CONFIDENTIAL
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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.
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U5S
ANNUAL REPORT
For the Year Ended December 31, 2003
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
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TABLE OF CONTENTS
Page or
Exhibit No.
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Item 1. System Companies and Investment Therein as of December 31, 2003............................................ 3
Item 2. Acquisitions or Sales of Utility Assets.................................................................... 13
Item 3. Issue, Sale, Pledge, Guarantee or Assumption of System Securities.......................................... 13
Item 4. Acquisition, Redemption or Retirement of System Securities................................................. 14
Item 5. Investments in Securities of Nonsystem Companies........................................................... 16
Item 6. Officers and Directors..................................................................................... 18
Item 7. Contributions and Public Relations......................................................................... 51
Item 8. Service, Sales and Construction Contracts.................................................................. 53
Item 9. Wholesale Generators and Foreign Utility Companies......................................................... 55
Item 10. Financial Statements and Exhibits.......................................................................... 57
Consolidating Financial Statements.................................................................... 61
Signature of Registrant's Officer..................................................................... 233
Exhibits:
A. Securities and Exchange Act of 1934 Reports....................................................... 235
B. Index to Corporate Organization & By-Laws Exhibits................................................ 236
C. Indentures or Contracts........................................................................... 247
D. Tax Allocation Agreement for 2002................................................................. 248
E. Other Documents Prescribed by Rule or Order....................................................... 258
F. Report of Independent Public Accountants.......................................................... 259
G. Organizational Chart of Exempt Wholesale Generators or Foreign Utility Holding Companies.......... 261
H. Audited Financial Statements of Exempt Wholesale Generators or Foreign Utility Holding Companies.. 262
L. Debt Acquisition Schedule......................................................................... 262
2
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
NUMBER OF % OF VOTING ISSUER OWNER'S
COMMON POWER OR BOOK VALUE BOOK VALUE
TIER NAME OF COMPANY (COMPANY ABBREVIATION) SHARES HELD INTEREST HELD ($000) ($000) TYPE OF BUSINESS
NISOURCE INC. (NI) Holding company
1 Bay State Gas Company (BSG) 100 100 529,215 529,215 Gas utility
Unsecured Debt (h) - - 242,359 242,359
Subsidiaries:
2 Bay State GPE, Inc. (BSGPE) 1,000 100 36 36 Electric generation
2 Boundary Gas, Inc. (BDY) * (g) - - - Gas supplier/purchaser
2 Northern Utilities, Inc. (NU) 100 100 114,935 114,935 Gas utility
Unsecured Debt (h) - - 76,362 76,362
1 Columbia Energy Group (CG) 100 100 2,568,575 6,306,718 Holding company
Subsidiaries:
2 Columbia Accounts Receivable
Corporation (CAR) 10 100 9,750 9,750 Purchase & sales
of trade
receivables
2 Columbia Atlantic Trading
Corporation (CAT) 308 100 3,947 3,947 Gas-related ventures
2 Columbia Deep Water Services
Company (CDW) 1 100 734 734 Gas pipeline development
Unsecured Debt (h) - - 452 452
2 Columbia Energy Group Capital
Corporation (CCC) (g) - - - - -
Subsidiary:
3 TriStar Gas Technologies,
Inc. (TGT) * (g) - - - - -
2 Columbia Energy Resources, Inc.
(CER) (a) (g) - - - - -
Subsidiaries:
3 Alamco-Delaware, Inc. (AD) (a) - - - - -
3 Columbia Natural Resources, Inc.
(CNR) (a) - - - - -
3 Columbia Natural Resources Canada,
Ltd. (CNRCL) (a) - - - - -
3 Hawg Hauling & Disposal, Inc.
(HH) (a) - - - - -
2 Columbia Energy Services Corporation
(CES) 2,500 100 (79,113) (79,113) Energy-related
services
Unsecured Debt (h) - - 35,280 35,280
2 Columbia Gas of Kentucky, Inc. (CKY) 147,752 100 77,755 77,755 Gas utility
Unsecured Debt (h) - - 46,068 46,068
2 Columbia Gas of Maryland, Inc. (CMD) 2,883 100 29,010 29,010 Gas utility
Unsecured Debt (h) - - 18,975 18,975
2 Columbia Gas of Ohio, Inc. (COH) 6,369,585 100 451,524 451,524 Gas utility
Unsecured Debt - - 500,141 500,141
2 Columbia Gas of Pennsylvania, Inc. (CPA) 1,805,112 100 208,663 208,663 Gas utility
Unsecured Debt (h) - - 263,534 263,534
2 Columbia Gas of Virginia, Inc. (CGV) 1,306,106 100 190,241 190,241 Gas utility
Unsecured Debt (h) - - 151,011 151,011
2 Columbia Gas Transmission Corporation
(TCO) 1,934 100 1,309,218 1,309,218 Gas pipeline and storage
Unsecured Debt (h) - - 113,569 113,569
Secured Debt (i) - - 385,500 385,500
2 Columbia Gulf Transmission Company
(CGT) 1,933 100 151,658 151,658 Gas pipeline and storage
Unsecured Debt (h) - - 78,543 78,543
3
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
NUMBER OF % OF VOTING ISSUER OWNER'S
COMMON POWER OR BOOK VALUE BOOK VALUE
TIER NAME OF COMPANY (COMPANY ABBREVIATION) SHARES HELD INTEREST HELD ($000) ($000) TYPE OF BUSINESS
-----------------------------------------------------------------------------------------------------------------------------------
2 Columbia Network Services Corporation
(CNS) 900 100 5,118 5,118 Holding company
Subsidiary:
3 CNS Microwave, Inc. (CMC) 110 100 - - Telecommunications
and information
services
2 Columbia Petroleum Corporation
(PET) * (g) - - - - Petroleum operations
2 Columbia Remainder Corporation (CRC) 100 100 (92) (92) Holding company
Subsidiaries:
3 Columbia Electric Binghamton
General Corp. (CEB) * (g) - - - - --
3 Columbia Electric Binghamton
Limited Corp. (CEBL) * (g) - - - - --
3 Haverstraw Bay, LLC (HBL) * - 100 - - Power generation
2 Columbia Service Partners, Inc.
(CSP) (b) - - - - Energy-related
services
Subsidiaries:
3 Columbia Assurance Agency,
Inc. (CAA) 850 100 31 31 Insurance business
3 Columbia Service Partners of
Virginia, Inc. (CSPV) * (g) - - - - Energy-related
services
2 Columbia Transmission Communications
Corporation (CTC) (c) - - - - --
2 NiSource Insurance Corporation
Limited (NICL) 14,800 100 9,049 9,049 Insurance Group
1 EnergyUSA, Inc. (IN) (EUII) 1,000 100 (84,245) (84,245) Holding company
Unsecured Debt (h) - - 36,255 36,255
Subsidiaries:
2 EnergyUSA Commercial Energy Services,
Inc. (EUC) 1,000 100 (9,191) (9,191) -
Unsecured Debt (h) 5,037 5,037
2 EnergyUSA Retail, Inc. (EUR) * (g) - - - - -
2 EnergyUSA, Inc. (MA) (EUIM) * (d) 10,000 100 - - Propane company
Subsidiaries:
3 EnergySPE, Inc. (ESPE)* (g) - - - - -
3 EnergyUSA (Connecticut), Inc.
(EUIC) (g) - - - - -
Subsidiaries:
4 EnergyUSA Engineering, Inc.
(EUE) * (g) - - - - -
4 EnergyUSA Mechanical, Inc.
(EUM) * (g) - - - - -
2 EnergyUSA-TPC Corp. (TPC) 100 100 (12,467) (12,467) Gas marketing
Unsecured Debt (h) - - 27,618 27,618
Subsidiary:
3 EnergyUSA-Appalachian Corp.
(EUA) (g) - - Holds oil & gas
exploration
investments
2 NI Energy Services Transportation,
Inc. (NEST) 1,000 100 434 434 Gas pipeline
2 NI Fuel Company, Inc. (NIFC)* 1,000 100 (15,040) (15,040) Holds oil & gas
exploration
investments
2 NI-TEX, Inc. (NITEX) 1,000 100 (2,059) (2,059) Holding company
Subsidiary:
Laredo Nueces Pipeline Company - 50 704 704 Gas pipeline
2 NI-TEX Gas Services, Inc. (NGS) * (g) - - - - Holding company
-----------------------------------------------------------------------------------------------------------------------------------
4
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
NUMBER OF % OF VOTING ISSUER OWNER'S
COMMON POWER OR BOOK VALUE BOOK VALUE
TIER NAME OF COMPANY (COMPANY ABBREVIATION) SHARES HELD INTEREST HELD ($000) ($000) TYPE OF BUSINESS
-----------------------------------------------------------------------------------------------------------------------------------
1 Granite State Gas Transmission, Inc. (GSGT) 29,900 100 11,972 11,972 Interstate gas
pipeline
Unsecured Debt (h) - - 6,837 6,837
Subsidiaries:
2 Bay State Energy Enterprises, Inc.
(BSEE) * (g) - - - - Energy-related
services
1 IWC Resources Corporation (IWCR) * (e) 1,000 100 587,262 587,262 -
Subsidiaries:
2 Harbour Water Corporation (HWC) * (e) 1,000 100 10,206 10,206 -
2 Indianapolis Water Company (IWC) * (e) 500 100 585,207 585,207 -
Subsidiary:
3 White River Environmental
Partnership, Inc. (WRP) * (g) (e) - - - - -
2 Irishman's Run Acquisition Corporation
(IRAC) * (e) 1,000 100 172 172 -
2 IWC Morgan Water Corporation
(IWCM) * (e) 1,000 100 3,505 3,505 -
2 Lawrence Water Company, Inc.
(LWC) * (g) (e) - - - - -
2 Liberty Water Corporation
(LWAC) * (e) 200 100 37 37 -
2 The Darlington Water Works Company
(DWWC) * (e) 1,000 100 371 371 -
1 Kokomo Gas and Fuel Company (KOKO) 478,248 100 37,799 37,799 Gas utility
Subsidiary:
2 KGF Trading Company (KGF) * 100 100 - - Gas brokering
1 NI Energy Services, Inc. (NESI) 1,000 100 (8,529) (8,529) Holding company
Unsecured Debt (h) - - 46,111 46,111
Subsidiaries:
2 Crossroads Pipeline Company (CROSS) 1,000 100 (6,001) (6,001) Interstate gas
pipeline
Unsecured Debt (h) - - 14,914 14,914
2 NESI Power Marketing, Inc. (NPM) * 1,000 100 (22,736) (22,736) Power marketing
2 NiSource Energy Services Canada,
Ltd. (NESCL) * 9,705,432 100 (518) (518) Holding company
Subsidiary:
3 NESI Energy Marketing Canada
Ltd. (NEMCL) * 518 70 - - Energy marketing
1 NiSource Capital Markets, Inc. (NCM) 1,000 100 33,273 33,273 Financing subsidiary
1 NiSource Capital Trust I (NCT) (g) - - - - Financing subsidiary
1 NiSource Corporate Services Company (NCS) 1,000 100 (9,919) (9,919) Management services
Unsecured Debt (h) - - 59,176 59,176
1 NiSource Development Company, Inc. (NDEV) 1,000 100 (84,117) (84,117) Holding company
Unsecured Debt (h) - - 178,293 178,293
Subsidiaries:
2 Cardinal Property Management,
Inc. (CARD) 1,000 100 18 18 Real estate services
2 JOF Transportation Company (JOF) 1,000 100 4,041 4,041 Holding company
2 Lake Erie Land Company (LEL) 1,000 100 65,100 65,100 Commercial and
residential real
estate development
Subsidiary:
3 SCC Services, Inc. (SCC) 1,000 100 (2,935) (2,935) Commercial and
residential real
estate services
-----------------------------------------------------------------------------------------------------------------------------------
5
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
NUMBER OF % OF VOTING ISSUER OWNER'S
COMMON POWER OR BOOK VALUE BOOK VALUE
TIER NAME OF COMPANY (COMPANY ABBREVIATION) SHARES HELD INTEREST HELD ($000) ($000) TYPE OF BUSINESS
-----------------------------------------------------------------------------------------------------------------------------------
2 NDC Douglas Properties, Inc. (NDC) 1,000 100 16,011 16,011 Holds investments
in affordable
housing projects
2 South Works Power Company (SWP) * 1,000 100 - - Holds a lease
1 NiSource Energy Technologies, Inc. (NET) 100 100 (11,792) (11,792) Holding company
Unsecured Debt (h) - - 21,639 21,639
1 NiSource Finance Corp. (NFC) 100 100 (291,771) (291,771) Financing subsidiary
1 NiSource Retail Services, Inc. (NRS) 100 100 10 10 Energy-related
services
1 Northern Indiana Fuel and Light Company,
Inc. (NIFL) 275,000 100 49,432 49,432 Gas utility
Subsidiary:
