restricted shares of common stock or restricted stock units, or a combination
thereof, as applicable, shall be determined by dividing the amount of the grant
by the average of the high and low price of the Company's common stock on the
date of such election, re-election or appointment. In 2004, under the Company's
Nonemployee Director Stock Incentive Plan, each of Dr. Woo and Messrs. Beering,
Foster and Richard L. Thompson received a grant of restricted stock units with a
value of $90,000, representing $30,000 per year for each of the next three
years.
The grants of both the restricted shares of common stock and the
restricted stock units under the Company's Nonemployee Director Stock Incentive
Plan vest in 20% annual increments, with all of a director's stock and units
vesting five years after the date of award. However, the grants vest immediately
upon the director's death, disability or retirement after attaining age 70, or
the effective date of a change in control of the Company. With respect to
restricted stock, dividends are paid to holders in cash on the date dividends
are actually paid to stockholders of the Company. With respect to restricted
stock units, additional restricted stock units are credited to each nonemployee
director with respect to the units included in his or her account from time to
time to reflect dividends paid to stockholders of the Company with respect to
common stock. The units have no voting or other stock ownership rights and are
payable in shares of the Company's common stock.
The board may designate that a scheduled award will consist of
nonqualified stock options to purchase shares of the Company's common stock
rather than shares of restricted stock or restricted stock units; if so, then,
in lieu of such shares of restricted stock or restricted stock units, each
nonemployee director shall be granted a nonqualified option with a market value
on the date of any such grant equal to the dollar value of the grant otherwise
scheduled to be made to such
42
ITEM 6. OFFICERS AND DIRECTORS (continued)
nonemployee director on such date. Grants of nonqualified stock options vest in
20% annual increments and become fully vested on the fifth anniversary of the
date of the grant. The grants will vest immediately upon the director's death,
disability or retirement after attaining age 70, or the effective date of a
change in control of the Company.
The Company has adopted a Directors' Charitable Gift Program for nonemployee
directors who were not previously employees of the Company. Under the program,
the Company makes a donation to one or more eligible tax-exempt organizations as
designated by each eligible director. The Company contributes up to an aggregate
of $125,000 for each nonemployee director who has served as a director of the
Company for at least five years and up to an additional $125,000 (for an overall
$250,000) for each nonemployee director who has served ten years or more.
Organizations eligible to receive a gift under the program include charitable
organizations and accredited United States institutions of higher learning.
Individual directors derive no financial benefit from the program, as all
deductions relating to the charitable donations accrue solely to the Company. A
director's private foundation is not eligible to receive donations under the
program. All current nonemployee directors who were not previously employees of
the Company are eligible to participate in the program.
43
ITEM 6. OFFICERS AND DIRECTORS (continued)
PART III (b). SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS, DIRECTORS AND
MANAGEMENT.
The following table contains information about those persons or groups
that are known to the Company to be the beneficial owners of more than five
percent of the outstanding common stock.
AMOUNT AND NATURE OF PERCENT OF CLASS
NAME AND ADDRESS OF BENEFICIAL OWNER BENEFICIAL OWNERSHIP OUTSTANDING
------------------------------------ -------------------- ----------------
T. Rowe Price Associates, Inc. 21,759,987 8.2(1)
100 East Pratt Street
Baltimore, Maryland 21202
Barclays Global Investors, NA 15,127,758 5.74(2)
45 Fremont Street
San Francisco, California 94105
Capital Research & Management Company 15,089,310 5.7(3)
333 South Hope Street, 55th Floor
Los Angeles, California 90071
----------
(1) As reported on statements made on Schedule 13G filed with the Securities and
Exchange Commission on behalf of T. Rowe Price Associates, Inc. on February
14, 2005. These securities are owned by various individual investors which
T. Rowe Price Associates, Inc. serves as investment advisor with power to
direct investment and/or sole power to vote securities. T. Rowe Price
Associates, Inc. expressly disclaims that it is, in fact, the beneficial
owner of these securities.
(2) As reported on statements made on Schedule 13G filed with the Securities and
Exchange Commission on behalf of Barclays Global Investors, NA, Barclays
Global Fund Advisors, Barclays Global Investors, LTD, Barclays Capital
Securities Limited, Palomino Limited, and other affiliated entities on
February 14, 2005.
(3) As reported on statements made on Schedule 13G filed with the Securities and
Exchange Commission on behalf of Capital Research & Management Company on
February 14, 2005.
44
ITEM 6. OFFICERS AND DIRECTORS (continued)
The following table contains information about the beneficial ownership of
the Company's common stock as of March 1, 2005, for each of the directors,
nominees and named executive officers, and for all directors and executive
officers as a group.
AMOUNT AND NATURE OF
BENEFICIAL
NAME OF BENEFICIAL OWNER OWNERSHIP(1)(2)
---------------------------------------------------------------------------------------------------------- --------------------
Stephen P. Adik........................................................................................... 595,944
Steven C. Beering......................................................................................... 11,691
Arthur J. Decio........................................................................................... 13,100
Dennis E. Foster.......................................................................................... 13,017
Steven R. McCracken....................................................................................... 0
Samuel W. Miller, Jr. .................................................................................... 132,197
Gary L. Neale............................................................................................. 2,256,129
Michael W. O'Donnell...................................................................................... 261,416
Ian M. Rolland (3)........................................................................................ 26,777
Robert C. Skaggs, Jr. .................................................................................... 161,069
John W. Thompson.......................................................................................... 16,156
Richard L. Thompson....................................................................................... 0
Robert J. Welsh........................................................................................... 16,600
Carolyn Y. Woo............................................................................................ 4,000
Roger A. Young............................................................................................ 34,831
S. LaNette Zimmerman...................................................................................... 185,024
All directors and executive officers as a group........................................................... 4,221,244
----------
(1) The number of shares owned includes shares held in the Company's Automatic
Dividend Reinvestment and Share Purchase Plan, shares held in the Company's
Retirement Savings Plan (the "401(k)"), Employee Stock Purchase Plan and
restricted shares awarded under the Company's 1994 Long-Term Incentive Plan
(the "Incentive Plan") and Nonemployee Director Stock Incentive Plan, where
applicable. The percentage of common stock owned by all directors and
executive officers as a group is approximately 1.5 percent of the common
stock outstanding as of March 1, 2005.
(2) The totals include shares for which the following individuals have a right
to acquire beneficial ownership, within 60 days after March 1, 2005, by
exercising stock options granted under the Incentive Plan: Gary L. Neale --
1,570,950 shares; Stephen P. Adik -- 420,643 shares; Samuel W. Miller, Jr.
48,883 shares; Michael W. O'Donnell -- 198,438 shares; Robert C. Skaggs, Jr.
-- 110,050; S. LaNette Zimmerman -- 133,811 shares; and all executive
officers as a group -- 2,786,122 shares.
(3) The number of shares owned by Mr. Rolland includes 9,277 shares owned by the
Ian and Miriam Rolland Foundation over which Mr. Rolland maintains
investment control, but for which Mr. Rolland disclaims beneficial
ownership.
45
ITEM 6. OFFICERS AND DIRECTORS (continued)
PART III (c) CONTRACTS AND TRANSACTIONS.
None.
PART III (d) INDEBTEDNESS.
None.
PART III (e) PARTICIPATION IN BONUS AND PROFIT SHARING ARRANGEMENT.
See Item 6 Part III (a) above.
PART III (f) DIRECTORS AND OFFICERS RIGHTS TO INDEMNITY.
Provisions for indemnification of directors and officers are included in the
Certificate of Incorporation or By-Laws in accordance with applicable laws.
46
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
PART I. EXPENDITURES FOR ANY POLITICAL PARTY, CANDIDATE FOR PUBLIC OFFICE OR
HOLDER OF SUCH OFFICE, OR ANY COMMITTEE OR AGENT THEREFORE.
Name of
Company Recipient of Beneficiary Purpose Accounts Charged Amount ($)
---------------------------------------------------------------------------------------------------------------------------------
COH Employee Political Action Fund Legal, accounting and solicitation services General and Administrative 18,351
rendered by employees for Employees Political
Action Fund registered with the Federal Election
Committee
---------------------------------------------------------------------------------------------------------------------------------
47
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS (continued)
PART II. EXPENDITURES FOR ANY CITIZENS GROUP OR PUBLIC RELATIONS COUNSEL.
Calendar Year 2004
Name of Company and Name or
Number of Recipients or Beneficiaries Purpose Accounts Charged Amount ($)
------------------------------------------------------------------------------------------------------------------------------
BSG
6 Various Chambers of Commerce Economic Development General & Administrative 11,784
NUI
8 Various Chambers of Commerce Economic Development General & Administrative 6,917
CVA
12 Various Chambers of Commerce Economic Development General & Administrative 10,665
CKY
12 Various Chamber of Commerce and Better Business Bureaus Economic Development General & Administrative 8,968
CMD
2 Various Chambers of Commerce Economic Development General & Administrative 1,650
COH
48 Various Chamber of Commerce and Better Business Bureaus Economic Development General & Administrative 40,041
CPA
32 Various Chamber of Commerce and Better Business Bureaus Economic Development General & Administrative 56,936
NIP
Greater Fort Wayne Chamber of Commerce Economic Development General & Administrative 25,500
Indiana Northeast Development Economic Development General & Administrative 13,500
12 Various Economic Development Corporations Economic Development General & Administrative 42,300
TCO
7 Various Chambers of Commerce Information and Education General & Administrative 21,806
Manchin Transition Office Information and Education General & Administrative 5,000
4 Various Business Bureaus and other associations Information and Education General & Administrative 2,503
CGT
Louisiana Association of Business and Industry Information and Education General & Administrative 3,250
Tennessee Chamber of Commerce Information and Education General & Administrative 455
KGL
2 Various Chamber of Commerce Economic Development General & Administrative 2,854
Public Relations Institute Community Support Misc. Income Deductions 2,443
Midwest Energy Association Economic Development General & Administrative 4,649
NIF
3 Various Chamber of Commerce Community Support General & Administrative 274
------------------------------------------------------------------------------------------------------------------------------
48
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
PART I. INTERCOMPANY CONTRACTS.
For the year ended December 31, 2004:
In Effect on
Serving Receiving Dec. 31
Transaction Company Company Compensation ($) Date of Contract (YES or NO)
-----------------------------------------------------------------------------------------------------------------------------------
Management & Business Services BSG NUI 2,700,366 1/1/2003 YES
Management & Business Services NUI BSG 1,348,395 1/1/2003 YES
Field Services Management NUI GSG 77,421 10/1/2003 YES
Field Services Management BSG GSG 22,869 10/1/2003 NO
Office Space Rental NUI GSG 33,627 1/1/2003 YES
Aircraft Support Personnel NIP NCS 824,031 N/A N/A
Helicopter Usage and Hanger Rental NIP NCS 48,212 N/A N/A
Intense Computer System Fees NPM NIP 29,793 N/A N/A
Office Space Rental CPM/NIP/NDC NIP/ETP 1,899,048 Various YES
Substation Services NIP PRI 21,260 N/A N/A
Odorant and Moisture Analysis Services NIP NIF/KGL 10,706 N/A N/A
Pipeline Inspection Services NIP NIT 9,233 N/A N/A
Training Services NIP KGL/COH/NCS/ 10,314 N/A
NIF/BSG N/A
Office Space - Washington, D.C (Sublease) TCO NCS 91,325 1/1/2001 YES
Office Space - O&M Agreement at Charleston, TCO NCS 2,064,336 N/A YES
Fairlakes, Other
Administrative Services TCO NCS 169,212 N/A YES
Fixed Fee Billing TCO CGT 6,803,196 1/1/2001 YES
Land Lease for Radio Towers TCO CNS/CMC 18,404 10/14/1996 YES
Repair of Tower Foundation at Rockville, MD TCO CNS/CMC 48,208 N/A YES
Installation of Tower at Foster, KY TCO CNS/CMC 10,310 N/A YES
Office Space - O&M Agreement at Charleston, WV TCO CNS/CMC 9,468 N/A YES
Operating/Administrative Services TCO CNS/CMC/CKY/COH/ 871,453 N/A
CMD/CPA/CVA YES
Project Development TCO MPL* 940,173 N/A YES
Settlement Agreement - SST Contract TCO CKY 3,750,000 1/1/2004 YES
Access of TCO's X25 Network for Telemetry Info TCO CKY/COH/CMD/ CPA/CVA 95,568 N/A YES
Operating/Administrative Services TCO CKY 54,683 N/A YES
-----------------------------------------------------------------------------------------------------------------------------------
49
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (continued)
Serving Receiving In Effect on Dec. 31
Transaction Company Company Compensation ($) Date of Contract (YES or NO)
--------------------------------------------------------------------------------------------------------------------------
Office Space Operating Agreement TCO COH 9,384 N/A YES
Lease of Operations Center in Lexington, VA TCO CVA 16,882 11/11/1996 NO
Lease of Borden Road Office in Lexington, VA TCO CVA 8,435 11/11/1996 YES
Sale of Capacity TCO CVA 110,880 11/1/1999 YES
Fixed Fee Billings for O&M Agreements TCO NCP/GSG 597,349 7/1/2003 YES
Billing for O&M Agreements TCO/NIT NCP/GSG 565,866 N/A & 5/96 YES
Billing for Building Launchers and Receivers TCO NCP 1,478,053 N/A YES
Saco River Crossing TCO GSG 765,686 N/A NO
I-95 Crossing TCO GSG 525,500 N/A YES
Replacement Rt 111 TCO GSG 4,717 N/A YES
General Equipment TCO GSG 2,146 N/A YES
Indirect Fired Heaters TCO GSG 145,074 N/A YES
Replace Rectifier TCO GSG 57,123 N/A NO
Pigging TCO GSG 3,334 N/A NO
Wireline TCO GSG 153,367 N/A NO
Magnesium Anode Drain TCO GSG 47,130 N/A NO
Replace Pipe Scarborough TCO GSG 153,674 N/A NO
Property Rt 109 - Wells TCO GSG 2,835 N/A NO
Office Space Operating Agreement CGT NCS 209,628 7/26 & 10/91 YES
Land Lease for Radio Towers CGT CNS/CMC 3,425 10/14/1996 YES
Fixed Fee Billings for O&M Agreements CGT CDW/TCO 222,492 Various YES
--------------------------------------------------------------------------------------------------------------------------
* Represents Millennium Pipeline Company, L.P. investment as listed in Item 5.
PART II. SYSTEM CONTRACTS TO PURCHASE GOODS OR SERVICES FROM ANY AFFILIATE
(OTHER THAN A SYSTEM COMPANY) OR A COMPANY IN WHICH ANY OFFICER OR DIRECTOR IS A
PARTNER OR OWN 5% OR MORE OF ANY CLASS OF EQUITY SECURITIES.
None.
PART III SYSTEM CONTRACTS WITH OTHERS ON A CONTINUING BASIS FOR MANAGEMENT,
SUPERVISORY, OR FINANCIAL ADVISORY REVIEW.
None.
50
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
PART I. BUSINESS, CAPITAL, DEBT TO EQUITY RATIO AND SERVICE CONTRACTS.
(a) Company, location and business address.
Bay State GPE, Inc. (BGP)
BGP, a Massachusetts corporation, at 300 Friberg Parkway, Westborough,
Massachusetts is an exempt wholesale generator (EWG). It owns a turbo expander
in Agawam, Massachusetts that generates electricity from a turbine engine as gas
pressure is reduced when transferred from high pressure interstate pipelines to
lower pressure local distribution pipes. BGP is a wholly owned subsidiary of Bay
State Gas Company.
Whiting Clean Energy, Inc. (WCE)
WCE, a wholly owned subsidiary of PEI Holdings, Inc., is an EWG. WCE's business
address is 801 East 86th Avenue, Merrillville, Indiana. NiSource Inc., through
Whiting Leasing LLC (WLC), owns a 525-megawatt combined-cycle cogeneration
facility located at BP's Whiting, Indiana refinery consisting of two gas-fired
combustion turbines and one steam turbine generator. WCE is responsible for the
operation and maintenance of the facility.
(b) Type and amount of capital invested.
When BGP was incorporated, Bay State Gas Company acquired all of the issued and
outstanding shares of BGP's common stock for $1,000. Bay State also transferred
ownership of the turbo expander and related facilities to BGP at its net book
value. Neither Bay State Gas Company, nor NiSource, Inc. has made any financial
guarantee to any party for BGP. Bay State Gas Company common equity investment
in BGP at December 31, 2004 was approximately $39 thousand.
PEI Holdings, Inc.'s investment in WCE consists mainly of its guarantee of WCE's
performance under the lease through its parent NiSource Inc. NiSource Inc. owns
the WCE facility and has approximately $301.5 million of long-term debt on its
balance sheet
(c) Ratio of debt to common equity and earnings of the company for the year
ended December 31, 2004.
As of December 31, 2004, BGP had no debt outstanding and for the calendar year
2004, the turbo expander did not operate and did not generate revenue. BGP had
net income of $2,106 for 2004.
WCE had $118.4 million in notes payable outstanding at December 31, 2004 to
NiSource Finance Corp. WCE had $301.5 million of debt outstanding to third
parties. The debt to equity ratio for WCE at December 31, 2004 is not meaningful
since the company's equity capitalization is effectively zero. For 2004, WCE had
a net loss of $29.6 million.
(d) Service, sales or construction contracts with system companies.
BGP currently has no service, sales or construction contracts with another
system company.
WCE purchased $37.6 million of natural gas and purchased $6.5 million of
purchased power from EnergyUSA-TPC Corp. during 2004.
51
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (continued)
PART II. ORGANIZATION CHART.
BGP is a wholly owned subsidiary of Bay State Gas Company. WCE is a wholly owned
subsidiary of PEI Holdings, Inc. Bay State Gas Company and PEI Holdings, Inc.
are wholly owned subsidiaries of NiSource, Inc. See Exhibit G for an
organization chart showing BGP and WCE in relation to the other NiSource, Inc.
system companies.
PART III AGGREGATE INVESTMENT IN EWG'S AND FOREIGN UTILITY COMPANIES.
NiSource, Inc.'s aggregate investment in BGP is approximately $39 thousand and
its investment in WCE, as discussed in Part I (b), is approximately $16.5
million. The ratio of NiSource, Inc.'s aggregate investment in BGP and WCE to
its aggregate investment in its domestic public-utility subsidiary companies is
less than 1% based on the current book values of the utility subsidiaries.
52
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
TABLE OF CONTENTS
CONSOLIDATED
CONSOLIDATED STATEMENT CONSOLIDATED
CONSOLIDATED STATEMENT OF COMMON STATEMENT OF
NAME OF COMPANY (COMPANY ABBREVIATION) BALANCE SHEET OF INCOME STOCK EQUITY CASH FLOWS
-----------------------------------------------------------------------------------------------------------------
NISOURCE INC. (NSI) F-1 F-2 F-3 F-4
Bay State Gas Company (BSG) F-1, F-1A F-2, F-2A F-3, F-3A F-4, F-4A
Subsidiaries:
Bay State GPE, Inc. (BGP) F-1A F-2A F-3A F-4A
Northern Utilities, Inc. (NUI) F-1A F-2A F-3A F-4A
Columbia Energy Group (CEG) F-1, F-1B F-2, F-2B F-3, F-3B F-4, F-4B
Subsidiaries:
Columbia Accounts Receivable Corporation (CAR) F-1B F-2B F-3B F-4B
Columbia Assurance Agency, Inc. (CAA) F-1B F-2B F-3B F-4B
Columbia Atlantic Trading Corporation (CAT) F-1B F-2B F-3B F-4B
Columbia Deep Water Services Company (CDW) F-1B F-2B F-3B F-4B
Columbia Energy Services Corporation (CES) F-1B F-2B F-3B F-4B
Columbia Gas of Kentucky, Inc. (CKY) F-1B, F-1C F-2B, F-2C F-3B, F-3C F-4B, F-4C
Subsidiary:
Central Kentucky Transmission Company (CKT) F-1C F-2C F-3C F-4C
Columbia Gas of Maryland, Inc. (CMD) F-1B F-2B F-3B F-4B
Columbia Gas of Ohio, Inc. (COH) F-1B, F-1D F-2B, F-2D F-3B, F-3D F-4B, F-4D
Subsidiary:
Columbia of Ohio Receivables Corporation (COR) F-1D F-2D F-3D F-4D
Columbia Gas of Pennsylvania, Inc. (CPA) F-1B F-2B F-3B F-4B
Columbia Gas of Virginia, Inc. (CVA) F-1B F-2B F-3B F-4B
Columbia Gas Transmission Corporation (TCO) F-1B, F-1E F-2B, F-2E F-3B, F-3E F-4B, F-4E
Subsidiary:
Columbia Hardy Corporation (CHC) F-1E F-2E F-3E F-4E
Columbia Gulf Transmission Company (CGT) F-1B F-2B F-3B F-4B
Columbia Network Services Corporation (CNS) F-1B, F-1F F-2B, F-2F F-3B, F-3F F-4B, F-4F
Subsidiary:
CNS Microwave, Inc. (CMC) F-1F F-2F F-3F F-4F
Columbia Remainder Corporation (REM) F-1B F-2B F-3B F-4B
Subsidiary:
Haverstraw Bay, LLC (HBL) * INACTIVE INACTIVE INACTIVE INACTIVE
NiSource Insurance Corporation Limited (NIC) F-1B F-2B F-3B F-4B
-----------------------------------------------------------------------------------------------------------------
* Company was inactive at December 31, 2004.
53
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
TABLE OF CONTENTS (CONTINUED)
CONSOLIDATED
CONSOLIDATED STATEMENT CONSOLIDATED
CONSOLIDATED STATEMENT OF COMMON STATEMENT OF
NAME OF COMPANY (COMPANY ABBREVIATION) BALANCE SHEET OF INCOME STOCK EQUITY CASH FLOWS
----------------------------------------------------------------------------------------------------------------
EnergyUSA, Inc. (EIN) F-1, F-1G F-2, F-2G F-3, F-3G F-4, F-4G
Subsidiaries:
EnergyUSA Commercial Energy Services, Inc. (ECE) F-1G F-2G F-3G F-4G
EnergyUSA, Inc. (MA) (EUS) F-1G F-2G F-3G F-4G
EnergyUSA-TPC Corp. (ETP) F-1G F-2G F-3G F-4G
NI Energy Services Transportation, Inc. (NST) F-1G F-2G F-3G F-4G
NI Fuel Company, Inc. (NFU) F-1G F-2G F-3G F-4G
NI-TEX, Inc. (NTX) F-1G F-2G F-3G F-4G
Granite State Gas Transmission, Inc. (GSG) F-1 F-2 F-3 F-4
IWC Resources Corporation (IWR) * F-1, F-1H F-2, F-2H F-3, F-3H F-4, F-4H
Subsidiaries:
Harbour Water Corporation (HWC) * F-1H F-2H F-3H F-4H
Indianapolis Water Company (IWC) * F-1H F-2H F-3H F-4H
Irishman's Run Acquisition Corporation (IRA) * F-1H F-2H F-3H F-4H
IWC Morgan Water Corporation (IWM) * F-1H F-2H F-3H F-4H
Liberty Water Corporation (LWC) * F-1H F-2H F-3H F-4H
The Darlington Water Works Company (DWC) * F-1H F-2H F-3H F-4H
Kokomo Gas and Fuel Company (KGL) F-1 F-2 F-3 F-4
Subsidiary:
KGF Trading Company (KGF) * INACTIVE INACTIVE INACTIVE INACTIVE
NI Energy Services, Inc. (NES) F-1, F-1I F-2, F-2I F-3, F-3I F-4, F-4I
Subsidiaries:
Crossroads Pipeline Company (NCP) F-1I F-2I F-3I F-4I
NESI Power Marketing, Inc. (NPM) * F-1I F-2I F-3I F-4I
NiSource Capital Markets, Inc. (NCM) F-1 F-2 F-3 F-4
NiSource Corporate Services Company (NCS) F-1 F-2 F-3 F-4
NiSource Development Company, Inc. (NDC) F-1, F-1J F-2, F-2J F-3, F-3J F-4, F-4J
Subsidiaries:
Cardinal Property Management, Inc. (CPM) F-1J F-2J F-3J F-4J
JOF Transportation Company (JOF) F-1J F-2J F-3J F-4J
Lake Erie Land Company (LEL) F-1J, F-1K F-2J, F-2K F-3J, F-3K F-4J, F-4K
Subsidiary:
SCC Services, Inc. (SCC) F-1K F-2K F-3K F-4K
NDC Douglas Properties, Inc. (NDP) F-1J F-2J F-3J F-4J
South Works Power Company (SWP) * F-1J F-2J F-3J F-4J
----------------------------------------------------------------------------------------------------------------
* Company was inactive at December 31, 2004.
