NiSource Reports Third Quarter Results, Raises 2010 Outlook

MERRILLVILLE, Ind., Oct. 29 /PRNewswire-FirstCall/ –
— Solid results drive increase in 2010 net operating earnings guidance
— Significant progress advancing Indiana regulatory agenda
— Strategic pipeline and midstream growth projects move forward

NiSource Inc. (NYSE: NI) today announced net operating earnings from continuing
operations (non-GAAP) of $10.3 million, or 4 cents per share, for the three
months ended September 30, 2010, a decrease from $19.4 million, or 7 cents per
share, for the third quarter of 2009. Operating earnings (non-GAAP) were $109.9
million for the recent three months compared to $134.8 million for the same
period in 2009.

On a GAAP basis, NiSource reported income from continuing operations for the
three months ended September 30, 2010, of $33.4 million, or 12 cents per share,
compared with a loss of $13.2 million, or 5 cents per share, in the same period
a year ago. Operating income was $123.3 million for the third quarter of 2010
compared with $93.6 million in the year-ago period. Schedules 1 and 2 of this
news release contain a reconciliation of net operating earnings and operating
earnings from continuing operations to GAAP.

The company’s third quarter results benefited from increased electric industrial
margins and off-system sales, as well as increased gas distribution revenues due
to regulatory and infrastructure programs. These revenue increases were offset
by anticipated increases in operating expenses, taxes and depreciation addressed
in the segment discussions below.

NiSource President and Chief Executive Officer Robert C. Skaggs, Jr. noted that
third quarter operating earnings were expected to be somewhat below 2009 levels
due to the items mentioned above. However, he emphasized that the company’s
overall 2010 financial performance is expected to exceed the net operating
earnings outlook of $1.10 to $1.20 per share (non-GAAP) provided earlier in the
year.

“Based on NiSource’s solid year-to-date results and continued gradual economic
recovery in some of our key markets, we are increasing our 2010 net operating
earnings outlook to $1.20 to $1.25 per share. In addition, we are reiterating
NiSource’s commitment to growing earnings annually by 3 to 5 percent on a long
term, sustainable basis,” Skaggs said.

“NiSource’s improved earnings outlook reflects the core strength of our team’s
2010 performance and signs of resilience in some of our key markets,” Skaggs
said. “We are confident we will deliver on this improved outlook as we continue
to execute on our balanced strategy to meet the needs of our customers and
enhance shareholder value through long-term, infrastructure investment-driven
growth.”

Building flexibility to fund infrastructure investments

NiSource enhanced its ability to invest in new infrastructure improvements and
growth opportunities through the successful execution of a $400 million equity
offering of common stock in September. The offering, structured under a 24-month
forward sale agreement, was fully subscribed under favorable pricing terms.

“For some time, we have highlighted the deep inventory of attractive
infrastructure investment opportunities available to NiSource’s three business
units – amounting to approximately $1 billion annually – and we’ve emphasized
our focus on building the financial capability to take advantage of those
opportunities,” Skaggs said.

“We also made clear, that as we managed the funding of these investments, we
would do so in a manner consistent with our commitments to create long-term
shareholder value, maintain our dividend and preserve our investment grade
credit rating,” Skaggs continued. “The successful equity offering meets these
key criteria and positions the company to sustainably grow long-term earnings at
the upper end of our targeted range.”

Milestone regulatory advancements in Indiana

NiSource’s Indiana team achieved several significant regulatory milestones
during the third quarter as part of its commitment to enhance customer service,
restore appropriate earnings levels and position the companies for continued
growth.

— On Aug. 25, Northern Indiana Public Service Company’s (NIPSCO)electric
business received an order from the Indiana Utility Regulatory
Commission (IURC) on the company’s 2008 electric base rate case. The
order, which is subject to rehearing and appeals processes, is in line
with the company’s expectations and sets the stage for restoring
NIPSCO’s electric earnings to an appropriate level by 2012.

— As previously discussed, NIPSCO plans to submit a follow-up electric
rate case filing with the IURC in the fourth quarter of this year. The
filing is expected to address items that have changed since the
company’s 2008 rate filing, including factors related to the economic
downturn, changes in customer usage and operating conditions, and
efforts to enhance customer programs and rate design.

— On Aug. 24, parties in NIPSCO’s gas base rate case filed a unanimous
settlement proposal with the IURC. The proposal, if approved, will
result in an overall rate decrease for customers while enhancing
operating earnings and preserving the company’s rate base. The
settlement also proposes enhancements in rate design and continued
strong support for low-income customer assistance, energy efficiency and
conservation programs. A decision by the IURC is expected in the fourth
quarter.

“The third quarter marked several significant milestones in NIPSCO’s efforts to
enhance customer service, invest in Indiana’s critical energy infrastructure and
chart a course for long-term growth,” Skaggs noted. “Going forward, our Indiana
team is committed to working with all stakeholders in a constructive and
collaborative fashion to continue addressing the needs of Indiana consumers and
investors.”

Pipeline growth projects in Marcellus Shale region advance

During the quarter, NiSource’s Gas Transmission & Storage Operations
(NGT&S)continued to advance strategic infrastructure investments linked to the
Marcellus Shale production region in Appalachia.

— On Aug. 12, NGT&S announced a partnership with UGI Energy Services,
Inc., to develop a new natural gas pipeline providing Marcellus Shale
producers in Pennsylvania improved access to high-value markets. The
project, which is in the evaluation and development stage, could provide
as much as 500,000 dekatherms per day (Dth/d) of additional
transportation capacity for natural gas production in north-central
Pennsylvania and southern New York.

— On Sept. 27, NGT&S announced commencement of service under the nearly
$80 million Majorsville expansion in southwestern Pennsylvania. The
project, developed jointly with MarkWest Liberty Midstream & Resources
L.L.C., is the first integrated gathering and processing system serving
Marcellus production in northern West Virginia. Fully contracted, the
pipeline and compression assets allow NGT&S to gather and deliver more
than 325,000 Dth/d of Marcellus production gas to the new MarkWest
Liberty Majorsville processing plant.

— The team also is advancing additional Marcellus projects, including the
$14 million Line WB Expansion and the $18 million Clendenin Project,
projected to be in service by Jan. 2011 and second quarter 2011
respectively.

— On Oct. 28, Columbia Gulf Transmission filed its first rate case in more
than 14 years with the Federal Energy Regulatory Commission. The filing
seeks an increase in revenues of approximately $50 million per year,
reflecting updated costs and operating conditions. Rates are anticipated
to be placed into effect, subject to refund, in mid-2011.