2 Northern Indiana Trading Company, Inc.
(NITC) 1,000 100 5,574 5,574 Gas brokering
1 Northern Indiana Public Service Company (NIP) 73,282,258 100 971,745 971,745 Electric and
gas utility
Unsecured Debt (h) - - 578,417 578,417
2 NIPSCO Receivables Corporation (NRC) 1,000 100 50,381 50,381 Financing subsidiary
1 PEI Holdings, Inc. (PEI) 1,000 100 (81,124) (81,124) Arranges energy-
related projects
Unsecured Debt (h) - - 97,778 97,778
Subsidiaries:
2 Cokenergy, Inc. (CEI) (f) (g) - - - - Power generation
project company
2 Harbor Coal Company (HCC) (f) (g) - - - - Power generation
project company
2 Ironside Energy LLC (IEL) (f) (g) - - - - Power generation
project company
2 Lakeside Energy Corporation
(LEC) (f) (g) - - - - Power generation
project company
2 North Lake Energy Corporation
(NLEC) (f) (g) - - - - Power generation
project company
2 Portside Energy Corporation
(PORT) (f) (g) - - - - Power generation
project company
2 Whiting Clean Energy, Inc. (WCE) 1,000 100 (50,971) (50,971) Power generation
project company
2 Whiting Leasing LLC (WLC) 16,492 16,492 Financing subsidiary
-----------------------------------------------------------------------------------------------------------------------------------
Note: All debt amounts exclude the current portion of long-term debt.
* Company was inactive at December 31, 2003
(a) Columbia Energy Resources, Inc. and subsidiaries were sold 8/28/03
(b) Columbia Service Partners, Inc. was sold 10/20/03
(c) Columbia Transmission Communication Corporation (Transcom) was sold
9/12/03
(d) EnergyUSA, Inc. MA sold the majority of its assets to North American
Propane, Inc.
(e) On April 30, 2002, NiSource sold the water utility assets of the
Indianapolis Water Company (IWC) and other assets of IWC Resources
Corporation.
(f) Cokenergy, Inc., Harbor Coal Company, Ironside Energy LLC, Lakeside
Energy Corporation, North Lake Energy Corporation and Portside Energy
Corporation were sold 10/20/03
6
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
(g) The following companies were dissolved during 2003:
NiSource Capital Trust I
Columbia Electric Binghamton General Corporation
Columbia Electric Binghamton Limited Corporation
Columbia Energy Group Capital Corporation
Columbia Petroleum Corporation
TriStar Gas Technologies, Inc.
EnergyUSA Mechanical, Inc.
EnergyUSA Connecticut, Inc.
EnergyUSA Engineering Inc.
EnergyUSA Retail, Inc.
Lawrence Water Company
Columbia Service Partners of VA
White River Environmental Partnership, Inc.
Bay State Energy Enterprises, Inc.
EnergySPE, Inc.
Boundry Gas, Inc.
EnergyUSA-Appalacian Corp.
Ni-Tex Gas Services, Inc.
(h) NiSource Retail Services, Inc. was formed 11/12/03
(i) NIPSCO Receivables Corporation was formed 11/13/03
(j) Unsecured debt is presented on pages 8 - 12
(k) Secured debt is presented on page 12
7
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
NOTE (J) 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:
5.40% Due December 31, 2059 50,000 50,000 50,000
1.74% Money Pool 192,359 192,359 192,359
------------------------------------------------------------------------------------------------------
242,359 242,359 242,359
------------------------------------------------------------------------------------------------------
NU Intercompany Notes:
4.8% Due December 31, 2059 60,000 60,000 60,000
1.74% Money Pool 16,362 16,362 16,362
------------------------------------------------------------------------------------------------------
76,362 76,362 76,362
------------------------------------------------------------------------------------------------------
CES Intercompany Notes:
1.74% Money Pool 35,280 35,280 35,280
------------------------------------------------------------------------------------------------------
CKY Intercompany Notes:
7.28% Due March 1, 2011 5,030 5,030 5,030
8.00% Due March 1, 2006 8,000 8,000 8,000
7.30% Due November 28, 2005 5,805 5,805 5,805
7.55% Due November 28, 2007 5,805 5,805 5,805
7.82% Due November 28, 2010 5,805 5,805 5,805
7.92% Due November 28, 2015 5,805 5,805 5,805
8.12% Due November 28, 2025 5,805 5,805 5,805
1.74% Money Pool 4,013 4,013 4,013
------------------------------------------------------------------------------------------------------
46,068 46,068 46,068
------------------------------------------------------------------------------------------------------
CMD Intercompany Notes:
8.12% Due March 1, 2016 6,500 6,500 6,500
7.30% Due November 28, 2005 2,495 2,495 2,495
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 November 28, 2025 2,495 2,495 2,495
------------------------------------------------------------------------------------------------------
18,975 18,975 18,975
------------------------------------------------------------------------------------------------------
8
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
NOTE (J) 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
8.12% Due November 28, 2025 36,394 36,394 36,394
7.50% Due July 15, 2022 100,000 100,000 100,000
1.74% Money Pool 194,565 194,565 194,565
------------------------------------------------------------------------------------------------------
500,141 500,141 500,141
------------------------------------------------------------------------------------------------------
CPA Intercompany Notes:
7.28% Due March 1, 2011 11,000 11,000 11,000
7.89% Due March 1, 2014 20,000 20,000 20,000
7.89% Due March 1, 2016 20,000 20,000 20,000
8.12% Due March 1, 2013 35,000 35,000 35,000
7.90% Due March 1, 2006 10,000 10,000 10,000
7.30% Due November 28, 2005 17,843 17,843 17,843
7.55% Due November 28, 2007 17,843 17,843 17,843
7.82% Due November 28, 2010 17,843 17,843 17,843
7.92% Due November 28, 2015 17,843 17,843 17,843
8.12% Due November 28, 2025 17,843 17,843 17,843
1.74% Money Pool 78,319 78,319 78,319
------------------------------------------------------------------------------------------------------
263,534 263,534 263,534
------------------------------------------------------------------------------------------------------
9
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
NOTE (J) UNSECURED DEBT (CONTINUED)
PRINCIPAL ISSUER OWNER'S
NAME OF COMPANY AMOUNT OWED BOOK VALUE BOOK VALUE
(ISSUER) SECURITY OWNED BY REGISTRANT ($000) ($000) ($000)
------------------------------------------------------------------------------------------------------
CGV Intercompany Notes:
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
8.12% Due March 1, 2016 21,000 21,000 21,000
7.30% Due November 28, 2005 12,835 12,835 12,835
7.55% Due November 28, 2007 12,835 12,835 12,835
7.82% Due November 28, 2010 12,835 12,835 12,835
7.92% Due November 28, 2015 12,835 12,835 12,835
8.12% Due November 28, 2025 12,835 12,835 12,835
1.74% Money Pool 20,836 20,836 20,836
------------------------------------------------------------------------------------------------------
151,011 151,011 151,011
------------------------------------------------------------------------------------------------------
TCO Intercompany Notes:
1.74% Money Pool 113,569 113,569 113,569
------------------------------------------------------------------------------------------------------
CGT Intercompany Notes:
7.65% Due March 1, 2014 20,000 20,000 20,000
7.30% Due November 28, 2005 9,578 9,578 9,578
7.55% Due November 28, 2007 9,578 9,578 9,578
7.82% Due November 28, 2010 9,578 9,578 9,578
7.92% Due November 28, 2015 9,578 9,578 9,578
8.12% Due November 28, 2025 9,578 9,578 9,578
1.74% Money Pool 10,653 10,653 10,653
------------------------------------------------------------------------------------------------------
78,543 78,543 78,543
------------------------------------------------------------------------------------------------------
CDW Intercompany Notes:
1.74% Money Pool 452 452 452
------------------------------------------------------------------------------------------------------
EUII Intercompany Notes:
1.74% Money Pool 36,255 36,255 36,255
------------------------------------------------------------------------------------------------------
10
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
NOTE (J) UNSECURED DEBT (CONTINUED)
PRINCIPAL ISSUER OWNER'S
NAME OF COMPANY AMOUNT OWED BOOK VALUE BOOK VALUE
(ISSUER) SECURITY OWNED BY REGISTRANT ($000) ($000) ($000)
------------------------------------------------------------------------------------------------------
EUC Intercompany Notes:
4% Due December 31, 2059 5,037 5,037 5,037
------------------------------------------------------------------------------------------------------
TPC Intercompany Notes:
1.74% Money Pool 27,618 27,618 27,618
------------------------------------------------------------------------------------------------------
NESI Intercompany Notes:
1.74% Money Pool 46,111 46,111 46,111
------------------------------------------------------------------------------------------------------
CROSS Intercompany Notes:
1.74% Money Pool 14,914 14,914 14,914
------------------------------------------------------------------------------------------------------
NCS Intercompany Notes:
7.33% Due March 1, 2014 12,700 12,700 12,700
7.30% Due November 28, 2005 2,246 2,246 2,246
7.55% Due November 28, 2007 2,246 2,246 2,246
7.82% Due November 28, 2010 2,246 2,246 2,246
7.92% Due November 28, 2015 2,246 2,246 2,246
8.12% Due November 28, 2025 2,246 2,246 2,246
1.74% Money Pool 35,246 35,246 35,246
------------------------------------------------------------------------------------------------------
59,176 59,176 59,176
------------------------------------------------------------------------------------------------------
NDEV Intercompany Notes:
1.74% Money Pool 178,293 178,293 178,293
------------------------------------------------------------------------------------------------------
NET Intercompany Notes:
1.74% Money Pool 21,639 21,639 21,639
------------------------------------------------------------------------------------------------------
GSGT Intercompany Notes:
1.74% Money Pool 6,837 6,837 6,837
------------------------------------------------------------------------------------------------------
11
ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2003
(continued)
NOTE (J) UNSECURED DEBT (CONTINUED)
PRINCIPAL ISSUER OWNER'S
NAME OF COMPANY AMOUNT OWED BOOK VALUE BOOK VALUE
(ISSUER) SECURITY OWNED BY REGISTRANT ($000) ($000) ($000)
------------------------------------------------------------------------------------------------------
NIP Intercompany Notes:
1.74% Money Pool 578,417 578,417 578,417
------------------------------------------------------------------------------------------------------
PEI Intercompany Notes:
1.74% Money Pool 97,778 97,778 97,778
------------------------------------------------------------------------------------------------------
2,598,369 2,598,369 2,598,369
======================================================================================================
NOTE (K) 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:
6.80% Due November 28, 2005 128,500 128,500 128,500
7.05% Due November 28, 2007 128,500 128,500 128,500
7.32% Due November 28, 2010 128,500 128,500 128,500
------------------------------------------------------------------------------------------------------
385,500 385,500 385,500
------------------------------------------------------------------------------------------------------
12
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
ACQUISITIONS
NAME OF COMPANY CONSIDERATION GIVEN ($000) DESCRIPTION OF TRANSACTION
-----------------------------------------------------------------------------------------------------------------------------------
TCO 6,500 TCO purchased 128 miles of 18" diameter pipe (between Russelton, PA and
East Waterford, PA) and 59 miles of 8" pipeline (between Highspire, PA
and Malvern, PA) along with other related appurtenant facilities and
rights-of-ways from Columbia Transmission Communication Corporation.
NIP 1,415 Purchase of Gas Vaporizer for LNG Plant
-----------------------------------------------------------------------------------------------------------------------------------
SALES
NAME OF COMPANY CONSIDERATION GIVEN ($000) DESCRIPTION OF TRANSACTION
-----------------------------------------------------------------------------------------------------------------------------------
TCO 3,930 Storage base gas with a book cost of $0.7M was sold to WPS Energy,
Marathon and Sequent for $3.93 M. Transactions resulted in a 50/50
split with TCO customers in accordance with rate case RP95-408. Gain
and refund to customers was $1.615M.