54
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
TABLE OF CONTENTS (CONTINUED)
CONSOLIDATED
CONSOLIDATED STATEMENT CONSOLIDATED
CONSOLIDATED STATEMENT OF COMMON STATEMENT OF
NAME OF COMPANY (COMPANY ABBREVIATION) BALANCE SHEET OF INCOME STOCK EQUITY CASH FLOWS
------------------------------------------------------------------------------------------------------------
NiSource Energy Technologies, Inc. (NET) F-1 F-2 F-3 F-4
NiSource Finance Corp. (NFC) F-1 F-2 F-3 F-4
NiSource Retail Services, Inc. (NRS) F-1 F-2 F-3 F-4
Northern Indiana Fuel and Light Company, Inc. (NIF) F-1, F-1L F-2, F-2L F-3, F-3L F-4, F-4L
Subsidiary:
Northern Indiana Trading Company, Inc. (NIT) F-1L F-2L F-3L F-4L
Northern Indiana Public Service Company (NIP) F-1, F-1M F-2, F-2M F-3, F-3M F-4, F-4M
Subsidiary:
NIPSCO Receivables Corporation (NRC) F-1M F-2M F-3M F-4M
PEI Holdings, Inc. (PRI) F-1, F-1N F-2, F-2N F-3, F-3N F-4, F-4N
Subsidiaries:
Whiting Clean Energy, Inc. (WCE) F-1N F-2N F-3N F-4N
Whiting Leasing LLC (WLC) F-1N F-2N F-3N F-4N
------------------------------------------------------------------------------------------------------------
55
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1 (1 of 8)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1 F-1 F-1 Consolidating Consolidated
As of December 31, 2004 ($ in thousands) Page 3 Page 5 Page 7 Combined Entries Total
---------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * 16,194,071
Accumulated depreciation and amortization (7,247,654)
--------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 8,946,417
--------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated
depreciation 438,235
--------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 9,384,652
--------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and
assets held for sale 23,425
Consolidated affiliates -
Unconsolidated affiliates 108,140
Other investments 72,406
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 203,971
--------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 30,123
Restricted cash 56,329
Accounts receivable (less reserve) 536,744
Unbilled revenue (less reserve) 352,727
Gas inventory 452,932
Underrecovered gas and fuel costs 293,839
Materials and supplies, at average cost 70,836
Electric production fuel, at average cost 29,150
Price risk management assets 61,081
Exchange gas receivable 169,546
Regulatory assets 136,186
Prepayments and other 96,146
--------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,285,639
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets 148,282
Regulatory assets 568,459
Goodwill 3,687,183
Intangible assets 520,275
Deferred charges and other 189,521
--------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 5,113,720
--------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 16,987,982
==============================================================================================================
* Confidential treatment requested
56
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1 (2 of 8)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1 F-1 F-1 Consolidating Consolidated
As of December 31, 2004 ($ in thousands) Page 4 Page 6 Page 8 Combined Entries Total
---------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * 4,787,113
Preferred Stocks--
Series without mandatory redemption
provisions 81,114
Long-term debt, excluding amounts due within
one year 4,835,858
---------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 9,704,085
---------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 1,299,953
Short-term borrowings 307,605
Accounts payable 648,453
Dividends declared on common and
preferred stocks 1,108
Customer deposits 87,097
Taxes accrued 160,866
Interest accrued 84,102
Overrecovered gas and fuel costs 15,452
Price risk management liabilities 46,905
Exchange gas payable 325,111
Deferred revenue 31,485
Regulatory liabilities 30,215
Accrued liability for postretirement
and pension benefits 85,478
Other accruals 478,367
---------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 3,602,197
---------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities 5,472
Deferred income taxes 1,665,884
Deferred investment tax credits 78,369
Deferred credits 57,965
Deferred revenue 87,382
Accrued liability for postretirement
and pension benefits 413,004
Liabilities of discontinued operations
and liabilities held for sale -
Preferred stock liabilities with
mandatory redemption provisions 635
Regulatory liabilities 1,168,640
Other noncurrent liabilities 204,349
---------------------------------------------------------------------------------------------------------------
TOTAL OTHER 3,681,700
---------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
---------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 16,987,982
===============================================================================================================
* Confidential treatment requested
57
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1 (3 of 8)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1 Page 3
As of December 31, 2004 ($ in thousands) NSI BSG CEG EIN GSG IWR Total
--------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * 8,338,457 * * * *
Accumulated depreciation and
amortization (3,718,665)
--------------------------------------------------------------------------------------------------
NET UTILITY PLANT 4,619,792
--------------------------------------------------------------------------------------------------
Other property, at cost, less
accumulated depreciation 1,999
--------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 4,621,791
--------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and
assets held for sale 23,425
Consolidated affiliates -
Unconsolidated affiliates 41,659
Other investments 41,664
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 106,748
--------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 454,159
Restricted cash 5,416
Accounts receivable (less reserve) 274,865
Unbilled revenue (less reserve) 164,362
Gas inventory 285,758
Underrecovered gas and fuel costs 239,355
Materials and supplies, at average
cost 17,033
Electric production fuel, at average
cost -
Price risk management assets 45,717
Exchange gas receivable 131,744
Regulatory assets 87,854
Prepayments and other 73,998
--------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,780,261
--------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets 113,876
Regulatory assets 354,239
Goodwill -
Intangible assets 1,403
Deferred charges and other 142,703
--------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 612,221
--------------------------------------------------------------------------------------------------
TOTAL ASSETS 7,121,021
--------------------------------------------------------------------------------------------------
* Confidential treatment requested
58
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1 (4 of 8)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1 Page 4
As of December 31, 2004 ($ in thousands) NSI BSG CEG EIN GSG IWR Total
--------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * 2,962,805 * * * *
Preferred Stocks--
Series without mandatory redemption
provisions -
Long-term debt, excluding amounts due within one
year 1,075,924
--------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 4,038,729
--------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 281,882
Short-term borrowings 103
Accounts payable 330,115
Dividends declared on common and
preferred stocks -
Customer deposits 25,543
Taxes accrued 120,191
Interest accrued 11,405
Overrecovered gas and fuel costs 1,556
Price risk management liabilities 4,886
Exchange gas payable 323,649
Deferred revenue 23,224
Regulatory liabilities 24,513
Accrued liability for postretirement and
pension benefits 33,520
Other accruals 357,428
--------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 1,538,015
--------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 814,911
Deferred investment tax credits 25,472
Deferred credits 47,778
Deferred revenue 86,877
Accrued liability for postretirement and
pension benefits 84,534
Liabilities of discontinued operations
and liabilities held for sale -
Preferred stock liabilities with
mandatory redemption provisions -
Regulatory liabilities 368,761
Other noncurrent liabilities 115,944
--------------------------------------------------------------------------------------------------
TOTAL OTHER 1,544,277
--------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
--------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 7,121,021
--------------------------------------------------------------------------------------------------
* Confidential treatment requested
59
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1 (5 of 8)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1 Page 5
As of December 31, 2004 ($ in thousands) KGL NES NCM NCS NDC NET Total
------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 57,646 * * - * * *
Accumulated depreciation and amortization (33,940) -
------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 23,706 -
------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated
depreciation - 41,654
------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 23,706 41,654
------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets
held for sale - -
Consolidated affiliates - -
Unconsolidated affiliates 5 -
Other investments - -
------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 5 -
------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 2,894 1,995
Restricted cash - -
Accounts receivable (less reserve) 11,384 37,922
Unbilled revenue (less reserve) 3,992
Gas inventory 918 -
Underrecovered gas and fuel costs - -
Materials and supplies, at average cost 333 -
Electric production fuel, at average cost - -
Price risk management assets - -
Exchange gas receivable - -
Regulatory assets 895 -
Prepayments and other 79 1,635
------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 20,495 41,552
------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets - -
Regulatory assets - -
Goodwill 16,439
Intangible assets 159 16,487
Deferred charges and other 382 40,347
------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 16,980 56,834
------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 61,186 140,040
------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
60
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1 (6 of 8)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1 Page 6
As of December 31, 2004 ($ in thousands) KGL NES NCM NCS NDC NET Total
-----------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 41,116 * * (11,310) * * *
Preferred Stocks--
Series without mandatory redemption provisions - -
Long-term debt, excluding amounts due within one year - 21,684
-----------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 41,116 10,374
-----------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt - 2,246
Short-term borrowings - 47,586
Accounts payable 8,727 12,203
Dividends declared on common and preferred stocks - -
Customer deposits 564 -
Taxes accrued 763 (6,329)
Interest accrued 162 946
Overrecovered gas and fuel costs 937 -
Price risk management liabilities 895 -
Exchange gas payable - -
Deferred revenue - -
Regulatory liabilities - -
Accrued liability for postretirement and pension
benefits - 28,913
Other accruals 1,803 7,571
-----------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 13,851 93,136
-----------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities - -
Deferred income taxes 4,027 (5,523)
Deferred investment tax credits 393 -
Deferred credits - -
Deferred revenue - -
Accrued liability for postretirement and pension
benefits 1,378 42,053
Liabilities of discontinued operations and
liabilities held for sale - -
Preferred stock liabilities with mandatory
redemption provisions - -
Regulatory liabilities 292
-
Other noncurrent liabilities 129 -
-----------------------------------------------------------------------------------------------------------------
TOTAL OTHER 6,219 36,530
-----------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES - -
-----------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 61,186 140,040
-----------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
61
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1 (7 of 8)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1 Page 7
As of December 31, 2004 ($ in thousands) NFC NRS NIF NIP PRI Total
--------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * *
Accumulated depreciation and
amortization
--------------------------------------------------------------------------------------------------
NET UTILITY PLANT
--------------------------------------------------------------------------------------------------
Other property, at cost, less
accumulated depreciation
--------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
--------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and
assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
--------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
-------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
--------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
--------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
--------------------------------------------------------------------------------------------------
TOTAL ASSETS
--------------------------------------------------------------------------------------------------
* Confidential treatment requested
62
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1 (8 of 8)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1 Page 8
As of December 31, 2004 ($ in thousands) NFC NRS NIF NIP PRI Total
------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * *
Preferred Stocks--
Series without mandatory redemption
provisions
Long-term debt, excluding amounts due within
one year
------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and
preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and
pension benefits
Other accruals
------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and
pension benefits
Liabilities of discontinued operations
and liabilities held for sale
Preferred stock liabilities with
mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
------------------------------------------------------------------------------------------------
TOTAL OTHER
------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
------------------------------------------------------------------------------------------------
* Confidential treatment requested
63
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1A (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
BAY STATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1A
As of December 31, 2004 ($ in thousands) BSG BGP NUI Combined Entries Total
------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 769,894 * 185,495 * * *
Accumulated depreciation and
amortization (206,756) (45,794)
------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 563,138 139,701
------------------------------------------------------------------------------------------------------------
Other property, at cost, less
accumulated depreciation 74 1,737
------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 563,212 141,438
------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and
assets held for sale - -
Consolidated affiliates 117,973
-
Unconsolidated affiliates 32 2
Other investments - -
------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 118,005 2
------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 885 332
Restricted cash - 1,043
Accounts receivable (less reserve) 66,075 12,685
Unbilled revenue (less reserve) 46,574 9,443
Gas inventory 39,866 1,358
Underrecovered gas and fuel costs 40,989 4,652
Materials and supplies, at average
cost 3,641 911
Electric production fuel, at average
cost -
Price risk management assets - 307
Exchange gas receivable 10,760 20,373
Regulatory assets 15,416 1,471
Prepayments and other 3,084 627
------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 227,290 53,202
------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets - -
Regulatory assets 17,886 15,692
Goodwill - -
Intangible assets 381,323 80,191
Deferred charges and other 10,483 313
------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 409,692 96,196
------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,318,199 290,838
------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
64
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1A (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
BAY STATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1A
As of December 31, 2004 ($ in thousands) BSG BGP NUI Combined Entries Total
----------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 553,812 * 117,935 * * *
Preferred Stocks--
Series without mandatory redemption
provisions - -
Long-term debt, excluding amounts due
within one year 168,500 64,166
----------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 722,312 182,101
----------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 10,000 833
Short-term borrowings 157,592 14,307
Accounts payable 56,328 10,638
Dividends declared on common and
preferred stocks - -
Customer deposits 3,091 1,140
Taxes accrued (6,096) 24
Interest accrued 1,223 115
Overrecovered gas and fuel costs - -
Price risk management liabilities - -
Exchange gas payable - -
Deferred revenue - -
Regulatory liabilities 4,606 1,097
Accrued liability for postretirement
and pension benefits - -
Other accruals 26,058 8,943
----------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 252,802 37,097
----------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities - 51
Deferred income taxes 240,196 53,649
Deferred investment tax credits 1,866 215
Deferred credits - -
Deferred revenue - -
Accrued liability for postretirement
and pension benefits 17,201 2,268
Liabilities of discontinued operations
and liabilities held for sale - -
Preferred stock liabilities with
mandatory redemption provisions - -
Regulatory liabilities 82,923 12,467
Other noncurrent liabilities 899 2,990
----------------------------------------------------------------------------------------------------------
TOTAL OTHER 343,085 71,640
----------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES - -
----------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 1,318,199 290,838
----------------------------------------------------------------------------------------------------------
* Confidential treatment requested
65
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (1 of 8)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B F-1B F-1B Consolidating F-1B
As of December 31, 2004 ($ in thousands) Page 3 Page 5 Page 7 Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * 8,338,457
Accumulated depreciation and amortization (3,718,665)
-----------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 4,619,792
-----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 1,999
-----------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 4,621,791
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale 23,425
Consolidated affiliates -
Unconsolidated affiliates 41,659
Other investments 41,664
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 106,748
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 454,159
Restricted cash 5,416
Accounts receivable (less reserve) 274,865
Unbilled revenue (less reserve) 164,362
Gas inventory 285,758
Underrecovered gas and fuel costs 239,355
Materials and supplies, at average cost 17,033
Electric production fuel, at average cost -
Price risk management assets 45,717
Exchange gas receivable 131,744
Regulatory assets 87,854
Prepayments and other 73,998
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,780,261
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets 113,876
Regulatory assets 354,239
Goodwill -
Intangible assets 1,403
Deferred charges and other 142,703
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 612,221
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 7,121,021
-----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
66
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (2 of 8)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B F-1B F-1B Consolidating F-1B
As of December 31, 2004 ($ in thousands) Page 4 Page 6 Page 8 Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * 2,962,805
Preferred Stocks--
Series without mandatory redemption provisions -
Long-term debt, excluding amounts due within one year 1,075,924
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 4,038,729
----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 281,882
Short-term borrowings 103
Accounts payable 330,115
Dividends declared on common and preferred stocks -
Customer deposits 25,543
Taxes accrued 120,191
Interest accrued 11,405
Overrecovered gas and fuel costs 1,556
Price risk management liabilities 4,886
Exchange gas payable 323,649
Deferred revenue 23,224
Regulatory liabilities 24,513
Accrued liability for postretirement and pension benefits 33,520
Other accruals 357,428
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 1,538,015
----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 814,911
Deferred investment tax credits 25,472
Deferred credits 47,778
Deferred revenue 86,877
Accrued liability for postretirement and pension benefits 84,534
Liabilities of discontinued operations and liabilities
held for sale -
Preferred stock liabilities with mandatory redemption
provisions -
Regulatory liabilities 368,761
Other noncurrent liabilities 115,944
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 1,544,277
----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 7,121,021
----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
67
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (3 of 8)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B Page 3
As of December 31, 2004 ($ in thousands) CEG CAR CAA CAT CDW CES Total
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * * *
Accumulated depreciation and amortization
---------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
---------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
---------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
---------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill Intangible assets
Deferred charges and other
---------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS - - - - - - -
---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS - - - - - - -
---------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
68
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (4 of 8)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B Page 4
As of December 31, 2004 ($ in thousands) CEG CAR CAA CAT CDW CES Total
------------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
------------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
69
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (5 of 8)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B Page 5
As of December 31, 2004 ($ in thousands) CKY CMD COH CPA CVA TCO Total
-----------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 240,993 88,170 * 707,312 529,062 3,788,885 6,975,182
Accumulated depreciation and amortization (85,673) (26,609) (238,175) (120,942) (1,600,406) (2,645,357)
----------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 155,320 61,561 469,137 408,120 - 4,329,825
----------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated
depreciation - 1 8 - - 1,279
----------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 155,320 61,562 469,145 408,120 2,188,479 4,331,104
----------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and
assets held for sale - - - - 23,425 23,425
Consolidated affiliates - - - - - -
Unconsolidated affiliates - - - - 34,444 34,444
Other investments - - - - 7,782 7,782
----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - - - - 65,651 65,651
----------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 418 120 1,462 534 38 6,460
Restricted cash - - 662 - - 662
Accounts receivable (less reserve) 22,188 8,673 50,934 30,646 199,472 407,197
Unbilled revenue (less reserve) 15,096 4,376 50,411 29,770 - 164,197
Gas inventory 9,762 3,395 69,222 14,112 - 285,758
Underrecovered gas and fuel costs 14,421 - 67,056 1,118 - 239,355
Materials and supplies, at average cost 32 300 611 1,092 7,262 10,027
Electric production fuel, at average cost - - - - - -
Price risk management assets - - - - - -
Exchange gas receivable 379 2 33,599 6,716 62,272 121,462
Regulatory assets 877 237 5,292 316 6,396 85,743
Prepayments and other 2,102 922 2,074 2,397 47,958 79,923
----------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 65,275 18,025 281,323 86,701 323,398 1,400,784
----------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets - - - - - -
Regulatory assets 2,493 1,514 66,171 3,496 38,194 345,708
Goodwill - - - - - -
Intangible assets - - 36 45 671 1,112
Deferred charges and other 947 88 2,826 14,798 17,142 114,203
----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 3,440 1,602 69,033 18,339 56,007 461,023
----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 224,035 81,189 819,501 513,160 2,633,535 6,258,562
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
70
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (6 of 8)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B Page 6
As of December 31, 2004 ($ in thousands) CKY CMD COH CPA CVA TCO Total
----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 77,548 * 469,728 227,888 196,684 1,497,452 2,496,119
Preferred Stocks--
Series without mandatory redemption provisions - - - - - -
Long-term debt, excluding amounts due within one year 36,309 307,433 167,372 117,340 257,369 902,303
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 113,857 777,161 395,260 314,024 1,754,821 3,398,422
---------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 5,840 299 17,843 12,835 128,521 167,833
Short-term borrowings - 125,892 41,700 19,383 - 186,975
Accounts payable 24,121 208,536 84,457 43,675 37,427 405,084
Dividends declared on common and preferred stocks - - - - - -
Customer deposits 2,976 12,213 2,962 6,875 - 25,543
Taxes accrued (1,193) 46,789 (4,030) (4,820) 67,317 103,580
Interest accrued 23 996 36 106 - 1,167
Overrecovered gas and fuel costs - - - - - 1,556
Price risk management liabilities - 3,950 936 - - 4,886
Exchange gas payable 10,280 140,432 68,113 14,949 76,818 311,736
Deferred revenue - - - - - -
Regulatory liabilities 3,319 18,669 293 209 1,567 24,077
Accrued liability for postretirement and pension benefits 754 11,849 3,543 2,178 9,517 28,395
Other accruals 16,575 171,113 61,958 13,882 46,230 313,345
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 62,695 740,738 277,811 109,272 367,397 1,574,177
---------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities - - - - - -
Deferred income taxes 15,250 172,710 113,858 37,501 409,396 755,472
Deferred investment tax credits 1,118 14,352 6,785 1,782 590 25,275
Deferred credits - - - - 529 529
Deferred revenue - - - - - -
Accrued liability for postretirement and pension benefits 1,525 35,448 10,370 5,236 13,633 67,161
Liabilities of discontinued operations and liabilities
held for sale - - - - - -
Preferred stock liabilities with mandatory redemption
provisions - - - - - -
Regulatory liabilities 24,384 193,305 8,625 19,328 70,789 329,102
Other noncurrent liabilities 5,206 53,428 6,792 26,017 16,380 108,424
---------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 47,483 469,243 146,430 89,864 511,317 1,285,963
---------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES - - - - - -
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 224,035 1,987,142 819,501 513,160 2,633,535 6,258,562
---------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
71
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (7 of 8)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B Page 7
As of December 31, 2004 ($ in thousands) CGT CNS REM NIC Total
-------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 1,363,287 * * * *
Accumulated depreciation and amortization (1,070,823)
-------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 292,464
-------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation -
-------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 292,464
-------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale -
Consolidated affiliates -
Unconsolidated affiliates -
Other investments -
-------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -
-------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 10
Restricted cash -
Accounts receivable (less reserve) 55,448
Unbilled revenue (less reserve) 165
Gas inventory -
Underrecovered gas and fuel costs -
Materials and supplies, at average cost 7,006
Electric production fuel, at average cost -
Price risk management assets -
Exchange gas receivable 10,282
Regulatory assets 2,111
Prepayments and other 2,764
-------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 77,786
-------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets 8,531
Goodwill -
Intangible assets 179
Deferred charges and other 342
-------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 9,052
-------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 379,302
-------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
72
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (8 of 8)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B Page 8
As of December 31, 2004 ($ in thousands) CGT CNS REM NIC Total
----------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 175,535 * * * *
Preferred Stocks--
Series without mandatory redemption provisions -
Long-term debt, excluding amounts due within one year 58,312
----------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 233,847
----------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 9,578
Short-term borrowings -
Accounts payable 5,559
Dividends declared on common and preferred stocks -
Customer deposits -
Taxes accrued 3,369
Interest accrued 17
Overrecovered gas and fuel costs -
Price risk management liabilities -
Exchange gas payable 11,913
Deferred revenue -
Regulatory liabilities 436
Accrued liability for postretirement and pension benefits 721
Other accruals 23,966
----------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 55,559
----------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 36,118
Deferred investment tax credits 197
Deferred credits 39
Deferred revenue -
Accrued liability for postretirement and pension benefits 6,363
Liabilities of discontinued operations and liabilities held for sale -
Preferred stock liabilities with mandatory redemption provisions -
Regulatory liabilities 39,659
Other noncurrent liabilities 7,520
----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 89,896
----------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
----------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 379,302
----------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
73
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1C (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF KENTUCKY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1C
As of December 31, 2004 ($ in thousands) CKY CKT Combined Entries Total
------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 240,993 -- 240,993 -- 240,993
Accumulated depreciation and amortization (85,673) -- (85,673) -- (85,673)
------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 155,320 -- 155,320 -- 155,320
------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation -- -- -- -- 0
------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 155,320 -- 155,320 -- 155,320
------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale -- -- -- -- 0
Consolidated affiliates -- -- -- -- 0
Unconsolidated affiliates -- -- -- -- 0
Other investments -- -- -- -- 0
------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- -- -- -- 0
------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 418 -- 418 -- 418
Restricted cash -- -- -- -- 0
Accounts receivable (less reserve) 22,188 -- 22,188 -- 22,188
Unbilled revenue (less reserve) 15,096 -- 15,096 -- 15,096
Gas inventory 9,762 -- 9,762 -- 9,762
Underrecovered gas and fuel costs 14,421 -- 14,421 -- 14,421
Materials and supplies, at average cost 32 -- 32 -- 32
Electric production fuel, at average cost -- -- -- -- 0
Price risk management assets -- -- -- -- 0
Exchange gas receivable 379 -- 379 -- 379
Regulatory assets 877 -- 877 -- 877
Prepayments and other 2,102 -- 2,102 -- 2,102
------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 65,275 -- 65,275 -- 65,275
------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -- -- -- -- 0
Regulatory assets 2,493 -- 2,493 -- 2,493
Goodwill -- -- -- -- 0
Intangible assets -- -- -- -- 0
Deferred charges and other 947 -- 947 -- 947
------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 3,440 -- 3,440 -- 3,440
------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 224,035 -- 224,035 -- 224,035
------------------------------------------------------------------------------------------------------------------
Confidential treatment requested
74
f
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1C (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF KENTUCKY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1C
As of December 31, 2004 ($ in thousands) CKY CKT Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 77,548 -- 77,548 -- 77,548
Preferred Stocks--
Series without mandatory redemption provisions -- -- -- -- 0
Long-term debt, excluding amounts due within one year 36,309 -- 36,309 -- 36,309
----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 113,857 -- 113,857 -- 113,857
----------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 5,840 -- 5,840 -- 5,840
Short-term borrowings -- -- -- -- 0
Accounts payable 24,121 -- 24,121 -- 24,121
Dividends declared on common and preferred stocks -- -- -- -- 0
Customer deposits 2,976 -- 2,976 -- 2,976
Taxes accrued (1,193) -- (1,193) -- (1,193)
Interest accrued 23 -- 23 -- 23
Overrecovered gas and fuel costs -- -- -- -- 0
Price risk management liabilities -- -- -- -- 0
Exchange gas payable 10,280 -- 10,280 -- 10,280
Deferred revenue -- -- -- -- 0
Regulatory liabilities 3,319 -- 3,319 -- 3,319
Accrued liability for postretirement and pension benefits 754 -- 754 -- 754
Other accruals 16,575 -- 16,575 -- 16,575
----------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 62,695 -- 62,695 -- 62,695
----------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -- -- -- -- 0
Deferred income taxes 15,250 -- 15,250 -- 15,250
Deferred investment tax credits 1,118 -- 1,118 -- 1,118
Deferred credits -- -- -- -- 0
Deferred revenue -- -- -- -- 0
Accrued liability for postretirement and pension benefits 1,525 -- 1,525 -- 1,525
Liabilities of discontinued operations and liabilities held for sale -- -- -- -- 0
Preferred stock liabilities with mandatory redemption provisions -- -- -- -- 0
Regulatory liabilities 24,384 -- 24,384 -- 24,384
Other noncurrent liabilities 5,206 -- 5,206 -- 5,206
----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 47,483 -- 47,483 -- 47,483
----------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -- -- -- -- 0
----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 224,035 -- 224,035 -- 224,035
----------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
75
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1D (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF OHIO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1D
As of December 31, 2004 ($ in thousands) COH COR Combined Entries Total
-------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 1,620,760 * * * *
Accumulated depreciation and amortization (573,552)
-------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 1,047,208
-------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 1,270
-------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 1,048,478
-------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale --
Consolidated affiliates 25,071
Unconsolidated affiliates --
Other investments --
-------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 25,071
-------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 3,888
Restricted cash --
Accounts receivable (less reserve) 134,692
Unbilled revenue (less reserve) --
Gas inventory 189,267
Underrecovered gas and fuel costs 156,760
Materials and supplies, at average cost 730
Electric production fuel, at average cost --
Price risk management assets --
Exchange gas receivable 18,494
Regulatory assets 72,625
Prepayments and other 24,470
-------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 600,926
-------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets 233,840
Goodwill -
Intangible assets 360
Deferred charges and other 78,402
--------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 312,602
--------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,987,077
--------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
76
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1D (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF OHIO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1D
As of December 31, 2004 ($ in thousands) COH COR Combined Entries Total
---------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 469,728 * * * *
Preferred Stocks--
Series without mandatory redemption provisions -
Long-term debt, excluding amounts due within one year 307,433
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 777,161
---------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 299
Short-term borrowings 125,892
Accounts payable 208,586
Dividends declared on common and preferred stocks -
Customer deposits 12,213
Taxes accrued 46,674
Interest accrued 996
Overrecovered gas and fuel costs -
Price risk management liabilities 3,950
Exchange gas payable 140,432
Deferred revenue -
Regulatory liabilities 18,669
Accrued liability for postretirement and pension benefits 11,849
Other accruals 171,113
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 740,673
---------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 172,710
Deferred investment tax credits 14,352
Deferred credits -
Deferred revenue -
Accrued liability for postretirement and pension benefits 35,448
Liabilities of discontinued operations and liabilities
held for sale -
Preferred stock liabilities with mandatory redemption provisions -
Regulatory liabilities 193,305
Other noncurrent liabilities 53,428
---------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 469,243
---------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 1,198,077
---------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
77
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1E (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS TRANSMISSION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1E
As of December 31, 2004 ($ in thousands) TCO CHC Combined Entries Total
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 3,788,885 - 3,788,885 - 3,788,885
Accumulated depreciation and amortization (1,600,406) - (1,600,406) - (1,600,406)
------------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 2,188,479 - 2,188,479 - 2,188,479
------------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation - - - - -
------------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 2,188,479 - 2,188,479 - 2,188,479
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale 23,425 - 23,425 - 23,425
Consolidated affiliates - - - - -
Unconsolidated affiliates 34,444 - 34,444 - 34,444
Other investments 7,782 - 7,782 - 7,782
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 65,651 - 65,651 - 65,651
------------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 38 - 38 - 38
Restricted cash - - - - -
Accounts receivable (less reserve) 199,472 - 199,472 - 199,472
Unbilled revenue (less reserve) - - - - -
Gas inventory - - - - -
Underrecovered gas and fuel costs - - - - -
Materials and supplies, at average cost 7,262 - 7,262 - 7,262
Electric production fuel, at average cost - - - - -
Price risk management assets - - - - -
Exchange gas receivable 62,272 - 62,272 - 62,272
Regulatory assets 6,396 - 6,396 - 6,396
Prepayments and other 47,958 - 47,958 - 47,958
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 323,398 - 323,398 - 323,398
------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets - - - - -
Regulatory assets 38,194 - 38,194 - 38,194
Goodwill - - - - -
Intangible assets 671 - 671 - 671
Deferred charges and other 17,142 - 17,142 - 17,142
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 56,007 - 56,007 - 56,007
------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 2,633,535 - 2,633,535 - 2,633,535
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
78
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1E (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS TRANSMISSION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1E
As of December 31, 2004 ($ in thousands) TCO CHC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 1,497,452 -- 1,497,452 -- 1,497,452
Preferred Stocks--
Series without mandatory redemption provisions -- -- -- -- --
Long-term debt, excluding amounts due within one year 257,369 -- 257,369 -- 257,369
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 1,754,821 -- 1,754,821 -- 1,754,821
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 128,521 -- 128,521 -- 128,521
Short-term borrowings -- -- -- -- --
Accounts payable 37,427 -- 37,427 -- 37,427
Dividends declared on common and preferred stocks -- -- -- -- --
Customer deposits -- -- -- -- --
Taxes accrued 67,317 -- 67,317 -- 67,317
Interest accrued -- -- -- -- --
Overrecovered gas and fuel costs -- -- -- -- --
Price risk management liabilities -- -- -- -- --
Exchange gas payable 76,818 -- 76,818 -- 76,818
Deferred revenue -- -- -- -- --
Regulatory liabilities 1,567 -- 1,567 -- 1,567