“The NGT&S team is executing on our strategy to grow the business through
thoughtful, customer-driven projects leveraging our geographic presence in the
Marcellus Shale region, including pursuing opportunities to transport production
gas to processing facilities and market centers,” Skaggs said. “At the same
time, we’re maximizing value from our existing assets by managing long-term
contracts, expanding our customer base and maintaining safe and reliable
operations.”

Continued execution of infrastructure and regulatory programs

NiSource’s Gas Distribution Operations (NGD) continues to execute its strategy
of combining long-term infrastructure replacement programs with complementary
regulatory initiatives.

— NGD continues to proactively advance replacement and upgrades of its
infrastructure to ensure a safe and reliable distribution system. This
includes significant, revenue-producing programs at our largest
utilities, Columbia Gas of Ohio, Columbia Gas of Pennsylvania and
Columbia Gas of Massachusetts(formerly known as Bay State Gas Company).

— The Pennsylvania Public Utility Commission (PUC) approved a Columbia Gas
of Pennsylvania base rate case settlement on August 18, with new rates
effective on Oct. 1. In addition to increasing the company’s base
revenues, the approval increases funding of the company’s Emergency
Repair Program and begins offering rebates to moderate-income customers
who participate in its Income Qualified Energy Efficiency Program.

— Columbia Gas of Virginia’s rate case, pending before the Virginia State
Corporation Commission, proposes an increase in revenues of $13 million
and changes to the company’s rate design, including increases to fixed
monthly customer charges and the introduction of a weather normalization
adjustment. Hearings are scheduled for Nov. 16, with new rates
anticipated to be effective January 1, 2011.

“Infrastructure and customer programs continue to advance at NGD,” Skaggs said.
“In addition to enhancing our ability to provide safe, reliable and responsive
service to our millions of natural gas customers, these core programs continue
to produce predictable, long-term and low-risk earnings growth.”

2010 earnings guidance increased

As noted above, NiSource is increasing its full-year guidance to $1.20 to $1.25
per share of net operating earnings (non-GAAP). As outlined in the company’s
Feb. 1, 2010 earnings release, due to the unpredictability of weather and other
factors, NiSource is not providing GAAP earnings guidance.

Third Quarter 2010 Operating Earnings – Segment Results (non-GAAP)

NiSource’s consolidated third-quarter 2010 operating earnings (non-GAAP) were
$109.9 million, compared to $134.8 million for the same period in 2009. Refer to
Schedule 2 for the items included in 2010 and 2009 GAAP operating income but
excluded from operating earnings.

Operating earnings for NiSource’s business segments for the quarter ended
September 30, 2010, are discussed below.

Gas Distribution Operations reported an operating earnings loss for the current
quarter of $40.7 million compared to an operating earnings loss of $30.0 million
in the third quarter of 2009. Net revenues, excluding the impact of regulatory
trackers, increased $8.5 million, primarily attributable to regulatory and
service programs. The increase in regulatory and service programs was largely
due to Columbia Gas of Ohio’s previously announced change from a volumetric to
straight fixed-variable rate design. Additionally, Columbia Gas of Ohio
implemented new rates under its approved infrastructure replacement program. The
increase in revenue was partially offset by a decrease in commercial and
residential margins as well as a decrease in off-system sales.

Operating expenses, excluding trackers, were $19.2 million higher than the
comparable 2009 period. The increase was primarily attributable to higher
employee and administration costs, including the impacts of the previously
deferred 2009 pension costs by Columbia Gas of Ohio.

Gas Transmission and Storage Operations reported operating earnings for the
current quarter of $76.4 million compared to operating earnings of $100.2
million in the third quarter of 2009. Net revenues, excluding the impact of
trackers, decreased by $7.8 million, driven by decreases in revenues from
shorter term transportation and storage services and mineral rights lease
revenues. These decreases were partially offset by higher demand and commodity
margin revenues.

Operating expenses, excluding the impact of trackers, increased $13.6 million
compared to the third quarter of 2009. This increase was the result of an
increase in maintenance and other outside service costs and employee and
administration expenses, including pension costs.

Equity earnings decreased by $2.4 million primarily due to lower earnings at
Millennium Pipeline, primarily because of higher interest expense.

Electric Operations reported operating earnings of $80.0 million versus
operating earnings of $69.6 million from the same quarter last year. Net
revenues, excluding trackers, increased by $17.4 million primarily as a result
of increased industrial margins and higher off-system sales.

Operating expenses, excluding the impact of trackers, increased by $7.0 million
due primarily to increased employee and administration costs, higher electric
generation costs and higher taxes (property and other).

Corporate and Other Operations reported an operating earnings loss of $5.8
million for the current quarter compared to a loss of $5.0 million in the third
quarter of 2009.

In the first quarter of 2010, the company eliminated the “Other” segment.
NiSource’s decision to wind down the unregulated natural gas marketing
activities will impact the results from Other Operations. Results previously
recorded as “Other” are now included within “Corporate and Other Operations.”

Other Items

Interest expense decreased by $7.4 million primarily due to the December 2009
term loan repayment, the maturity of the company’s November 2009 floating rate
note, and lower short-term interest rates. The benefits were partially offset by
incremental interest expense associated with the issuance of December 2009
long-term debt and the effect of the adoption of new accounting requirements
related to the company’s accounts receivable facilities.

Other-net was essentially flat for the third quarter of 2010 compared to the
third quarter of 2009.

The effective tax rate of net operating earnings was 28.5 percent compared to
39.8 percent for the same period last year. During the third quarter of 2010, a
rate settlement was approved that reduced income tax expense for accelerated tax
deductions on property differences.

Nine-Month Period 2010 Operating Earnings – Segment Results (non-GAAP)

NiSource’s consolidated operating earnings (non-GAAP) for the nine months ended
September 30, 2010, were $669.0 million, compared to $621.6 million for the same
period in 2009. Refer to Schedule 2 for the items included in 2010 and 2009 GAAP
operating income but excluded from operating earnings.

Operating earnings for NiSource’s business segments for the nine months ended
September 30, 2010 are discussed below.

Gas Distribution Operations reported operating earnings of $229.9 million
compared to $214.8 million reported for the nine months ended September 30,
2009. Net revenues, excluding the impact of regulatory trackers, increased $28.0
million, primarily attributable to regulatory and service programs and
off-system sales. The increase to regulatory and service programs is primarily a
result of recent rate case outcomes as well as Columbia Gas of Ohio’s
implementation of new rates under its approved infrastructure replacement
program. These increased revenues were partially offset by a decrease in
commercial and residential margins as well as decreased forfeited discounts and
late payments.