TCO 1,799 36.68 acres of land at Loudon Compressor Station in Loudon County, VA
was sold to Dominion Cove Point LNG, LP. Cost of the land was $0.087M.
TCO 3,333 The Gainesville Office in Prince William County, VA was sold to
Prosperity Investors, Inc. Net book value of the facility was $2.767M.
-----------------------------------------------------------------------------------------------------------------------------------
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES
On December 18, 2003, $55.0 million of new tax-exempt Pollution Control Revenue
Refunding Bonds were issued by Jasper County, Indiana on behalf of Northern
Indiana. The new tax-exempt bonds were issued on an auction rate basis and bear
interest at a floating rate as determined in 35-day increments by the tax-exempt
auction process. The proceeds of the bonds were loaned to Northern Indiana,
pursuant to a financing agreement dated as of December 1, 2003, and were used to
refund Northern Indiana's $55.0 million aggregate principal amount of Jasper
County, Indiana Collateralized Pollution Control Refunding Revenue Bonds Series
1991.
13
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES DURING
2003
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 - 6.00% Due 09-29-03 BSG - 15,000 15,000 Retired Exempt Rule 42
Medium Term Note - 8.15% Due 08-26-22 BSG - 12,000 12,391 Retired Exempt Rule 42
Subsidiary:
NU
Medium Term Note - 9.700% Due 09-01-03 NU - 833 833 Retired Exempt Rule 42
CEG
Debentures - 6.80% Series C, Due 11-28-05 CEG - 3 3 Retired Exempt Rule 42
Debentures - 7.05% Series D, Due 11-28-07 CEG - 21 21 Retired Exempt Rule 42
Debentures - 7.32% Series E, Due 11-28-10 CEG - 3 3 Retired Exempt Rule 42
Debentures - 7.42% Series F, Due 11-28-15 CEG - 3 3 Retired Exempt Rule 42
Debentures - 7.62% Series G, Due 11-28-25 CEG - 3 3 Retired Exempt Rule 42
CKY
Unsecured Debt CKY - 29 29 Retired Exempt Rule 42
COH
Unsecured Debt COH - 177 177 Retired Exempt Rule 42
NCM
Subordinated Debentures, Series A, 7-3/4%,
Due 03-31-26 NCM - 75,000 75,000 Retired Exempt Rule 42
NDC
Unsecured Debt NDC - 3,155 3,155 Retired Exempt Rule 42
NFC
Unsecured Debt, 5-3/4%, Due 04-15-03 NFC - 300,000 300,000 Retired Exempt Rule 42
Unsecured Debt, 7-1/2%, Due 11-15-03 NFC - 750,000 750,000 Retired Exempt Rule 42
-----------------------------------------------------------------------------------------------------------------------------------
14
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES DURING
2003 (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
-----------------------------------------------------------------------------------------------------------------------------------
NIP
Redeemable Preferred Stock 8.35% NIP 6,000 600 600 Retired Exempt Rule 42
Redeemable Preferred Stock 7-3/4% NIP 5,554 555 555 Retired Exempt Rule 42
First Mortgage Bonds, Series NN, 7.10%,
Due 07-01-07 NIP - 55,000 55,000 Retired Exempt Rule 42
Pollution Control Note, Series A Note,
City of Michigan City 5.70% NIP - 6,000 6,000 Retired Exempt Rule 42
Medium Term Note - 6.75% Due 03-31-03 NIP - 20,000 20,000 Retired Exempt Rule 42
Medium Term Note - 6.55% Due 04-07-03 NIP - 2,000 2,000 Retired Exempt Rule 42
Medium Term Note - 6.75% Due 04-07-03 NIP - 12,500 12,500 Retired Exempt Rule 42
Medium Term Note - 6.87% Due 04-07-03 NIP - 6,400 6,400 Retired Exempt Rule 42
Medium Term Note - 6.67% Due 04-21-03 NIP - 13,100 13,100 Retired Exempt Rule 42
Medium Term Note - 6.53% Due 07-08-03 NIP - 30,000 30,000 Retired Exempt Rule 42
Medium Term Note - 6.53% Due 07-08-03 NIP - 5,000 5,000 Retired Exempt Rule 42
Medium Term Note - 6.53% Due 07-08-03 NIP - 15,000 15,000 Retired Exempt Rule 42
Medium Term Note - 6.53% Due 07-08-03 NIP - 15,000 15,000 Retired Exempt Rule 42
Medium Term Note - 6.53% Due 07-08-03 NIP - 5,000 5,000 Retired Exempt Rule 42
TCO
Unsecured Debt TCO - 17 17 Retired Exempt Rule 42
WCE
Unsecured Debt WCE - 25,675 25,675 Retired Exempt Rule 42
------------------------------------------ ----------------------------------------------------------------------------------------
15
ITEM 5. INVESTMENTS IN SECURITIES OF NON SYSTEM COMPANIES
% of Voting Power Number of Book Value
Investor Investee Type of Investment or Interest Held Shares Owned ($000)
------------------------------------------------------------------------------------------------------------------------------------
CEB Binghamton Cogeneration Limited Partnership* (a) Limited Partnership - N/A ***
CEBL Binghamton Cogeneration Limited Partnership* (a) Limited Partnership - N/A ***
CES NewPower Holding, Inc. Common Shares 1.0 602,200 ***
CNR Clarksburg Gas Limited Partnership* (b) Limited Partnership - N/A ***
HCC PCI Associates* Limited Partnership - N/A ***
JOF Chicago South Shore & South Bend Railroad Co. (c) General Partnership 40.0 N/A ***
JOF Illinois Indiana Development Company, L.L.C.* LLC Membership 40.0 N/A ***
NDC Bittersweet Pointe, L.P.* Limited Partnership 99.0 N/A ***
NDC Douglas Pointe Associates, L.P.* Limited Partnership 99.0 N/A ***
NDC Douglas Pointe II Associates, L.P.* Limited Partnership 99.0 N/A ***
NDC Douglas Pointe III Associates, L.L.C.* Limited Partnership 99.0 N/A ***
NDC Dunedin I, L.L.C.* LLC Membership 99.0 N/A ***
NDC Dunedin II, L.L.C.* LLC Membership 99.0 N/A ***
NDC Hebron Pointe, L.L.C.* LLC Membership 99.0 N/A ***
NDC House Investments - Midwest Corporate Tax Credit
Fund, L.P.* Limited Partnership 12.2 N/A ***
NDC Kingsmill Development Co., L.L.C.* Limited Partnership 99.9 N/A ***
NDC Prestwick Square of Fort Wayne Associates, L.P.* Limited Partnership 98.0 N/A ***
NDC Robertson, L.L.C.* LLC Membership 99.0 N/A ***
NDC Woodland Crossing, L.L.C.* LLC Membership 99.0 N/A ***
NDEV N Squared Aviation, L.L.C.* LLC Membership 33.3 N/A ***
NET Acumentrics Corporation Common Shares 3.1 333,333 ***
NET Capstone Turbine Corporation Common Shares 0.1 11,574 ***
NET CID Equity Capital III, L.P.* (a) Limited Partnership - N/A ***
NET Corning Incorporated Common Shares 0.1 23,796 ***
NET Covance, Inc. Common Shares 0.1 4,483 ***
NET EnerTek Partners, LP* Limited Partnership 16.5 N/A ***
NET Evergreen Solar, Inc. Common Shares 0.1 23,689 ***
NET MOSAIC Energy, L.L.C.* LLC Membership 32.6 N/A ***
NET Nth Power Technologies Fund II, L.P.* Limited Partnership 4.1 N/A ***
NET Nth Power Technologies Fund II-A, L.P.* Limited Partnership 5.4 N/A ***
NET Distributed Energy Systems Corp (d) Common Shares 0.1 5,868 ***
NET Quest Diagnostics Incorporated Common Shares 0.1 4,482 ***
NET SunPower Corporation** Preferred Shares 14.7 1,215,564 ***
NET Utech Climate Challenge Fund, L.P.* Limited Partnership 17.9 N/A ***
NGS MidTex Gas Storage Company, L.L.P.* Limited Partnership - N/A ***
NIFC Bristol Resources Production Company, L.L.C.* LLC Membership 64.0 N/A ***
NU Boundary Gas, Inc. (a) Common Shares - N/A ***
SWP The Wellingshire Joint Venture (c) General Partnership 50.0 N/A ***
TCO Millennium Pipeline Company, L.P.* Limited Partnership 47.5 N/A ***
TCO Millennium Pipeline Management Company, L.L.C. (e)* LLC Membership 47.5 N/A ***
-----------------------------------------------------------------------------------------------------------------------------------
16
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 following companies were dissolved during 2003:
Binghamton Cogeneration Limited Partnership
Boundary Gas, Inc.
CID Equity Capital III, L.P.
(b) The following companies were sold during 2003:
Clarksburg Gas Limited Partnership 8/28/03
PCI Associates 10/20/03
MidTex Gas Storage Company, L.L.P. 11/26/03
(c) 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.
(d) On 11/10/03 Proton Energy Systems, Inc. was renamed
Distributed Energy Systems Corp.
(e) Millennium Pipeline Management Company, L.P. holds a 1%
general partner interest in Millennium Pipeline Company, L.P.