Accrued liability for postretirement and pension benefits 9,517 -- 9,517 -- 9,517
Other accruals 46,230 -- 46,230 -- 46,230
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 367,397 -- 367,397 -- 367,397
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -- -- -- -- --
Deferred income taxes 409,396 -- 409,396 -- 409,396
Deferred investment tax credits 590 -- 590 -- 590
Deferred credits 529 -- 529 -- 529
Deferred revenue -- -- -- -- --
Accrued liability for postretirement and pension benefits 13,633 -- 13,633 -- 13,633
Liabilities of discontinued operations and liabilities held for sale -- -- -- -- --
Preferred stock liabilities with mandatory redemption provisions -- -- -- -- --
Regulatory liabilities 70,789 -- 70,789 -- 70,789
Other noncurrent liabilities 16,380 -- 16,380 -- 16,380
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 511,317 -- 511,317 -- 511,317
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 2,633,535 -- 2,633,535 -- 2,633,535
-----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
79
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1F (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA NETWORK SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1F
As of December 31, 2004 ($ in thousands) CNS CMC Combined Entries Total
-------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * *
Accumulated depreciation and amortization
-------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
-------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
-------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
-------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
-------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
-------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
-------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
-------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
-------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
-------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
-------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
80
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1F (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA NETWORK SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1F
As of December 31, 2004 ($ in thousands) CNS CMC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
-----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
-----------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
-----------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
81
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1G Consolidating F-1G
As of December 31, 2004 ($ in thousands) Page 3 EIN ECE Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * *
Accumulated depreciation and amortization
------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
82
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1G Consolidating F-1G
As of December 31, 2004 ($ in thousands) Page 4 EIN ECE Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
83
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1G Page 3
As of December 31, 2004 ($ in thousands) EUS ETP NST NFU NTX Total
-------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * *
Accumulated depreciation and amortization
-------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
-------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
-------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
-------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
-------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
-------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
-------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
-------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
-------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
-------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
-------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
84
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1G Page 4
As of December 31, 2004 ($ in thousands) EUS ETP NST NFU NTX Total
---------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
---------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
---------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
---------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
---------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
---------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
---------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
---------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
---------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
85
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1H (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1H Consolidating F-1H
As of December 31, 2004 ($ in thousands) Page 3 IWR HWC Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * *
Accumulated depreciation and amortization
----------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated
depreciation
----------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets
held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
86
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1H (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1H Consolidating F-1H
As of December 31, 2004 ($ in thousands) Page 4 IWR HWC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
87
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1H (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1H Page 3
As of December 31, 2004 ($ in thousands) IWC IRA IWM LWC DWC Total
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * *
Accumulated depreciation and amortization
----------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
----------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
88
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1H (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1H Page 4
As of December 31, 2004 ($ in thousands) IWC IRA IWM LWC DWC Total
-------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
-------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
-------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
-------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
-------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
-------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
-------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
-------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
89
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1I (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1I
As of December 31, 2004 ($ in thousands) NES NCP NPM Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * 37,149 * * * *
Accumulated depreciation and amortization (9,220)
------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 27,929
------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation -
------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 27,929
------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale -
Consolidated affiliates -
Unconsolidated affiliates -
Other investments -
------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -
------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents -
Restricted cash -
Accounts receivable (less reserve) 953
Unbilled revenue (less reserve) -
Gas inventory -
Underrecovered gas and fuel costs -
Materials and supplies, at average cost -
Electric production fuel, at average cost -
Price risk management assets -
Exchange gas receivable 3,293
Regulatory assets 65
Prepayments and other 17
------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 4,328
------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets -
Goodwill -
Intangible assets -
Deferred charges and other -
------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS -
------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 32,257
------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
90
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1I (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1I
As of December 31, 2004 ($ in thousands) NES NCP NPM Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * 7,660 * * * *
Preferred Stocks--
Series without mandatory redemption provisions -
Long-term debt, excluding amounts due within one year -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 7,660
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt -
Short-term borrowings 14,591
Accounts payable 2,578
Dividends declared on common and preferred stocks -
Customer deposits -
Taxes accrued 78
Interest accrued -
Overrecovered gas and fuel costs -
Price risk management liabilities -
Exchange gas payable 1,461
Deferred revenue -
Regulatory liabilities -
Accrued liability for postretirement and pension benefits -
Other accruals 17
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 18,725
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 5,400
Deferred investment tax credits -
Deferred credits -
Deferred revenue 472
Accrued liability for postretirement and pension benefits -
Liabilities of discontinued operations and liabilities held for sale -
Preferred stock liabilities with mandatory redemption provisions -
Regulatory liabilities -
Other noncurrent liabilities -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 5,872
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 32,257
-----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
91
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1J (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1J Consolidating F-1J
As of December 31, 2004 ($ in thousands) Page 3 NDC CPM Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * *
Accumulated depreciation and amortization
----------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
----------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets
----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
92
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1J (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1J Consolidating F-1J
As of December 31, 2004 ($ in thousands) Page 4 NDC CPM Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
93
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1J (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1J Page 3
As of December 31, 2004 ($ in thousands) JOF LEL NDP SWP Total
-------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * *
Accumulated depreciation and amortization
-------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
-------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
-------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
-------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
-------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
-------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
-------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
-------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
-------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
-------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
94
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1J (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1J Page 4
As of December 31, 2004 ($ in thousands) JOF LEL NDP SWP Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
95
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1K (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
LAKE ERIE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1K
As of December 31, 2004 ($ in thousands) LEL SCC Combined Entries Total
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * *
Accumulated depreciation and amortization
---------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
---------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
---------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
---------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
---------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
---------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
96
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1K (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
LAKE ERIE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1K
As of December 31, 2004 ($ in thousands) LEL SCC Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * *
Preferred Stocks--
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
------------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
97
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1L (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1L
As of December 31, 2004 ($ in thousands) NIF NIT Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 57,919 * * * *
Accumulated depreciation and amortization (24,820)
-----------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 33,099
-----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation -
-----------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 33,099
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale -
Consolidated affiliates 5,959
Unconsolidated affiliates -
Other investments -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 5,959
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 1,894
Restricted cash -
Accounts receivable (less reserve) 12,682
Unbilled revenue (less reserve) 4,436
Gas inventory 6,045
Underrecovered gas and fuel costs 1,744
Materials and supplies, at average cost 271
Electric production fuel, at average cost -
Price risk management assets -
Exchange gas receivable -
Regulatory assets 606
Prepayments and other 115
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 27,793
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets 72
Goodwill 13,307
Intangible assets 591
Deferred charges and other (1,604)
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 12,366
----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 79,217
----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
98
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1L (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1L
As of December 31, 2004 ($ in thousands) NIF NIT Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 53,362 * * * *
Preferred Stocks--
Series without mandatory redemption provisions -
Long-term debt, excluding amounts due within one year -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 53,362
------------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt -
Short-term borrowings -
Accounts payable 9,557
Dividends declared on common and preferred stocks -
Customer deposits 162
Taxes accrued 308
Interest accrued 30
Overrecovered gas and fuel costs -
Price risk management liabilities 606
Exchange gas payable -
Deferred revenue -
Regulatory liabilities -
Accrued liability for postretirement and pension benefits -
Other accruals 784
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 11,447
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes 5,955
Deferred investment tax credits 232
Deferred credits -
Deferred revenue -
Accrued liability for postretirement and pension benefits 7,870
Liabilities of discontinued operations and liabilities held for sale -
Preferred stock liabilities with mandatory redemption provisions -
Regulatory liabilities 181
Other noncurrent liabilities 170
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 14,408
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 79,217
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
99
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1M (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA PUBLIC SERVICE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1M
As of December 31, 2004 ($ in thousands) NIP NRC Combined Entries Total
-------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 6,728,814 * * * *
Accumulated depreciation and amortization (3,199,680)
-------------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT 3,529,134
-------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 2,304
-------------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT 3,531,438
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale -
Consolidated affiliates 50,884
Unconsolidated affiliates -
Other investments -
-------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 50,884
-------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 22
Restricted cash 22,410
Accounts receivable (less reserve) 119,781
Unbilled revenue (less reserve) -
Gas inventory 106,629
Underrecovered gas and fuel costs 7,099
Materials and supplies, at average cost 47,674
Electric production fuel, at average cost 29,150
Price risk management assets 214
Exchange gas receivable -
Regulatory assets 29,812
Prepayments and other 38,307
-------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 401,098
-------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets 183,748
Goodwill -
Intangible assets 31,073
Deferred charges and other 6,851
-------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 221,672
-------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 4,205,092
-------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
100
F-1M (2 of 2)
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA PUBLIC SERVICE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1M
As of December 31, 2004 ($ in thousands) NIP NRC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 1,156,193 * * * *
Preferred Stocks --
Series without mandatory redemption provisions 81,114
Long-term debt, excluding amounts due within one year 497,867
-----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION 1,735,174
-----------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 73,275
Short-term borrowings 494,897
Accounts payable 186,184
Dividends declared on common and preferred stocks 1,052
Customer deposits 56,395
Taxes accrued 55,458
Interest accrued 6,910
Overrecovered gas and fuel costs 12,959
Price risk management liabilities 13,514
Exchange gas payable -
Deferred revenue -
Regulatory liabilities -
Accrued liability for postretirement and pension 23,027
benefits
Other accruals 54,269
-----------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 977,940
-----------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 455,829
Deferred investment tax credits 50,174
Deferred credits 19,304
Deferred revenue -
Accrued liability for postretirement and pension 239,605
benefits
Liabilities of discontinued operations and
liabilities held for sale
Preferred stock liabilities with mandatory 635
redemption provisions
Regulatory liabilities 706,584
Other noncurrent liabilities 19,847
-----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 1,491,978
-----------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
-----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 4,205,092
-----------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
101
F-1N (1 of 2)
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1N
As of December 31, 2004 ($ in thousands) PRI WCE WLC Combined Entries Total
------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * *
Accumulated depreciation and amortization
------------------------------------------------------------------------------------------------------------------------
NET UTILITY PLANT
------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation
------------------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT, AND EQUIPMENT
------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Assets of discontinued operations and assets held for sale
Consolidated affiliates
Unconsolidated affiliates
Other investments
------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Accounts receivable (less reserve)
Unbilled revenue (less reserve)
Gas inventory
Underrecovered gas and fuel costs
Materials and supplies, at average cost
Electric production fuel, at average cost
Price risk management assets
Exchange gas receivable
Regulatory assets
Prepayments and other
------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets
Regulatory assets
Goodwill
Intangible assets
Deferred charges and other
------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS
------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
102
F-1N (2 of 2)
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1N
As of December 31, 2004 ($ in thousands) PRI WCE WLC Combined Entries Total
--------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * *
Preferred Stocks --
Series without mandatory redemption provisions
Long-term debt, excluding amounts due within one year
--------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION
--------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt
Short-term borrowings
Accounts payable
Dividends declared on common and preferred stocks
Customer deposits
Taxes accrued
Interest accrued
Overrecovered gas and fuel costs
Price risk management liabilities
Exchange gas payable
Deferred revenue
Regulatory liabilities
Accrued liability for postretirement and pension benefits
Other accruals
--------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES
--------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Deferred revenue
Accrued liability for postretirement and pension benefits
Liabilities of discontinued operations and liabilities held for sale
Preferred stock liabilities with mandatory redemption provisions
Regulatory liabilities
Other noncurrent liabilities
--------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER
--------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
--------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
103
F-2 (1 of 4)
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2 F-2 F-2 Consolidating F-2
Year Ended December 31, 2004 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * 3,801,783
Gas Transmission and Storage 1,013,439
Electric 1,120,990
Other 729,996
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 6,666,208
Cost of Sales 3,610,463
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 3,055,745
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 1,211,749
Depreciation and amortization 509,686
Loss (gain) on sale or impairment of assets (3,108)
Other taxes 265,398
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 1,983,725
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 1,072,020
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (403,917)
Minority interests 22
Preferred stock dividends of subsidiaries (4,381)
Other, net 7,360
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (400,916)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 671,104
Income Taxes 240,857
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 430,247
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes 6,091
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes (23)
Change in Accounting - net of tax -
Subsidiary Earnings -
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 436,315
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
104
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2 (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2 Page 2
Year Ended December 31, 2004 ($ in thousands) NSI BSG CEG EIN GSG IWR Total
------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * 2,203,235 * * * *
Gas Transmission and Storage 925,974
Electric -
Other 92,299
------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 3,221,508
Cost of Sales 1,481,045
------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 1,740,463
------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 678,788
Depreciation and amortization 169,303
Loss (gain) on sale or impairment of assets 1,211
Other taxes 175,777
------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 1,025,079
------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 715,384
------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (96,476)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 24,799
------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (71,677)
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 643,707
Income Taxes 240,046
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 403,661
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes 2,145
Gain (Loss) on Disposition of Discontinued Operations - net of taxes 1,619
Change in Accounting - net of tax -
Subsidiary Earnings -
------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 407,425
------------------------------------------------------------------------------------------------------------------------------
(a) BSG includes two subsidiaries, CEG includes fifteen subsidiaries, EIN
includes six subsidiaries and IWR includes six subsidiaries as noted in Item
1. Consolidating financial statements of BSG, CEG, EIN and IWR are presented
herewith in Exhibits F-1A through F-4A, F-1B through F-4B, F-1G through
F-4G, and F-1H through F-4H, respectively.
* Confidential treatment requested
105
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2 (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2 Page 3
Year Ended December 31, 2004 ($ in thousands) KGL NES NCM NCS NDC NET Total
----------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 42,950 * * - * * *
Gas Transmission and Storage 1,655 -
Electric - -
Other 19,447 279,799
----------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 64,052 279,799
Cost of Sales 50,742 -
----------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 13,310 279,799
----------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 5,413 260,738
Depreciation and amortization 1,745 7,163
Loss (gain) on sale or impairment of assets - -
Other taxes 1,700 9,214
----------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 8,858 277,115
----------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 4,452 2,684
----------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (30) (3,398)
Minority interests - -
Preferred stock dividends of subsidiaries - -
Other, net 111 (61)
----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) 81 (3,459)
----------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 4,533 (775)
Income Taxes 1,489 (775)
----------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 3,044 -
----------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes - -
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes - -
Change in Accounting - net of tax - -
Subsidiary Earnings - -
----------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 3,044 -
----------------------------------------------------------------------------------------------------------------------
(a) NES includes two subsidiaries and NDC includes five subsidiaries as noted in
Item 1. Consolidating financial statements of NES and NDC are presented
herewith in Exhibits F-1I through F-4I and F-1J and F-4J, respectively.
* Confidential treatment requested
106
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2 (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2 Page 4
Year Ended December 31, 2004 ($ in thousands) NFC NRS NIF NIP PRI Total
--------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * 982,828
Gas Transmission and Storage 53,946
Electric 1,140,011
Other 14,897
--------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 2,191,682
Cost of Sales 1,148,731
--------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 1,042,951
--------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 391,613
Depreciation and amortization 274,665
Loss (gain) on sale or impairment of assets (1,637)
Other taxes 62,750
--------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 727,391
--------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 315,560
--------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (269,928)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 190,052
--------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (79,876)
--------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 235,684
Income Taxes 91,804
--------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 143,880
--------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes 5,347
Gain (Loss) on Disposition of Discontinued Operations - net of taxes -
Change in Accounting - net of tax -
Subsidiary Earnings -
--------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 149,227
--------------------------------------------------------------------------------------------------------------------------
(a) NIF includes one subsidiary, NIP includes one subsidiary and PRI includes
two subsidiaries as noted in Item 1. Consolidating financial statements of
NIF, NIP and PRI are presented herewith in Exhibits F-1L through F-4L,
F-1M through F-4M and F-1N through F-4N, respectively.
* Confidential treatment requested
107
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2A (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
BAY STATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2A
Year Ended December 31, 2004 ($ in thousands) BSG BGP NUI Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 470,290 * 110,808 * * *
Gas Transmission and Storage 23,775 8,956
Electric - -
Other 20,416 2,821
------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 514,481 122,585
Cost of Sales 323,864 81,501
------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 190,617 41,084
------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 101,360 18,877
Depreciation and amortization 39,163 9,270
Loss (gain) on sale or impairment of assets - -
Other taxes 9,657 2,057
------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 150,180 30,204
------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 40,437 10,880
------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (9,533) (2,917)
Minority interests - -
Preferred stock dividends of subsidiaries - -
Other, net (173) 96
------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (9,706) (2,821)
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 30,731 8,059
Income Taxes 11,795 4,158
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 18,936 3,901
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes - -
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes - -
Change in Accounting - net of tax - -
Subsidiary Earnings 3,904 -
------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 22,840 3,901
------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
108
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
BAY STATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2B F-2B F-2B Consolidating F-2B
Year Ended December 31, 2004 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * 2,203,235
Gas Transmission and Storage 925,974
Electric -
Other 92,299
------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 3,221,508
Cost of Sales 1,481,045
------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 1,740,463
------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 678,788
Depreciation and amortization 169,303
Loss (gain) on sale or impairment of assets 1,211
Other taxes 175,777
------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 1,025,079
------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 715,384
------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (96,476)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 24,799
------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (71,677)
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 643,707
Income Taxes 240,046
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 403,661
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes 2,145
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes 1,619
Change in Accounting - net of tax -
Subsidiary Earnings -
------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 407,425
------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
109
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2B Page 2
Year Ended December 31, 2004 ($ in thousands) CEG CAR CAA CAT CDW CES Total
-----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * * *
Gas Transmission and Storage
Electric
Other
-----------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
-----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
-----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
110
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2B Page 3
Year Ended December 31, 2004 ($ in thousands) CKY CMD COH CPA CVA TCO Total
-----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 129,976 48,866 * 490,576 300,276 - 2,203,307
Gas Transmission and Storage 22,943 3,449 67,539 20,462 688,703 1,032,128
Electric - - - - - -
Other - 71 1,343 141 6,158 10,864
-----------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 152,919 52,386 559,458 320,879 694,861 3,246,299
Cost of Sales 103,600 33,176 367,464 207,551 - 1,641,167
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 49,319 19,210 191,994 113,328 694,861 1,605,132
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 26,808 8,064 96,335 42,718 241,752 625,713
Depreciation and amortization 5,094 2,553 16,703 15,923 89,287 145,618
Loss (gain) on sale or impairment of assets - - - - 1,196 1,196
Other taxes 1,986 2,122 4,573 4,415 44,384 168,929
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 33,888 12,739 117,611 63,056 376,619 941,456
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 15,431 6,471 74,383 50,272 318,242 663,676
-----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (3,394) (1,374) (14,439) (10,058) (27,350) (82,145)
Minority interests - - - - - -
Preferred stock dividends of subsidiaries - - - - - -
Other, net 1,310 167 2,343 3,228 1,984 7,370
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (2,084) (1,207) (12,096) (6,830) (25,366) (74,775)
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 13,347 5,264 62,287 43,442 292,876 588,901
Income Taxes 5,087 2,075 25,479 16,633 110,482 219,218
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 8,260 3,189 36,808 26,809 182,394 369,683
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes - - - - - -
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes - - - - - -
Change in Accounting - net of tax - - - - - -
Subsidiary Earnings - - - - - -
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 8,260 3,189 36,808 26,809 182,394 369,683
-----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
111
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2B Page 4
Year Ended December 31, 2004 ($ in thousands) CGT CNS REM NIC Total
-------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution - * * * *
Gas Transmission and Storage 124,634
Electric -
Other 2,393
-------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 127,027
Cost of Sales -
-------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 127,027
-------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 55,697
Depreciation and amortization 23,191
Loss (gain) on sale or impairment of assets -
Other taxes 7,829
--------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 86,717
--------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 40,310
--------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (5,336)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 341
-------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (4,995)
-------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 35,315
Income Taxes 13,146
-------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 22,169
-------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes -
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes -
Change in Accounting - net of tax -
Subsidiary Earnings -
-------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 22,169
-------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
112
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2C (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF KENTUCKY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2C
Year Ended December 31, 2004 ($ in thousands) CKY CKT Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 129,976 -- 129,976 -- 129,976
Gas Transmission and Storage 22,943 -- 22,943 -- 22,943
Electric -- -- -- -- --
Other -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 152,919 -- 152,919 -- 152,919
Cost of Sales 103,600 -- 103,600 -- 103,600
------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 49,319 -- 49,319 -- 49,319
------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 26,808 -- 26,808 -- 26,808
Depreciation and amortization 5,094 -- 5,094 -- 5,094
Loss (gain) on sale or impairment of assets -- -- -- -- --
Other taxes 1,986 -- 1,986 -- 1,986
------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 33,888 -- 33,888 -- 33,888
------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 15,431 -- 15,431 -- 15,431
------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (3,394) -- (3,394) -- (3,394)
Minority interests -- -- -- -- --
Preferred stock dividends of subsidiaries -- -- -- -- --
Other, net 1,310 -- 1,310 -- 1,310
------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (2,084) -- (2,084) -- (2,084)
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 13,347 -- 13,347 -- 13,347
Income Taxes 5,087 -- 5,087 -- 5,087
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 8,260 -- 8,260 -- 8,260
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes -- -- -- -- --
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes -- -- -- -- --
Change in Accounting - net of tax -- -- -- -- --
Subsidiary Earnings -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 8,260 -- 8,260 -- 8,260
------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
113
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2D (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF OHIO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2D
Year Ended December 31, 2004 ($ in thousands) COH COR Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 1,233,613 * * * *
Gas Transmission and Storage 229,032
Electric --
Other 3,151
----------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 1,465,796
Cost of Sales 929,376
----------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 536,420
----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 209,995
Depreciation and amortization 16,058
Loss (gain) on sale or impairment of assets --
Other taxes 111,449
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 337,502
----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 198,918
----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (25,129)
Minority interests --
Preferred stock dividends of subsidiaries --
Other, net (2,222)
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (27,351)
----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 171,567
Income Taxes 59,414
----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 112,153
----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes --
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes --
Change in Accounting - net of tax --
Subsidiary Earnings 70
----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 112,223
----------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
114
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2E (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS TRANSMISSION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2E
Year Ended December 31, 2004 ($ in thousands) TCO CHC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution - - - - -
Gas Transmission and Storage 688,703 - 688,703 - 688,703
Electric - - - - -
Other 6,158 - 6,158 - 6,158
-----------------------------------------------------------------------------------------------------------------
GROSS REVENUES 694,861 - 694,861 - 694,861
Cost of Sales - - - - -
-----------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 694,861 - 694,861 - 694,861
-----------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 241,752 - 241,752 - 241,752
Depreciation and amortization 89,287 - 89,287 - 89,287
Loss (gain) on sale or impairment of assets 1,196 - 1,196 - 1,196
Other taxes 44,384 - 44,384 - 44,384
-----------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 376,619 - 376,619 - 376,619
-----------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 318,242 - 318,242 - 318,242
-----------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (27,350) - (27,350) - (27,350)
Minority interests - - - - -
Preferred stock dividends of subsidiaries - - - - -
Other, net 1,984 - 1,984 - 1,984
-----------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (25,366) - (25,366) - (25,366)
-----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 292,876 - 292,876 - 292,876
Income Taxes 110,482 - 110,482 - 110,482
-----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 182,394 - 182,394 - 182,394
-----------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes - - - - -
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes - - - - -
Change in Accounting - net of tax - - - - -
Subsidiary Earnings - - - - -
-----------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 182,394 - 182,394 - 182,394
-----------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
115
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2F (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA NET WORK SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2F
Year Ended December 31, 2004 ($ in thousands) CNS CMC Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * *
Gas Transmission and Storage
Electric
Other
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations - net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
116
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2G (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2G Consolidating F-2G
Year Ended December 31, 2004($ in thousands) Page 2 EIN ECE Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * *
Gas Transmission and Storage
Electric
Other
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interest
Preferred stock dividends of subsidiaries
Other, net
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on the Disposition of Discontinued Operations - net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
117
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2G (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2G Page 2