Operating expenses, excluding trackers, were $12.9 million higher than the
comparable period, as a result of an increase in employee and administration
expenses and depreciation costs. These increases were partially offset by a
decrease in uncollectible expense.

Gas Transmission and Storage Operations reported operating earnings of $277.2
million versus operating earnings of $292.2 million as of September 30, 2009.
Net revenues, excluding trackers, increased $14.1 million primarily attributable
to increases in demand margin revenues, recognition of revenue related to a
previously deferred gain for native gas contributed to Hardy Storage Company
(Hardy Storage) from Columbia Gas Transmission following Hardy Storage securing
permanent financing, and fees received from a contract buyout. Additionally, net
revenue increased due to an increase in mineral rights royalty revenue. The
increase in net revenues was partially offset by decreases in revenues from
shorter term transportation and storage services as well as mineral rights lease
revenue.

Operating expenses, excluding the impact of trackers, increased by $30.8
million, primarily due to increased maintenance and outside service costs,
higher employee and administration expenses, and increased depreciation costs.
These increases were partially offset by decreases in legal and bad debt
reserves.

Equity earnings increased by $1.7 million primarily due to lower interest
charges at Millennium Pipeline.

Electric Operations reported operating earnings of $174.5 million for the nine
months ended September 30, 2010, compared with operating earnings of $126.8
million for the prior year period. Net revenues increased by $59.9 million
primarily from increased industrial and residential margins, higher off-system
sales, and returns associated with environmental investments. These increases
were partially offset by a increase in revenue credits.

Operating expenses, excluding the impact of trackers, increased by $12.2 million
due primarily to property taxes and environmental costs. Additionally, the
increase is due to higher depreciation costs. These increases were partially
offset by a decrease in uncollectible accounts.

Corporate and Other Operations reported an operating earnings loss of $12.6
million for the nine month period ended September 30, 2010, compared to an
operating earnings loss of $12.2 million for the nine month period ended
September 30, 2009.

Other Items

Interest expense decreased by $5.9 million primarily due to the December 2009
term loan repayment, the maturity of the company’s November 2009 floating rate
note, and lower short-term interest rates. The benefits were partially offset by
incremental interest expense associated with the issuance of December 2009
long-term debt and the effect of the adoption of new accounting requirements
related to the company’s accounts receivable facilities.

Other-net increased $9.6 million for the period ended September 30, 2010,
compared to the period ended September 30, 2009 primarily due to favorable AFUDC
rates and a reclassification of interest expense related to the adoption of new
accounting requirements noted above.

The effective tax rate of net operating earnings was 35.6 percent compared to
38.5 percent for the same period last year. During the third-quarter of 2010, a
rate settlement was approved that reduced income tax expense for accelerated tax
deductions on property differences.

Income from Continuing Operations (GAAP)

As noted above, on a GAAP basis, NiSource reported net income from continuing
operations for the three months ended September 30, 2010, of $33.4 million, or
12 cents per share, compared with a net loss from continuing operations of $13.2
million, or 5 cents per share, in the same period a year ago. Operating income
was $123.3 million for the third quarter of 2010, compared with $93.6 million in
the year-ago period.

On a GAAP basis, NiSource reported net income from continuing operations for the
nine months ended September 30, 2010, of $258.8 million, or 93 cents per share,
compared with $142.0 million, or 52 cents per share last year. Operating income
was $665.9 million for the nine months ended September 30, 2010, versus $553.5
million in the year-ago period.

Refer to Schedule 1 for a complete list of the items included in 2010 and 2009
GAAP income from Continuing Operations but excluded from net operating earnings.

About NiSource

NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company
engaged in natural gas transmission, storage and distribution, as well as
electric generation, transmission and distribution. NiSource operating companies
deliver energy to 3.8 million customers located within the high-demand energy
corridor stretching from the Gulf Coast through the Midwest to New England.
Information about NiSource and its subsidiaries is available via the Internet at
www.nisource.com. NI-F

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Those statements include statements
regarding the intent, belief or current expectations of NiSource and its
management. Although NiSource believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be
achieved. Readers are cautioned that the forward-looking statements in this news
release are not guarantees of future performance and involve a number of risks
and uncertainties, and that actual results could differ materially from those
indicated by such forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such forward-looking
statements include, but are not limited to, the following: weather; fluctuations
in supply and demand for energy commodities; growth opportunities for NiSource’s
businesses; increased competition in deregulated energy markets; the success of
regulatory and commercial initiatives; dealings with third parties over whom
NiSource has no control; actual operating experience of NiSource’s assets; the
regulatory process; regulatory and legislative changes; the impact of potential
new environmental laws or regulations; the results of material litigation;
changes in pension funding requirements; changes in general economic, capital
and commodity market conditions; and counter-party credit risk, and the matters
set forth in the “Risk Factors” sections in NiSource’s 2009 Form 10-K and 2010
Forms 10-Q, many of which risks are beyond the control of NiSource. NiSource
expressly disclaims a duty to update any of the forward-looking statements
contained in this release.

NiSource Inc.
Consolidated Net Operating Earnings (Non-GAAP)
(unaudited)