17
ITEM 6. OFFICERS AND DIRECTORS
PART I. NAMES, PRINCIPAL BUSINESS ADDRESS AND POSITIONS HELD AS OF
DECEMBER 31, 2003
The names, principal address and positions held as of December 31, 2003 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 (23). 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. 1500 165th Street, Hammond, IN 46324
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 43215
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. 650 Washington Road, Pittsburgh, Pennsylvania, 15228
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, IN 46410
18
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
19
ITEM 6. OFFICERS AND DIRECTORS (continued)
------------------------------------------------------------
NAME BSG BSGPE NU
------------------------------------------------------------
Charles E. Shafer II (2) VP VP
------------------------------------------------------------
Daniel D. Gavito (1) VP VP VP
------------------------------------------------------------
Danny G. Cote (10) D, GM D, GM D, GM
------------------------------------------------------------
David A. Monte (2) (2) VP VP VP
------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T
------------------------------------------------------------
Edward A. Santry (15) VP 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
------------------------------------------------------------
M. Carol Fox (2) VP VP VP
------------------------------------------------------------
Meg A. Brown (2) VP VP VP
------------------------------------------------------------
Robert G. Kriner (2) C C C
------------------------------------------------------------
Scott C. MacDonald (1) VP VP
------------------------------------------------------------
Stephen H. Bryant (10) D, P D, P D, P
------------------------------------------------------------
Timothy J. Tokish Jr. (2) VP VP VP
------------------------------------------------------------
Vincent V. Rea (1) AT AT AT
------------------------------------------------------------
Violet Sistovaris (1) VP VP VP
------------------------------------------------------------
20
ITEM 6. OFFICERS AND DIRECTORS (continued)
------------------------------------------------------------
NAME CG CAR CAT CDW
------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T VP, T
------------------------------------------------------------
Gary W. Pottorff (1) S S S S
------------------------------------------------------------
Glen L. Kettering (3) D, P
------------------------------------------------------------
James W Hart, Jr. (16) VP
------------------------------------------------------------
Jeffrey W. Grossman (1) VP VP VP VP
------------------------------------------------------------
John M. O/Brien (2) AC AC AC AC
------------------------------------------------------------
Karen D. Townsend (3) C
------------------------------------------------------------
Michael W. O'Donnell (1) D, P D, P D, P D
------------------------------------------------------------
Stephen P. Adik (1) D D D
------------------------------------------------------------
Vincent H. DeVito (2) C C C
------------------------------------------------------------
Vincent V. Rea (1) AT AT AT AT
------------------------------------------------------------
-------------------------------------------
NAME CRC CES
-------------------------------------------
David J. Vajda (1) VP, T VP, T
-------------------------------------------
Gary W. Pottorff (1) S S
-------------------------------------------
Jeffrey W. Grossman (1) P D, VP
-------------------------------------------
John M. O'Brien (2) AC AC
-------------------------------------------
Michael W. O'Donnell (1) D D, P
-------------------------------------------
Sherry H. Gavito (1) (1) D
-------------------------------------------
Stephen P. Adik (1) D
-------------------------------------------
Vincent H. DeVito (2) C C
-------------------------------------------
Vincent V. Rea (1) AT AT
-------------------------------------------
21
ITEM 6. OFFICERS AND DIRECTORS (continued)
------------------------------------------
NAME CNS CMC
------------------------------------------
Alan D. Burns (18) P P
------------------------------------------
David J. Vajda (1) VP, T VP, T
------------------------------------------
John M. O/Brien (2) AC AC
------------------------------------------
Richard N. Farmer (18) AS
------------------------------------------
Gary W. Pottorff (1) S S
------------------------------------------
Glen L. Kettering (3) D D
------------------------------------------
Jeffrey W. Grossman (1) VP VP
------------------------------------------
Michael W. O'Donnell (1) D D
------------------------------------------
Rene P. Dartez (16) VP VP
------------------------------------------
Victor M. Gaglio (18) VP VP
------------------------------------------
Vincent H. Devito (2) C C
------------------------------------------
Vincent V. Rea (1) AT AT
------------------------------------------
22
ITEM 6. OFFICERS AND DIRECTORS (continued)
------------------------------------------------------------------------------------------
NAME CKY CMD COH CPA CGV NEST
------------------------------------------------------------------------------------------
Charles E. Shafer II (2) VP VP VP VP VP
------------------------------------------------------------------------------------------
Daniel D. Gavito (1) VP VP VP VP VP
------------------------------------------------------------------------------------------
David A. Monte (2) VP VP VP VP VP
------------------------------------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T VP, T VP, T VP, T
------------------------------------------------------------------------------------------
Edward A. Santry (15) VP VP VP
------------------------------------------------------------------------------------------
Gail W. Harowski (1) VP VP VP VP
------------------------------------------------------------------------------------------
Gary W. Pottorff (1) S S S S S S
------------------------------------------------------------------------------------------
Jeffrey W. Grossman (1) VP VP VP VP VP VP
------------------------------------------------------------------------------------------
Douglas G. Borror (9) D
------------------------------------------------------------------------------------------
Charlotte P. Kessler (1) D
------------------------------------------------------------------------------------------
Joel L. Hoelzer (2) VP VP
------------------------------------------------------------------------------------------
John M. O'Brien (2) AC AC AC AC AC AC
------------------------------------------------------------------------------------------
John W. Partridge, Jr. (2) D, P D, P
------------------------------------------------------------------------------------------
Joseph W. Kelly (13) D, P
------------------------------------------------------------------------------------------
Kathleen O'Leary (3) D, P
------------------------------------------------------------------------------------------
M. Carol Fox (2) VP VP VP VP VP
------------------------------------------------------------------------------------------
Mark D. Wyckoff (1) D, GM D, GM D, GM
------------------------------------------------------------------------------------------
Meg A. Brown (2) VP VP VP VP
------------------------------------------------------------------------------------------
Mike A. Huwar (2)
------------------------------------------------------------------------------------------
Peggy H. Landini (1) D, GM D, GM D, GM
------------------------------------------------------------------------------------------
Robert G. Kriner (2) C C C C C
------------------------------------------------------------------------------------------
Terrence J. Murphy (15) D, P D, P
------------------------------------------------------------------------------------------
Timothy J. Tokish, Jr. (2) VP VP VP VP VP
------------------------------------------------------------------------------------------
Vincent H. DeVito (2) C
------------------------------------------------------------------------------------------
Vincent V. Rea (1) AT AT AT AT AT AT
------------------------------------------------------------------------------------------
Violet Sistovaris (1) VP VP VP VP VP
------------------------------------------------------------------------------------------
23
ITEM 6. OFFICERS AND DIRECTORS (continued)
------------------------------------------------------------
NAME EUII EUIME EUC
------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T
------------------------------------------------------------
Gary W. Pottorff (1) S S S
------------------------------------------------------------
James H. Keshian (10) AS
------------------------------------------------------------
Jeffrey W. Grossman (1) VP VP VP
------------------------------------------------------------
John M. O'Brien (2) AC AC AC
------------------------------------------------------------
Joel L. Hoelzer (2) VP
------------------------------------------------------------
Peter T. Disser (1) VP
------------------------------------------------------------
Sherry H. Gavito (1) P
------------------------------------------------------------
Stephen P. Adik (1) D, P D D, P
------------------------------------------------------------
Vincent H. DeVito (2) C C C
------------------------------------------------------------
Vincent V. Rea (1) AT AT AT
------------------------------------------------------------
------------------------------------
NAME GSGT
------------------------------------
Carl W. Levander (3) VP
------------------------------------
David J. Vajda (1) VP, T
------------------------------------
Edward A. Santry VP
------------------------------------
Gail W. Harowski (1) VP
------------------------------------
Gary W. Pottorff (1) S
------------------------------------
Glen L. Kettering (3) D, P
------------------------------------
James W. Hart, Jr. (16) VP
------------------------------------
Jeffrey W. Grossman (1) VP
------------------------------------
John M. O'Brien (2) AC
------------------------------------
Karen D. Townsend (3) C
------------------------------------
Michael D. Watson (3) VP
------------------------------------
Reed D. Robinson (18) VP
------------------------------------
Victor M. Gaglio ((18) VP
------------------------------------
Vincent V. Rea (1) AT
------------------------------------
William Harris Marple (18) D
------------------------------------
24
ITEM 6. OFFICERS AND DIRECTORS (continued)
-----------------------------------------------------------------------------------------
NAME IWCR IWC HWC IRAC IWCM DWWC LWAC
-----------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------
25
ITEM 6. OFFICERS AND DIRECTORS (continued)
-----------------------------------------------------------------------------
NAME KOKO KGF NIFL NITC SWP
-----------------------------------------------------------------------------
Charles E. Shafer II (2) VP VP
-----------------------------------------------------------------------------
Daniel D. Gavito (1) VP VP
-----------------------------------------------------------------------------
David A. McFatridge (11) VP, GM VP, GM
-----------------------------------------------------------------------------
David A. Monte (2) VP VP VP VP
-----------------------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T VP, T VP, T
-----------------------------------------------------------------------------
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 S
-----------------------------------------------------------------------------
H. Phillip Conrad Jr. (1) D, P D, P D, P D, P
-----------------------------------------------------------------------------
Jeffrey W. Grossman (1) VP VP VP VP VP
-----------------------------------------------------------------------------
Jerry L. Godwin (1) D
-----------------------------------------------------------------------------
Joel Hoelzer (2) VP VP VP VP
-----------------------------------------------------------------------------
John M. O'Brien (2) AC AC AC AC AC
-----------------------------------------------------------------------------
Kenneth P. Foley Jr. (1) D, GM D, GM D, GM D, GM D, GM
-----------------------------------------------------------------------------
Linda E. Miller (1) C C C C
-----------------------------------------------------------------------------
M. Carol Fox (2) VP VP VP VP
-----------------------------------------------------------------------------
Mark T. Maassel (1) D D D D D, P
-----------------------------------------------------------------------------
Meg A. Brown (2) VP VP VP VP
-----------------------------------------------------------------------------
R. Douglas Walker (4) VP VP
-----------------------------------------------------------------------------
Vincent H. DeVito (2) C
-----------------------------------------------------------------------------
Vincent V. Rea (1) AT AT AT
-----------------------------------------------------------------------------
Violet Sistovaris (1) VP VP VP VP
-----------------------------------------------------------------------------
26
ITEM 6. OFFICERS AND DIRECTORS (continued)
----------------------------------------------------------------------
NAME NICL NIFC NITEX NESI
----------------------------------------------------------------------
Arthur A. Paquin (1) D
----------------------------------------------------------------------
Charlene M.A. Washburn (6) D
----------------------------------------------------------------------
David J. Vajda (1) AD, VP, T VP, T VP, T VP, T
----------------------------------------------------------------------
Dawna Ferguson (6) AS
----------------------------------------------------------------------
Gary W. Pottorff (1) AS S S S
----------------------------------------------------------------------
Graham Lamb (6) AD
----------------------------------------------------------------------
Jeffrey W. Grossman (1) D, P VP VP VP
----------------------------------------------------------------------
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
----------------------------------------------------------------------
Samuel W. Miller Jr. (1) D
----------------------------------------------------------------------
Sherry H. Gavito (1) D, P P P
----------------------------------------------------------------------
Stephen P. Adik (1) D D
----------------------------------------------------------------------
Timothy R. Bucci (1) D, VP
----------------------------------------------------------------------
Vincent H. DeVito (2) C C C
----------------------------------------------------------------------
Vincent V. Rea (1) AT AT AT
----------------------------------------------------------------------
27
ITEM 6. OFFICERS AND DIRECTORS (continued)
-----------------------------------------------------------------------------------------
NAME NPM NDEV CARD LEL SCC JOF NDC
-----------------------------------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T VP, T VP, T VP, T VP, T
-----------------------------------------------------------------------------------------
David A. Kelly (2) VP D D
-----------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------
Patricia K. Locascio (1) GM, PB GM
-----------------------------------------------------------------------------------------
Stephen P. Adik (1) D, P D, P D, P D, P
-----------------------------------------------------------------------------------------
Vincent H. DeVito (2) C C C C C
-----------------------------------------------------------------------------------------
Vincent V. Rea (1) AT AT AT AT AT AT AT
-----------------------------------------------------------------------------------------
------------------------------------------
NAME NCM NFC
------------------------------------------
David J. Vajda (1) VP, T VP, T
------------------------------------------
Gary W. Pottorff (1) S S
------------------------------------------
Jeffrey W. Grossman (1) VP VP
------------------------------------------
John M. O/Brien (2) AC AC
------------------------------------------
Michael W. O'Donnell (1) D, P D, P
------------------------------------------
Stephen P. Adik (1) D D
------------------------------------------
Vincent H. DeVito (2) C C
------------------------------------------
Vincent V. Rea (1) AT AT
------------------------------------------
28
ITEM 6. OFFICERS AND DIRECTORS (continued)
---------------------------------------------------------------------------------
NAME NIP CAA 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
---------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------
Jerome B. Weeden (1) VP
---------------------------------------------------------------------------------
Joel L. Hoelzer (2) VP VP VP
---------------------------------------------------------------------------------
John M. O'Brien (2) AC AC AC AC AC
---------------------------------------------------------------------------------
Kenneth P. Foley Jr. (1) D, GM
---------------------------------------------------------------------------------
Linda E. Miller (1) C C
---------------------------------------------------------------------------------
M. Carol Fox (2) VP
---------------------------------------------------------------------------------
Mark T. Maassel (1) D, P
---------------------------------------------------------------------------------
Meg A. Brown (2) VP
---------------------------------------------------------------------------------
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 C
---------------------------------------------------------------------------------
Samuel W. Miller Jr. (1) Jr. D D D
---------------------------------------------------------------------------------
Scott C. MacDonald (1) VP P D, P
---------------------------------------------------------------------------------
Sherry H. Gavito (1) (1) D
---------------------------------------------------------------------------------
William M. O'Malley (1) VP
---------------------------------------------------------------------------------
Violet Sistovaris (1) VP
---------------------------------------------------------------------------------
Vincent V. Rea (1) AT AT AT AT AT
---------------------------------------------------------------------------------
Vittorio E. Pareto (1) VP
---------------------------------------------------------------------------------
29
ITEM 6. OFFICERS AND DIRECTORS (continued)
------------------------------------------------------------
NAME NCS NI
------------------------------------------------------------
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 A. Kelly (2) VP 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,P,CEO D,COB,P,CEO
------------------------------------------------------------
Gary W. Pottorff (1) S S
------------------------------------------------------------
Genevieve A. Tuchow (2) VP
------------------------------------------------------------
Ian M. Rolland (1) D
------------------------------------------------------------
Jeffrey W. Grossman (1) VP VP, C, COA
------------------------------------------------------------
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
------------------------------------------------------------
Kenneth P. Foley Jr. (1) VP
------------------------------------------------------------
Kristen L. Falzone-Scott (1) VP
------------------------------------------------------------
M. Carol Fox (2) VP
------------------------------------------------------------
Mark D. Wyckoff (1) SVP SVP
------------------------------------------------------------
Michael W. O'Donnell (1) EVP, CFO EVP, CFO
------------------------------------------------------------
30
ITEM 6. OFFICERS AND DIRECTORS (continued)
------------------------------------------------------------
NAME CONT'D NCS CONT'D NI CONT'D
------------------------------------------------------------
Patricia M. Lawicki VP, CIO
------------------------------------------------------------
Paul J. Newman (1) VP
------------------------------------------------------------
Peter V. Fazio Jr. (1) EVP, GC EVP,GC
------------------------------------------------------------
Rebecca T. Sczudlo (5) VP
------------------------------------------------------------
Robert J. Welsh (20) D
------------------------------------------------------------
Robert C. Skaggs Jr. (1) EVP EVP
------------------------------------------------------------
Robert D. Campbell (1) VP
------------------------------------------------------------
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 (1) VP
------------------------------------------------------------
Sherry H. Gavito (1) (1) VP
------------------------------------------------------------
Stephen P. Adik (1) D, VC D, VC
------------------------------------------------------------
Steven A. Barkauskas (1) VP
------------------------------------------------------------
Steven C. Beering (1) D
------------------------------------------------------------
Timothy J. Tokish, Jr. (2) VP
------------------------------------------------------------
Vincent H. DeVito (2) C
------------------------------------------------------------
Vincent V. Rea (1) AT
------------------------------------------------------------
Violet Sistovaris (1) VP
------------------------------------------------------------
31
ITEM 6. OFFICERS AND DIRECTORS (continued)
--------------------------------------------------------------
NAME TCO CGT CROSS
--------------------------------------------------------------
Carl W. Levander (3) VP VP VP
--------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T
--------------------------------------------------------------
Edward A. Santry (15) VP VP
--------------------------------------------------------------
Gail W. Harowski (1) VP VP VP
--------------------------------------------------------------
Gary W. Pottorff (1) S S S
--------------------------------------------------------------
Glen L. Kettering (3) D, P D, P D, P
--------------------------------------------------------------
James W Hart, Jr. (16) VP VP VP
--------------------------------------------------------------
Jeffrey W. Grossman (1) VP VP VP
--------------------------------------------------------------
Joel L. Hoelzer (2) VP
--------------------------------------------------------------
John M. O'Brien (2) AC AC AC
--------------------------------------------------------------
Karen D. Townsend (3) C, AT C C, AT
--------------------------------------------------------------
Michael D. Watson (3) VP VP VP
--------------------------------------------------------------
Reed D. Robinson (18) VP VP VP
--------------------------------------------------------------
Richard N. Farmer (18) AS AS AS
--------------------------------------------------------------
Victor M. Gaglio (18) VP VP VP
--------------------------------------------------------------
Vincent V. Rea (1) AT AT AT
--------------------------------------------------------------
William Harris Marple (18) D, VP D, VP D, VP
--------------------------------------------------------------
32
--------------------------------------------------------------
NAME TPC PEI WCE WLC
--------------------------------------------------------------
David J. Vajda (1) VP, T VP, T VP, T VP, T
--------------------------------------------------------------
Gail W. Harowski (1) VP VP VP
--------------------------------------------------------------
Gary W. Pottorff (1) S S S S
--------------------------------------------------------------
Jeffrey W. Grossman (1) VP VP VP VP
--------------------------------------------------------------
Joel L. Hoelzer (2) VP VP VP VP
--------------------------------------------------------------
John M. O'Brien (2) AC AC AC AC
--------------------------------------------------------------
Mitchell E. Hershberger (1) C C C C
--------------------------------------------------------------
Peter T. Disser (1) VP VP VP VP
--------------------------------------------------------------
R. Douglas Walker (4) VP
--------------------------------------------------------------
Samuel W. Miller Jr. (1) D D D
--------------------------------------------------------------
Vincent V. Rea (1) AT AT AT AT
--------------------------------------------------------------
33
ITEM 6. OFFICERS AND DIRECTORS (continued)
PART II. FINANCIAL CONNECTIONS AS OF DECEMBER 31, 2003
Name of Officer Name and Location of Financial Institution
------------------------------------------------------------------------------------------------------
Gary L. Neale, Director and Chairman, President and CEO Mercantile Nat'l. Bank - Hammond, IN
of NiSource, Inc.