Year Ended December 31, 2004 ($ in thousands) EUS ETP NST NFU NTX Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * *
Gas Transmission and Storage
Electric
Other
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations - net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
118
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2H (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2H Consolidating F-2H
Year Ended December 31, 2004 ($ in thousands) Page 2 IWR HWC Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * *
Gas Transmission and Storage
Electric
Other
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations - net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
119
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2H (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2H Page 2
Year Ended December 31, 2004 ($ in thousands) IWC IRA IWM LWC DWC Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * *
Gas Transmission and Storage
Electric
Other
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations - net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
120
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2I (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2I
Year Ended December 31, 2004 ($ in thousands) NES NCP NPM Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * - * * * *
Gas Transmission and Storage 5,469
Electric -
Other 8
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 5,477
Cost of Sales -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 5,477
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 1,821
Depreciation and amortization 858
Loss (gain) on sale or impairment of assets -
Other taxes (152)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 2,527
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 2,950
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (291)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 32
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (259)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 2,691
Income Taxes 1,032
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1,659
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes -
Gain (Loss) on Disposition of Discontinued Operations - net of taxes -
Change in Accounting - net of tax -
Subsidiary Earnings -
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 1,659
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
121
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2J (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2H Consolidating F-2J
Year Ended December 31, 2004 ($ in thousands) Page 2 NDC CPM Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * *
Gas Transmission and Storage
Electric
Other
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING
OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations - net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
122
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2J (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2J Page 2
Year Ended December 31, 2004 ($ in thousands) JOF LEL NDP SWP Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * *
Gas Transmission and Storage
Electric
Other
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations - net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
123
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2K (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
LAKE ERIE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2K
Year Ended December 31, 2004 ($ in thousands) LEL SCC Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * *
Gas Transmission and Storage
Electric
Other
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
*Confidential treatment requested
124
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2L (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2L
Year Ended December 31, 2004 ($ in thousands) NIF NIT Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 60,170 * * * *
Gas Transmission and Storage 898
Electric -
Other -
------------------------------------------------------------------------------------------------------------------------------------
GROSS REVENUES 61,068
Cost of Sales 47,259
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 13,809
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 6,956
Depreciation and amortization 1,538
Loss (gain) on sale or impairment of assets -
Other taxes 936
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 9,430
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 4,379
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (29)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 241
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) 212
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 4,591
Income Taxes 1,041
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 3,550
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes -
Gain (Loss) on Disposition of Discontinued Operations - net of taxes -
Change in Accounting - net of tax -
Subsidiary Earnings 361
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 3,911
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
125
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2M (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA PUBLIC SERVICE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2M
Year Ended December 31, 2004 ($ in thousands) NIP NRC Combined Entries Total
-------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 908,648 * * * *
Gas Transmission and Storage 50,654
Electric 1,107,548
Other 5,102
-------------------------------------------------------------------------------------------------------------
GROSS REVENUES 2,071,952
Cost of Sales 1,041,824
-------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 1,030,128
-------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 365,687
Depreciation and amortization 264,482
Loss (gain) on sale or impairment of assets (1,637)
Other taxes 59,953
-------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 688,485
-------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 341,643
-------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (43,649)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net (5,033)
-------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS) (48,682)
-------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 292,961
Income Taxes 115,872
-------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 177,089
-------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes -
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes -
Change in Accounting - net of tax -
Subsidiary Earnings 493
-------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 177,582
-------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
126
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2N (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2N
Year Ended December 31, 2004 ($ in thousands) PRI WCE WLC Combined Entries Total
--------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * *
Gas Transmission and Storage
Electric
Other
--------------------------------------------------------------------------------------------------------
GROSS REVENUES
Cost of Sales
--------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES
--------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance
Depreciation and amortization
Loss (gain) on sale or impairment of assets
Other taxes
--------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
--------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)
--------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net
Minority interests
Preferred stock dividends of subsidiaries
Other, net
--------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (DEDUCTIONS)
--------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING
Income Taxes
--------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
--------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes
Gain (Loss) on Disposition of Discontinued Operations -
net of taxes
Change in Accounting - net of tax
Subsidiary Earnings
--------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)
--------------------------------------------------------------------------------------------------------
* Confidential treatment requested
127
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3 (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3 F-3 F-3 Consolidating F-3
Year Ended December 31, 2004 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * 2,631
Common stock issuance 74
Long-term incentive plan stock issuance 8
Employee stock purchase plan stock issuance -
Common stock retired -
------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 2,713
------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 3,747,016
Common stock issuance 144,322
Long-term incentive plan stock issuance 735
Employee stock purchase plan stock issuance 23,027
Recapitalization -
Capital contributions 5,285
Treasury stock acquired (4,146)
------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 3,916,239
------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 731,313
Net income (loss) 436,315
Cash dividends -
NI (242,341)
Subsidiaries (to parent) -
Other 94
------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 925,381
------------------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year (4,164)
Long-term Incentive Plan (2,960)
Amortization of Unearned Compensation 1,332
------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR (5,792)
------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year (60,916)
Other Comprehensive Income, net of tax
Unrealized 1,541
Realized -
Gain/Loss on foreign currency translation
Unrealized 643
Net unrealized gains on derivatives qualifying
as cash flow hedges 2,154
Minimum pension liability adjustment 5,150
------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR (51,428)
------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 4,787,113
------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
128
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3 (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3 Page 2
Year Ended December 31, 2004 ($ in thousands) NSI BSG CEG EIN GSG IWR Total
---------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * - * * * *
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Common stock retired -
---------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
---------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 1,398,733
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Recapitalization -
Capital contributions 20,822
Treasury stock acquired -
---------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 1,419,555
---------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 1,081,846
Net income (loss) 407,425
Cash dividends -
NI -
Subsidiaries (to parent) (50,000)
Other -
---------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 1,439,271
---------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year -
Long-term Incentive Plan -
Amortization of Unearned Compensation -
---------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
---------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year 87,996
Other Comprehensive Income, net of tax
Unrealized 246
Realized -
Gain/Loss on foreign currency translation
Unrealized -
Net unrealized gains on derivatives qualifying
as cash flow hedges 15,737
Minimum pension liability adjustment -
---------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 103,979
---------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 2,962,805
---------------------------------------------------------------------------------------------------
* Confidential treatment requested
129
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3 (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3 Page 3
Year Ended December 31, 2004 ($ in thousands) KGL NES NCM NCS NDC NET Total
------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 46,170 * * 400 * * *
Common stock issuance - -
Long-term incentive plan stock issuance - -
Employee stock purchase plan stock issuance - -
Common stock retired - -
------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 46,170 400
------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 367 -
Common stock issuance - -
Long-term incentive plan stock issuance - -
Employee stock purchase plan stock issuance - -
Recapitalization -
Capital contributions 62 -
Treasury stock acquired - -
------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 429 -
------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year (8,569) -
Net income (loss) 3,044 -
Cash dividends -
NI - -
Subsidiaries (to parent) - -
Other - -
------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR (5,525) -
------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year - -
Long-term Incentive Plan - -
Amortization of Unearned Compensation - -
------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR - -
------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year (169) (10,319)
Other Comprehensive Income, net of tax
Unrealized - -
Realized - -
Gain/Loss on foreign currency translation
Unrealized - -
Net unrealized gains on derivatives qualifying
as cash flow hedges - -
Minimum pension liability adjustment 211 (1,391)
------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 42 (11,710)
------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 41,116 (11,310)
------------------------------------------------------------------------------------------------------
* Confidential treatment requested
130
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3 (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants
F-3 Page 4
Year Ended December 31, 2004 ($ in thousands) NFC NRS NIF NIP PRI Total
-----------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
-----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
-----------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury stock acquired
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
-----------------------------------------------------------------------------------------------
* Confidential treatment requested
131
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3A (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
BAY STATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3A
Year Ended December 31, 2004 ($ in thousands) BSG BGP NUI Combined Entries Total
----------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year - * 1 * * *
Common stock issuance - -
Long-term incentive plan stock issuance - -
Employee stock purchase plan stock issuance - -
Common stock retired - -
----------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR - 1
----------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 526,642 109,136
Common stock issuance - -
Long-term incentive plan stock issuance - -
Employee stock purchase plan stock issuance - -
Recapitalization -
Capital contributions 2 2
Treasury stock acquired - -
----------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 526,644 109,138
----------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 16,863 7,485
Net income (loss) 22,840 3,901
Cash dividends -
NI - -
Subsidiaries (to parent) - (1,230)
Other - -
----------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 39,703 10,156
----------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year - -
Long-term Incentive Plan - -
Amortization of Unearned Compensation - -
----------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR - -
----------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year (14,290) (1,687)
Other Comprehensive Income, net of tax
Unrealized - -
Realized - -
Gain/Loss on foreign currency translation
Unrealized - -
Net unrealized gains on derivatives qualifying
as cash flow hedges - -
Minimum pension liability adjustment 1,755 327
----------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR (12,535) (1,360)
----------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 553,812 117,935
----------------------------------------------------------------------------------------------------------
* Confidential treatment requested
132
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3B F-3B F-3B Consolidating F-3B
Year Ended December 31, 2004 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
--------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * -
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Common stock retired -
--------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
--------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 1,398,733
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Recapitalization -
Capital contributions 20,822
Treasury stock acquired -
--------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 1,419,555
--------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 1,081,846
Net income (loss) 407,425
Cash dividends -
NI -
Subsidiaries (to parent) (50,000)
Other -
--------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 1,439,271
--------------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year -
Long-term Incentive Plan -
Amortization of Unearned Compensation -
--------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
--------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year 87,996
Other Comprehensive Income, net of tax
Unrealized 246
Realized -
Gain/Loss on foreign currency translation
Unrealized -
Net unrealized gains on derivatives qualifying
as cash flow hedges 15,737
Minimum pension liability adjustment -
--------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 103,979
--------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 2,962,805
--------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
133
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3B Page 2
Year Ended December 31, 2004 ($ in thousands) CEG CAR CAA CAT CDW CES Total
---------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
---------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury stock acquired
---------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
---------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
---------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
---------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
---------------------------------------------------------------------------------------------
* Confidential treatment requested
134
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3B Page 3
Year Ended December 31, 2004 ($ in thousands) CKY CMD COH CPA CVA TCO Total
----------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 23,806 72 * 45,128 65,305 48 293,599
Common stock issuance - - - - - -
Long-term incentive plan stock issuance - - - - - -
Employee stock purchase plan stock issuance - - - - - -
Common stock retired - - - - - -
----------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 23,806 72 45,128 65,305 48 293,599
----------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 4,151 11,189 5,301 6,640 1,565,706 1,610,123
Common stock issuance - - - - - -
Long-term incentive plan stock issuance - - - - - -
Employee stock purchase plan stock issuance - - - - - -
Recapitalization -
Capital contributions 533 270 917 441 5,840 13,666
Treasury stock acquired - - - - - -
----------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 4,684 11,459 6,218 7,081 1,571,546 1,623,789
----------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 49,798 17,749 158,234 118,296 (256,536) 362,689
Net income (loss) 8,260 3,189 36,808 26,809 182,394 369,683
Cash dividends -
NI - - - - - -
Subsidiaries (to parent) (9,000) (5,650) (18,500) (20,805) - (153,639)
Other - - - - - -
----------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 49,058 15,288 176,542 124,300 (74,142) 578,733
----------------------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year - - - - - -
Long-term Incentive Plan - - - - - -
Amortization of Unearned Compensation - - - - - -
----------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR - - - - - -
----------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year - - - - - -
Other Comprehensive Income, net of tax
Unrealized - - - - - -
Realized - - - - - -
Gain/Loss on foreign currency translation
Unrealized - - - - - -
Net unrealized gains on derivatives qualifying
as cash flow hedges - - - - - -
Minimum pension liability adjustment - - - (2) - (2)
----------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR - - - (2) - (2)
----------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 77,548 26,819 227,888 196,684 1,497,452 2,496,119
----------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
135
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3B Page 4
Year Ended December 31, 2004 ($ in thousands) CGT CNS REM NIC Total
---------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 20 * * * *
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Common stock retired -
---------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 20
---------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 95,293
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Recapitalization -
Capital contributions 1,708
Treasury stock acquired -
---------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 97,001
---------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 56,345
Net income (loss) 22,169
Cash dividends -
NI -
Subsidiaries (to parent) -
Other -
---------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 78,514
---------------------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year -
Long-term Incentive Plan -
Amortization of Unearned Compensation -
---------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
---------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year -
Other Comprehensive Income, net of tax
Unrealized -
Realized -
Gain/Loss on foreign currency translation
Unrealized -
Net unrealized gains on derivatives qualifying
as cash flow hedges -
Minimum pension liability adjustment -
---------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
---------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 175,535
---------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
136
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3C (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3C
Year Ended December 31, 2004 ($ in thousands) CKY CKT Combined Entries Total
--------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 23,806 -- 23,806 -- 23,806
Common stock issuance -- -- -- -- --
Long-term incentive plan stock issuance -- -- -- -- --
Employee stock purchase plan stock issuance -- -- -- -- --
Common stock retired -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 23,806 -- 23,806 -- 23,806
--------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 4,151 -- 4,151 -- 4,151
Common stock issuance -- -- -- -- --
Long-term incentive plan stock issuance -- -- -- -- --
Employee stock purchase plan stock issuance -- -- -- -- --
Recapitalization -
Capital contributions 533 -- 533 -- 533
Treasury shares acquired -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 4,684 -- 4,684 -- 4,684
--------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 49,798 -- 49,798 -- 49,798
Net income (loss) 8,260 -- 8,260 -- 8,260
Cash dividends -
NI -- -- -- -- --
Subsidiaries (to parent) (9,000) -- (9,000) -- (9,000)
Other -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 49,058 -- 49,058 -- 49,058
--------------------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year -- -- -- -- --
Long-term Incentive Plan -- -- -- -- --
Amortization of Unearned Compensation -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year -- -- -- -- --
Other Comprehensive Income, net of tax
Unrealized -- -- -- -- --
Realized -- -- -- -- --
Gain/Loss on foreign currency translation
Unrealized -- -- -- -- --
Net unrealized gains on derivatives qualifying
as cash flow hedges -- -- -- -- --
Minimum pension liability adjustment -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 77,548 -- 77,548 -- 77,548
--------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
137
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3D (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF OHIO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3D
Year Ended December 31, 2004 ($ in thousands) COH COR Combined Entries Total
------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 159,240 * * * *
Common stock issuance --
Long-term incentive plan stock issuance --
Employee stock purchase plan stock issuance --
Common stock retired --
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 159,240
------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 17,136
Common stock issuance --
Long-term incentive plan stock issuance --
Employee stock purchase plan stock issuance --
Recapitalization -
Capital contributions 5,665
Treasury shares acquired --
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 22,801
------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 275,148
Net income (loss) 112,223
Cash dividends -
NI --
Subsidiaries (to parent)` (99,684)
Other --
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 287,687
------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year --
Long-term Incentive Plan --
Amortization of Unearned Compensation --
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR --
------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year --
Other Comprehensive Income, net of tax
Unrealized --
Realized --
Gain/Loss on foreign currency translation
Unrealized --
Net unrealized gains on derivatives qualifying
as cash flow hedges --
Minimum pension liability adjustment --
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR --
------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 469,728
------------------------------------------------------------------------------------------
* Confidential treatment requested
138
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3E (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS TRANSMISSION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3E
Year Ended December 31, 2004 ($ in thousands) TCO CHC Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 48 - 48 - 48
Common stock issuance - - - - -
Long-term incentive plan stock issuance - - - - -
Employee stock purchase plan stock issuance - - - - -
Common stock retired - - - - -
------------------------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 48 - 48 - 48
------------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 1,565,706 - 1,565,706 - 1,565,706
Common stock issuance - - - - -
Long-term incentive plan stock issuance - - - - -
Employee stock purchase plan stock issuance - - - - -
Recapitalization -
Capital contributions 5,840 - 5,840 - 5,840
Treasury shares acquired - - - - -
------------------------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 1,571,546 - 1,571,546 - 1,571,546
------------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year (256,536) - (256,536) - (256,536)
Net income (loss) 182,394 - 182,394 - 182,394
Cash dividends -
NI - - - - -
Subsidiaries (to parent) - - - - -
Other - - - - -
------------------------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR (74,142) - (74,142) - (74,142)
------------------------------------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year - - - - -
Long-term Incentive Plan - - - - -
Amortization of Unearned Compensation - - - - -
------------------------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR - - - - -
------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year - - - - -
Other Comprehensive Income, net of tax
Unrealized - - - - -
Realized - - - - -
Gain/Loss on foreign currency translation
Unrealized - - - - -
Net unrealized gains on derivatives qualifying
as cash flow hedges - - - - -
Minimum pension liability adjustment - - - - -
------------------------------------------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR - - - - -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 1,497,452 - 1,497,452 - 1,497,452
------------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
139
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3F (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA NETWORK SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3F
Year Ended December 31, 2004 ($ in thousands) CNS CMC Combined Entries Total
------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury shares acquired
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
------------------------------------------------------------------------------------------
* Confidential treatment requested
140
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3G (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3G Consolidating F-3G
Year Ended December 31, 2004 ($ in thousands) Page 2 EIN ECE Combined Entries Total
--------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury stock acquired
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
--------------------------------------------------------------------------------------------------
* Confidential treatment requested
141
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3G (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3G
Page 2
Year Ended December 31, 2004 ($ in thousands) EUS ETP NST NFU NTX Total
---------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury stock acquired
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
----------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
----------------------------------------------------------------------------------
* Confidential treatment requested
142
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3H (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3H Consolidating F-3H
Year Ended December 31, 2004 ($ in thousands) Page 2 IWR HWC Combined Entries Total
--------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Treasury stock acquired
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury shares acquired
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
--------------------------------------------------------------------------------------------------
* Confidential treatment requested
143
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3H (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3H
Page 2
Year Ended December 31, 2004 ($ in thousands) IWC IRA IWM LWC DWC Total
---------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Treasury stock acquired
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury shares acquired
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
---------------------------------------------------------------------------------
* Confidential treatment requested
144
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3I (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3I
Year Ended December 31, 2004 ($ in thousands) NES NCP NPM Combined Entries Total
--------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * 1 * * * *
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Common stock retired -
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 1
--------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 15,000
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Recapitalization -
Capital contributions -
Treasury stock acquired -
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 15,000
--------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss) (9,000)
Cash dividends 1,659
NI -
Subsidiaries (to parent) -
Other -
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR (7,341)
--------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year -
Long-term Incentive Plan -
Amortization of Unearned Compensation -
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
--------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME -
Balance at beginning of year -
Other Comprehensive Income, net of tax
Unrealized -
Realized -
Gain/Loss on foreign currency translation
Unrealized -
Net unrealized gains on derivatives qualifying
as cash flow hedges -
Minimum pension liability adjustment -
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
--------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 7,660
--------------------------------------------------------------------------------------------------
* Confidential treatment requested
145
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3J (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3J Consolidating F-3J
Year Ended December 31, 2004 ($ in thousands) Page 2 NDC CPM Combined Entries Total
--------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury stock acquired
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
--------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
--------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
--------------------------------------------------------------------------------------------------
* Confidential treatment requested
146
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3J (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3J Page 2
Year Ended December 31, 2004 ($ in thousands) JOF LEL NDP SWP Total
---------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury shares acquired
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
---------------------------------------------------------------------------------
BALANCE AT END OF YEAR
---------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
---------------------------------------------------------------------------------
* Confidential treatment requested
147
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3K (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
LAKE ERIE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3K
Year Ended December 31, 2004 ($ in thousands) LEL SCC Combined Entries Total
------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury shares acquired
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
------------------------------------------------------------------------------------------
* Confidential treatment requested
148
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3L (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3L
Year Ended December 31, 2004 ($ in thousands) NIF NIT Combined Entries Total
----------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 30,674 * * * *
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Common stock retired -
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 30,674
----------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 335
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Recapitalization -
Capital contributions 145
Treasury stock acquired -
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 480
----------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 18,742
Net income (loss) 3,911
Cash dividends -
NI -
Subsidiaries (to parent) -
Other -
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 22,653
----------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year -
Long-term Incentive Plan -
Amortization of Unearned Compensation -
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
----------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year (319)
Other Comprehensive Income, net of tax
Unrealized -
Realized -
Gain/Loss on foreign currency translation
Unrealized -
Net unrealized gains on derivatives qualifying
as cash flow hedges -
Minimum pension liability adjustment (126)
----------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR (445)
----------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 53,362
----------------------------------------------------------------------------------------------
* Confidential treatment requested
149
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3M (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA PUBLIC SERVICE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3M
Year Ended December 31, 2004 ($ in thousands) NIP NRC Combined Entries Total
-----------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 859,488 * * * *
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Common stock retired -
-----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 859,488
-----------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 50,290
Common stock issuance -
Long-term incentive plan stock issuance -
Employee stock purchase plan stock issuance -
Recapitalization -
Capital contributions 12,660
Treasury stock acquired -
-----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 62,950
-----------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 183,729
Net income (loss) 177,582
Cash dividends -
NI -
Subsidiaries (to parent) (4,380)
Other -
-----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR 356,931
-----------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year -
Long-term Incentive Plan -
Amortization of Unearned Compensation -
-----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR -
-----------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year (121,762)
Other Comprehensive Income, net of tax
Unrealized -
Realized -
Gain/Loss on foreign currency translation
Unrealized -
Net unrealized gains on derivatives qualifying
as cash flow hedges (6,229)
Minimum pension liability adjustment 4,815
-----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR (123,176)
-----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 1,156,193
=====================================================================================================
* Confidential treatment requested
150
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3N (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-3N
Year Ended December 31, 2004($ in thousands) PRI WCE WLC Combined Entries Total
----------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Common stock retired
----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issuance
Long-term incentive plan stock issuance
Employee stock purchase plan stock issuance
Recapitalization -
Capital contributions
Treasury stock acquired
----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year
Net income (loss)
Cash dividends -
NI
Subsidiaries (to parent)
Other
----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year
Long-term Incentive Plan
Amortization of Unearned Compensation
----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year
Other Comprehensive Income, net of tax
Unrealized
Realized
Gain/Loss on foreign currency translation
Unrealized
Net unrealized gains on derivatives qualifying
as cash flow hedges
Minimum pension liability adjustment
----------------------------------------------------------------------------------------------------
BALANCE AT END OF YEAR
----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY
----------------------------------------------------------------------------------------------------
*Confidential treatment requested
151
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4 (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4 F-4 F-4 Consolidating F-4
Year Ended December 31, 2004 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
---------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * 436,315
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 509,686
Net changes in price risk management activities 16,346
Deferred income taxes and investment tax credits 97,459
Deferred revenue (22,305)
Amortization of unearned compensation 8,013
Loss (Gain) on sale of assets (3,109)
Loss (Income) from change in accounting -
Earnings in subsidiaries -
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates (887)
Loss (Gain) on sale of discontinued assets 23
Loss (Income) from discontinued operations (6,091)
Amortization of discount/premium on debt 21,571
Other (2,339)
Changes in assets/liabilities:
Restricted cash (33,550)
Accounts receivable and unbilled revenue (91,957)
Inventories (23,088)
Accounts payable 153,253
Customer deposits 6,729
Taxes accrued (57,820)
Interest accrued 1,659
(Under) Overrecovered gas and fuel costs (104,337)
Exchange gas receivable/payable 93,322
Prepayments and other current assets 4,241
Other accruals 11,396
Regulatory assets/liabilities 18,579
Postretirement and postemployment benefits 35,387
Deferred credits (14,343)
Deferred charges and other noncurrent assets (36,251)
Other noncurrent liabilities 2,655
---------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 1,020,557
NET CASH FROM DISCONTINUED OPERATIONS 2,200
---------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 1,022,757
---------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (516,973)
Proceeds from disposition of assets 7,064
Other investing activities (9,155)
---------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (519,064)
---------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 450,002
Retirement of long-term debt (486,551)
Change in short-term debt (377,895)
Change in intercompany notes receivable -
Change in intercompany notes payable -
Retirement of preferred shares -
Issuance of common stock and capital contributed 160,787
Acquisition of treasury stock (4,146)
Dividends paid - common shares (243,051)
---------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (500,854)
---------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,839
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 27,284
---------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 30,123
---------------------------------------------------------------------------------------------------------------------
*Confidential treatment requested
152
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4 (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4 Page 2
Year Ended December 31, 2004 ($ in thousands) NSI BSG CEG EIN GSG IWR Total
-------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * 407,425 * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 169,303
Net changes in price risk management activities (7,680)
Deferred income taxes and investment tax credits 109,808
Deferred revenue (22,366)
Amortization of unearned compensation 636
Loss (Gain) on sale of assets 1,211
Loss (Income) from change in accounting -