Three Months Nine Months
Ended Ended
September September
30, 30,
———- ———-
(in millions, except per
share amounts) 2010 2009 2010 2009
———————— —- —- —- —-
Net Revenues
Gas Distribution $317.5 $296.7 $2,129.5 $2,455.0
Gas Transportation and
Storage 270.7 242.4 905.5 898.7
Electric 398.5 342.2 1,056.1 934.6
Other 17.8 20.3 59.5 45.0
—– —- —- —- —-
Gross Revenues 1,004.5 901.6 4,150.6 4,333.3
Cost of Sales (excluding
depreciation and
amortization) 296.1 219.2 1,626.9 1,909.8
———————— —– —– ——- ——-
Total Net Revenues 708.4 682.4 2,523.7 2,423.5
—————— —– —– ——- ——-
Operating Expenses
Operation and maintenance 354.4 323.7 1,023.1 987.8
Operation and maintenance
-trackers 32.9 27.5 177.1 175.0
Depreciation and
amortization 149.4 146.3 445.3 434.3
Depreciation and
amortization -trackers 3.8 2.4 9.3 6.2
Other taxes 52.4 46.3 158.5 149.5
Other taxes – trackers 9.1 7.3 52.7 58.8
———————- — — —- —-
Total Operating Expenses 602.0 553.5 1,866.0 1,811.6
———————— —– —– ——- ——-
Equity Earnings in
Unconsolidated
Affiliates 3.5 5.9 11.3 9.7
—————— — — —- —
Operating Earnings 109.9 134.8 669.0 621.6
—————— —– —– —– —–
Other Income (Deductions)
Interest expense, net (97.6) (105.0) (294.8) (300.7)
Other, net 2.1 2.4 7.3 (2.3)
———- — — — —-
Total Other (Deductions) (95.5) (102.6) (287.5) (303.0)
———————— —– —— —— ——
Operating Earnings From
Continuing Operations
Before Income Taxes 14.4 32.2 381.5 318.6
Income Taxes 4.1 12.8 135.8 122.6
———— — —- —– —–
Net Operating Earnings
from Continuing
Operations 10.3 19.4 245.7 196.0
———————- —- —- —– —–
GAAP Adjustment 23.1 (32.6) 13.1 (54.0)
————— —- —– —- —–
GAAP Income (Loss) from
Continuing Operations $33.4 $(13.2) $258.8 $142.0
======================= ===== ====== ====== ======

Basic Net Operating
Earnings Per Share from
Continuing Operations 0.04 0.07 0.89 0.71
———————— —- —- —- —-

GAAP Basic Earnings
(Loss) Per Share from
Continuing Operations 0.12 (0.05) 0.93 0.52
———————- —- —– —- —-

Basic Average Common
Shares Outstanding 278.1 275.4 277.5 274.8
——————– —– —– —– —–

NiSource Inc.
Segment Operating Earnings (Non-GAAP)

Three Months Nine Months
Ended
September Ended
Gas Distribution Operations 30, September 30,
———- ————-
(in millions) 2010 2009 2010 2009
————————— —- —- —- —-
Net Revenues
Sales Revenues $431.3 $386.5 $2,553.8 $2,896.0
Less: Cost of gas sold 188.3 154.5 1,385.8 1,744.9
———————- —– —– ——- ——-
Net Revenues 243.0 232.0 1,168.0 1,151.1
———— —– —– ——- ——-
Operating Expenses
Operation and maintenance 176.3 159.9 506.9 497.8
Operation and maintenance -
trackers 14.1 13.2 126.1 131.0
Depreciation and
amortization 63.9 62.9 189.8 186.2
Other taxes 20.4 18.6 62.6 62.4
Other taxes – trackers 9.0 7.4 52.7 58.9
———————- — — —- —-
Total Operating Expenses 283.7 262.0 938.1 936.3
———————— —– —– —– —–
Operating (Loss) Earnings $(40.7) $(30.0) $229.9 $214.8
========================= ====== ====== ====== ======
GAAP Adjustment (1.8) (3.9) (18.8) (1.6)
————— —- —- —– —-
GAAP Operating (Loss)
Income $(42.5) $(33.9) $211.1 $213.2
===================== ====== ====== ====== ======

Three Months Nine Months
Ended
Gas Transmission and September Ended
Storage Operations 30, September 30,
———- ————–
(in millions) 2010 2009 2010 2009
————- —- —- —- —-
Net Revenues
Transportation revenues $163.7 $163.0 $522.6 $517.3
Storage revenues 49.9 49.0 149.0 142.4
Other revenues 3.9 9.7 19.8 13.4
————– — — —- —-
Net Operating Revenues 217.5 221.7 691.4 673.1
———————- —– —– —– —–
Operating Expenses
Operation and maintenance 82.6 71.8 242.5 218.0
Operation and maintenance -
trackers 16.1 12.5 44.3 40.1
Depreciation and
amortization 31.8 30.5 94.9 90.1
Other taxes 14.0 12.5 43.8 42.3
———– —- —- —- —-
Total Operating Expenses 144.5 127.3 425.5 390.5
———————— —– —– —– —–
Equity Earnings in
Unconsolidated Affiliates 3.4 5.8 11.3 9.6
————————– — — —- —
Operating Earnings $76.4 $100.2 $277.2 $292.2
================== ===== ====== ====== ======
GAAP Adjustment (0.2) (0.3) (0.2) (19.8)
————— —- —- —- —–
GAAP Operating Income $76.2 $99.9 $277.0 $272.4
===================== ===== ===== ====== ======

NiSource Inc.
Segment Operating Earnings (Non-GAAP)

Three Months Nine Months
Ended
September Ended
Electric Operations 30, September 30,
———- ————-
(in millions) 2010 2009 2010 2009
——————- —- —- —- —-
Net Revenues
Sales revenues $389.8 $344.1 $1,051.4 $939.6
Less: Cost of sales 142.5 116.4 389.9 343.8
——————- —– —– —– —–
Net Revenues 247.3 227.7 661.5 595.8
———— —– —– —– —–
Operating Expenses
Operation and maintenance 95.2 91.4 276.6 273.5
Operation and maintenance -
trackers 2.7 1.7 6.7 3.9
Depreciation and
amortization 50.0 49.5 149.7 147.3
Depreciation and
amortization -trackers 3.7 2.5 9.3 6.3
Other taxes 15.7 13.0 44.7 38.0
———– —- —- —- —-
Total Operating Expenses 167.3 158.1 487.0 469.0
———————— —– —– —– —–
Operating Earnings $80.0 $69.6 $174.5 $126.8
================== ===== ===== ====== ======
GAAP Adjustment 15.9 (26.1) 16.1 (43.0)
————— —- —– —- —–
GAAP Operating Income $95.9 $43.5 $190.6 $83.8
===================== ===== ===== ====== =====

Three Months Nine Months
Ended
Corporate and Other September Ended
Operations 30, September 30,
———- ————-
(in millions) 2010 2009 2010 2009
————- —- —- —- —-
Operating Loss $(5.8) $(5.0) $(12.6) $(12.2)
==================== ===== ===== ====== ======
GAAP Adjustment (0.5) (10.9) (0.2) (3.7)
————— —- —– —- —-
GAAP Operating Loss $(6.3) $(15.9) $(12.8) $(15.9)
=================== ===== ====== ====== ======