Robert J. Welsh, Director of NiSource, Inc. Mercantile Nat'l. Bank - Hammond, IN
------------------------------------------------------------------------------------------------------
Applicable
Name of Officer Position Held Exemption
-----------------------------------------------------------------------------------------------
Gary L. Neale, Director and Chairman, President and CEO Director Rule 70(c)
of NiSource, Inc.
Robert J. Welsh, Director of NiSource, Inc. Director Rule 70(c)
----------------------------------------------------------------------------------------------
34
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 Nomination 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 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, 2003. 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
2003. Commencing January 23, 2004, all Chief Executive Officer compensation
decisions will be made by the Committee.
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 2003 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 some, 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.
The Committee considers the surveys and advice provided by Hewitt in determining
base salary, annual incentives and long-term stock-based compensation. The
Committee's philosophy is to set base salaries and performance-based variable
compensation in the form of annual incentives under the Annual Incentive Plan
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 2003, the target for total
compensation of the executive officers was set between the 50th and the 75th
percentile of the relevant comparative compensation group.
In establishing Mr. Neale's base salary for 2003, the Committee reviewed
information provided by Hewitt regarding chief executive officer compensation
practices of comparable utility and energy companies. 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 executive
officers, the target for Mr. Neale's total compensation was set between the 50th
and the 75th percentile of the relevant comparative compensation group,
dependent on the Company's financial performance. As with the other executives,
Mr. Neale's annual incentive under the Annual Incentive Plan was based on the
Company's performance against certain financial performance targets established
by the Committee. As part of his total compensation package Mr. Neale also
received stock options and contingent stock in 2003 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 shareholder value.
The Committee determines annual incentive targets for all executive officers in
accordance with the Annual Incentive Plan. Annual incentives awarded to each
35
ITEM 6. OFFICERS AND DIRECTORS (continued)
of the Named Officers (including the Chief Executive Officer) are based on
overall corporate performance, rather than individual performance of the
executive. The Annual 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 401(k) Savings Plan on behalf of
all eligible employees, including the executive officers, based on the identical
overall corporate financial performance measure.
In 2003, the trigger was based on income 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 Trigger Incentive at Maximum
------------------------------------------------------------------------------------------------------------
Chief Executive Officer 40.0% 120.0%
Vice Chairman 35.0% 105.0%
Executive Vice President, Chief Operating Officer 35.0% 105.0%
Other Executive Vice Presidents and Senior Vice President 32.5% 97.5%
Executive Vice President, Regulated Revenue 30% 90%
Other Vice Presidents 25.0% 75.0%
---------------------------------------------------------------------------------------------------
For 2003, the Company exceeded the trigger amount of income from continuing
operations, resulting in payments under the Annual Incentive Plan to most of the
Company's employees and to the executive officers. In February and March 2004,
the incentive payments were made amounting to approximately 118% of the trigger
amounts and profit sharing contributions to the Company's 401(k) Savings Plan
accounts were made at slightly above the trigger level of 0.5%.
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 2003, 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
compensation value of stock options and the restricted and contingent shares
depends on actual stock price appreciation.
36
ITEM 6. OFFICERS AND DIRECTORS (continued)
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 2003 was approximately 75% to 25%.
Beginning in 2003, grants of restricted and contingent stock under the Long Term
Incentive Plan were made pursuant to a new Time Accelerated Restricted Stock
Award Program ("TARSAP"). Restrictions with respect to the TARSAP awards will
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 date of the
grant. The TARSAP program 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,
2003, 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%.
Section 162(m) of the Internal Revenue Code provides that annual compensation in
excess of $1,000,000 paid to the chief executive officer or any of the other
Named Officers, other than compensation meeting the definition of "performance
based compensation," will not be deductible by a corporation for federal income
tax purposes. Because a significant portion of total compensation is
performance-based and certain executives have agreed to limitations on the
amount of grants under the Long-Term Incentive Plan which can vest in any year,
the Committee does not anticipate that the limits of Section 162(m) will
materially affect the deductibility of compensation paid by the Company in 2003.
However, the Committee will continue to review the deductibility of compensation
under Section 162(m) and related regulations.
The Committee believes that its overall executive compensation program has been
successful in providing competitive compensation sufficient to attract and
retain highly qualified executives, while at the same time encouraging the
executive officers to strive toward the creation of additional stockholder
value.
OFFICER NOMINATION AND COMPENSATION COMMITTEE
March 18, 2004
Steven C. Beering, Chairman
Arthur J. Decio
Robert J. Welsh
37
ITEM 6. OFFICERS AND DIRECTORS (continued)
COMPENSATION OF EXECUTIVE OFFICERS
SUMMARY. The following table summarizes compensation for services to NiSource
and its subsidiaries for the years 2003, 2002 and 2001 awarded to, earned by or
paid to the Chief Executive Officer, the four other most highly compensated
executive officers as of December 31, 2003 (collectively these individuals
constitute the "Named Officers").
SUMMARY COMPENSATION TABLE
Long-Term Compensation
------------------------------------
Annual Compensation (1) Awards Payouts
------------------------------- ------------------------- ---------
Other Securities Long-Term All other
annual Restricted Under- Incentive Compen-
compen- Stock lying Plan sation
Salary Bonus sation Award(s) Options/ Payouts
Name and Principal Position Year ($) ($)(2) ($)(3) ($)(4) SARS (#) ($)(5) ($)(6)
------------------------------------------------------------------------------------------------------------------------------------
Gary L. Neale, 2003 950,000 436,050 62,620 4,586,120 373,157 0 9,950
Chairman, President and Chief 2002 950,000 361,000 105,943 - 194,064 0 18,827
Executive Officer 2001 950,000 0 9,774 - 160,377 285,000 22,273
Stephen P. Adik, (7) 2003 500,000 650,500 112,669 1,665,880 135,546 0 5,240
Vice Chairman 2002 500,000 166,250 7,174 - 68,493 190,341 4,493
2001 500,000 0 4,337 - 56,604 0 4,796
Samuel W. Miller, Jr 2003 500,000 200,500 0 815,720 66,372 0 2,600
Executive Vice President and 2002 166,666 166,550 - 204,387(8) - - -
Chief Operating Officer 2001 - - - - - - -
Michael W. O'Donnell 2003 400,000 149,200 0 897,300 73,009 384,694 26,080
Executive Vice President and 2002 400,000 123,500 12,183 - 25,472 492,339 24,000
Chief Financial Officer 2001 400,000 0 2,385,937(9) - 0 24,850
S. LaNette Zimmerman 2003 325,000 121,225 0 565,340 46,000 465,475 16,315
Executive Vice President, 2002 304,166 98,000 2,583 - 20,047 582,776 1,221
Human Resources and 2001 291,650 0 11,870 - - 0 0
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 Annual Incentive Plan, except for
a portion of the bonus paid to Mr. Adik upon his retirement in 2003.
Mr. Adik's bonus included a retirement bonus of $450,000 in recognition
of Mr. Adik's numerous years of service and contributions to the
Company. For further discussion of the bonuses paid in 2003 please
refer to the Officer Nomination and Compensation Committee Report on
Executive Compensation.
38
ITEM 6. OFFICERS AND DIRECTORS (continued)
(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 2003 amount shown for Mr. Adik includes
$80,769 paid to Mr. Adik for unused vacation days accrued as of the
date of his retirement on December 31, 2003. The 2002 amount shown for
Mr. Neale includes $73,076 paid to Mr. Neale to buy back unused
vacation days. The 2001 amount for Mr. O'Donnell includes a relocation
allowance of $49,407 and a related tax allowance of $40,793 as well as
other amounts as described in note (8).
(4) Represents restricted and contingent stock awarded under the Company's
Time Accelerated Restricted Stock Award Program ("TARSAP") which began
in 2003. The amounts shown are based on the closing sale price of the
Company's common stock on December 31, 2002, as reported on the New
York Stock Exchange Composite Transactions Tape. Vesting of restricted
stock under the Long Term Incentive Plan in prior years were
performance based and are shown under the Long-Term Incentive Plan
Payouts column. See Note 5 below. As of December 31, 2003, the total
shares outstanding under the TARSAP (including those shares held by the
Named Officers) was 709,785 with an aggregate value of $11,300,006.55,
based on the Company's closing market price on such date ($21.94). 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 [22].
(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, 2003 (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, 788,056 shares valued at $17,289,949; Mr. Adik, 276,647
shares valued at $6,069,635; Mr. O'Donnell, 76,928 shares valued at
$1,687,800; Mr. Miller, 51,042 shares valued at $1,119,861; and Ms.
Zimmerman, 65,525 shares valued at $1,437,619. Dividends on the
restricted stock are paid in cash to the Named Officers. Dividends on
the contingent stock are paid in additional shares of contingent stock.
(6) "All Other Compensation" represents Company contributions to the 401(k)
Plan of $6,094 for Mr. Neale, $3,803 for Mr. Adik, $2,600 for Mr.