Earnings in subsidiaries -
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates (4)
Loss (Gain) on sale of discontinued assets (1,619)
Loss (Income) from discontinued operations (2,145)
Amortization of discount/premium on debt 32
Other (1,488)
Changes in assets/liabilities:
Restricted cash (1,808)
Accounts receivable and unbilled revenue 1,274
Inventories (34,273)
Accounts payable 85,641
Customer deposits 1,336
Taxes accrued (13,475)
Interest accrued (2,224)
(Under) Overrecovered gas and fuel costs (76,376)
Exchange gas receivable/payable 101,775
Prepayments and other current assets 440
Other accruals 1,833
Regulatory assets/liabilities 17,879
Postretirement and postemployment benefits (7,546)
Deferred credits (1,313)
Deferred charges and other noncurrent assets (29,841)
Other noncurrent liabilities 401
-------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 696,836
NET CASH FROM DISCONTINUED OPERATIONS -
-------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 696,836
-------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (254,116)
Proceeds from disposition of assets 3,449
Other investing activities (11,586)
-------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (262,253)
-------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 2
Retirement of long-term debt (21)
Change in short-term debt 105
Change in intercompany notes receivable (38)
Change in intercompany notes payable (335)
Retirement of preferred shares -
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares (50,019)
-------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (50,306)
-------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 384,277
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 69,882
-------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 454,159
-------------------------------------------------------------------------------------------------------------------
*Confidential treatment requested
153
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4 (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4 Page 3
Year Ended December 31, 2004 ($ in thousands) KGL NES NCM NCS NDC NET Total
--------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 3,044 * * - * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 1,745 7,163
Net changes in price risk management activities 895 -
Deferred income taxes and investment tax credits (144) (212)
Deferred revenue - -
Amortization of unearned compensation - 6,214
Loss (Gain) on sale of assets - -
Loss (Income) from change in accounting - -
Earnings in subsidiaries - -
Dividends received from subsidiaries - -
Loss (Income) from unconsolidated affiliates - -
Loss (Gain) on sale of discontinued assets - -
Loss (Income) from discontinued operations - -
Amortization of discount/premium on debt - -
Other - -
Changes in assets/liabilities:
Restricted cash - -
Accounts receivable and unbilled revenue (1,655) 10,473
Inventories (183) -
Accounts payable 2,715 (8,800)
Customer deposits 62 -
Taxes accrued 1,493 (5,145)
Interest accrued 12 -
(Under) Overrecovered gas and fuel costs 1,337 -
Exchange gas receivable/payable - -
Prepayments and other current assets (4) 1,101
Other accruals 182 (12,407)
Regulatory assets/liabilities (1,698) -
Postretirement and postemployment benefits 431 13,682
Deferred credits - -
Deferred charges and other noncurrent assets (193) (10,873)
Other noncurrent liabilities (145) (4,831)
--------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 7,894 (3,635)
NET CASH FROM DISCONTINUED OPERATIONS - -
--------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 7,894 (3,635)
--------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (1,942) (8,286)
Proceeds from disposition of assets - -
Other investing activities - -
--------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (1,942) (8,286)
--------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt - -
Retirement of long-term debt - -
Change in short-term debt - -
Change in intercompany notes receivable (3,554) -
Change in intercompany notes payable - 12,366
Retirement of preferred shares - -
Issuance of common stock and capital contributed - -
Acquisition of treasury stock - -
Dividends paid - common shares - (665)
--------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (3,554) 11,701
--------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,398 (220)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 496 2,215
--------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,894 1,995
--------------------------------------------------------------------------------------------------------------------------
*Confidential treatment requested
154
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4 (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4 Page 4
Year Ended December 31, 2004 ($ in thousands) NFC NRS NIF NIP PRI Total
---------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
---------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
---------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
---------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
---------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
---------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
---------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
---------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
---------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
---------------------------------------------------------------------------------------------------------
*Confidential treatment requested
155
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4A (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
BAY STATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4A
Year Ended December 31, 2004 ($ in thousands) BSG BGP NUI Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 22,840 * 3,901 * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 39,163 9,270
Net changes in price risk management activities - -
Deferred income taxes and investment tax credits 233 (463)
Deferred revenue (495) -
Amortization of unearned compensation 20 -
Loss (Gain) on sale of assets - -
Loss (Income) from change in accounting - -
Earnings in subsidiaries (3,903) -
Dividends received from subsidiaries 1,230 -
Loss (Income) from unconsolidated affiliates - -
Loss (Gain) on sale of discontinued assets - -
Loss (Income) from discontinued operations - -
Amortization of discount/premium on debt 952 73
Other (45) (13)
Changes in assets/liabilities:
Restricted cash - (237)
Accounts receivable and unbilled revenue (24,986) 1,045
Inventories (7,359) (350)
Accounts payable 13,779 450
Customer deposits (103) 174
Taxes accrued (17,015) (1,197)
Interest accrued (322) (19)
(Under) Overrecovered gas and fuel costs (11,751) 1,310
Exchange gas receivable/payable (2,368) (872)
Prepayments and other current assets 77 (284)
Other accruals 2,239 4,181
Regulatory assets/liabilities (5,715) 1,086
Postretirement and postemployment benefits 3,079 154
Deferred credits - -
Deferred charges and other noncurrent assets 4,036 (971)
Other noncurrent liabilities (1,764) (3,074)
-----------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 11,822 14,164
NET CASH FROM DISCONTINUED OPERATIONS - -
-----------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 11,822 14,164
-----------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (37,407) (9,991)
Proceeds from disposition of assets - -
Other investing activities - -
-----------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (37,407) (9,991)
-----------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt - -
Retirement of long-term debt (10,000) (833)
Change in short-term debt - -
Change in intercompany notes receivable - -
Change in intercompany notes payable 34,948 (2,053)
Retirement of preferred shares - -
Issuance of common stock and capital contributed - -
Acquisition of treasury stock - -
Dividends paid - common shares - (1,230)
-----------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES 24,948 (4,116)
-----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (637) 57
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,522 275
-----------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 885 332
-----------------------------------------------------------------------------------------------------------------------
*Confidential treatment requested
156
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4B F-4B F-4B Consolidating F-4B
Year Ended December 31, 2004 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * 407,425
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 169,303
Net changes in price risk management activities (7,680)
Deferred income taxes and investment tax credits 109,808
Deferred revenue (22,366)
Amortization of unearned compensation 636
Loss (Gain) on sale of assets 1,211
Loss (Income) from change in accounting -
Earnings in subsidiaries -
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates (4)
Loss (Gain) on sale of discontinued assets (1,619)
Loss (Income) from discontinued operations (2,145)
Amortization of discount/premium on debt 32
Other (1,488)
Changes in assets/liabilities:
Restricted cash (1,808)
Accounts receivable and unbilled revenue 1,274
Inventories (34,273)
Accounts payable 85,641
Customer deposits 1,336
Taxes accrued (13,475)
Interest accrued (2,224)
(Under) Overrecovered gas and fuel costs (76,376)
Exchange gas receivable/payable 101,775
Prepayments and other current assets 440
Other accruals 1,833
Regulatory assets/liabilities 17,879
Postretirement and postemployment benefits (7,546)
Deferred credits (1,313)
Deferred charges and other noncurrent assets (29,841)
Other noncurrent liabilities 401
------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 696,836
NET CASH FROM DISCONTINUED OPERATIONS -
------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 696,836
------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (254,116)
Proceeds from disposition of assets 3,449
Other investing activities (11,586)
------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (262,253)
------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 2
Retirement of long-term debt (21)
Change in short-term debt 105
Change in intercompany notes receivable (38)
Change in intercompany notes payable (335)
Retirement of preferred shares -
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares (50,019)
------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (50,306)
------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 384,277
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 69,882
------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 454,159
------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
157
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4B Page 2
Year Ended December 31, 2004 ($ in thousands) CEG CAR CAA CAT CDW CES Total
--------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
--------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
--------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
--------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
--------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
--------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
--------------------------------------------------------------------------------------------------
* Confidential treatment requested
158
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4B Page 3
Year Ended December 31, 2004 ($ in thousands) CKY CMD COH CPA CVA TCO Total
---------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 5,094 2,553 * 16,703 15,923 89,287 145,618
Net changes in price risk management activities (387) - (191) - - 1,569
Deferred income taxes and investment tax credits 274 2,275 19,402 4,897 32,492 103,278
Deferred revenue - - - - - -
Amortization of unearned compensation - - 18 13 545 599
Loss (Gain) on sale of assets - - - - 1,196 1,196
Loss (Income) from change in accounting - - - - - -
Earnings in subsidiaries - - - - - -
Dividends received from subsidiaries - - - - - -
Loss (Income) from unconsolidated affiliates - - - - (4) (4)
Loss (Gain) on sale of discontinued assets - - - - - -
Loss (Income) from discontinued operations - - - - - -
Amortization of discount/premium on debt - - - - 25 25
Other (67) (128) (183) - (503) (1,453)
Changes in assets/liabilities:
Restricted cash - - (662) - - (662)
Accounts receivable and unbilled revenue (3,708) 384 (5,863) (7,503) (4,109) (28,050)
Inventories (770) 798 (7,434) 1,112 2,928 (34,334)
Accounts payable 5,389 293 33,796 7,731 2,421 111,644
Customer deposits 266 112 524 974 - 1,336
Taxes accrued (5,281) (1,351) 3,179 (8,876) 12,683 17,615
Interest accrued 8 1 3 11 - 123
(Under) Overrecovered gas and fuel costs 5,054 (731) (22,101) 2,419 - (76,376)
Exchange gas receivable/payable 2,786 484 17,793 (880) 1,647 101,435
Prepayments and other current assets (129) (133) (226) (234) (394) (1,034)
Other accruals 1,851 (493) (189) 322 (2,253) 7,500
Regulatory assets/liabilities 2,342 451 2,247 4,238 8,432 17,742
Postretirement and postemployment benefits 423 (217) (2,015) (464) 4,716 (4,702)
Deferred credits - - - - 529 529
Deferred charges and other noncurrent assets (547) (69) (863) (7,061) (6,194) (20,202)
Other noncurrent liabilities 3,955 72 (3,442) 2,298 (1,185) 1,148
---------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 24,813 7,490 87,304 41,729 324,653 714,223
NET CASH FROM DISCONTINUED OPERATIONS - - - - - -
---------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 24,813 7,490 87,304 41,729 324,653 714,223
---------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (7,341) (3,242) (34,094) (20,606) (115,437) (242,318)
Proceeds from disposition of assets - - - - 3,449 3,449
Other investing activities - - - - (2,078) (2,078)
---------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (7,341) (3,242) (34,094) (20,606) (114,066) (240,947)
---------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt - - - - 2 2
Retirement of long-term debt - - - - (21) (21)
Change in short-term debt - - - - - -
Change in intercompany notes receivable (4,823) 1,185 - - (96,209) (100,026)
Change in intercompany notes payable (4,020) - (36,642) (1,457) (114,356) (225,324)
Retirement of preferred shares - - - - - -
Issuance of common stock and capital contributed - - - - - -
Acquisition of treasury stock - - - - - -
Dividends paid - common shares (9,000) (5,650) (18,500) (20,805) - (153,639)
---------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (17,843) (4,465) (55,142) (22,262) (210,584) (479,008)
---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (371) (217) (1,932) (1,139) 3 (5,732)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 789 337 3,394 1,673 35 12,192
---------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 418 120 1,462 534 38 6,460
---------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
159
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4B Page 4
Year Ended December 31, 2004 ($ in thousands) CGT CNS REM NIC Total
--------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 22,169 * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 23,191
Net changes in price risk management activities -
Deferred income taxes and investment tax credits 2,824
Deferred revenue -
Amortization of unearned compensation 39
Loss (Gain) on sale of assets -
Loss (Income) from change in accounting -
Earnings in subsidiaries -
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates -
Loss (Gain) on sale of discontinued assets -
Loss (Income) from discontinued operations -
Amortization of discount/premium on debt -
Other (35)
Changes in assets/liabilities:
Restricted cash -
Accounts receivable and unbilled revenue 2,747
Inventories 61
Accounts payable (170)
Customer deposits -
Taxes accrued 854
Interest accrued (17)
(Under) Overrecovered gas and fuel costs -
Exchange gas receivable/payable 340
Prepayments and other current assets 54
Other accruals (2,581)
Regulatory assets/liabilities 82
Postretirement and postemployment benefits 622
Deferred credits 39
Deferred charges and other noncurrent assets 432
Other noncurrent liabilities (791)
--------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 49,860
NET CASH FROM DISCONTINUED OPERATIONS -
--------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 49,860
--------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (11,536)
Proceeds from disposition of assets -
Other investing activities -
--------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (11,536)
--------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt -
Retirement of long-term debt -
Change in short-term debt -
Change in intercompany notes receivable (27,644)
Change in intercompany notes payable (10,673)
Retirement of preferred shares -
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares -
--------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (38,317)
--------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 7
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3
--------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 10
--------------------------------------------------------------------------------------------
* Confidential treatment requested
160
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4C (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF KENTUCKY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4C
Year Ended December 31, 2004 ($ in thousands) CKY CKT Combined Entries Total
-----------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 8,260 - 8,260 - 8,260
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 5,094 - 5,094 - 5,094
Net changes in price risk management activities (387) - (387) - (387)
Deferred income taxes and investment tax credits 274 - 274 - 274
Deferred revenue - - - - -
Amortization of unearned compensation - - - - -
Loss (Gain) on sale of assets - - - - -
Loss (Income) from change in accounting - - - - -
Earnings in subsidiaries - - - - -
Dividends received from subsidiaries - - - - -
Loss (Income) from unconsolidated affiliates - - - - -
Loss (Gain) on sale of discontinued assets - - - - -
Loss (Income) from discontinued operations - - - - -
Amortization of discount/premium on debt - - - - -
Other (67) - (67) - (67)
Changes in assets/liabilities:
Restricted cash - - - - -
Accounts receivable and unbilled revenue (3,708) - (3,708) - (3,708)
Inventories (770) - (770) - (770)
Accounts payable 5,389 - 5,389 - 5,389
Customer deposits 266 - 266 - 266
Taxes accrued (5,281) - 5,281 - 5,281
Interest accrued 8 - 8 - 8
(Under) Overrecovered gas and fuel costs 5,054 - 5,054 - 5,054
Exchange gas receivable/payable 2,786 - 2,786 - 2,876
Prepayments and other current assets (129) - (129) - (129)
Other accruals 1,851 - 1,851 - 1,851
Regulatory assets/liabilities 2,342 - 2,342 - 2,342
Postretirement and postemployment benefits 423 - 423 - 423
Deferred credits - - - - -
Deferred charges and other noncurrent assets (547) - (547) - (547)
Other noncurrent liabilities 3,955 - 3,955 - 3,955
-----------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 24,813 - 24,813 - 24,813
NET CASH FROM DISCONTINUED OPERATIONS - - - - -
-----------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 24,813 - 24,813 - 24,813
-----------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (7,341) - (7,341) - (7,341)
Proceeds from disposition of assets - - - - -
Other investing activities - - - - -
-----------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (7,341) - (7,341) - (7,341)
-----------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt - - - - -
Retirement of long-term debt - - - - -
Change in short-term debt - - - - -
Change in intercompany notes receivable (4,823) - (4,823) - (4,823)
Change in intercompany notes payable (4,020) - (4,020) - (4,020)
Retirement of preferred shares - - - - -
Issuance of common stock and capital contributed - - - - -
Acquisition of treasury stock - - - - -
Dividends paid - common shares (9,000) - (9,000) - (9,000)
-----------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (17,843) - (17,843) - (17,843)
-----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (371) - (371) - (371)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 789 - 789 - 789
-----------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 418 - 418 - 418
-----------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
161
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4D (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF OHIO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4D
Year Ended December 31, 2004 ($ in thousands) COH COR Combined Entries Total
-------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES * * * * *
Net income 112,223
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 16,058
Net changes in price risk management activities 2,147
Deferred income taxes and investment tax credits 43,938
Deferred revenue -
Amortization of unearned compensation 23
Loss (Gain) on sale of assets -
Loss (Income) from change in accounting -
Earnings in subsidiaries (70)
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates -
Loss (Gain) on sale of discontinued assets -
Loss (Income) from discontinued operations -
Amortization of discount/premium on debt -
Other (572)
Changes in assets/liabilities:
Restricted cash -
Accounts receivable and unbilled revenue 152,383
Inventories (30,968)
Accounts payable 62,064
Customer deposits (540)
Taxes accrued 17,146
Interest accrued 100
(Under) Overrecovered gas and fuel costs (61,017)
Exchange gas receivable/payable 79,605
Prepayments and other current assets 82
Other accruals 8,262
Regulatory assets/liabilities 32
Postretirement and postemployment benefits (7,145)
Deferred credits -
Deferred charges and other noncurrent assets (5,468)
Other noncurrent liabilities (550)
------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 387,733
NET CASH FROM DISCONTINUED OPERATIONS -
------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 387,733
------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (61,598)
Proceeds from disposition of assets -
Other investing activities (25,001)
------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (86,599)
------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt -
Retirement of long-term debt -
Change in short-term debt -
Change in intercompany notes receivable (134,677)
Change in intercompany notes payable (68,849)
Retirement of preferred shares -
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares (99,684)
------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (303,210)
------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,076)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,964
------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 3,888
------------------------------------------------------------------------------------------------------
* Confidential treatment requested
162
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4E (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA GAS OF TRANSMISSION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4E
Year Ended December 31, 2004 ($ in thousands) TCO CHC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 182,394 -- 182,394 -- 182,394
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 89,287 -- 89,287 -- 89,287
Net changes in price risk management activities -- -- -- -- --
Deferred income taxes and investment tax credits 32,492 -- 32,492 -- 32,492
Deferred revenue -- -- -- -- --
Amortization of unearned compensation 545 -- 545 -- 545
Loss (Gain) on sale of assets 1,196 -- 1,196 -- 1,196
Loss (Income) from change in accounting -- -- -- -- --
Earnings in subsidiaries -- -- -- -- --
Dividends received from subsidiaries -- -- -- -- --
Loss (Income) from unconsolidated affiliates (4) -- (4) -- (4)
Loss (Gain) on sale of discontinued assets -- -- -- -- --
Loss (Income) from discontinued operations -- -- -- -- --
Amortization of discount/premium on debt 25 -- 25 -- 25
Other (503) -- (503) -- (503)
Changes in assets/liabilities:
Restricted cash -- -- -- -- --
Accounts receivable and unbilled revenue (4,109) -- (4,109) -- (4,109)
Inventories 2,928 -- 2,928 -- 2,928
Accounts payable 2,421 -- 2,421 -- 2,421
Customer deposits -- -- -- -- --
Taxes accrued 12,683 -- 12,683 -- 12,683
Interest accrued -- -- -- -- --
(Under) Overrecovered gas and fuel costs -- -- -- -- --
Exchange gas receivable/payable 1,647 -- 1,647 -- 1,647
Prepayments and other current assets (394) -- (394) -- (394)
Other accruals (2,253) -- (2,253) -- (2,253)
Regulatory assets/liabilities 8,432 -- 8,432 -- 8,432
Postretirement and postemployment benefits 4,716 -- 4,716 -- 4,716
Deferred credits 529 -- 529 -- 529
Deferred charges and other noncurrent assets (6,194) -- (6,194) -- (6,194)
Other noncurrent liabilities (1,185) -- (1,185) -- (1,185)
-----------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 324,653 -- 324,653 -- 324,653
NET CASH FROM DISCONTINUED OPERATIONS -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 324,653 -- 324,653 -- 324,653
-----------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (115,437) -- (115,437) -- (115,437)
Proceeds from disposition of assets 3,449 -- 3,449 -- 3,449
Other investing activities (2,078) -- (2,078) -- (2,078)
-----------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (114,066) -- (114,066) -- (114,066)
-----------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 2 -- 2 -- 2
Retirement of long-term debt (21) -- (21) -- (21)
Change in short-term debt -- -- -- -- --
Change in intercompany notes receivable (96,209) -- (96,209) -- (96,209)
Change in intercompany notes payable (114,356) -- (114,356) -- (114,356)
Retirement of preferred shares -- -- -- -- --
Issuance of common stock and capital contributed -- -- -- -- --
Acquisition of treasury stock -- -- -- -- --
Dividends paid - common shares -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (210,584) -- (210,584) -- (210,584)
-----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3 -- 3 -- 3
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 35 -- 35 -- 35
-----------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 38 -- 38 -- 38
-----------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
163
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4F (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA NETWORK SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4F
Year Ended December 31, 2004 ($ in thousands) CNS CMC Combined Entries Total
-------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES * * * * *
Net income
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
-------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
-------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
-------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
-------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
-------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
-------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
-------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
-------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
-------------------------------------------------------------------------------------------------
* Confidential treatment requested
164
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4G (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4G Consolidating F-4G
Year Ended December 31, 2004 ($ in thousands) Page 2 EIN ECE Combined Entries Total
---------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES * * * * * *
Net income
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
---------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
---------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
---------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
---------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
---------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
---------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
---------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
---------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
---------------------------------------------------------------------------------------------------------
* Confidential treatment requested
165
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4G (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGY USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4G Page 2
Year Ended December 31, 2004 ($ in thousands) EUS ETP NST NFU NTX Total
-----------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
166
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4H (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4H Consolidating F-4H
Year Ended December 31, 2004 ($ in thousands) Page 2 IWR HWC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
167
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4H (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4H Page 2
Year Ended December 31, 2004 ($ in thousands) IWC IRA IWM LWC DWC Total
-----------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
168
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4I (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4I
Year Ended December 31, 2004 ($ in thousands) NES NCP NPM Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * 1,659 * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 858
Net changes in price risk management activities -
Deferred income taxes and investment tax credits 835
Deferred revenue 448
Amortization of unearned compensation -
Loss (Gain) on sale of assets -
Loss (Income) from change in accounting -
Earnings in subsidiaries -
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates -
Loss (Gain) on sale of discontinued assets -
Loss (Income) from discontinued operations -
Amortization of discount/premium on debt -
Other -
Changes in assets/liabilities:
Restricted cash -
Accounts receivable and unbilled revenue (401)
Inventories -
Accounts payable 99
Customer deposits -
Taxes accrued (455)
Interest accrued -
(Under) Overrecovered gas and fuel costs -
Exchange gas receivable/payable (723)
Prepayments and other current assets (3)
Other accruals (13)
Regulatory assets/liabilities (5)
Postretirement and postemployment benefits -
Deferred credits (336)
Deferred charges and other noncurrent assets -
Other noncurrent liabilities -
----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 1,963
NET CASH FROM DISCONTINUED OPERATIONS -
----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 1,963
----------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (1,638)
Proceeds from disposition of assets -
Other investing activities -
----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (1,638)
----------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt -
Retirement of long-term debt -
Change in short-term debt -
Change in intercompany notes receivable -
Change in intercompany notes payable (325)
Retirement of preferred shares -
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares -
----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (325)
----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD -
----------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD -
----------------------------------------------------------------------------------------------------------------------------
Acquisition of treasury stock -
Dividends paid - common shares (48)
----------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (373)
----------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents (698)
Cash and cash equivalents at beginning of period 30
CASH AND CASH EQUIVALENTS AT END OF PERIOD (668)
----------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
169
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4J (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4J Consolidating F-4J
Year Ended December 31, 2004 ($ in thousands) Page 2 NDC CPM Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
-----------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
170
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4J (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
NISOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4J Page 2
Year Ended December 31, 2004 ($ in thousands) JOF LEL NDP SWP Total
-------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
-------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
-------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
-------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
-------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
-------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
-------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
-------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
-------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
-------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
171
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4K (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
LAKE ERIE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4K
Year Ended December 31, 2004 ($ in thousands) LEL SCC Combined Entries Total
--------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
--------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
--------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
--------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
--------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
--------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
--------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
172
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4L (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4L
Year Ended December 31, 2004 ($ in thousands) NIF NIT Combined Total
----------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 3,911 * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 1,538
Net changes in price risk management activities 606
Deferred income taxes and investment tax credits (430)
Deferred revenue -
Amortization of unearned compensation -
Loss (Gain) on sale of assets -
Loss (Income) from change in accounting -
Earnings in subsidiaries (361)
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates -
Loss (Gain) on sale of discontinued assets -
Loss (Income) from discontinued operations -
Amortization of discount/premium on debt 21
Other -
Changes in assets/liabilities:
Restricted cash -
Accounts receivable and unbilled revenue (945)
Inventories (257)
Accounts payable (707)
Customer deposits (1)
Taxes accrued 1,114
Interest accrued (1)
(Under) Overrecovered gas and fuel costs 2,165
Exchange gas receivable/payable -
Prepayments and other current assets 4
Other accruals 45
Regulatory assets/liabilities (1,405)
Postretirement and postemployment benefits 807
Deferred credits (210)
Deferred charges and other noncurrent assets 1,928
Other noncurrent liabilities (300)
----------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 7,522
NET CASH FROM DISCONTINUED OPERATIONS -
----------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 7,522
----------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (1,607)
Proceeds from disposition of assets -
Other investing activities -
----------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (1,607)
----------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt -
Retirement of long-term debt -
Change in short-term debt -
Change in intercompany notes receivable (4,196)
Change in intercompany notes payable -
Retirement of preferred shares -
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares -
----------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (4,196)
----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,719
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 175
----------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,894
----------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
173
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4M (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
NORTHERN INDIANA PUBLIC SERVICE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4M
Year Ended December 31, 2004 ($ in thousands) NIP NRC Combined Entries Total
-------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 177,582 * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 264,482
Net changes in price risk management activities 11,184
Deferred income taxes and investment tax credits (15,340)
Deferred revenue -
Amortization of unearned compensation 186
Loss (Gain) on sale of assets (1,637)
Loss (Income) from change in accounting -
Earnings in subsidiaries (493)
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates -
Loss (Gain) on sale of discontinued assets -
Loss (Income) from discontinued operations -
Amortization of discount/premium on debt 3,718
Other (793)
Changes in assets/liabilities:
Restricted cash (19,825)
Accounts receivable and unbilled revenue (4,954)
Inventories 21,142
Accounts payable 40,054
Customer deposits 5,296
Taxes accrued (7,493)
Interest accrued 17
(Under) Overrecovered gas and fuel costs (21,022)
Exchange gas receivable/payable -
Prepayments and other current assets 7,496
Other accruals (2,392)
Regulatory assets/liabilities 9,877
Postretirement and postemployment benefits 26,970
Deferred credits 1,285
Deferred charges and other noncurrent assets (261)
Other noncurrent liabilities (13,436)
-------------------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS 481,643
NET CASH FROM DISCONTINUED OPERATIONS -
-------------------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES 481,643
-------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (212,793)
Proceeds from disposition of assets 3,615
Other investing activities -
-------------------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES (209,178)
-------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt -
Retirement of long-term debt (143,050)
Change in short-term debt -
Change in intercompany notes receivable (41,440)
Change in intercompany notes payable (83,608)
Retirement of preferred shares -
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares (4,392)
-------------------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES (272,490)
-------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (25)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 47
-------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 22
-------------------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
174
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4N (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4N
Year Ended December 31, 2004 ($ in thousands) PRI WCE WLC Combined Entries Total
----------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization
Net changes in price risk management activities
Deferred income taxes and investment tax credits
Deferred revenue
Amortization of unearned compensation
Loss (Gain) on sale of assets
Loss (Income) from change in accounting
Earnings in subsidiaries
Dividends received from subsidiaries
Loss (Income) from unconsolidated affiliates
Loss (Gain) on sale of discontinued assets
Loss (Income) from discontinued operations
Amortization of discount/premium on debt
Other
Changes in assets/liabilities:
Restricted cash
Accounts receivable and unbilled revenue
Inventories
Accounts payable
Customer deposits
Taxes accrued
Interest accrued
(Under) Overrecovered gas and fuel costs
Exchange gas receivable/payable
Prepayments and other current assets
Other accruals
Regulatory assets/liabilities
Postretirement and postemployment benefits
Deferred credits
Deferred charges and other noncurrent assets
Other noncurrent liabilities
----------------------------------------------------------------------------------------------------------------------
NET CASH FROM CONTINUING OPERATIONS
NET CASH FROM DISCONTINUED OPERATIONS
----------------------------------------------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES
----------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures
Proceeds from disposition of assets
Other investing activities
----------------------------------------------------------------------------------------------------------------------
NET CASH FROM INVESTING ACTIVITIES
----------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt
Retirement of long-term debt
Change in short-term debt
Change in intercompany notes receivable
Change in intercompany notes payable
Retirement of preferred shares
Issuance of common stock and capital contributed
Acquisition of treasury stock
Dividends paid - common shares
----------------------------------------------------------------------------------------------------------------------
NET CASH FROM FINANCING ACTIVITIES
----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
----------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD
----------------------------------------------------------------------------------------------------------------------
* Confidential treatment requested
175
SIGNATURES
Each undersigned system company has duly caused this annual report to be signed
on its behalf by the undersigned thereunto duly authorized pursuant to the
requirements of the Public Utility Holding Company Act of 1935. The signature of
each undersigned company shall be deemed to relate only to matters having
reference to such company or its subsidiaries.
NISOURCE INC.
--------------------------------
(Registrant)
Dated: April 29, 2005 By: /s/ Jeffrey W. Grossman
--------------------------------
Jeffrey W. Grossman
Vice President and Controller
(Principal Accounting Officer)
COLUMBIA ENERGY GROUP
--------------------------------
(Registrant)
Dated: April 29, 2005 By: /s/ Jeffrey W. Grossman
--------------------------------
Jeffrey W. Grossman
Vice President
(Principal Accounting Officer)
176
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBITS FILED AS PART OF THIS REPORT:
A. Annual Reports Under the Securities Exchange Act of 1934.
B. Index to Corporate Organization and By-laws Exhibits Filed Pursuant to the
Public Utility Holding Company Act of 1935.