NiSource Inc.
Segment Volumes and Statistical Data

Three Months Nine Months
Ended September Ended September
Gas Distribution Operations 30, 30,
—————- —————-
2010 2009 2010 2009
—- —- —- —-
Sales and Transportation
(MMDth)
Residential 15.0 16.5 170.2 181.7
Commercial 19.1 16.9 115.1 118.3
Industrial 98.3 75.6 284.3 246.2
Off System 13.7 14.6 56.8 44.7
Other 0.1 0.1 0.8 0.6
—– — — — —
Total 146.2 123.7 627.2 591.5
—– —– —– —– —–
Weather Adjustment 1.1 1.3 14.6 0.3
—————— — — —- —
Sales and Transportation
Volumes -Excluding Weather 147.3 125.0 641.8 591.8
=========================== ===== ===== ===== =====

Heating Degree Days 72 69 3,370 3,593
Normal Heating Degree Days 88 88 3,596 3,596
% Colder (Warmer) than Normal (18%) (22%) (6%) (0%)

Customers
Residential 2,980,557 2,972,887
Commercial 273,371 273,515
Industrial 7,686 7,822
Other 81 80
—– — —
Total 3,261,695 3,254,304
—– ——— ———

Three Months Nine Months
Gas Transmission and Storage Ended September Ended September
Operations 30, 30,
—————- —————-
2010 2009 2010 2009
—- —- —- —-
Throughput (MMDth)
Columbia Transmission 191.1 158.4 750.1 736.9
Columbia Gulf 225.0 195.2 625.0 708.4
Crossroads Gas Pipeline 6.5 8.6 20.2 26.0
Intrasegment eliminations (141.6) (114.8) (423.2) (443.6)
————————- —— —— —— ——
Total 281.0 247.4 972.1 1,027.7
—– —– —– —– ——-

NiSource Inc.
Segment Volumes and Statistical Data

Three Months Nine Months
Ended September Ended September
Electric Operations 30, 30,
—————- —————-
2010 2009 2010 2009
—- —- —- —-
Sales (Gigawatt Hours)
Residential 1,175.7 843.9 2,833.2 2,445.5
Commercial 1,103.8 1,004.5 2,991.1 2,907.6
Industrial 2,180.0 1,944.5 6,321.8 5,723.4
Wholesale 330.0 208.9 635.7 385.2
Other 47.0 33.3 128.2 112.4
—– —- —- —– —–
Total 4,836.5 4,035.1 12,910.0 11,574.1
—– ——- ——- ——– ——–
Weather Adjustment (470.0) 326.0 (501.7) 346.5
—————— —— —– —— —–
Sales Volumes -Excluding
Weather impacts 4,366.5 4,361.1 12,408.3 11,920.6
======================== ======= ======= ======== ========

Cooling Degree Days 700 318 977 515
Normal Cooling Degree Days 578 578 808 808
% Warmer (Colder) than Normal 21% (45%) 21% (36%)

Electric Customers
Residential 399,556 398,408
Commercial 53,696 53,396
Industrial 2,435 2,444
Wholesale 15 13
Other 741 751
—– — —
Total 456,443 455,012
—– ——- ——-

NiSource Inc.
Schedule 1 – Reconciliation of Net Operating Earnings to GAAP

Three Months Nine Months
Ended
September Ended
30, September 30,
———- ————-
(in millions, except per
share amounts) 2010 2009 2010 2009
———————— —- —- —- —-
Net Operating Earnings
from Continuing
Operations (Non-GAAP) $10.3 $19.4 $245.7 $196.0
———————- —– —– —— ——
Items excluded from
operating earnings:
Net Revenues:
Weather -compared to
normal 8.8 (24.6) (1.3) (22.5)
Revenue adjustment – – (5.7) (9.0)
Unregulated natural gas
marketing business 0.9 (0.8) 5.8 13.2

Operating Expenses:
Restructuring 0.2 (4.8) (0.7) (24.6)
Transition charges (IBM
Agreement) – (0.3) – (3.4)
Environmental reserve
adjustment 6.0 – 6.0 -
Unregulated natural gas
marketing business (1.3) (2.4) (5.9) (8.3)
Legal reserve – (0.6) – (7.0)
Gain/Loss on sale of
assets and asset
impairments (1.2) (7.7) (1.3) (6.5)
——————– —- —- —- —-
Total items excluded from
operating earnings 13.4 (41.2) (3.1) (68.1)
————————- —- —– —- —–
Gain on early
extinguishment of debt – – – 2.5
———————– — — — —
Tax effect of above items (5.5) 16.4 1.0 19.4
————————- —- —- — —-

Other income tax
adjustments
—————-
Income Taxes -Tax Method
change – (7.8) – (7.8)
Income Taxes – Rate
settlement flow-through 15.2 – 15.2 -
———————— —- — —- —
Total other income tax
adjustments 15.2 (7.8) 15.2 (7.8)
———————- —- —- —- —-

Total items excluded from
net operating earnings 23.1 (32.6) 13.1 (54.0)
————————- —- —– —- —–

Reported Income (Loss)
from Continuing
Operations -GAAP $33.4 $(13.2) $258.8 $142.0
====================== ===== ====== ====== ======

Basic Average Common
Shares Outstanding 278.1 275.4 277.5 274.8
——————– —– —– —– —–

Basic Net Operating
Earnings Per Share from
Continuing Operations 0.04 0.07 0.89 0.71
———————— —- —- —- —-
Items excluded from net
operating earnings
(after-tax) 0.08 (0.12) 0.04 (0.19)
———————– —- —– —- —–
GAAP Basic Earnings
(Loss) Per Share from
Continuing Operations 0.12 (0.05) 0.93 0.52
———————- —- —– —- —-

NiSource Inc.
Schedule 2 – Adjustments by Segment from Operating Earnings to GAAP
For Quarter ended September 30,

2010 (in millions)
——————
Gas
Distribution Gas Electric
Transmission
and
————- Storage ——–
————-

Operating Earnings (Loss) $(40.7) $76.4 $80.0

Net Revenues:
Weather (compared to normal) (1.1) – 9.9
Unregulated natural gas marketing
business – – -
— — —
Total Impact – Net Revenues (1.1) – 9.9

Operating Expenses
Restructuring 0.1 – 0.1
Environmental Reserve – – 6.0
Gain/Loss on sale of assets and
asset impairments (0.8) (0.2) (0.1)
Unregulated natural gas marketing
business – – -
— — —
Total Impact – Operating Expenses (0.7) (0.2) 6.0