Miller, $13,080 for Mr. O'Donnell, and $16,315 for Ms. Zimmerman. The
amount shown for Mr. Neale also includes $3,856 term insurance costs
for 2003 and for Mr. Adik also includes $1,437 term insurance costs for
2003. The amount shown for 2003 for Mr. O'Donnell also includes $13,000
paid by Columbia Energy Group to its Employee Savings Restoration Plan.
(7) Mr. Adik was Vice Chairman until his retirement from that post on
December 31, 2003. For a description of Mr. Adik's retirement agreement
see the discussion under the heading "Change in Control and Termination
Agreements" on page [23].
(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.
(9) The compensation reported represents perquisites and other personal
benefits as discussed in note (3) as well as phantom stock units
granted to Mr. O'Donnell pursuant to an agreement under which the
Company established a phantom stock unit account for his benefit which
consisted initially of 73,020 units in consideration of his acceptance
of employment and 26,533 units in consideration of his willingness to
enter into a non-competition agreement with the Company. A phantom
stock unit is a unit whose value is related to the value of the common
stock of the Company. Mr. O'Donnell is entitled to receive dividend
equivalents with respect to the units in either cash or additional
units. Upon termination of employment, Mr. O'Donnell (or his
beneficiary) will be entitled to receive from the Company a cash
distribution in an amount, with respect to each unit credited to his
account, equal to the greater of (i) the price per share of the
Company's common stock at the close of business on the date of
termination, and (ii) 85% of the price per share of the Company's
common stock on November 1, 2000. The 26,533 units credited to Mr.
O'Donnell's account in connection with the non-competition portion of
the agreement, and any dividend equivalents paid thereon, are subject
to forfeiture in the event that Mr. O'Donnell violates the
non-competition provisions of the agreement at any time during the term
of the agreement or for a period of one year following his termination.
The
39
ITEM 6. OFFICERS AND DIRECTORS (continued)
amount shown represents the value of the phantom stock units granted
pursuant to the Phantom Stock Agreement based on the closing sale price
of the common stock on December 31, 2001, as reported in The Wall
Street Journal.
OPTION GRANTS IN 2003. The following table sets forth information concerning the
grants of options to purchase common stock made during 2003 to the Named
Officers. No stock appreciation rights were awarded during 2003.
OPTION/SAR GRANTS IN LAST FISCAL YEAR
INDIVIDUAL GRANTS
Number of Percent of Total
Securities Options/SARS Exercise
Underlying Granted to or Base Grant Date
Options/SARS Employees in Price Expiration Present
Name Granted (#)(1) Fiscal Year (2) ($/SH)(3) Date Value ($)(4)
---------------------------------------------------------------------------------------------------------------------------
Gary L. Neale 373,157 15.54 19.84 12/31/2012 1,265,002
Stephen P. Adik 135,546 5.50 19.84 12/31/2012 459,500
Samuel W. Miller, Jr 66,372 2.69 19.84 12/31/2012 225,001
Michael W. O'Donnell 73,009 2.96 19.84 12/31/2012 247,500
S. LaNette Zimmerman 46,000 1.87 19.84 12/31/2012 155,940
---------------------------------------------------------------------------------------------------------------------------
(1) All options granted in 2003 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 2,464,996 options granted to all employees in
2003.
(3) The options were granted on January 1, 2003 at the average of high and
low sale prices of the common stock on December 31, 2002 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, 2003 grants (expiring December 31, 2012) were
as follows: expected volatility - 30% (estimated stock price volatility
for the term of the grant); risk-free rate of return - 4.05% (the rate
for a ten-year U.S. treasury); discount for risk of forfeiture - 10%;
estimated annual dividend - $0.92; expected option term - ten years;
and vesting - 100% one year after date of grant. No assumption was made
relating to non-transferability. Actual gains, if any, on option
exercises and common shares are dependent on the future performance of
the common stock and overall market condition. The amounts reflected in
this table may not be achieved.
40
ITEM 6. OFFICERS AND DIRECTORS (continued)
OPTION EXERCISES IN 2003. The following table sets forth certain information
concerning the exercise of options or stock appreciation rights during 2003 by
each of the Named Officers and the number and value of unexercised options and
stock appreciation rights at December 31, 2003.
AGGREGATE OPTION EXERCISES IN LAST FISCAL YEAR
AND FISCAL YEAR-END OPTION VALUES
Number of Securities Value of Unexercised
Underlying Unexercised In-the-Money
Options/SARS at Options/SARS at
Shares Acquired Value Fiscal Year-End (#) Fiscal Year-End ($) (1)
on Exercise Realized ----------------------------- ------------------------------
Name (#) ($) Exercisable Unexercisable Exercisable Unexercisable
----------------------------------------------------------------------------------------------------------------------------------
Gary L. Neale 50,000 134,310 894,441 373,157 1,402,285 753,777
Stephen P. Adik 16,000 56,023 341,097 135,546 528,618 273,803
Samuel W. Miller, Jr 0 0 0 66,372 0 134,071
Michael W. O'Donnell 0 0 56,294 73,009 26,353 147,478
S. LaNette Zimmerman 0 0 44,305 46,000 20,741 92,920
----------------------------------------------------------------------------------------------------------------------------------
(1) Represents the difference between the option exercise price and $21.86,
the average of high and low sale prices of the common shares on
December 31, 2003, as reported on the New York Stock Exchange Composite
Transactions Tape.
41
ITEM 6. OFFICERS AND DIRECTORS (continued)
Long-Term Incentive Plan Awards in 2003. 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 2003 to each of
the Named Officers.
Performance
Number of or Other Estimated Future Payouts Under
Shares, Units Period until Non-Stock Price-Based Plans (3)
or Other Maturation -------------------------------------------------
Name Rights (#) or Payout Threshold (#) Target (#) Maximum (#)
---------------------------------------------------------------------------------------------------------------------------------
Gary L. Neale (1) 229,306 3/6 years 229,306 229,306 229,306
Stephen P. Adik (1)(3) 83,294 3/6 years 83,294 83,294 83,294
Samuel W. Miller, Jr.(2) 40,786 3/6 years 40,786 40,786 40,786
Michael W. O'Donnell (1) 44,865 3/6 years 44,865 44,865 44,865
S. LaNette Zimmerman (1) 28,267 3/6 years 28,267 28,267 28,267
---------------------------------------------------------------------------------------------------------------------------------
(1) The awards for Messrs. Neale, Adik 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, 2003, pursuant to the
Company's TARSAP. Restrictions with respect to the awards will lapse on December
31, 2008; however, if at the end of the three year performance cycle (that began
on January 1, 2003 and will end on December 31, 2005) 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 December 31,
2005. If both of the targets are not met, restrictions with respect to the award
will not lapse at the end of a three-year performance cycle but will lapse on
the sixth anniversary of the date of grant of the award. The restrictions with
respect to the awards will lapse upon the death or disability of the grantee.
Upon (i) the death or disability of the grantee or (ii) the voluntarily or
involuntarily termination without cause, upon the grantee having attained age 55
and completed 10 years of service with the Company or its affiliates, the
grantee will receive a partial distribution of the contingent stock awarded on a
pro rata basis based on a quarterly distribution schedule contained in the
contingent stock agreement between the Company and each grantee with respect to
each grant.
(2) The awards for Mr. Miller reflected above consist of grants of
restricted stock under the Long Term Incentive Plan which were made on January
1, 2003, pursuant to the Company's Time Accelerated Restricted Stock Award
Program ("TARSAP"). Restrictions with respect to the awards will lapse on
December 31, 2008; however, if at the end of the three year performance cycle
(that began on January 1, 2003 and will end on December 31, 2005) 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
December 31, 2005. The restrictions with respect to the awards will lapse upon
the death or disability of the grantee. Upon the death or disability of the
grantee, the grantee will receive a partial 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) The award to Mr. Adik vested on January 1, 2004 as a result of
his retirement from the Company and the terms of the Company's TARSAP program.
At the time of vesting 33.33 percent or 27,764 shares granted to Mr. Adik
vested. The remaining shares were forfeited.
42
ITEM 6. OFFICERS AND DIRECTORS (continued)
(4) In the case of each of the 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.
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 $ 119,511 $ 159,348 $ 166,848 $ 174,348 $ 174,348
400,000 164,511 219,348 229,348 239,348 239,348
500,000 209,511 279,348 291,848 304,348 304,348
600,000 254,511 339,348 354,348 369,348 369,348
700,000 299,511 399,348 416,848 434,348 434,348
800,000 344,511 459,348 479,348 499,348 499,348
900,000 389,511 519,348 541,848 564,348 564,348
1,000,000 434,511 579,348 604,348 629,348 629,348
1,100,000 479,511 639,348 666,848 694,348 694,348
1,200,000 524,511 699,348 729,348 759,348 759,348
1,300,000 569,511 759,348 791,848 824,348 824,348
1,400,000 614,511 819,348 854,348 889,348 889,348
1,500,000 659,511 879,348 916,848 954,348 954,348
1,600,000 704,511 939,348 979,348 1,019,348 1,019,348
1,700,000 749,511 999,348 1,041,848 1,084,348 1,084,348
1,800,000 794,511 1,059,348 1,104,348 1,149,348 1,149,348
1,900,000 839,511 1,119,348 1,166,848 1,214,348 1,214,348
2,000,000 884,511 1,179,348 1,229,348 1,279,348 1,279,348
--------------------------------------------------------------------------------------------------------------------
The credited years of service for each of the Named Officers (other than Mr.
O'Donnell), pursuant to the Pension Plan and Supplemental Executive Retirement
Plan, are as follows: Gary L. Neale - 29 years; Stephen P. Adik -- 25 years;
Samuel W. Miller, Jr. - 1 year; and S. LaNette Zimmerman - 23 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.
43
ITEM 6. OFFICERS AND DIRECTORS (continued)
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, 2002 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, 2002, 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 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 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. 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
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 continues 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 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. In addition, Mr. O'Donnell participates in the
Pension Restoration Plan for the Columbia Energy Group which provides for a
supplemental retirement benefit equal to the difference between (i) the benefit
he 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 his
deferrals into the Company's Executive Deferred Compensation Plan, minus (ii)
the actual benefit he received under the Retirement Plan. Effective January 1,
2004, Mr. O'Donnell will
44
ITEM 6. OFFICERS AND DIRECTORS (continued)
participate 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.
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 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.
The Company has 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.
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, except Mr. Miller. 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 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 three-year
period following the executive's termination under the Company's Supplemental
Executive Retirement Plan and qualified retirement plans. All stock options held
by the executive would become immediately exercisable upon the date of
termination of employment, and the restrictions would lapse on all restricted
shares awarded to the executive. 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 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 the 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.
45
ITEM 6. OFFICERS AND DIRECTORS (continued)
In connection with Mr. Adik's retirement and in recognition of his past
service and contribution with the Company, the Company entered into a retirement
agreement with Mr. Adik entitling him to receive a cash bonus of $450,000 and a
grant of restricted shares of common stock equal to $450,000 divided by the
closing price of a share of the Company's common stock on January 2, 2004. The
restrictions will lapse on the earlier of April 17, 2005 or Mr. Adik's death.
Under this agreement, Mr. Adik would be entitled to receive 34,754 shares of the
Company's common stock in the event that certain change in control events occur
within a specified period of time following his date of retirement. As
compensation for his accrued and unused vacation days, Mr. Adik received a
payment of $80,769 under this retirement agreement.
The Company also has an arrangement with Mr. Miller that, in the event
that his employment is terminated as a result of a change in control of the
Company prior to September 1, 2004, he would receive a payment equal to one year
of his base pay, target bonus and the pro-rata value of the grants made to Mr.
Miller under the Company's Long-term Incentive Plan through the date of
termination.
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.
COMPENSATION OF THE COMPANY'S DIRECTORS
The Company pays each director who is not receiving a salary from the Company
$30,000 annually, $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. Under a
deferred compensation arrangement, directors may elect to have their fees
deferred in the current year and credited to an interest-bearing account or to a
phantom stock account for payment in the future.
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.
During 2003, the Company's Nonemployee Director Stock Incentive Plan provided
for a grant of 2,600 restricted shares of common stock and a grant of 600
restricted stock units to each nonemployee director of the Company upon his or
her election or re-election as a director of the Company. In 2003, Messrs. Decio
and Welsh each received a grant of 2,600 restricted shares of common stock and
600 restricted stock units under the plan.