C. Indentures and Contracts.
D. Tax Allocation Agreement for 2002.
E. Other Documents Prescribed by Rule or Order.
F. Report of Independent Public Accountants.
G. Organizational Chart of Exempt Wholesale Generators or Foreign Utility
Holding Companies.
H. Financial Statements of Exempt Wholesale Generators of Foreign Utility
Holding Companies.
I. Debt Aquisition Schedule
177
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT A. ANNUAL REPORTS UNDER THE SECURITIES EXCHANGE ACT OF 1934.
The financial statements included in Form 10-K for the following companies are
incorporated herein by reference:
System Company Filing Date File Number
------------------------------------------------------------------------------
NiSource Inc. March 9, 2005 001-16189
Columbia Energy Group March 9, 2005 001-01098
Northern Indiana Public Service Company March 9, 2005 001-04125
------------------------------------------------------------------------------
178
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.
EXHIBIT B NOTES
------------------------------
Articles of By-Laws or
NAME OF COMPANY Incorporation Regulations
----------------------------------------------------------------------------------------------------
NISOURCE INC. (1) (2)
Bay State Gas Company (3) B-1 (4)
Bay State GPE, Inc. (5) B-2 (6)
Northern Utilities, Inc. (7) B-3 (8)
Columbia Energy Group (9) B-4 (10)
Columbia Accounts Receivable Corporation (11) B-5 (12)
Columbia Assurance Agency, Inc. (13) B-6 (14)
Columbia Atlantic Trading Corporation (15) B-7 (16)
Columbia Deep Water Services Corporation (17) B-8 (18)
Columbia Energy Services Corporation (19) B-9 (20)
Columbia Gas of Kentucky, Inc. (21) B-10 (22)
Central Kentucky Transmission Company A-1 (23) B-11 (24)
Columbia Gas of Maryland, Inc. (25) B-12 (26)
Columbia Gas of Ohio, Inc. (27) B-13 (28)
Columbia of Ohio Receivables Corporation A-2 (29) B-14 (30)
Columbia Gas of Pennsylvania, Inc. (31) B-15 (32)
Columbia Gas of Virginia, Inc. (33) B-16 (34)
Columbia Gas Transmission Corporation (35) B-17 (36)
Columbia Hardy Corporation A-3 (37) B-18 (38)
Columbia Gulf Transmission Company (39) B-19 (40)
Columbia Network Services Corporation (41) B-20 (42)
CNS Microwave, Inc. (43) B-21 (44)
Columbia Remainder Corporation (45) B-22 (46)
Haverstraw Bay, LLC (47) (48)
NiSource Insurance Corporation, Limited (49) (50)
EnergyUSA, Inc. (IN) (51) B-23 (52)
EnergyUSA Commercial Energy Services, Inc. (53) B-24 (54)
EnergyUSA, Inc. (MA) (55) B-25 (56)
EnergyUSA-TPC Corp. (57) B-26 (58)
NI Energy Services Transportation, Inc. (59) B-27 (60)
NI Fuel Company, Inc. (61) B-28 (62)
NI-TEX, Inc. (63) B-29 (64)
Granite State Gas Transmission, Inc. A-4 (65) B-30 (66)
----------------------------------------------------------------------------------------------------
179
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
EXHIBIT B NOTES
------------------------------
Articles of By-Laws or
NAME OF COMPANY Incorporation Regulations
----------------------------------------------------------------------------------------------------
IWC Resources Corporation A-5 (67) B-31 (68)
Harbour Water Company A-6 (69) B-32 (70)
Indianapolis Water Company A-7 (71) B-33 (72)
Irishman's Run Acquisition Company (73) B-34 (74)
IWC Morgan Water Corporation (75) B-35 (76)
Liberty Water Corporation (77) (78)
The Darlington Water Works Company (79) (80)
Kokomo Gas and Fuel Company (81) (82)
KGF Trading Company (83) B-36 (84)
NI Energy Services, Inc. (85) B-37 (86)
Crossroads Pipeline Company (87) B-38 (88)
NESI Power Marketing, Inc. (89) (90)
NiSource Capital Markets, Inc. (91) B-39 (92)
NiSource Corporate Services Company (93) B-40 (94)
NiSource Development Company, Inc. (95) B-41 (96)
Cardinal Property Management, Inc. (97) B-42 (98)
JOF Transportation Company (99) B-43 (100)
Lake Erie Land Company (101) B-44 (102)
SCC Services, Inc. (103) B-45 (104)
NDC Douglas Properties, Inc. (105) B-46 (106)
South Works Power Company (107) B-47 (108)
NiSource Energy Technologies, Inc. (109) B-48 (110)
NiSource Finance Corp. (111) B-49 (112)
NiSource Retail Services, Inc. (113) (114)
Northern Indiana Fuel and Light Company, Inc. (115) B-50 (116)
Northern Indiana Trading Company, Inc. (117) (118)
Northern Indiana Public Service Company A-8 (119) (120)
NIPSCO Receivables Corporation (121) B-51 (122)
PEI Holdings, Inc. (123) (124)
Whiting Clean Energy, Inc. (125) B-52 (126)
Whiting Leasing LLC (127) (128)
----------------------------------------------------------------------------------------------------
180
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
1 NiSource Inc. Certificate of Incorporation of New NiSource Inc. (n/k/a
NiSource Inc.) dated March 29, 2000 filed herewith as Exhibit A-1 to Form
U5S (2001), Amended and Restated Certificate of Incorporation of New
NiSource Inc. (n/k/a NiSource Inc.) dated October 30, 2000 filed herewith
as Exhibit A-2 to Form U5S (2001), Certificate of Amendment of Certificate
of Incorporation re name change to NiSource Inc. November 1, 2000 filed
herewith as Exhibit A-3 to Form U5S (2001), and Certificate of Ownership
and Merger of Old NiSource Inc. into NiSource Inc. dated November 1, 2000
filed herewith as Exhibit A-4 to Form U5S (2001).
2 NiSource Inc. Amended and restated By-Laws dated October 23, 2001, filed
as Exhibit B-1 to Form U5S (2001).
3 Bay Sate Gas Company Articles of Organization dated November 10, 1998,
filed as Exhibit A- 1 to Form U5S (2002); amendments dated November 16,
1998 filed as Exhibit A-2 to Form U5S (2002).
4 Bay State Gas Company Amended and Restated By-Laws dated March 3, 1999,
filed as Exhibit B-2 to Form U5S (2001); amendment dated May 22, 202 filed
as Exhibit B-1 to Form U5S (2002); amendment dated June 1, 2004 filed as
Exhibit B-1 to Form U5S (2004).
5 Bay State GPE, Inc. Articles of Organization dated November 2, 1998, filed
as Exhibit A-5 to Form U5S (2001).
6 Bay State GPE, Inc. Amended and Restated By-Laws dated July 29, 1999,
filed as Exhibit B-3 to Form U5S (2001) ; amendment dated June 1, 2004
filed as Exhibit B-2 to Form U5S (2004).
7 Northern Utilities, Inc. Record of Organization of Bay State of New
Hampshire, Inc. (n/k/a Northern Utilities, Inc.) dated January 9, 1979,
filed as Exhibit A-6 to Form U5S (2001).
8 Northern Utilities, Inc. Amended and Restated By-Laws dated February 7,
2001, filed as Exhibit B-4 to Form U5S (2001). Amendment dated April 9,
2003, filed as Exhibit B-1 to Form U5S (2003); amendment dated June 1,
2004 filed as Exhibit B-3 to Form U5S (2004).
9 Restated Certificate of Incorporation as adopted by action of the Board of
Directors on October 19, 1988, filed as Exhibit 1-A to Form U5S (1988);
corrected copy as of July 15, 1991, filed as Exhibit 1-A to Form U5S
(1991); restated copy as of November 28, 1995, filed pursuant to Item 14
of Form 10-K (1995); Certificate of Amendment of Certificate of
Incorporation of Columbia Energy Group, dated January 16, 1998, filed as
Exhibit 1-A to Form U5S (1997); Corrected Certificate of Amendment of
Restated Certificate of Incorporation of Columbia Energy Group dated June
1, 1999, filed as Exhibit 1-A and Certificate of Amendment of Restated
Certificate of Incorporation of Columbia Energy Group dated June 2, 1999,
filed as Exhibit 2-A to Form U5S (1999). The items identified above are
contained in the appropriate filing of Columbia Energy Group.
10 By-Laws as of May 28, 1986, filed as Exhibit 1-B to Form U5S (1986);
amendments dated May 13, 1987 and November 18, 1987, filed as Exhibit B,
pages 13-15, to Form U5S (1987); amendment dated January 16, 1998, filed
as Exhibit 1-B to Form U5S (1998); amendments dated February 22, 2000,
filed as Exhibit 1-B to Form U5S (2000); amended and restated By-Laws
dated November 1, 2000, filed as Exhibit 2-B to Form U5S (2000). The items
identified above are contained in the appropriate filing of Columbia
Energy Group; amendment dated June 1, 2004 filed as Exhibit B-4 to Form
U5S (2004).
11 Certificate of Incorporation of Columbia Accounts Receivable Corporation
dated November 5, 1998, filed as Exhibit 8-A to Form U5S (1999). The items
identified above are contained in the appropriate filing of Columbia
Energy Group.
181
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
12 By-Laws of Columbia Accounts Receivable Corporation dated November 5,
1998, filed as Exhibit 3-B to Form U5S (1999). The items identified above
are contained in the appropriate filing of Columbia Energy Group;
amendment dated June 1, 2004 filed as Exhibit B-5 to Form U5S (2004).
13 Articles of Incorporation of Columbia Assurance Agency, Inc., dated June
23, 1997, filed as Exhibit 2-A to Form U5S (1998); amendment dated May 3,
1999, filed as Exhibit 5-A to Form U5S (1999).
14 Code of Regulations of Columbia Assurance Agency, Inc., dated July 30,
1997, filed as Exhibit 3-B to Form U5S (1998); amendment dated June 1,
2004 filed as Exhibit B-6 to Form U5S (2004).
15 Columbia Atlantic Trading Corporation Restated Certificate of
Incorporation as filed on February 27, 1989, filed as Exhibit 2-A to Form
U5S (1988); amendment dated August 18, 1997, filed as Exhibit 2-A to Form
U5S (1997). The items identified above are contained in the appropriate
filing of Columbia Energy Group.
16 Columbia Atlantic Trading Corporation By-Laws as amended effective
February 27, 1989, filed as Exhibit 1-B to Form U5S (1988). The items
identified above are contained in the appropriate filing of Columbia
Energy Group; amendment dated July 1, 2004 filed as Exhibit B-7 to Form
U5S (2004).
17 Certificate of Incorporation of Columbia Deep Water Services Company dated
January 7, 1998, filed as Exhibit 5-A to Form U5S (1998).
18 By-Laws of Columbia Deep Water Services Company dated January 8, 1998,
filed as Exhibit 5-B to Form U5S (1998); amendment dated June 1, 2004
filed as Exhibit B-8 to Form U5S (2004).
19 Certificate of Incorporation of Columbia Energy Services Corporation
(formerly The Inland Gas Company, Inc.) dated June 25, 1993, filed under
cover of Form SE as Exhibit 1-B to Form U5S (1993). The items identified
above are contained in the appropriate filing of Columbia Energy Group.
20 By-Laws of Columbia Energy Services Corporation dated May 28, 1993, filed
as Exhibit 2-B to Form U5S (1993). The items identified above are
contained in the appropriate filing of Columbia Energy Group; amendment
dated June 1, 2004 filed as Exhibit B-9 to Form U5S (2004).
21 Articles of Incorporation, as amended to January 1, 1958, filed as Exhibit
2-A to Form U5S (1957); amendment dated December 21, 1981, filed as
Exhibit 3-A to Form U5S (1981); amendment dated November 15, 1988, filed
as Exhibit 2-A to Form U5S (1988); amendment dated March 13, 1995, filed
as Exhibit 2-A to Form U5S (1995); amendment dated February 15, 1995,
filed as Exhibit 3-A to Form U5S (1995); amendment dated January 12, 1996,
filed as Exhibit 4-A to Form U5S (1995). The items identified above are
contained in the appropriate filing of Columbia Energy Group.
22 By-Laws, as amended to September 1, 1968, filed as Exhibit 4-B to Form U5S
(1968); amendment dated June 16, 1970, filed as Exhibit 4-B to Form U5S
(1970); amendment dated September 24, 1975, filed as Exhibit 1-B to Form
U5S (1975); amendment dated May 4, 1977, filed as Exhibit 3-B to Form U5S
(1977); amendment dated May 1, 1985, filed as Exhibit 2-B to Form U5S
(1985); amendment dated December 8, 1988, filed as Exhibit 3-B to Form U5S
(1988); amendment dated June 15, 1989, filed as Exhibit 1-B to Form U5S
(1989); amendment dated January 9, 1996 filed as Exhibit 2-B to Form U5S
(1995); amendment dated November 1, 1997, filed as Exhibit 2-B to Form U5S
(1997); amendment dated April 19, 2000, filed as Exhibit 3-B to Form U5S
(2000). The items identified above are contained in the appropriate filing
of Columbia Energy Group; amendment dated June 1, 2004 filed as Exhibit
B-10 to Form U5S (2004).
182
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
23 Central Kentucky Trans Company Certificate of Incorporation dated
September 9, 2004 filed as exhibit A-1 on Form U5S (2004).
24 Central Kentucky Transmission Company Bylaws dated September 17, 2004
filed as exhibit B-11 on Form U5S (2004)
25 Certificate of Incorporation as adopted July 1, 1958, filed as Exhibit 1-A
to Form U5S (1961); amendment dated January 17, 1980, filed as Exhibit 1-A
to Form U5S (1979); amendment dated February 15, 1995 filed as Exhibit 5A
to Form U5S (1995). The items identified above are contained in the
appropriate filing of Columbia Energy Group.
26 By-Laws, as amended to May 2, 1972, filed as Exhibit 4-B to Form U5S
(1972); amendment dated May 1, 1985, filed as Exhibit 3-B to Form U5S
(1985); amendment dated December 8, 1988, filed as Exhibit 4-B to Form U5S
(1988); amendment dated June 15, 1989, filed as Exhibit 2-B to Form U5S
(1989); amendment dated January 9, 1996 filed as Exhibit 3-B to Form U5S
(1995); amendment dated June 30, 1997, filed as Exhibit 3-B and amendment
dated November 1, 1997, filed as Exhibit 4-B to Form U5S (1997). The items
identified above are contained in the appropriate filing of Columbia
Energy Group; amendment dated June 1, 2004 filed as Exhibit B-26 to Form
U5S (2004).
27 Articles of Incorporation as adopted October 6, 1961, filed as Exhibit 1-A
to Form U5S (1964); amendment dated December 27, 1963, filed as Exhibit
2-A to Form U5S (1964); amendment dated February 21, 1964, filed as
Exhibit 3-A to Form U5S (1964); Certificate of Merger of Columbia Gas of
Ohio, Inc. and The Ohio Valley Gas Company effective December 31, 1974,
filed as Exhibit 5-A to Form U5S (1974); amendment dated January 8, 1982,
filed as Exhibit 2-A to Form U5S (1982); amendment dated February 16,
1995, filed as exhibit 6-A to Form U5S (1995). The items identified above
are contained in the appropriate filing of Columbia Energy Group.
28 Regulations as adopted October 16, 1961, filed as Exhibit 2-B to Form U5S
(1964); amendment dated August 19, 1968, filed as Exhibit 5-B to Form U5S
(1968); amendment dated May 1, 1985, filed as Exhibit 5-B to Form U5S
(1985); amendment dated December 9, 1985, filed as Exhibit 6-B to Form U5S
(1985); amendment dated December 8, 1988, filed as Exhibit 6-B to Form U5S
(1988); amendment dated June 15, 1989, filed as Exhibit 4-B to Form U5S
(1989); amendment dated January 9, 1996, filed as Exhibit 4-B to Form U5S
(1995); amendment dated November 1, 1997, filed as Exhibit 5-B to Form U5S
(1997). The items identified above are contained in the appropriate filing
of Columbia Energy Group. Amendment dated April 21, 2003, filed as Exhibit
B-2 to Form U5S (2003); amendment dated June 1, 2004 filed as Exhibit B-13
to Form U5S (2004).
29 Columbia of Ohio Receivables Corporation Articles of Incorporation dated
May 4, 2004 filed as exhibit A-2 on Form U5S (2004).
30 Columbia of Ohio Receivables Corporation Bylaws dated May 4, 2004 filed as
exhibit B-14 on Form U5S (2004).
31 Articles of Incorporation as adopted during the year 1960, filed as
Exhibit 1-A to Form U5S (1962); amendment dated December 21, 1981, filed
as Exhibit 4-A to Form U5S (1981); amendment dated February 15, 1995,
filed as Exhibit 7-A to Form U5S (1995). The items identified above are
contained in the appropriate filing of Columbia Energy Group.
32 By-Laws, as amended to May 2, 1972, filed as Exhibit 6-B to Form U5S
(1972); amendment dated May 1, 1985, filed as Exhibit 7-B to Form U5S
(1985); amendment dated December 8, 1988, filed as Exhibit 7-B to Form U5S
(1988); amendment dated June 15, 1989, filed as Exhibit 5-B to Form U5S
(1989); amendment dated January 9, 1996, filed as Exhibit 5-B to Form U5S
(1995); amendment dated November 1, 1997, filed as Exhibit 6-B to Form U5S
(1997). The items identified above are contained in the appropriate filing
of Columbia Energy Group; amendment dated June 1, 2004 filed as Exhibit
B-15 to Form U5S (2004).
183
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
33 Certificate of Incorporation of Commonwealth Gas Services, Inc. as amended
through December 19, 1958, and including the Certificate of Merger dated
December 18, 1979, filed as Exhibit 8-A to Form U5S (1981); amendment
dated December 30, 1987, filed as Exhibit B, page 17, to Form U5S (1987);
amendment dated February 15, 1995, filed as Exhibit 8-A to Form U5S
(1995); amendment dated January 16, 1998, filed as Exhibit 16-A to Form
U5S (1997). The items identified above are contained in the appropriate
filing of Columbia Energy Group.
34 By-Laws of Commonwealth Gas Services, Inc. as amended through March 5,
1985, filed as Exhibit 9-B to Form U5S (1985); amendment dated April 21,
1986, filed as Exhibit 6-B to Form U5S (1986); amendment dated April 20,
1987, filed as Exhibit B, page 18, to Form U5S (1987); amendment dated
January 1, 1989, filed as Exhibit 9-B to Form U5S (1988); amendment dated
June 15, 1989, filed as Exhibit 9-B to Form U5S (1989); amendment dated
May 6, 1991, filed as Exhibit 3-B to Form U5S (1991); amendment dated
December 7, 1992, filed as Exhibit 2-B to Form U5S (1992);amendment dated
November 1, 1997, filed as Exhibit 13-B to Form U5S (1997). The items
identified above are contained in the appropriate filing of Columbia
Energy Group; amendment dated June 1, 2004 filed as Exhibit B-16 to Form
U5S (2004).
35 Restated Certificate of Incorporation of Columbia Gas Transmission
Corporation dated March 3, 1982, filed as Exhibit 3-A to Form U5S (1982);
amendment dated October 22, 1984, filed as Exhibit 3-A to Form U5S (1984);
Certificate of Merger of Commonwealth Gas Pipeline Corp. into Columbia Gas
Transmission Corp. dated October 26, 1990, filed as Exhibit 1-A to Form
U5S (1990); amendment dated November 28, 1995, filed as Exhibit 6-A and
amendment dated June 30, 1997, filed as Exhibit 7-A to Form U5S (1997).
The items identified above are contained in the appropriate filing of
Columbia Energy Group.
36 By-Laws of Columbia Gas Transmission Corporation as amended through May 9,
1991, filed as Exhibit 1-B to Form U5S (1991); amendment dated January 17,
1996, file as Exhibit 3-B to Form U5S (1996). The items identified above
are contained in the appropriate filing of Columbia Energy Group;
amendment dated June 1, 2004 filed as Exhibit B-17 to Form U5S (2004).
37 Columbia Hardy Corporation Certificate of Incorporation dated September
23, 2004 filed as exhibit A-3 on form U5S (2004).
38 Columbia Hardy Corporation Bylaws dated November 30, 2004 filed as exhibit
B-18 on form U5S (2004).
39 Certificate of Incorporation as adopted May 26, 1958, filed as Exhibit 3-A
to Form U5S (1958); amendment dated November 10, 1981, filed as Exhibit
6-A to Form U5S (1981); amendment dated December 23, 1994, filed as
Exhibit 2-A to Form U5S (1994); amendment dated June 30, 1997, filed as
Exhibit 8-A to Form U5S (1997). The items identified above are contained
in the appropriate filing of Columbia Energy Group.
40 By-Laws of Columbia Gulf Transmission Company as amended through May 9,
1991, filed as Exhibit 2-B to Form U5S (1991); amendment dated January 17,
1996, file as Exhibit 4B to Form U5S (1996). The items identified above
are contained in the appropriate filing of Columbia Energy Group;
amendment dated June 1, 2004 filed as Exhibit B-19 to Form U5S (2004).
41 Certificate of Incorporation of Columbia Network Services Corporation
dated June 7, 1996, filed as Exhibit 3-A Form U5S (1996). The items
identified above are contained in the appropriate filing of Columbia
Energy Group.
184
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
42 By-Laws of Columbia Network Services Corporation as adopted August 29,
1996, filed as Exhibit 8-B to Form U5S (1996). The items identified above
are contained in the appropriate filing of Columbia Energy Group.
Amendment to the By-Laws dated May 1, 2001, filed as Exhibit B-9 to Form
U5S (2001), and Amendment to the By-Laws dated June 4, 2001, filed as
Exhibit B-10 to Form U5S (2001); amendment dated June 1, 2004 filed as
Exhibit B-20 to Form U5S (2004).
43 Certificate of Incorporation of CNS Microwave Inc., dated October 15,
1996, filed as Exhibit 4-A to Form U5S (1996). The items identified above
are contained in the appropriate filing of Columbia Energy Group.
44 By-Laws of CNS Microwave, Inc. as adopted October 25, 1996, filed as
Exhibit 9-B to Form U5S (1996). The items identified above are contained
in the appropriate filing of Columbia Energy Group. Amendment to the
By-Laws dated May 1, 2001, filed as Exhibit B-11 to Form U5S (2001) and
Amendment to the By-Laws dated June 4, 2001, filed as Exhibit B-12 to Form
U5S (2001); amendment dated June 1, 2004 filed as Exhibit B-21 to Form U5S
(2004).
45 Certificate of Incorporation of Columbia Electric Remainder Corporation
dated October 23, 2000, filed as Exhibit 3-A to Form U5S (2000). The items
identified above are contained in the appropriate filing of Columbia
Energy Group. Amendment changing name to Columbia Remainder Corporation,
dated December 4, 2001 filed as Exhibit A-1 to U5S (2003).
46 By-Laws of Columbia Electric Remainder Corporation dated October 23, 2000,
filed as Exhibit 5-B to Form U5S (2000). The items identified above are
contained in the appropriate filing of Columbia Energy Group. Amendment to
the By-Laws dated April 10, 2001, filed as Exhibit B-17 to Form U5S (2001)
; amendment dated June 1, 2004 filed as Exhibit B-22 to Form U5S (2004).
47 Haverstraw Bay, LLC Articles of Formation dated September 19, 1999, filed
as Exhibit A-3 to Form U5S (2002).
48 Haverstraw Bay, LLC Operating Agreement is not currently available and
would be filed in an amendment upon it becoming available.
49 Certificate of Incorporation of Columbia Insurance Corporation, Ltd. dated
November 1, 1996, filed as Exhibit 2-A to Form U5S (1996); amendment to
Memorandum of Association of the Company dated August 12, 2000, filed as
Exhibit 2-A to Form U5S (2000). The items identified above are contained
in the appropriate filing of Columbia Energy Group. Amendment changing
name to NiSource Insurance Corporation, Limited, dated October 18, 2002
filed as Exhibit A-2 to U5S (2003).
50 By-laws of Columbia Insurance Corporation, Ltd. as adopted November 4,
1996, file as Exhibit 5-B to Form U5S (1996). The items identified above
are contained in the appropriate filing of Columbia Energy Group.
51 EnergyUSA, Inc. (IN) Certificate of Incorporation dated March 26, 1999,
filed as Exhibit A-7 to Form U5S (2001).
52 EnergyUSA, Inc. (IN) Amended By-Laws dated May 1, 1999, filed as Exhibit
B-21 to Form U5S (2001); amendment dated June 1, 2004 filed as Exhibit
B-23 to Form U5S (2004).
185
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
53 EnergyUSA Commercial Energy Services, Inc. Certificate of Incorporation of
NESI Energy Services Company (n/k/a EnergyUSA Commercial Energy Services
Inc.) dated January 31, 1997, filed as Exhibit A-20 to Form US (2001),
Articles of Merger of Parkway Engineering and Distributing Company, Inc.
into NESI Energy Services Company dated May 1, 1998. Surviving
corporation's name is NESI Solutions, Inc., filed as Exhibit A-21 to Form
U5S (2001), Articles of Amendment regarding name change to EnergyUSA
Commercial, Inc. dated May 27, 1999, filed as Exhibit A-22 to Form U5S
(2001), Articles of Amendment regarding name change to EnergyUSA
Commercial Energy Services, Inc. dated February 15, 2000, files as Exhibit
A-23 to Form U5S (2001).
54 EnergyUSA Commercial Energy Services, Inc. Amended and Restated By-Laws
dated May 2, 1998, filed as Exhibit B-29 to Form U5S (2001), and amendment
to the By-Laws dated April 11, 2001, filed as Exhibit B-30, to Form U5S
(2001); amendment dated June 1, 2004 filed as Exhibit B-24 to Form U5S
(2004).
55 EnergyUSA, Inc. (MA) Articles of Organization of Energy Asset Funding,
Inc. (n/k/a EnergyUSA, Inc.) dated September 26, 1995, filed as Exhibit
A-8 for Form U5S (2001), Articles of Amendment regarding name change to
EnergyUSA, Inc. dated August 9, 1996, filed as Exhibit A-9 to Form U5S
(2001), Certificate of Change of Fiscal Year End dated October 13, 1999,
filed as Exhibit A-10 to Form U5S (2001).
56 EnergyUSA, Inc. (MA) Amended By-Laws dated April 11, 2001, filed as
Exhibit B-22 to Form U5S (2001) ; amendment dated June 1, 2004 filed as
Exhibit B-25 to Form U5S (2004).