Total Impact -Operating Income
(Loss) $(1.8) $(0.2) $15.9
—– —– —–

Operating Income (Loss) – GAAP $(42.5) $76.2 $95.9
—— —– —–

2010 (in millions)
——————
Corporate
&
Other Total
———- —–

Operating Earnings (Loss) $(5.8) $109.9

Net Revenues:
Weather (compared to normal) – 8.8
Unregulated natural gas marketing
business 0.9 0.9
— —
Total Impact – Net Revenues 0.9 9.7

Operating Expenses
Restructuring – 0.2
Environmental Reserve – 6.0
Gain/Loss on sale of assets and
asset impairments (0.1) (1.2)
Unregulated natural gas marketing
business (1.3) (1.3)
—- —-
Total Impact – Operating Expenses (1.4) 3.7

Total Impact -Operating Income
(Loss) $(0.5) $13.4
—– —–

Operating Income (Loss) – GAAP $(6.3) $123.3
—– ——

2009 (in millions)
——————
Gas
Distribution Gas Electric
Transmission
and
————- Storage ——–
————-

Operating Earnings (Loss) $(30.0) $100.2 $69.6

Net Revenues:
Weather (compared to normal) (2.3) – (22.3)
Unregulated natural gas marketing
business – – -
— — —
Total Impact – Net Revenues (2.3) – (22.3)

Operating Expenses
Restructuring (1.4) (0.2) (3.2)
Transition Charges (IBM
Agreement) (0.2) (0.1) -
Unregulated natural gas marketing
business – – -
Legal reserve – – (0.6)
Gain/Loss on sale of assets and
asset impairments – – -
— — —
Total Impact – Operating Expenses (1.6) (0.3) (3.8)

Total Impact – Operating Loss $(3.9) $(0.3) $(26.1)
—– —– ——

Operating Income (Loss) – GAAP $(33.9) $99.9 $43.5

2009 (in millions)
——————
Corporate Total
——— —–

Operating Earnings (Loss) $(5.0) $134.8

Net Revenues:
Weather (compared to normal) – (24.6)
Unregulated natural gas marketing
business (0.8) (0.8)
—- —-
Total Impact – Net Revenues (0.8) (25.4)

Operating Expenses
Restructuring – (4.8)
Transition Charges (IBM
Agreement) – (0.3)
Unregulated natural gas marketing
business (2.4) (2.4)
Legal reserve – (0.6)
Gain/Loss on sale of assets and
asset impairments (7.7) (7.7)
—- —-
Total Impact – Operating Expenses (10.1) (15.8)

Total Impact – Operating Loss $(10.9) $(41.2)
—— ——

Operating Income (Loss) – GAAP $(15.9) $93.6

NiSource Inc.
Schedule 2 – Adjustments by Segment from Operating Earnings to GAAP
For Nine Months ended September 30,

2010 (in millions)
——————
Gas
Gas Transmission
and
Distribution Storage Electric
———— ——– ——–

Operating Earnings (Loss) $229.9 $277.2 $174.5

Net Revenues:
Weather (compared to normal) (12.0) – 10.7
Revenue sales adjustment (5.7) – -
Unregulated natural gas marketing
business – – -
— — —
Total Impact – Net Revenues (17.7) – 10.7

Operating Expenses
Restructuring (0.2) – (0.5)
Environmental Reserve – – 6.0
Unregulated natural gas marketing
business – – -
(Loss) on sale of assets and asset
impairments (0.9) (0.2) (0.1)
—- —- —-
Total Impact – Operating Expenses (1.1) (0.2) 5.4

Total Impact -Operating Income
(Loss) $(18.8) $(0.2) $16.1
—— —– —–

Operating Income (Loss) – GAAP $211.1 $277.0 $190.6
—— —— ——

2010 (in millions)
——————

Corporate
and
Other Total
—— —–

Operating Earnings (Loss) $(12.6) $669.0

Net Revenues:
Weather (compared to normal) – (1.3)
Revenue sales adjustment – (5.7)
Unregulated natural gas marketing
business 5.8 5.8
— —
Total Impact – Net Revenues 5.8 (1.2)

Operating Expenses
Restructuring – (0.7)
Environmental Reserve – 6.0
Unregulated natural gas marketing
business (5.9) (5.9)
(Loss) on sale of assets and asset
impairments (0.1) (1.3)
—- —-
Total Impact – Operating Expenses (6.0) (1.9)

Total Impact -Operating Income
(Loss) $(0.2) $(3.1)
—– —–

Operating Income (Loss) – GAAP $(12.8) $665.9
—— ——

2009 (in millions)
——————
Gas
Gas Transmission
and
Distribution Storage Electric
———— ——– ——–

Operating Earnings (Loss) $214.8 $292.2 $126.8

Net Revenues:
Weather (compared to normal) 1.0 – (23.5)
Revenue adjustment – – (9.0)
Unregulated natural gas marketing
business – – -
— — —
Total Impact – Net Revenues 1.0 – (32.5)

Operating Expenses
Restructuring (1.4) (20.0) (3.2)
Transition charges (IBM Agreement) (1.2) (1.8) (0.3)
Unregulated natural gas marketing
business – – -
Legal reserve – – (7.0)
Gain/(Loss) on sale of assets and
asset impairments – 2.0 -
— — —
Total Impact – Operating Expenses (2.6) (19.8) (10.5)

Total Impact – Operating Loss $(1.6) $(19.8) $(43.0)
—– —— ——

Operating Income (Loss) – GAAP $213.2 $272.4 $83.8

2009 (in millions)
——————

Corporate Total
——— —–

Operating Earnings (Loss) $(12.2) $621.6

Net Revenues:
Weather (compared to normal) – (22.5)
Revenue adjustment – (9.0)
Unregulated natural gas marketing
business 13.2 13.2
—- —-
Total Impact – Net Revenues 13.2 (18.3)

Operating Expenses
Restructuring – (24.6)
Transition charges (IBM Agreement) (0.1) (3.4)
Unregulated natural gas marketing
business (8.3) (8.3)
Legal reserve – (7.0)
Gain/(Loss) on sale of assets and
asset impairments (8.5) (6.5)
—- —-
Total Impact – Operating Expenses (16.9) (49.8)

Total Impact – Operating Loss $(3.7) $(68.1)
—– ——

Operating Income (Loss) – GAAP $(15.9) $553.5

NiSource Inc.
Consolidated Income Statement (GAAP)
(unaudited)