Effective January 1, 2004, each nonemployee director shall 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 (in
addition to the cash payment described above) 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. In addition, beginning in 2004, 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
46
ITEM 6. OFFICERS AND DIRECTORS (continued)
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.
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. Dividends are paid to
holders of restricted stock in cash on the date dividends are actually paid to
stockholders of the Company. 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 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. 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 are
eligible to participate in the program.
47
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.
Name and Address of Beneficial Owner Amount and Nature of Beneficial Ownership Percent of Class Outstanding
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL RESEARCH & MANAGEMENT COMPANY 19,031,870 7.3(1)
333 South Hope Street, 55th Floor
Los Angeles, California 90071 - Update
----------------------------------------------------------------------------------------------------------------------------------
(1) As reported on statements made on Schedule 13G filed with the
Securities and Exchange Commission on February 10, 2004 on behalf of
Capital Research & Management Company.
48
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, 2004, for each of the directors, nominees
and named executive officers, and for all directors and executive officers as a
group.
Amount and Nature of
Name of Beneficial Owner Beneficial Ownership (1)(2)
---------------------------------------------------------------------------------------
Stephen P. Adik 751,828
Steven C. Beering 11,199
Arthur J. Decio 13,100
Dennis E. Foster 12,806
Gary L. Neale 1,908,839
Samuel W. Miller, Jr 149,041
Ian M. Rolland(3) 26,777
John W. Thompson 15,914
Robert J. Welsh 16,600
Carolyn Y. Woo 4,000
Roger A. Young 33,780
Michael W. O'Donnell 165,848
S. LaNette Zimmerman 146,543
All directors and executive officers as a group 3,793,591
---------------------------------------------------------------------------------------
(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 Tax Deferred Savings Plans (the "401(k)"), Employee Stock
Purchase Plan and restricted shares awarded under the Company's 1988
and 1994 Long-Term Incentive Plans (the "Incentive Plans") 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 1.44 percent of the common stock
outstanding as of March 1, 2004.
(2) The totals include shares for which the following executive officers
have a right to acquire beneficial ownership, within 60 days after
March 1, 2004, by exercising stock options granted under the Incentive
Plan: Stephen P. Adik - 476,643 shares; Gary L. Neale - 1,267,598
shares; Samuel W. Miller, Jr. 66,372 shares; Michael W. O'Donnell -
129,303 shares; S. LaNette Zimmerman - 90,305 shares; and all executive
officers as a group - 2,289,698 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. .
49
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.
50
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 ($)
------------------------------------------------------------------------------------------------------------------------------------
CMD Employee Political Action Fund Legal, accounting and solicitation General and Administrative 12,858
COH services rendered by employees for
CPA Employees Political Action Fund
CGV registered with the Federal Election
Committee
------------------------------------------------------------------------------------------------------------------------------------
51
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS (continued)
PART II. EXPENDITURES FOR ANY CITIZENS GROUP OR PUBLIC RELATIONS COUNSEL.
Calendar Year 2003
Name of Company and Name or
Number of Recipients or Beneficiaries Purpose Accounts Charged Amount ($)
-----------------------------------------------------------------------------------------------------------------------------------
BSG
7 Various Chambers of Commerce Economic Development General & Administrative 22,084
NU
2 Various Chambers of Commerce Economic Development General & Administrative 2,900
CGV
10 Various Chambers of Commerce Economic Development General & Administrative 12,853
CKY
11 Various Chamber of Commerce and
Better Business Bureaus Economic Development General & Administrative 6,455
CMD
2 Various Chambers of Commerce Economic Development General & Administrative 900
COH
43 Various Chamber of Commerce and
Better Business Bureaus Economic Development General & Administrative 39,073
CPA
20 Various Chamber of Commerce and
Better Business Bureaus Economic Development General & Administrative 29,038
NIP
Greater Fort Wayne Chamber of Commerce Economic Development General & Administrative 25,000
Indiana Northeast Development Economic Development General & Administrative 13,965
12 Various Economic Development Corporations Economic Development General & Administrative 42,260
TCO
6 Various Chambers of Commerce Information and Education General & Administrative 15,654
CGT
Tennessee Chamber of Commerce Information and Education General & Administrative 455
KOKO
2 Various Chamber of Commerce Economic Development General & Administrative 2812
NIFL
5 Various Chamber of Commerce Community Support General & Administrative 427
-----------------------------------------------------------------------------------------------------------------------------------
52
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
PART I. INTERCOMPANY CONTRACTS.
For the year ended December 31, 2003:
In Effect on
Serving Receiving Dec. 31
Transaction Company Company Compensation ($) Date of Contract (YES or NO)
---------------------------------------------------------------------------------------------------------------------------------
Management & Business Services BSG NU 797,302 1/1/1979 YES
Aircraft Support Personnel NIP NCS 792,933 N/A N/A
Helicopter Usage NIP NCS 22,258 N/A N/A
Intense Computer System Fees NPM NIP 179,827 N/A N/A
Substation Services NIP PRI 49,007 N/A N/A
Oderant and Moisture Analysis Services NIP NIFL/KOKO 10,706 N/A N/A
Training Services NIP KOKO/CPA/COH/PRI/ 14,539 N/A N/A
NCS/NIFL/BSG
Fixed Fee Billings for O&M Agreements TCO GSGT 125,916 7/1/2003 YES
Billings for O&M Agreements TCO GSGT/NCP 109,330 N/A YES
Replacement of Dennit Road Crossing TCO GSGT 200,679 N/A YES
Installation of Indirect Fired Heaters TCO GSGT 342,070 N/A YES
Replacement of I-95 Crossing TCO GSGT 109,648 N/A YES
Replacement of Rt 111 Pipe TCO GSGT 269,787 N/A YES
Replacement of Saco River Crossing TCO GSGT 191,488 N/A YES
Replacement of Ted Long Pipe TCO GSGT 62,686 N/A YES
Operating/Administrative Services TCO CNS/CMC/CNR/CKY/ 437,616 N/A YES
COH/CMD/CPA/CGV
Nye Compressor Resylindering TCO CNR 152,481 N/A YES
Chart Processing TCO CNR 182,250 1/1/2001 YES
Fixed Fee Billings TCO NCP 176,058 7/1/2003 YES
Administrative Services TCO NCS 75,835 N/A YES
Construction Project Support TCO CGT 135,786 N/A YES
Install MS4182 TCO CGT 36,997 N/A YES
Install GIS Software TCO CGT 35,587 N/A YES
---------------------------------------------------------------------------------------------------------------------------------
53
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (continued)
In Effect on
Serving Receiving Dec. 31
Transaction Company Company Compensation ($) Date of Contract (YES or NO)
---------------------------------------------------------------------------------------------------------------------------------
Minor Construction and Administrative Services TCO CGT 107,830 N/A NO
Fixed Fee Billing TCO CGT 7,246,800 1/1/2001 YES
Project Development TCO MPL 151,733 N/A YES
Administrative Services TCO CTC 127,208 N/A NO
Access to TCO's X25 Network for Telemetry Info TCO COH/CPA/CGV 82,716 N/A YES
Operating Agreement - Lexington, CS TCO CVA 87,600 N/A YES
Sale of Capacity TCO CVA 110,880 11/1/1999 YES
Install Tap & EM on Meter 836715 TCO CVA 25,390 N/A YES
Fixed Fee Billings for O&M Agreements CGT TCO 40,536 7/86 & 10/91 YES
Fixed Fee Billings for O&M Agreements CGT CPL/CDW 45,672 N/A YES
Direct Billing of Management (Executive) Salary CGT TCO 504,172 N/A YES
Billing for O&M Agreements CGT CTC 68,827 N/A NO
Fixed Fee Billings for O&M Agreements CGT TCO 69,768 10/14/1996 YES
Line 1278 Pigging and Replacement form Millrift MS
to Easton CS CGT TCO 52,038 N/A YES
Maintenance Service on Pipeline NITC CROSS 586,161 10/14/1996 YES
---------------------------------------------------------------------------------------------------------------------------------
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.
54
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. (BSGPE)
BSGPE, a Massachusetts corporation, at 300 Friberg Parkway,
Westborough, Massachusetts is an 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. BSGPE is a wholly owned subsidiary of Bay State Gas.
Whiting Clean Energy, Inc. (WCE)
WCE, a wholly owned subsidiary of PEI Holdings, Inc., is an EWG.
WCE's business address is 801 E. 86th Avenue, Merrillville,
Indiana. NiSource owns a combined-cycle cogeneration facility
located at BP's Whiting, Indiana refinery consisting of two
gas-fired combustion turbines (each with a generating capacity of
166 megawatts) and a 213-megawatt steam turbine generator. WCE is
responsible for the operation and maintenance of the facility.
(b) Type and amount of capital invested.
When BSGPE was incorporated, Bay State Gas acquired all of the
issued and outstanding shares of BSGPE's common stock for $1,000.
Bay State also transferred ownership of the turbo expander and
related facilities to BSGPE at its net book value. Neither Bay
State Gas, nor NiSource, Inc. has made any financial guarantee to
any party for BSGPE.
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 owns the WCE facility and has approximately
$304.1 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, 2003.
As of December 31, 2003, BSGPE had no debt outstanding and for the
calendar year 2003, the turbo expander did not operate and did not
generate revenue. BSGPE had net income of $44,894 for 2003.
WCE had $81.5 million in notes payable outstanding at December 31,
2003 to NiSource Finance Corp. WCE had $304.1 million of debt
outstanding to third parties. The debt to equity ratio for WCE at
December 31, 2003 is not meaningful since the company's equity
capitalization is effectively zero. For 2003, WCE had a net loss
of$30.0 million.
(d) Service, sales or construction contracts with system companies.
BSGPE currently has no service, sales or construction contracts
with another system company.
WCE purchased $22.3 million of natural gas from TPC during 2003.
55
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (continued)
PART II. ORGANIZATION CHART.
BSGPE 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 BSGPE 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 BSGPE is approximately $0.2 million and
its investment in WCE, as discussed in Part I (b), is approximately $304.1
million. The ratio of NiSource, Inc.'s aggregate investment in BSGPE 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.
56
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. (NI) 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. (BSGPE) F-1A F-2A F-3A F-4A
Boundry Gas, Inc. (BDY) N/A N/A N/A N/A
Northern Utilities, Inc. (NU) F-1A F-2A F-3A F-4A
Columbia Energy Group (CG) 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 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 Group Capital Corporation (CCC) F-1B, F-1C F-2B, F-2C F-3B, F-3C F-4B, F-4C
Subsidiary:
TriStar Gas Technologies, Inc. (TGT) * F-1C F-2C F-3C F-4C
Columbia Energy Resources, Inc. (CER) F-1B, F-1D F-2B, F-2D F-3B, F-3D F-4B, F-4D
Subsidiaries:
Alamco-Delaware, Inc. (AD) F-1D F-2D F-3D F-4D
Columbia Natural Resources, Inc. (CNR) F-1D F-2D F-3D F-4D
Columbia Natural Resources Canada, Ltd. (CNRCL) F-1D F-2D F-3D F-4D
Hawg Hauling & Disposal, Inc. (HH) F-1D F-2D F-3D F-4D
Columbia Energy Services Corporation (CES) F-1B F-2B F-3B F-4B
Columbia Gas of Kentucky, Inc. (CKY) F-1B F-2B F-3B F-4B
Columbia Gas of Maryland, Inc. (CMD) F-1B F-2B F-3B F-4B
Columbia Gas of Ohio, Inc. (COH) F-1B F-2B F-3B F-4B
Columbia Gas of Pennsylvania, Inc. (CPA) F-1B F-2B F-3B F-4B
Columbia Gas of Virginia, Inc. (CGV) F-1B F-2B F-3B F-4B
Columbia Gas Transmission Corporation (TCO) F-1B F-2B F-3B F-4B
Columbia Gulf Transmission Company (CGT) F-1B F-2B F-3B F-4B
Columbia Network Services Corporation (CNS) F-1B, F-1E F-2B, F-2E F-3B, F-3E F-4B, F-4E
Subsidiary:
CNS Microwave, Inc. (CMC) F-1E F-2E F-3E F-4E
Columbia Petroleum Corporation (PET) * INACTIVE INACTIVE INACTIVE INACTIVE
Columbia Remainder Corporation (CRC) F-1B F-2B F-3B F-4B
Subsidiaries:
Columbia Electric Binghamton General Corp. (CEB) * INACTIVE INACTIVE INACTIVE INACTIVE
-----------------------------------------------------------------------------------------------------------------------------------
* Company was inactive at December 31, 2003.