57 EnergyUSA-TPC Corp Certificate of Incorporation of EnergyUSA Gas Marketing
Co. (n/k/a EnergyUSA-TPC Corp.) dated August 10, 2000, filed as Exhibit
A-27 for Form U5S (2001), Articles of Amendment regarding name change to
EnergyUSA-TPC Corp dated September 19, 2000, filed as Exhibit A-28 to Form
U5S (2001).
58 EnergyUSA-TPC Corp. Amended and Restated By-Laws dated September 19, 2000
filed as Exhibit B-33 to Form U5S (2001); amendment dated June 1, 2004
filed as Exhibit B-26 to Form U5S (2004).
59 NI Energy Services Transportation, Inc. Articles of Incorporation dated
June 18, 1998, filed as Exhibit A-33 to Form U5S (2001).
60 NI Energy Services Transportation, Inc. By-Laws dated June 18, 1998 filed
as Exhibit B-36 to Form U5S (2001), and amendment to the By-Laws dated
April 11, 2001, filed as Exhibit B-37 to From U5S (2001) ; amendment dated
June 1, 2004 filed as Exhibit B-27 to Form U5S (2004).
61 NI Fuel Company, Inc. Certificate of Incorporation of NIPSCO Fuel Company,
Inc. (n/k/a NI Fuel Company, Inc.) dated December 23, 1974, filed as
Exhibit A-34 on Form U5S (2001), Articles of Amendment regarding name
change to NI Fuel Company, Inc dated April 20, 1999, filed as Exhibit A-35
to Form U5S (2001).
62 NI Fuel Company, Inc. Amended and Restated By-Laws dated April 10, 1991
filed as Exhibit B-38 to Form U5S (2001) ; amendment dated June 1, 2004
filed as Exhibit B-28 to Form U5S (2004).
63 NI-TEX, Inc. Certificate of Incorporation dated August 26, 1988, filed as
Exhibit A-36 to Form U5S (2001).
186
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
64 NI-TEX, Inc. Amended and Restated By-Laws dated April 11, 2001, filed as
Exhibit B-39 to Form U5S (2001) ; amendment dated June 1, 2004 filed as
Exhibit B-29 to Form U5S (2004).
65 Granite State Gas Transmission, Inc. Articles of Organization dated
October 21, 1955, filed as Exhibit A-4 to Form U5S (2004).
66 Granite State Gas Transmission, Inc. Amended and Restated By-Laws dated
June 14, 2001, filed as Exhibit B-65 to Form U5S (2001); amendment dated
June 1, 2004 filed as Exhibit B-30 to Form U5S (2004).
67 IWC Resources Corporation Articles of Incorporation, dated March 4, 1986,
and Restated Articles of Incorporation dated April 1, 1986, filed as
Exhibit A-5 to Form U5S (2004)
68 IWC Resources Corporation By-Laws dated April 15, 1993; amendment dated
June 1, 2004 filed as Exhibit B-31 to Form U5S (2004).
69 Harbor Water Company Articles of Incorporation of I.W.C. Inc. (n/k/a
Harbour Water Corporation) dated February 15, 1979, filed as Exhibit A-6
to Form U5S (2004).
70 Harbor Water Company By-Laws of I.W.C. Inc. (n/k/a Harbour Water
Corporation) dated February 16, 1979, and amendment dated June 1, 2004
filed as Exhibit B-32 to Form U5S (2004).
71 Indianapolis Water Company Articles of Incorporation, as amended dated
April 20, 1967, filed as Exhibit A-7 to Form U5S (2004).
72 Indianapolis Water Company Bylaws as amended, dated April 15, 1993, and
amendment dated June 1, 2004 filed as Exhibit B-33 to Form U5S (2004).
73 Irishman's Run Acquisition Corporation Certificate of Incorporation and
Articles of Incorporation dated November 22, 1999 filed as Exhibit A-9 to
Form U5S (2002).
74 Irishman's Run Acquisition Corporation By-Laws dated November 22, 1999,
and amendment dated June 1, 2004 filed as Exhibit B-34 to Form U5S (2004).
75 IWC Morgan Water Corporation Certificate of Incorporation and Articles of
Incorporation dated February 12, 1999, filed as Exhibit A- 10 to Form U5S
(2002).
76 IWC Morgan Water Corporation By-Laws, and amendment dated June 1, 2004
filed as Exhibit B-35 to Form U5S (2004).
77 Liberty Water Corporation Articles of Incorporation are currently not
available and will be filed by amendment.
78 Liberty Water Corporation By-Laws are currently not available and will be
filed by amendment.
79 The Darlington Water Works Company Articles of Association dated September
4, 1906, filed as Exhibit A-12 to Form U5S (2002); Certificate of
Amendment and Articles of Amendment of Articles of Incorporation, dated
December 20, 1976, filed as Exhibit A-13 to Form U5S (2002).
187
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
80 The Darlington Water Works Company By-Laws are currently not available and
will be filed by amendment.
81 Kokomo Gas and Fuel Company Restatement of Articles of Incorporation,
filed as Exhibit A-37 to Form U5S (2001).
82 Kokomo Gas and Fuel Company Amended and Restated By-Laws dated February
28, 2002, filed as Exhibit B-41 to Form U5S (2001).
83 KGF Trading Company certificate of Incorporation dated July 31, 1992,
filed as Exhibit A-39 to Form U5S (2001).
84 KGF Trading Company By-Laws dated July 31, 1992, filed as Exhibit B-42 to
Form U5S (2001); amendment dated March 13, 2002 filed as Exhibit B- 36 to
Form U5S (2002); amendment dated June 1, 2004 filed as Exhibit B-36 to
Form U5S (2004).
85 NI Energy Services, Inc. Certificate of Incorporation of NIPSCO Energy
Services, Inc. (n/k/a NI Energy Services, Inc.) dated November 12, 1985,
filed as Exhibit A-39 to Form U5S (2001), Articles of Amendment regarding
name change to NI Energy Services, Inc. dated February 27, 1998, filed as
Exhibit A-40 to From U5S (2001).
86 NI Energy Services, Inc. By - Laws dated July 1, 1996, filed as Exhibit
B-43 to Form U5S (2001), and amendment to the By-Laws dated April 11,
2001, as filed to Form U5S (2001); amendment dated June 1, 2004 filed as
Exhibit B-37 to Form U5S (2004).
87 Crossroads Pipeline Company Certificate of Incorporation of NI Pipeline
Company (n/k/a Crossroads Pipeline Company) dated April 5, 1993, filed as
Exhibit A-41 on Form U5S (2001), Articles of Amendment regarding name
change to Crossroads Pipeline Company dated April 15, 1993, filed as
Exhibit A-42 on Form U5S (2001).
88 Crossroads Pipeline Company Amended and Restated By-Laws dated May 1, 2001
filed as Exhibit B-45 to Form U5S (2001); amendment dated June 1, 2004
filed as Exhibit B-38 to Form U5S (2004).
89 NESI Power Marketing, Inc. Certificate of Incorporation on Customer
Information Services, Inc. (n/k/a NESI Power Marketing, Inc.) dated July
18, 1996, filed as Exhibit A-44 on Form U5S (2001), Articles of Amendment
regarding name change to NESI Power Marketing, Inc. dated December 11,
1996, filed as Exhibit A-45 on Form U5S.
90 NESI Power Marketing, Inc. By-Laws dated November 15, 1996, filed as
Exhibit B-46 to Form U5S (2001).
91 NiSource Capital Markets, Inc. Articles of Incorporation of NIPSCO Capital
Markets, Inc. (n/k/a NiSource Capital Markets, Inc.) dated March 10, 1989,
filed as Exhibit A-46 on Form U5S (2001), Articles of Amendment regarding
name change to NiSource Capital Markets, Inc. dated April 21, 1999, filed
as Exhibit A-47 on Form U5S (2001).
92 NiSource Capital Markets, Inc. Amended and Restated By-Laws dated April
21, 1999, filed as Exhibit B-47 to Form U5S (2001); amendment dated June
1, 2004 filed as Exhibit B-39 to Form U5S (2004).
188
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
93 Certificate of Incorporation, as amended through May 17, 1991, filed as
Exhibit 3-A to Form U5S (1991); amendment dated June 30, 1997, filed as
Exhibit 5-A to Form U5S (1997); amendment dated January 16, 1998, filed as
Exhibit 3-A to Form U5S (1998); Certificate of Merger of NiSource
Corporate Services Company and Columbia Energy Group Service Corporation
dated December 22, 2001, filed as Exhibit 1-A to Form U5S (2000).
Certificate of Merger of NiSource Corporate Services Company into Columbia
Energy Group Service Corporation. Surviving corporation's name is NiSource
Corporate Services Company, filed as Exhibit A-50 on Form U5S (2001).
94 By-Laws, as amended February 10, 1988, filed as Exhibit 8-B to Form U5S
(1988); amendment dated December 29, 1997, filed as Exhibit 7-B to Form
U5S (1997); By-Laws dated November 1, 2000, filed as Exhibit 4-B to Form
U5S (2000). Amended and Restated By-Laws dated January 1, 2001, filed as
Exhibit B-48 to Form U5S (2001); amendment dated June 1, 2004 filed as
Exhibit B-40 to Form U5S (2004).
95 NiSource Development Company, Inc. Certificate of Incorporation of NIPSCO
Development Company, Inc. (n/k/a NiSource Development Company, Inc.) dated
August 17, 1987, filed as form U5S (2001), Articles of Amendment regarding
name change to NiSource Development Company, Inc. dated April 20, 1999,
filed as Exhibit A-52 on Form U5S (2001).
96 NiSource Development Company, Inc. Amended and Restated By-Laws dated July
1, 1996, filed as Exhibit B-49 to Form U5S (2001), amendment to the
By-Laws dated April 11, 2001, filed as Exhibit B-50 to From U5S (2001);
amendment dated June 1, 2004 filed as Exhibit B-41 to Form U5S (2004).
97 Cardinal Property Management, Inc. Certificate of Incorporation dated
November 14, 1990, filed as Exhibit A-57 on Form U5S (2001).
98 Cardinal Property Management, Inc. By-Laws dated December 20, 1990, filed
as Exhibit B-51 to Form U5S (2001), amendment to the By-Laws dated April
14, 1999, filed as Exhibit B-52 to Form U5S (2001); amendment dated June
1, 2004 filed as Exhibit B-42 to Form U5S (2004).
99 JOF Transportation Company Certificate of Incorporation dated December 8,
1989, filed as Exhibit A-60 on Form U5S (2001)
100 JOF Transportation Company By-Laws dated December 11, 1989, filed as
Exhibit B-53 to Form U5S (2001), amendment to the By-Laws dated April 11,
2001, filed as Exhibit B-54 to Form U5S (2001); amendment dated June 1,
2004 filed as Exhibit B-43 to Form U5S (2004).
101 Lake Erie Land Company Certificate of Incorporation dated October 12,
1989, filed as Exhibit A-62 on From U5S (2001).
102 Lake Erie Land Company By-Laws dated April 4, 1990, filed as Exhibit B-55
to Form U5S (2001); amendment dated June 1, 2004 filed as Exhibit B-44 to
Form U5S (2004).
103 SCC Services, Inc. Certificate of Incorporation dated January 23, 1992,
filed as Exhibit A-64 on Form U5S (2001).
104 SCC Services, Inc. By-Laws dated January 24, 1992, filed as Exhibit B-56
to Form U5S (2001), amendment to the By-Laws dated April 11, 2001, filed
as Exhibit B-57 to Form U5S (2001); amendment dated June 1, 2004 filed as
Exhibit B-45 to Form U5S (2004).
105 NDC Douglas Properties, Inc. Certificate of Incorporation dated March 19,
1992, filed as Exhibit A-64 on From U5S (2001).
189
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
106 NDC Douglas Properties, Inc. By-Laws dated March 24, 1992, filed as
Exhibit B-58 to Form U5S (2001); amendment dated June 1, 2004 filed as
Exhibit B- to Form U5S (2004).
107 South Works Power Company Certificate of Incorporation dated June 10,
1999, filed as Exhibit A-68 on Form U5S (2001).
108 South Works Power Company By-Laws dated June 10, 1999, filed as Exhibit
B-61 to Form U5S (2001); amendment dated June 1, 2004 filed as Exhibit
B-47 to Form U5S (2004).
109 NiSource Energy Technologies, Inc. Certificate of Incorporation dated
October 27, 2000, filed as Exhibit A-69 on Form U5S (2001).
110 NiSource Energy Technologies, Inc. By-Laws dated October 27, 2000, filed
as Exhibit B-62 to Form U5S (2001); amendment dated June 1, 2004 filed as
Exhibit B-48 to Form U5S (2004).
111 NiSource Finance Corp. Certificate of Incorporation dated March 31, 2000,
filed as Exhibit A-70 on From U5S (2001).
112 NiSource Finance Corp. By-Laws dated March 31, 2000, filed as Exhibit B-63
to Form U5S (2001); amendment dated June 1, 2004 filed as Exhibit B-49 to
Form U5S (2004).
113 NiSource Retail Services, Inc. Certificate of Incorporation, dated
November 12, 2003, filed as Exhibit A-3 on Form U5S (2003).
114 By-Laws of NiSource Retail Services, Inc. dated November 12, 2003, filed
as Exhibit B-1 on Form U5S (2003).
115 Northern Indiana Fuel & Light Company, Inc. Plan of Reorganization dated
June 23, 1975, filed as Exhibit A-8 on Form U5S (2004).
116 Northern Indiana Fuel & Light Company, Inc. Amended and Restate By-Laws
dated April 13, 1971, filed as Exhibit B-69 to Form U5S (2001); amendment
dated April 9, 2002, filed as Exhibit B-4 to Form U5S (2002); amendment
dated June 1, 2004 filed as Exhibit B-50 to Form U5S (2004).
117 Northern Indiana Trading Company, Inc. Certificate of Incorporation dated
February 10, 1988, filed as Exhibit A-76 on From U5S (2001).
118 Northern Indiana Trading Company, Inc. By-Laws dated February 17, 1988,
filed as Exhibit B-70 to Form U5S (2001); amendment dated March 20, 2002,
filed as Exhibit B-5 to Form U5S (2002).
119 Northern Indiana Public Service Company Amended Articles of Incorporation
dated April 14, 1982, filed as Exhibit A-77 on From U5S (2001), Articles
of Amendment regarding director dated may 5, 1982, filed as Exhibit A-78
on From U5S (2001), Articles of Amendment regarding directors dated
November 9, 2000, filed as Exhibit A-79 on From U5S (2001).
120 Northern Indiana Public Service Company Amended and Restated By-Laws dated
October 24, 2000, filed as Exhibit B-71 to Form U5S (2001); Amendment
dated April 10, 2002, filed as Exhibit B-6 to Form U5S (2002). Amendment
dated October 6, 2003, filed as Exhibit B-4 to Form U5S (2003).
190
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT B. INDEX TO CORPORATE ORGANIZATION AND BY-LAWS EXHIBITS FILED PURSUANT
TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935. (CONTINUED)
NOTES:
121 NIPSCO Receivables Corporation Certificate of Incorporation dated November
13, 2003, filed as Exhibit A-4 on Form U5S (2003).
122 By-Laws of NIPSCO Receivables Corporation dated November 13, 2003, filed
as Exhibit B-5 on Form U5S (2003); amendment dated June 1, 2004 filed as
Exhibit B-51 to Form U5S (2004).
123 Primary Energy, Inc. Certificate of Incorporation dated November 27, 1995,
filed as Exhibit A-81 on From U5S (2001). Articles of Amendment, changing
its name to PEI Holdings, dated October 17, 2003, filed as Exhibit A-5 to
Form U5S (2003).
124 Primary Energy, Inc. By-Laws dated December 1, 2001, filed as Exhibit B-72
to Form U5S (2001).
125 Whiting Clean Energy, Inc. Certificate of Incorporation of Oilside, Inc.
(n/k/a Whiting Clean Energy, Inc.) dated November 12, 1998, filed as
Exhibit A-88 on From U5S (2001), Articles of Amendment regarding name
change to Whiting Clean Energy, Inc. dated March 11, 1999, filed as
Exhibit A-89 on From U5S (2001).
126 Whiting Clean Energy, Inc. Amended and Restated By-Laws dated March 11,
1999, filed as Exhibit B-80 to Form U5S (2001); amendment to the By-Laws
dated April 11, 2001, filed as Exhibit B-81 to Form U5S (2001) ; amendment
dated June 1, 2004 filed as Exhibit B-52 to Form U5S (2004).
127 Whiting Leasing, LLC Articles of Organization dated April 23, 2003, filed
as Exhibit A-6 on Form U5S (2003).
128 Whiting Leasing, LLC Operating Agreement dated April 24, 2003, filed as
Exhibit B-6 on Form U5S (2003).
EXHIBIT C. INDENTURES AND CONTRACTS.
The indentures and other fundamental documents defining the rights of security
holders are incorporated herein by reference made to NiSource Inc.'s 2004 Form
10-K, Columbia Energy Group's 2004 Form 10-K and Northern Indiana Public Service
Company's 2004 Form 10-K as shown in Exhibit A filed herewith.
191
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002.
September 30, 2002
NISOURCE INC. AND SUBSIDIARY COMPANIES
INTERCOMPANY INCOME TAX ALLOCATION AGREEMENT
WHEREAS, NiSource Inc., a corporation organized under the laws of the
State of Delaware ("NiSource") and a registered holding company under the Public
Utility Holding Company Act of 1935 ("Act"), together with its subsidiary
companies, direct and indirect, listed as parties hereto, comprise the members
of the NiSource consolidated group which will join annually in the filing of a
consolidated Federal income tax return, and it is now the intention of NiSource
and its subsidiaries, direct and indirect, (hereinafter collectively referred to
as the "NiSource Group"), to enter into an agreement for the allocation of
current federal income taxes; and
WHEREAS, certain members of the NiSource Group will join annually in the
filing of certain consolidated state income tax returns (to the extent permitted
or required under applicable state income tax laws), and it is now the intention
of the NiSource Group to enter into an agreement for the allocation of current
state income taxes; and
WHEREAS, by order dated September 12, 2002, the Securities and Exchange
Commission has authorized NiSource and its subsidiaries to enter into this
agreement as of January 1, 2001 and to allocate consolidated income taxes in the
manner herein provided; and
NOW, THEREFORE, each member ("Member") of the NiSource Group does hereby
covenant and agree with one another that the current consolidated income tax
liabilities of the NiSource Group shall be allocated as follows:
DEFINITIONS AND INTERPRETATION
Section 1.1 Definitions. For all purposes of this Agreement, except as
otherwise expressly provided, the following terms shall have the following
respective meanings:
"Acquisition Indebtedness" means indebtedness incurred by NiSource or NiSource
Finance Corp. ("Finance") to finance the acquisition (including related costs)
by NiSource of all of the issued and outstanding stock of Columbia Energy Group
and any renewals or extensions thereof. Acquisition Indebtedness also includes
indebtedness incurred by NiSource or Finance for the purpose of refinancing the
indebtedness relating to the acquisition (including related costs) of all of the
issued and outstanding stock of Columbia Energy Group.
"Code" means the Internal Revenue Code of 1986, as amended.
"Consolidated Group" means NiSource and all of its subsidiaries which, from time
to time, may be included in any (i) federal income tax return filed by NiSource
in accordance with sections 1501 and 1502 of the Code or (ii) Other Return.
"Consolidated Return" means any consolidated federal income tax return or Other
Return filed by NiSource whether before or after the date hereof, which includes
one or more Members of the NiSource Group in a consolidated, combined or unitary
group of which NiSource is the common parent.
"Consolidated Return Year" means any period during which NiSource files a
consolidated federal income tax return or Other Return that includes one or more
Members of the NiSource Group in a consolidated, combined or unitary group of
which NiSource is a common parent.
192
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
"Consolidated Taxable Income" is the taxable income of the Consolidated Group as
computed for federal or state income tax purposes.
"Consolidated Tax Liability" means, with reference to any taxable period, the
consolidated, combined or unitary tax liability (including any interest,
additions to tax and penalties) of the Consolidated Group for such taxable
period (including the consolidated federal income tax liability and other
consolidated, combined or unitary liability for Other Taxes).
"Corporate Taxable Income" means the income or loss of an associate company for
a tax year computed as though such company had filed a separate return on the
same basis as used in the Consolidated Return, except that dividend income from
associate companies shall be disregarded, and other intercompany transactions
eliminated in the Consolidated Return shall be given appropriate effect.
"Designated Official" means the Vice President, Corporate Tax of NiSource
Corporate Services Company or such other official assigned the responsibilities
of Vice President, Corporate Tax of NiSource Corporate Services Company.
"Other Return" means any consolidated, combined or unitary return of Other
Taxes filed by NiSource or another Member of the NiSource Group, whether before
or after the date hereof, which covers the operations of one or more Members of
the NiSource Group.
"Other Taxes" means any taxes (including any interest and penalties) payable by
NiSource or another Member of the NiSource Group to the government of any state,
municipal or other political subdivision, including all agencies and
instrumentalities of such government.
"Person" means any individual, partnership, form, corporation, limited liability
company, joint stock company, unincorporated association, joint venture, trust
or other entity or enterprise, or any government or political subdivision or
agency, department or instrumentality thereof.
"Regulations" means the Treasury Regulations promulgated under the Code.
"Separate Return Tax" means the tax on the Corporate Taxable Income of a
corporation which is a Member computed for purposes of this Agreement as though
such company were not a Member of a consolidated group.
Section 1.2 References, Etc. The words "hereof", "herein" and "hereunder"
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement. All
terms defined herein in the singular shall have the same meanings in the plural
and vice versa. All References herein to any Person includes such Person's
successors and assigns. All references herein to Articles and Sections shall,
unless the context requires a different construction, be deemed to be references
to the Articles and Sections of this Agreement. For purposes of this Agreement,
Finance will not be treated as a Member of the NiSource Group and all items of
income, deduction, loss, credit or any other tax attribute of Finance shall be
treated as an item of income, deduction, loss, credit or tax attribute of
NiSource. In this Agreement, unless a clear contrary intention appears the word
"including" (and with correlative meaning "include") means "including but not
limited to".
PREPARATION AND FILING OF TAX RETURNS; ALLOCATION OF TAXES
Section 2.1 Federal Returns.
(a) A U.S. consolidated federal income tax return shall be prepared and
filed by NiSource for each taxable year in respect of which this Agreement is in
effect and for which the Consolidated Group is required or permitted to file a
consolidated federal income tax return. NiSource and all its subsidiaries shall
execute and file such consents, elections and other documents that may be
required or appropriate for the proper filing of such returns.
193
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
(b) (i) The Consolidated Group will elect, on a timely basis, in
accordance with Code Section 1552(b) and Section 1.1552-1(c)(2) of the
Regulations to allocate its consolidated tax liability (other than alternative
minimum tax ("AMT") and its related credits) among its Members under the method
described in Sections 1.1502-33(d)(3) and 1.1552-1(a)(2) commencing with the
consolidated taxable year ended December 31, 2001. The fixed percentage to be
used for purposes of Regulations section 1.1502-33(d)(3)(i) is 100%. The general
effect of such method is to first allocate the consolidated tax liability among
the Members of the Consolidated Group on the basis of the percentage of the
total consolidated tax which the tax of such Member (other than AMT and its
related credits) if computed on a separate return basis would bear to the total
amount of the taxes (other than AMT and its related credits) for all Members of
the group so computed. Then such method allocates an additional amount (the "Tax
Benefit Amount") to each Member up to, but not greater than, the excess, if any,
of its Separate Return Tax liability (other than AMT and its related credits)
over the amount allocated to such Member in the previous sentence. The total of
the Tax Benefit Amounts allocated to Members shall result in payments to, and an
increase in the earnings and profits of, the Members who had items of deduction,
loss or credits to which such Tax Benefit Amount is attributable. This election
is intended to comply with Rule 45(c)(5) under the Act, as modified by Section
2(d) below.
(ii) The allocation of the alternative minimum tax liability incurred by
the NiSource Group and the resulting minimum tax credit shall be allocated in
the manner set forth in Proposed and Temporary Treasury Regulation Sections
1.1502-55. This method generally allocates (i) any AMT paid by the NiSource
Group based on the relative separate adjusted AMT of each Member and (ii) the
minimum tax credit (AMTC) on the basis of the AMT previously assigned to such
Member and assuming that AMTC is utilized on a "first in/first out" methodology,
and that to the extent that AMTC arising in one year is not fully utilized, such
AMTC is utilized proportionately by the Members previously assigned AMT for that
year.
(c) Each Member's allocable share of the consolidated income tax
liability as determined in Section 2.1(b) hereby shall be used in both (i) the
determination of each Member's earnings and profits and (ii) determining the
amounts to be paid (as provided in Section 3.4 of this Agreement) by Members to
NiSource with respect to each Member's share of the Consolidated Group's Tax
liability and payments from NiSource to Members with respect to the use of a
Member's tax attributes.
(d) (i) The aggregate of all amounts paid by Members of the Consolidated
Group (the "Paying Members") as a result of the excess of each Members' Separate
Return Tax liability (as determined under Section 1.1552-1(a)(2)(ii) of the
Regulations) over the amount allocated to such Member as its share of the
Consolidated Tax Liability under Code Section 1552 (i.e., the Tax Benefit
Amount) shall be paid by NiSource to the other Members (the "Loss Members")
which had tax deductions, losses and credits to which such payments by the
Paying Members are attributable. The apportionment of such payments among Loss
Members shall be in a manner that reflects the Consolidated Group's absorption
of such tax attributes in the manner described in Section 2.1(e) below. The
payments to the Loss Members for their tax attributes shall be pursuant to a
consistent method which reasonably reflects such items of loss or credit (such
consistency and reasonableness to be determined by the Designated Official).
(ii) Notwithstanding the provisions of section 2.1(d)(i), the Tax
Benefit Amount allocated to NiSource and paid to NiSource as a result of its
being a Loss Member shall be limited to its Tax Benefit Amount determined
without regard to this section 2.1(b)(ii) multiplied by a fraction, the
numerator of which is NiSource's interest deduction attributable to Acquisition
Indebtedness, and the denominator of which is the sum of all of NiSource's
deductions. The portion of NiSource's Tax Benefit Amount which cannot be
allocated and paid to NiSource due to the operation of this Section shall be
reallocated to Paying Members of the Consolidated Group other than NiSource in
accordance with the principles contained in section 2.1(b)(i).