Three Months
Ended
September 30,
————-
(in millions, except per share amounts) 2010 2009
————————————— —- —-
Net Revenues
Gas Distribution $327.0 $294.4
Gas Transportation and Storage 270.7 242.3
Electric 397.7 320.0
Other 142.7 118.2
—– —– —–
Gross Revenues 1,138.1 974.9
Cost of Sales (excluding depreciation and
amortization) 420.0 317.9
—————————————– —– —–
Total Net Revenues 718.1 657.0
—————— —– —–
Operating Expenses
Operation and maintenance 382.1 358.6
Depreciation and amortization 153.1 148.8
Impairment and loss on sale of assets, net 1.1 7.6
Other taxes 62.0 54.2
———– —- —-
Total Operating Expenses 598.3 569.2
———————— —– —–
Equity Earnings in Unconsolidated Affiliates 3.5 5.8
——————————————– — —
Operating Income 123.3 93.6
—————- —– —-
Other Income (Deductions)
Interest expense, net (97.6) (105.0)
Other, net 2.1 2.4
Gain on early extinguishment of long-term
debt – -
—————————————– — —
Total Other Deductions (95.5) (102.6)
———————- —– ——
Income/(Loss) from Continuing Operations
before Income Taxes 27.8 (9.0)
Income Tax (Benefit) Expense (5.6) 4.2
—————————- —- —
Income/(Loss) from Continuing Operations 33.4 (13.2)
—————————————- —- —–
Income/(Loss) from Discontinued Operations -
net of taxes (0.2) 0.2
Gain (Loss) on Disposition of Discontinued
Operations -net of taxes – (2.4)
— —-
Net Income (Loss) $33.2 $(15.4)
================= ===== ======

Basic Earnings (Loss) Per Share
Continuing operations $0.12 $(0.05)
Discontinued operations – -
———————– — —
Basic Earnings (Loss) Per Share $0.12 $(0.05)
=============================== ===== ======

Diluted Earnings (Loss) Per Share
Continuing operations $0.12 $(0.05)
Discontinued operations – -
———————– — —
Diluted Earnings (Loss) Per Share $0.12 $(0.05)
================================= ===== ======

Dividends Declared Per Common Share $0.23 $0.23
———————————– —– —–

Basic Average Common Shares Outstanding 278.1 275.4
Diluted Average Common Shares 279.9 275.4
—————————– —– —–

Nine Months
Ended
September 30,
————-
(in millions, except per share amounts) 2010 2009
————————————— —- —-
Net Revenues
Gas Distribution $2,122.4 $2,456.0
Gas Transportation and Storage 905.5 898.7
Electric 1,056.1 902.2
Other 583.9 708.6
—– —– —–
Gross Revenues 4,667.9 4,965.5
Cost of Sales (excluding depreciation and
amortization) 2,145.4 2,560.2
—————————————– ——- ——-
Total Net Revenues 2,522.5 2,405.3
—————— ——- ——-
Operating Expenses
Operation and maintenance 1,198.8 1,203.4
Depreciation and amortization 454.5 440.7
Impairment and loss on sale of assets, net 1.2 6.4
Other taxes 213.4 210.9
———– —– —–
Total Operating Expenses 1,867.9 1,861.4
———————— ——- ——-
Equity Earnings in Unconsolidated Affiliates 11.3 9.6
——————————————– —- —
Operating Income 665.9 553.5
—————- —– —–
Other Income (Deductions)
Interest expense, net (294.8) (300.7)
Other, net 7.3 (2.3)
Gain on early extinguishment of long-term
debt – 2.5
—————————————– — —
Total Other Deductions (287.5) (300.5)
———————- —— ——
Income/(Loss) from Continuing Operations
before Income Taxes 378.4 253.0
Income Tax (Benefit) Expense 119.6 111.0
—————————- —– —–
Income/(Loss) from Continuing Operations 258.8 142.0
—————————————- —– —–
Income/(Loss) from Discontinued Operations -
net of taxes (0.3) (11.2)
Gain (Loss) on Disposition of Discontinued
Operations -net of taxes 0.1 (2.6)
— —-
Net Income (Loss) $258.6 $128.2
================= ====== ======

Basic Earnings (Loss) Per Share
Continuing operations $0.93 $0.52
Discontinued operations – (0.05)
———————– — —–
Basic Earnings (Loss) Per Share $0.93 $0.47
=============================== ===== =====

Diluted Earnings (Loss) Per Share
Continuing operations $0.93 $0.51
Discontinued operations – (0.04)
———————– — —–
Diluted Earnings (Loss) Per Share $0.93 $0.47
================================= ===== =====

Dividends Declared Per Common Share $0.92 $0.92
———————————– —– —–

Basic Average Common Shares Outstanding 277.5 274.8
Diluted Average Common Shares 278.9 277.3
—————————– —– —–

NiSource Inc.
Consolidated Balance Sheets (GAAP)
(unaudited)

September December
30, 31,
(in millions) 2010 2009
————- —- —-

ASSETS
Property, Plant and Equipment
Utility Plant $19,274.3 $19,041.1
Accumulated depreciation and amortization (8,445.0) (8,387.1)
——– ——–
Net utility plant 10,829.3 10,654.0
—————– ——– ——–
Other property, at cost, less accumulated
depreciation 92.2 34.0
—————————————– —- —-
Net Property, Plant and Equipment 10,921.5 10,688.0
——————————— ——– ——–

Investments and Other Assets
Assets of discontinued operations and
assets held for sale 8.2 14.6
Unconsolidated affiliates 201.8 165.8
Other investments 144.5 129.2
—————– —– —–
Total Investments and Other Assets 354.5 309.6
———————————- —– —–

Current Assets
Cash and cash equivalents 10.9 16.4
Restricted cash 276.5 174.7
Accounts receivable (less reserve of $41.3
and $39.6, respectively) 517.8 808.6
Income tax receivable 97.6 24.9
Gas inventory 438.8 384.8
Underrecovered gas and fuel costs 136.1 40.2
Materials and supplies, at average cost 94.6 102.3
Electric production fuel, at average cost 37.1 59.9
Price risk management assets 215.6 173.3
Exchange gas receivable 73.2 72.5
Regulatory assets 194.3 238.3
Assets of discontinued operations and
assets held for sale – 1.4
Prepayments and other 103.0 126.3
——————— —– —–
Total Current Assets 2,195.5 2,223.6
——————– ——- ——-

