NiSource Inc. (NiSource) is an energy holding company whose subsidiaries provide
natural gas, electricity and other products and services to approximately 3.7
million customers located within a corridor that runs from the Gulf Coast through
the Midwest to New England. NiSource is the successor to an Indiana corporation
organized in 1987 under the name of NIPSCO Industries, Inc., which changed its
name to NiSource Inc.
NiSource is the largest natural gas distribution company operating east of
the Rocky Mountains, as measured by number of customers. NiSource's principal
subsidiaries include Columbia, a vertically-integrated natural gas distribution,
transmission and storage holding company whose subsidiaries provide service
to customers in the Midwest, the Mid-Atlantic and the Northeast; Northern Indiana
Public Service Company (Northern Indiana), a vertically-integrated gas and electric
company providing service to customers in northern Indiana; and Bay State Gas
Company (Bay State), a natural gas distribution company serving customers in
New England. NiSource derives substantially all of its revenues and earnings
from the operating results of its 15 direct subsidiaries.
NiSource's business segments are: Gas Distribution Operations; Gas Transmission
and Storage Operations; Electric Operations; and Other Operations.
iSource has focused its business strategy on its core, rate-regulated asset-based
businesses with virtually 100% of its operating income generated from the rate-regulated
businesses. With the nation's fourth largest natural gas pipeline, the largest
natural gas distribution network east of the Rocky Mountains and one of the
nation's largest natural gas storage networks, NiSource operates throughout
the energy-intensive corridor that extends from the supply areas in the Gulf
Coast through the consumption centers in the Midwest, Mid-Atlantic, New England
and Northeast. This corridor includes 30% of the nation's population and 40%
of its energy consumption. NiSource believes natural gas will be the fuel preferred
by customers to meet the corridor's growing energy needs.
Competition and Changes in the Regulatory Environment
The regulatory frameworks applicable to NiSource's operations, at both the
state and federal levels, continue to evolve. These changes have had and will
continue to have an impact on NiSource's operations, structure and profitability.
Management continually seeks new ways to be more competitive and profitable
in this changing environment, including providing gas customers with increased
choices for products and services, disposing of non-core assets and operations,
and developing new energy-related products and services for residential,
commercial and industrial customers.