(e) In apportioning the payments to Loss Members for the Tax Benefit
Amount pursuant to Section 2.1(d) hereof:
(i) any consolidated net operating loss ("NOL") shall be allocated
among the group Members pursuant to Regulations Section 1.1502-21(b). To the
extent the consolidated NOL is carried back, any Member's individually allocable
NOL shall be deemed carried back and utilized in proportion to the amount that
the Member's NOL bears to the consolidated NOL. Analogous principles shall apply
in the case of NOL carryforwards;
194
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
(ii) with respect to each type of credit used to offset all or a
portion of the Consolidated Tax Liability otherwise payable, such credit shall
be allocated among the Members by crediting to each Member an amount of credit
which that Member would have available to utilize on a separate return basis in
a manner consistent with the method set forth in Section 2.1(e)(i) above.
(iii) the cost of any credit recapture which results in the payment
of tax shall be specifically allocated to the Member whose credit is recaptured
determined in a manner consistent with the provisions of Section 2.1(e)(i)
above.
(f) The allocation of tax shall be subject to further adjustment from
time to time on account of the payment of additional tax or the receipt of a
refund attributable to either the filing of an amended return or on account of
the results of an audit conducted by the Internal Revenue Service or other
relevant taxing authority.
Section 2.2 Other Taxes. (a) NiSource will prepare and file (or cause to
be prepared and filed) all returns of Other Taxes which are required to be filed
with respect to the operations of NiSource and its subsidiaries. In the event
any taxing authority requires or permits that a combined, consolidated or
unitary return be filed for Other Taxes, which return includes both NiSource and
a subsidiary, NiSource may elect to file such return and shall have the right to
require any Member to be included in such return. NiSource will advise each of
its subsidiaries included in each Other Return and each governmental office in
which any Other Return is filed. Other Taxes shall be allocated among the
NiSource Group in a manner that is consistent with the method set forth in
Article 2 hereof. Furthermore, amounts due to NiSource or from NiSource, with
respect to Other Taxes, shall be determined in a manner consistent with Sections
2.1(b) and 2.1(d).
(b) Each Member of the NiSource Group that does not file an Other Return
together with any other Member of the NiSource Group shall be solely responsible
and obligated to pay the tax liability with respect to such return from its own
funds. Such returns shall be prepared and filed by NiSource or the Member filing
the Other Return.
(c) If any Member of the NiSource Group is required to file a combined,
consolidated or unitary return for Other Taxes with another Member of the
NiSource Group, but not with NiSource (an "Other Taxes Subgroup"), then NiSource
shall have the rights, powers and obligations to file such tax returns and
apportion among and, collect and remit from, the applicable Members such Other
Taxes as the rights, powers and obligations given to NiSource under this
Agreement with respect to the Consolidated Tax Liability. Such returns shall be
prepared and filed by NiSource. If the right to file a combined, consolidated or
unitary return for Other Taxes is optional, then NiSource shall decide which of
its subsidiaries should, to the extent permitted by law, join in filing of such
return.
Section 2.3 Member Tax Information. The Members of the Consolidated Group
shall submit the tax information requested by the Designated Official of
NiSource in the manner and by the date requested, in order to enable the
Designated Official to calculate the amounts payable by the Members pursuant to
Article 3 hereof.
RESPONSIBILITY FOR TAX; INTERCOMPANY PAYMENTS
Section 3.1 Responsibility. Assuming the Members of the Consolidated Group
have fulfilled their obligations pursuant to this Article III, then NiSource
will be solely responsible for, and will indemnify and hold each Member of the
Consolidated Group harmless with respect to, the payment of: (a) the
Consolidated Tax Liability for each taxable period for which, as determined
under Section 2.1 hereof, NiSource filed a Consolidated Return or should have
been filed; and (b) any and all Other Taxes due or payable with respect to any
Other Return which is filed by NiSource or should have been filed.
Section 3.2 Federal Tax Payments. (a) With respect to each Consolidated
Return Year, the Designated Official of NiSource shall estimate and assess or
pay to Members of the Consolidated Group their share of estimated tax payments
to be made on a projected consolidated federal income tax return for each year.
In making this determination, NiSource shall elect a method for determining
estimated tax and each Member shall follow that method; provided, however, under
no circumstances shall a Loss Member be paid any amount described in Section
2.1(d) until a date after which NiSource has filed the
195
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
Consolidated Return for such Consolidated Return Year. Such Members will pay, to
NiSource or be paid by NiSource, such estimates not later than the 15th day of
the 4th, 6th, 9th and 12th months of such Consolidated Return Year. With respect
to any extension payment, the Designated Official of NiSource shall estimate and
assess or pay to Members of the Consolidated Group their share of such extension
payment. The difference between (1) a Member's estimated tax payments used for
computation of the quarterly estimated payments plus their extension payments
and (2) such Member's actual Tax Liability for any Consolidated Return. Year as
determined under Section 2.1(b) hereof, shall be paid to NiSource or by NiSource
within sixty (60) days after the filing of the consolidated federal income tax
return.
(b) NiSource shall have sole authority, to the exclusion of all
other Members of the Consolidated Group, to agree to any adjustment proposed by
the Internal Revenue Service or any other taxing authority with respect to items
of income, deductions or credits, as well as interest or penalties, attributable
to any Member of the Consolidated Group during any Consolidated Return Year in
which such Member was a Member of the Consolidated Group notwithstanding that
such adjustment may increase the amounts payable by Members of the Consolidated
Group under this Section 3.2 or Section 3.3 hereof. In the event of any
adjustment to the Consolidated Tax Liability relating to items of income,
deductions or credit, as well as interest or penalties, attributable to any
Member of the Consolidated Group by reason of an amended return, claim for
refund or audit by the Internal Revenue Service or any other taxing authority,
the liability of all other Members of the Consolidated Group under paragraphs
(a) of this Section 3.2 or Section 3.3 hereof shall be redetermined to give
effect to such adjustment as if such adjustment had been made as a part of the
original computation of such liability, and payment from a Member to NiSource or
by NiSource to a Member, as the case may be, shall be promptly made after any
payments are made to the Internal Revenue Service or any other taxing authority,
refunds received or final determination of the matter in the case of contested
proceedings. In such event, any payments between the parties shall bear interest
at the then prevailing rate or rates on deficiencies assessed by the Internal
Revenue Service or any other relevant taxing authority, during the period from
the due date of the Consolidated Return (determined without regard to extensions
of time for the filing thereof) for the Consolidated Return Year to which the
adjustments were made to the date of payment.
Section 3.3 Other Tax Payments. Payments by a Member with respect to
Other Taxes and required estimates thereof for which any other Member has joint
and several liability shall be calculated and made by or to such Member in the
same manner as that provided in Section 3.2. The principles set forth in Section
3.2 governing the determination and adjustment of payments as well as the method
of payment to or from such Member with respect to federal income taxes shall be
equally applicable in determining and adjusting the amount of and due date of
payments to be made to or from such subsidiary with respect to Other Taxes and
estimates thereof. Each Member shall pay, directly to the appropriate taxing
authority, all taxes for which such Member is liable and for which no other
Member has joint or several liability.
Section 3.4 Payment Mechanics. (a) Any payments to be made by a
subsidiary of NiSource pursuant to Section 2.1, 2.2, 3.2 or 3.3 hereof shall be
made by such subsidiary to NiSource by either promptly crediting as an offset
against amounts owed to such Member by NiSource or to the extent no amounts are
owed to such Member by NiSource, by cash payments to NiSource. To the extent any
payments are to be made to a subsidiary with respect to the use of such
subsidiary's tax attributes by the Consolidated Group pursuant to Section 2.1,
2.2, 3.2 or 3.3 hereof, NiSource shall make such payment to such subsidiary by
either promptly crediting as an offset against amounts owned by such Member to
NiSource, or to the extent no amounts are owed to NiSource by such Member, by
cash payments to the Member.
(b) Tax payments by NiSource with respect to any Consolidated Tax
Liability shall be paid by NiSource and shall be debited to the Member of the
Consolidated Group for their respective shares of such Consolidated Tax
Liability as determined pursuant to Article II hereof. Tax Refunds received by
NiSource with respect to any Consolidated Tax Liability, shall be paid by
NiSource to the Member of the Consolidated Group entitled to such Tax Refund, as
determined.
(c) NiSource shall be responsible for maintaining the books and
records reflecting the intercompany accounts reflecting the amounts owned,
collected and paid with respect to Taxes pursuant to this Agreement.
196
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
(d) NiSource may delegate to other Members of the Consolidated Group
responsibilities for the collection and disbursement of monies as required under
this Agreement as well as responsibilities for maintaining books and records as
required under this Agreement.
Section 3.5 Administration. The provisions of this Agreement shall be
administered by the Designated Official of NiSource. The interpretations of this
Agreement by the Designated Official of NiSource shall be conclusive.
ARTICLE IV.
MISCELLANEOUS PROVISIONS
Section 4.1 Effect. The provisions hereof shall fix the rights and
obligations of the parties as to the matters covered hereby whether or not such
are followed for federal income tax or other purposes by the Consolidated Group,
including the computation of earnings and profits for federal income tax
purposes.
Section 4.2 Effective Date and Termination of Affiliation. This Agreement
shall be effective with respect to all taxable years ending on or after January
1, 2001, in which any subsidiary of NiSource is a Member of the Consolidated
Group for any portion of the tax year. In the event that a party to this
Agreement ceases to be a Member of the Consolidated Group, the rights and
obligations of such party and each other party to this Agreement shall survive,
but only with respect to taxable years including or ending before the date such
party ceases to be a Member of the Consolidated Group.
Section 4.3 Notices. Any and all notices, requests or other communications
hereunder shall be given in writing (a) if to NiSource to Attention: Vice
President, Tax, Facsimile Number: 219-647-6177 and (b) if to any other person,
at such other address as shall be furnished by such person by like notice to the
other parties.
Section 4.4 Expenses. Each party hereto shall pay its own expenses
incident to this Agreement and the transactions contemplated hereby, including
all legal and accounting fees and disbursements.
Section 4.5 Benefit and Burden. This Agreement shall inure to the benefit
of, and shall be binding upon, the parties hereto and their respective
successors.
Section 4.6 Amendments and Waiver. No amendment, modification, change or
cancellation of this Agreement shall be valid unless the same is in writing and
signed by the parties hereto. No waiver of any provision of this Agreement shall
be valid unless in writing and signed by the person against whom that waiver is
sought to be enforced. The failure of any party at any time to insist upon
strict performance of any condition, promise, agreement or understanding set
forth herein shall not be construed as a waiver or relinquishment of the right
to insist upon strict performance of the same or any other condition, promise,
agreement or understanding at a future time.
Section 4.7 Assignments. Neither this Agreement nor any right, interest or
obligation hereunder may be assigned by any party hereto and any attempt to do
so shall be null and void.
Section 4.8 Severability. The invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions
hereof, and this Agreement shall be construed in all respects as if such invalid
or unenforceable provision were omitted.
197
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
Section 4.9 Entire Agreement. THIS AGREEMENT SETS FORTH ALL OF THE
PROMISES, AGREEMENTS, CONDITIONS, UNDERSTANDINGS, WARRANTIES AND REPRESENTATIONS
AMONG THE PARTIES WITH RESPECT TO THE TRANSACTIONS CONTEMPLATED HEREBY, AND
SUPERSEDES ALL PRIOR AGREEMENTS, ARRANGEMENTS AND UNDERSTANDINGS BETWEEN THE
PARTIES HERETO, WHETHER WRITTEN, ORAL OR OTHERWISE. THERE ARE NO PROMISES,
AGREEMENTS, CONDITIONS, UNDERSTANDINGS, WARRANTIES OR REPRESENTATIONS, ORAL OR
WRITTEN, EXPRESS OR IMPLIED, AMONG THE PARTIES EXCEPT AS SET FORTH HEREIN.
Section 4.10 Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF INDIANA.
Section 4.11 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original and together which
shall constitute one instrument. The parties hereto specifically recognize that
from time to time other corporations may become Members of the Consolidated
Group and hereby agree that such new Members may become Members to this
Agreement by executing a copy of this Agreement and it will be effective as if
all the Members had re-signed.
Section 4.12 Attorneys' Fees. If any Member or former Member hereto
commences an action against another party to enforce any of the terms,
covenants, conditions or provisions of this Agreement, or because of a default
by a party under this Agreement, the prevailing party in any such action shall
be entitled to recover its costs, expenses and losses, including attorneys'
fees, incurred in connection with the prosecution or defense of such action from
the losing party.
Section 4.13 No Third Party Rights. Nothing in this Agreement shall be
deemed to create any right in any creditor or other person or entity not a party
hereto and this Agreement shall not be construed in any respect to be a contract
in whole or in part for the benefit of any third party.
Section 4.14 Further Documents. The parties agree to execute any and all
documents, and to perform any and all other acts, reasonably necessary to
accomplish the purposes of this Agreement.
Section 4.15 Headings and Captions. The headings and captions contained in
this Agreement are inserted and included solely for convenience and shall not be
considered or given any effect in construing the provisions hereof if any
question of intent should arise.
Section 4.16 Departing Members
(a) In the event that any Member of the NiSource Group at any time leaves
the NiSource Group and, under any applicable statutory provision or regulation,
that Member is assigned and deemed to take with it all or a portion of any of
the tax attributes of the NiSource Group (including but not limited to NOL,
credit carry forwards, and AMTC carry forwards), then to the extent that the
amount of tax attributes so assigned differs from the amount of such attributes
previously allocated to such Member under this agreement, the departing Member
shall appropriately settle with the NiSource Group. Such settlement shall
consist of payment (1) on a dollar for dollar basis for all differences in
credits, and, (2) in the case of NOL differences (or other differences related
to other deductions), in a dollar amount computed by reference to the amount of
NOL multiplied by the applicable tax rate relating to such NOL. The settlement
payment shall be paid to NiSource within sixty days after the Member leaves the
NiSource Group. The settlement amounts shall be allocated among the remaining
Members of the NiSource Group in proportion to the relative level of attributes
possessed by each Member and the attributes of each Member shall be adjusted
accordingly.
(b) Upon the departure of any Member from the NiSource Group, such Member
shall allocate its items of income, deduction, loss and credit between the
period that it was a Member of the NiSource Group and the period thereafter
based upon a closing of the books methodology allowed under
198
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
Treasury Regulation Section 1.1502-76(b)(2). The difference between (1) its
prior estimated taxes or payments of Tax Benefit and (2) the amount of taxes due
or payments of Tax Benefit due to that Member, shall be appropriately settled on
the day such Member leaves the NiSource Group or on an alternative date mutually
agreeable in writing to the NiSource Group and the departing Member.
EXECUTED as of the date and year first above written unless noted.
By: /s/ J. W. Grossman
------------------
Printed Name: Jeffrey W. Grossman
Title: Vice President and Controller
NiSource Inc.
By: /s/ J. W. Grossman
------------------
Printed Name: Jeffrey W. Grossman
Title: Vice President
[List of companies attached as Exhibit A]
By: /s/ J. W. Grossman
------------------
Printed Name: Jeffrey W. Grossman
Title: President
Columbia Insurance Corporation, Ltd.
By: /s/ H. Phillip Conrad
---------------------
Printed Name: H. Phillip Conrad
Title: President
Northern Indiana Trading Company, Inc.
By: /s/ Scott C. MacDonald
----------------------
Printed Name: Scott C. MacDonald
Title: President
NiSource Retail Services, Inc.
Dated: December 18, 2003
199
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
By: /s/ David J. Vajda
------------------
Printed Name: David J. Vajda
Title: Vice President and Treasurer
NIPSCO Receivables Corporation
Dated: April 14, 2004
By: /s/ Glen L. Kettering
---------------------
Printed Name: Glen L. Kettering
Title: President
Central Kentucky Transmission Company
Dated: September 30, 2004
By: /s/ Glen L. Kettering
---------------------
Printed Name: Glen L. Kettering
Title: President
Columbia Hardy Corporation
Dated: November 30, 2004
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
Exhibit A
Bay State Gas Company
Bay State GPE, Inc.
Northern Utilities, Inc.
Columbia Energy Group
Columbia Atlantic Trading Corporation
Columbia Energy Group Capital Corporation
TriStar Gas Technologies, Inc.
Columbia Energy Resources, Inc.
Alamco-Delaware, Inc.
Columbia Natural Resources, Inc.
Columbia Natural Resources Canada, Ltd.
Hawg Hauling and Disposal, Inc.
Columbia Energy Services Corporation
Columbia Energy Marketing Corporation
Columbia Energy Power Marketing Corporation
Columbia Energy Retail Corporation
Columbia Accounts Receivable Corporation
Columbia Gas of Kentucky, Inc.
Columbia Gas of Maryland, Inc.
Columbia Gas of Ohio, Inc.
Columbia Gas of Pennsylvania, Inc.
Columbia Gas of Virginia, Inc.
Columbia Gas Transmission Corporation
Columbia Gulf Transmission Company
Columbia Network Services Corporation
CNS Microwave, Inc.
Columbia Petroleum Corporation
Columbia Pipeline Corporation
Columbia Deep Water Services Company
Columbia Remainder Corporation
Columbia Electric Binghamton General Corporation
Columbia Electric Binghamton Limited Corporation
Columbia Electric Haverstraw Corporation
Columbia Service Partners, Inc.
Columbia Assurance Agency, Inc.
Columbia Service Partners of Virgina, Inc.
Columbia Transmission Communications Corporation
EnergyUSA, Inc. (IN)
EnergyUSA, Inc. (MA)
EnergySPE, Inc.
EnergyUSA (Connecticut), Inc.
201
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EnergyUSA Engineering, Inc.
EnergyUSA Mechanical, Inc.
EnergyUSA Commercial Energy Services, Inc.
EnergyUSA Retail, Inc.
EnergyUSA-TPC Corp.
EnergyUSA-Appalachian Corp.
NI Energy Services Transportation, Inc.
NI Fuel Company, Inc.
NI-TEX, Inc.
NI-TEX Gas Services, Inc.
IWC Resources Corporation
Harbour Water Corporation
Indianapolis Water Company
Irishman's Run Acquisition Corporation
IWC Morgan Water Corporation
Lawrence Water Company, Inc.
Liberty Water Corporation
The Darlington Water Works Company
Kokomo Gas and Fuel Company
NI Energy Services, Inc.
Crossroads Pipeline Company
NESI Power Marketing, Inc.
NiSource Capital Markets, Inc.
NiSource Corporate Services Company (DE)
NiSource Development Company, Inc.
Cardinal Property Management, Inc.
JOF Transportation Company
Lake Erie Land Company
SCC Services, Inc.
NDC Douglas Properties, Inc.
South Works Power Company
NiSource Energy Technologies, Inc.
NiSource Finance Corp.
NiSource Pipeline Group, Inc.
Granite State Gas Transmission, Inc.
Bay State Energy Enterprises, Inc.
Northern Indiana Fuel and Light Company, Inc.
Northern Indiana Public Service Company
PEI Holdings, Inc.
Cokenergy, Inc.
Harbor Coal Company
Lakeside Energy Corporation
North Lake Energy Corporation
Portside Energy Corporation
Whiting Clean Energy, Inc.
202
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT E. OTHER DOCUMENTS PRESCRIBED BY RULE OR ORDER.
None.
203
ITEM 10. FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA (continued)
EXHIBIT F. REPORTS OF INDEPENDENT PUBLIC ACCOUNTANT.
Reports of Independent Registered Public Accounting Firm (as reported in
NiSource Inc.'s Annual Report on Form 10-K for the year ended December 31,
2004, incorporated by reference to File No. 1-16189) (as reported in Columbia
Energy Group's Annual Report on Form 10-K for the year ended December 31, 2004,
incorporated by reference to File No. 1-01098).
EXHIBIT G. ORGANIZATIONAL CHART OF EXEMPT WHOLESALE GENERATORS OR FOREIGN
UTILITY HOLDING COMPANIES.
ORGANIZATION CHART -
BAY STATE GPE, INC.
NiSource Inc.
100% Owned
Bay State Gas Company
100% Owned
Bay State GPE, Inc.
ORGANIZATION CHART -
WHITING CLEAN ENERGY, INC.
NiSource Inc.
100% Owned
PEI Holdings, Inc.
100% Owned
Whiting Clean Energy, Inc.
EXHIBIT H. FINANCIAL STATEMENTS OF EXEMPT WHOLESALE GENERATORS OR FOREIGN
UTILITY COMPANIES.
Confidential treatment requested.
EXHIBIT I. DEBT ACQUISITION SCHEDULE.
Confidential treatment requested.
204
NISOURCE INC.
FORM U-5S ANNUAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
EXHIBITS (continued)
Exhibit
Number Description
----------- ------------------------------------------------
Exhibit A-1 Certificate of Incorporation of Central Kentucky
Transmission Company dated September 9, 2004.
Exhibit A-2 Certificate of Incorporation of Columbia of Ohio
Receivables Corporation dated May 4, 2004.
Exhibit A-3 Certificate of Incorporation of Columbia Hardy
Corporation dated September 23, 2004.
Exhibit A-4 The State of New Hampshire Record of Organization
of Granite State Gas Transmission, Inc. Articles of
Agreement.
Exhibit A-5 Articles of Incorporation of IWC Resources
Corporation dated March 4, 1986.
Exhibit A-6 Articles of Incorporation of I.W.C., Inc. dated
February 15, 1979.
Exhibit A-7 Articles of Incorporation as Amended April 20, 1967
Exhibit A-8 Plan of Reorganization Between Northern Indiana Fuel
and Light Company, Inc. and Consumers Natural
Gas Corp. dated June 23, 1975.
Exhibit B-1 Written Consent In Lieu of a Special Meeting of the
Stockholders of Bay State Gas Company dated
June 1, 2004.
Exhibit B-2 Unanimous Written Consent In Lieu of a Special
Meeting of the Stockholders of Bay State GPE,
Inc. dated June 1, 2004.
Exhibit B-3 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Northern Utilities, Inc. dated
June 1, 2004.
Exhibit B-4 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Energy Group dated
June 1, 2004.
Exhibit B-5 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Accounts Receivable
Corporation dated June 1, 2004.
Exhibit B-6 Unanimous Written Consent In Lieu of a Special Meeting of
the Stockholders of Columbia Assurance Agency, Inc. dated
June 1, 2004.
Exhibit B-7 Unanimous Written Consent In Lieu of a Special Meeting of
the Directors of Columbia Atlantic Trading Corporation
dated June 1, 2004.
Exhibit B-8 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Deep Water Services
Company dated June 1, 2004.
Exhibit B-9 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Energy Services
Corporation dated June 1, 2004.
Exhibit B-10 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Gas of Kentucky, Inc.
dated June 1, 2004.
205
NISOURCE INC.
FORM U-5S ANNUAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
EXHIBITS (continued)
Exhibit B-11 By-laws of Central Kentucky Transmission Company
as Adopted on September 17, 2004.
Exhibit B-12 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Gas of Maryland, Inc.
dated June 1, 2004.
Exhibit B-13 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Gas of Ohio, Inc. dated
June 1, 2004.
Exhibit B-14 By-laws of Columbia of Ohio Receivables Corporation
Exhibit B-15 Unanimous Written Consent In Lieu of a Special Meeting of
the Stockholders of Columbia Gas of Pennsylvania, Inc.
dated June 1, 2004.
Exhibit B-16 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Gas of Virginia, Inc.
dated June 1, 2004.
Exhibit B-17 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Gas Transmission
Corporation dated June 1, 2004.
Exhibit B-18 By-laws of Columbia Hardy Corporation as Adopted on
November 30, 2004.
Exhibit B-19 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Gulf Transmission
Company dated June 1, 2004.
Exhibit B-20 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Network Services
Corporation dated June 1, 2004.
Exhibit B-21 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of CNS Microwave, Inc. dated
June 1, 2004.
Exhibit B-22 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Columbia Reminder Corporation
dated June 1, 2004.
Exhibit B-23 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of EnergyUSA, Inc. (IN) dated
June 1, 2004.
Exhibit B-24 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of EnergyUSA Commercial
Energy Services, Inc. dated June 1, 2004.
Exhibit B-25 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of EnergyUSA, Inc. (MA) dated
June 1, 2004.
Exhibit B-26 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of EnergyUSA-TPC Corp. dated
June 1, 2004.
Exhibit B-27 Unanimous Written Consent In Lieu of a Special Meeting of
the Board of Directors of NI Energy Services Transportation,
Inc. dated June 1, 2004.
Exhibit B-28 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NI Fuel Company, Inc. dated
June 1, 2004.
206
NISOURCE INC.
FORM U-5S ANNUAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
EXHIBITS (continued)
Exhibit B-29 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NI-TEX, Inc. dated June 1, 2004.
Exhibit B-30 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of Granite State Gas Transmission, Inc.
dated June 1, 2004.
Exhibit B-31 By-laws of IWC Resources Corporation dated June 1, 2004.
Exhibit B-32 By-laws of I.W.C., Inc. dated June 1, 2004.
Exhibit B-33 By-laws of Indianapolis Water Company dated June 1, 2004.
Exhibit B-34 By-laws of Irishman's Run Acquisition Corp. as Adopted
as of November 22, 1999 dated June 1, 2004.
Exhibit B-35 By-laws of IWC Morgan Water Corporation dated June 1, 2004.
Exhibit B-36 Unanimous Written Consent In Lieu of a Special Meeting of the
Board of Directors of KGF Trading Company dated June 1, 2004.
Exhibit B-37 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NI Energy Services, Inc. dated
June 1, 2004.
Exhibit B-38 Unanimous Written Consent In Lieu of a Special Meeting
of the Directors of Crossroads Pipeline Company dated
June 1, 2004.
Exhibit B-39 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NiSource Capital Markets, Inc.
dated June 1, 2004.
Exhibit B-40 Unanimous Written Consent In Lieu of a Special Meeting
of the Stockholders of NiSource Corporate Services Company
dated June 1, 2004.
Exhibit B-41 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NiSource Development
Company, Inc. dated June 1, 2004.
Exhibit B-42 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of Cardinal Property Management,
Inc. dated June 1, 2004.
Exhibit B-43 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of JOF Transportation Company
dated June 1, 2004.
Exhibit B-44 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of Lake Erie Land Company
dated June 1, 2004.
Exhibit B-45 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of SCC Services, Inc. dated
June 1, 2004.
Exhibit B-46 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NDC Douglas Properties, Inc.
dated June 1, 2004.
Exhibit B-47 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of South Works Power Company
dated June 1, 2004.
207
NISOURCE INC.
FORM U-5S ANNUAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004
EXHIBITS (continued)
Exhibit B-48 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NiSource Energy Technologies,
Inc. dated June 1, 2004.
Exhibit B-49 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NiSource Finance Corp. dated
June 1, 2004.
Exhibit B-50 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of Northern Indiana Fuel and
Light Company, Inc. dated June 1, 2004.
Exhibit B-51 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of NIPSCO Receivables Corporation
dated June 1, 2004.
Exhibit B-52 Unanimous Written Consent In Lieu of a Special Meeting
of the Board of Directors of Whiting Clean Energy, Inc.
dated June 1, 2004.
208