Other Assets
Price risk management assets 280.2 237.6
Regulatory assets 1,641.0 1,644.1
Goodwill 3,677.3 3,677.3
Intangible assets 311.4 319.6
Postretirement and postemployment benefits
assets 20.2 19.8
Deferred charges and other 123.8 152.1
————————– —– —–
Total Other Assets 6,053.9 6,050.5
—————— ——- ——-
Total Assets $19,525.4 $19,271.7
============ ========= =========

NiSource Inc.
Consolidated Balance Sheets (continued) (GAAP)
(unaudited)

September December
30, 31,
(in millions, except share amounts) 2010 2009
———————————– —- —-

CAPITALIZATION AND LIABILITIES
Capitalization
Common Stockholders’ Equity
Common stock -$0.01 par value, 400,000,000
shares authorized; 278,305,866 and 276,638,021
shares issued and outstanding, respectively $2.8 $2.8
Additional paid-in capital 4,091.4 4,057.6
Retained earnings 868.5 865.5
Accumulated other comprehensive loss (57.4) (45.9)
Treasury stock (27.4) (25.9)
————– —– —–
Total Common Stockholders’ Equity 4,877.9 4,854.1
Long-term debt, excluding amounts due within
one year 5,964.3 5,969.1
——- ——-
Total Capitalization 10,842.2 10,823.2
——————– ——– ——–

Current Liabilities
Current portion of long-term debt Short-term borrowings Accounts payable Dividends payable Customer deposits and credits Taxes accrued Interest accrued Overrecovered gas and fuel costs Price risk management liabilities Exchange gas payable Deferred revenue Regulatory liabilities Accrued liability postemployment benefits Liabilities of liabilities held for sale Temporary LIFO liquidation credit Legal and environmental reserves Other accruals ————– Total Current Liabilities ———̵ 726.9 719.7
724.6 103.0
242.9 502.3
64.2 0.2
290.5 301.2
168.4 212.9
85.6 125.4
26.3 220.4
256.5 190.1
211.0 222.2
4.5 27.3
98.7 43.8
for postretirement and
7.6 23.6
discontinued operations and
– 0.6
0.1 -
73.2 146.1
270.2 310.8
—– —–
3,251.2 3,149.6
2;————- ——- ——-

Other Liabilities and Deferred Credits
Price risk management liabilities 218.7 170.2
Deferred income taxes 2,207.7 2,018.2
Deferred investment tax credits 35.1 39.6
Deferred credits 76.7 72.4
Deferred revenue 0.2 8.5
Accrued liability for postretirement and
postemployment benefits 1,029.5 1,134.2
Liabilities of discontinued operations and
liabilities held for sale – 6.2
Regulatory liabilities and other removal costs 1,562.3 1,558.8
Asset retirement obligations 134.3 138.2
Other noncurrent liabilities 167.5 152.6
—————————- —– —–
Total Other Liabilities and Deferred Credits 5,432.0 5,298.9
——————————————– ——- ——-
Total Capitalization and Liabilities $19,525.4 $19,271.7
==================================== ========= =========

NiSource Inc.
Statements of Consolidated Cash Flows
(unaudited)

Nine Months Ended September 30, (in millions) 2010 2009
———————————————- —- —-
Operating Activities
Net Income $258.6 $128.2
Adjustments to Reconcile Net Income to Net Cash
from Continuing Operations:
Gain on early extinguishment of debt – (2.5)
Depreciation and amortization 454.5 440.7
Net changes in price risk management assets and
liabilities (4.2) (11.3)
Deferred income taxes and investment tax credits 130.6 354.8
Deferred revenue (22.7) (1.3)
Stock compensation expense and 401(k) profit
sharing contribution 23.2 8.3
Gain on sale of assets (0.1) (2.0)
Loss on impairment of assets 1.1 7.6
Income from unconsolidated affiliates (11.1) (9.2)
(Gain) loss on disposition of discontinued
operations -net of taxes (0.1) 2.6
Loss from discontinued operations -net of taxes 0.3 11.2
Amortization of discount/premium on debt 8.1 9.9
AFUDC equity (4.9) (0.6)
Distributions of Earnings Received from Equity
Investee 7.9 -
Changes in Assets and Liabilities:
Accounts receivable 299.2 598.0
Income tax receivable 24.9 (295.7)
Inventories (32.8) (22.9)
Accounts payable (266.8) (447.4)
Customer deposits and credits (10.7) (30.8)
Taxes accrued (96.1) 50.4
Interest accrued (40.0) (32.6)
(Under) overrecovered gas and fuel costs (289.9) 589.4
Exchange gas receivable/payable (12.9) (14.0)
Other accruals (22.7) (77.8)
Prepayments and other current assets 32.4 34.5
Regulatory assets/liabilities 103.9 70.1
Postretirement and postemployment benefits (142.3) (60.9)
Deferred credits (0.2) (5.4)
Deferred charges and other non current assets 9.9 (1.6)
Other non current liabilities (9.7) 16.3
—————————– —- —-
Net Operating Activities from Continuing Operations 387.4 1,306.0
Net Operating Activities used for Discontinued
Operations (54.9) (185.1)
———————————————- —– ——
Net Cash Flows from Operating Activities 332.5 1,120.9
—————————————- —– ——-

Investing Activities
Capital expenditures (553.7) (586.0)
Insurance recoveries 3.5 61.4
Proceeds from disposition of assets 0.3 2.4
Restricted cash (deposits) withdrawals (101.8) 69.4
Contributions to equity investees (87.7) (26.5)
Distributions from equity investees 23.8 -
Other investing activities (45.9) (31.2)
————————– —– —–
Net Investing Activities used for Continuing
Operations (761.5) (510.5)
Net Investing Activities from Discontinued
Operations 0.4 7.6
—————————————— — —
Net Cash Flow used for Investing Activities (761.1) (502.9)
——————————————- —— ——

Financing Activities
Issuance of long-term debt – 965.1
Retirement of long-term debt (16.3) (365.9)
Change in short-term borrowings, net 621.6 (963.4)
Issuance of common stock 10.6 0.6
Acquisition of treasury stock (1.4) (0.9)
Dividends paid – common stock (191.4) (189.6)
—————————– —— ——
Net Cash Flow from (used for) Financing Activities 423.1 (554.1)
————————————————– —– ——
Change in cash and cash equivalents from continuing
operations 49.0 241.4
Cash contributions to discontinued operations (54.5) (177.5)
Cash and cash equivalents at beginning of period 16.4 20.6
—- —-
Cash and Cash Equivalents at End of Period $10.9 $84.5
========================================== ===== =====

SOURCE NiSource Inc.