57
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
TABLE OF CONTENTS (continued)
CONSOLIDATED STATEMENT CONSOLIDATED
CONSOLIDATED STATEMENT OF COMMON STATEMENT OF
NAME OF COMPANY (COMPANY ABBREVIATION) BALANCE SHEET OF INCOME STOCK EQUITY CASH FLOWS
-----------------------------------------------------------------------------------------------------------------------------------
Columbia Electric Binghamton Limited Corp. (CEBL) * INACTIVE INACTIVE INACTIVE INACTIVE
Columbia Electric Haverstraw Corporation (CHC) * INACTIVE INACTIVE INACTIVE INACTIVE
Haverstraw Bay, LLC (HBL) * INACTIVE INACTIVE INACTIVE INACTIVE
Columbia Service Partners, Inc. (CSP) F-1B, F-1F F-2B, F-2F F-3B, F-3F F-4B, F-4F
Subsidiaries:
Columbia Assurance Agency, Inc. (CAA) F-1F F-2F F-3F F-4F
Columbia Service Partners of Virginia, Inc. (CSPV)* INACTIVE INACTIVE INACTIVE INACTIVE
Columbia Transmission Communications Corporation (CTC) F-1B F-2B F-3B F-4B
NiSource Insurance Corporation Limited (NICL) F-1B F-2B F-3B F-4B
EnergyUSA, Inc. (IN) (EUII) F-1, F-1G F-2, F-2G F-3, F-3G F-4, F-4G
Subsidiaries:
EnergyUSA Commercial Energy Services, Inc. (EUC) F-1G F-2G F-3G F-4G
EnergyUSA Retail, Inc. (EUR) F-1G F-2G F-3G F-4G
EnergyUSA, Inc. (MA) (EUIM) F-1G, F-1H F-2G, F-2H F-3G, F-3H F-4G, F-4H
Subsidiaries:
EnergySPE, Inc. (ESPE) * F-1H F-2H F-3H F-4H
EnergyUSA (Connecticut), Inc. (EUIC) F-1H, F-1I F-2H, F-2I F-3H, F-3I F-4H, F-4I
Subsidiaries:
EnergyUSA Engineering, Inc. (EUE) F-1I F-2I F-3I F-4I
EnergyUSA Mechanical, Inc. (EUM) * F-1I F-2I F-3I F-4I
EnergyUSA-TPC Corp. (TPC) F-1G, F-1J F-2G, F-2J F-3G, F-3J F-4G, F-4J
Subsidiary:
EnergyUSA - Appalachian Corp. (EUA) F-1J F-2J F-3J F-4J
NI Energy Services Transportation, Inc. (NEST) F-1G F-2G F-3G F-4G
NI Fuel Company, Inc. (NIFC) * F-1G F-2G F-3G F-4G
NI-TEX, Inc. (NITEX) F-1G F-2G F-3G F-4G
NI-TEX Gas Services, Inc. (NGS) F-1G F-2G F-3G F-4G
Granite State Gas Transmission, Inc. (GSGT) F-1, F-1K F-2, F-2K F-3, F-3K F-4, F-4K
Subsidiaries:
Bay State Energy Enterprises, Inc. (BSEE) * F-1K F-2K F-3K F-4K
IWC Resources Corporation (IWCR) * F-1, F-1L F-2, F-2L F-3, F-3L F-4, F-4L
Subsidiaries:
Harbour Water Corporation (HWC) * F-1L F-2L F-3L F-4L
Indianapolis Water Company (IWC) * F-1L F-2L F-3L F-4L
Subsidiaries:
White River Environmental Partnership, Inc. (WRP) * INACTIVE INACTIVE INACTIVE INACTIVE
Irishman's Run Acquisition Corporation (IRAC) * F-1L F-2L F-3L F-4L
-----------------------------------------------------------------------------------------------------------------------------------
* Company was inactive at December 31, 2003.
58
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
TABLE OF CONTENTS (CONTINUED)
CONSOLIDATED STATEMENT CONSOLIDATED
CONSOLIDATED STATEMENT OF COMMON STATEMENT OF
NAME OF COMPANY (COMPANY ABBREVIATION) BALANCE SHEET OF INCOME STOCK EQUITY CASH FLOWS
-----------------------------------------------------------------------------------------------------------------------------------
IWC Morgan Water Corporation (IWCM) * F-1L F-2L F-3L F-4L
Lawrence Water Company, Inc. (LWC) * F-1L F-2L F-3L F-4L
Liberty Water Corporation (LWAC) * F-1L F-2L F-3L F-4L
The Darlington Water Works Company (DWWC) * F-1L F-2L F-3L F-4L
Kokomo Gas and Fuel Company (KOKO) F-1 F-2 F-3 F-4
Subsidiary:
KGF Trading Company (KGF) * INACTIVE INACTIVE INACTIVE INACTIVE
NI Energy Services, Inc. (NESI) F-1, F-1M F-2, F-2M F-3, F-3M F-4, F-4M
Subsidiaries:
Crossroads Pipeline Company (CROSS) F-1M F-2M F-3M F-4M
NESI Power Marketing, Inc. (NPM) * F-1M F-2M F-3M F-4M
NiSource Energy Services Canada, Ltd. (NESCL) * F-1M F-2M F-3M F-4M
NiSource Capital Markets, Inc. (NCM) F-1 F-2 F-3 F-4
NiSource Capital Trust I (NCT) 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. (NDEV) F-1, F-1N F-2, F-2N F-3, F-3N F-4, F-4N
Subsidiaries:
Cardinal Property Management, Inc. (CARD) F-1N F-2N F-3N F-4N
JOF Transportation Company (JOF) F-1N F-2N F-3N F-4N
Lake Erie Land Company (LEL) F-1N, F-1O F-2N, F-2O F-3N, F-3O F-4N, F-4O
Subsidiary:
SCC Services, Inc. (SCC) F-1O F-2O F-3O F-4O
NDC Douglas Properties, Inc. (NDC) F-1N F-2N F-3N F-4N
South Works Power Company (SWP) * F-1N F-2N F-3N F-4N
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. (NIFL) F-1, F-1P F-2, F-2P F-3, F-3P F-4, F-4P
Subsidiary:
Northern Indiana Trading Company, Inc. (NITC) F-1P F-2P F-3P F-4P
Northern Indiana Public Service Company (NIP) F-1, F-1Q F-2, F-2Q F-3, F-3Q F-4, F-4Q
Subsidiary:
NIPSCO Receivables Corporation (NRC) F-1Q F-2Q F-3Q F-4Q
---------------------------------------------------------------------------------------------------------------------------------
* Company was inactive at December 31, 2003.
59
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
TABLE OF CONTENTS (CONTINUED)
CONSOLIDATED STATEMENT CONSOLIDATED
CONSOLIDATED STATEMENT OF COMMON STATEMENT OF
Name of Company (Company abbreviation) BALANCE SHEET OF INCOME STOCK EQUITY CASH FLOWS
----------------------------------------------------------------------------------------------------------------------------------
PEI Holdings, Inc. (PEI) F-1, F-1R F-2, F-2R F-3, F-3R F-4, F-4R
Subsidiaries:
Cokenergy, Inc. (CEI) F-1R F-2R F-3R F-4R
Harbor Coal Company (HCC) F-1R F-2R F-3R F-4R
Ironside Energy LLC (IEL) F-1R F-2R F-3R F-4R
Lakeside Energy Corporation (LEC) F-1R F-2R F-3R F-4R
North Lake Energy Corporation (NLEC) F-1R F-2R F-3R F-4R
Portside Energy Corporation (PORT) F-1R F-2R F-3R F-4R
Whiting Clean Energy, Inc. (WCE) F-1R F-2R F-3R F-4R
Whiting Leasing LLC (WLC) F-1R F-2R F-3R F-4R
----------------------------------------------------------------------------------------------------------------------------------
* Company was inactive at December 31, 2003.
60
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
As of December 31, 2003 ($ in thousands) Page 3 Page 5 Page 7 Combined Entries Consolidated
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * * 15,991,532
Accumulated depreciation and amortization (7,095,918)
---------------------------------------------------------------------------------------------------------------------------------
Net utility plant 8,895,614
---------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 409,273
---------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 9,304,887
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries -
Assets of discontinued operations and assets held for sale 6,500
Unconsolidated affiliates 113,196
Other investments 67,384
---------------------------------------------------------------------------------------------------------------------------------
Total Investments 187,080
---------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 27,284
Restricted cash 22,780
Accounts receivable (less reserve) 511,111
Unbilled revenue (less reserve) 303,250
Gas inventory 429,363
Underrecovered gas and fuel costs 203,219
Materials and supplies, at average cost 71,427
Electric production fuel, at average cost 29,039
Price risk management assets 74,304
Exchange gas receivable 174,829
Regulatory assets 114,456
Prepayments and other 101,789
---------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 2,062,851
---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets 114,431
Regulatory assets 575,472
Goodwill 3,704,025
Intangible assets 527,083
Deferred charges and other 147,949
---------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 5,068,960
---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 16,623,778
=================================================================================================================================
*CONFIDENTIAL TREATMENT REQUESTED
61
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
As of December 31, 2003 ($ in thousands) Page 4 Page 6 Page 8 Combined Entries Consolidated
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * 4,415,880
Preferred Stocks--
Series without mandatory redemption provisions 81,114
Long-term debt, excluding amounts due within one year 5,993,367
-----------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 10,490,361
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 118,338
Short-term borrowings 685,500
Accounts payable 496,589
Dividends declared on common and preferred stocks 1,818
Customer deposits 80,368
Taxes accrued 210,847
Interest accrued 82,443
Overrecovered gas and fuel costs 29,169
Price risk management liabilities 36,483
Exchange gas payable 290,805
Current deferred revenue 28,198
Regulatory liabilities 73,659
Accrued liability for postretirement and postemployment benefits 56,846
Other accruals 417,955
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 2,609,018
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities 163
Deferred income taxes 1,595,888
Deferred investment tax credits 87,317
Deferred credits 72,734
Noncurrent deferred revenue 112,973
Accrued liability for post retirement and post employment benefits 406,944
Preferred stock liabilities with mandatory redemption provisions 2,438
Liabilities of discontinued operations and liabilities held for sale -
Regulatory liabilities 1,061,569
Other noncurrent liabilities 184,373
-----------------------------------------------------------------------------------------------------------------------------------
Total Other 3,524,399
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 16,623,778
===================================================================================================================================
*CONFIDENTIAL TREATMENT REQUESTED
62
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, 2003 ($ in thousands) NI BSG CG EUII GSGT IWCR Total
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * 8,263,099 * * * *
Accumulated depreciation and amortization (3,696,371)
-----------------------------------------------------------------------------------------------------------------------------------
Net utility plant 4,566,728
-----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 1,798
-----------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 4,568,526
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries -
Assets of discontinued operations and assets held for sale 6,500
Unconsolidated affiliates 33,545
Other investments 40,877
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments 80,922
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 69,882
Restricted cash 3,608
Accounts receivable (less reserve) 299,497
Unbilled revenue (less reserve) 181,021
Gas inventory 246,300
Underrecovered gas and fuel costs 163,710
Materials and supplies, at average cost 22,217
Electric production fuel, at average cost -
Price risk management assets 35,155
Exchange gas receivable 145,108
Regulatory assets 92,031
Prepayments and other 75,840
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 1,334,369
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets 110,446
Regulatory assets 338,650
Goodwill -
Intangible assets 931
Deferred charges and other 89,083
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 539,110
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 6,522,927
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
63
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, 2003 ($ in thousands) NI BSG CG EUII GSGT IWCR Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * 2,568,576 * * * *
Preferred Stocks--
Series without mandatory redemption provisions -
Long-term debt, excluding amounts due within one year 1,368,143
-----------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 3,936,719
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 272
Short-term borrowings -
Accounts payable 232,726
Dividends declared on common and preferred stocks 20
Customer deposits 24,206
Taxes accrued 147,122
Interest accrued 13,628
Overrecovered gas and fuel costs 2,287
Price risk management liabilities 3,317
Exchange gas payable 288,422
Current deferred revenue 19,546
Regulatory liabilities 71,333
Accrued liability for postretirement and postemployment benefits 22,813
Other accruals 295,342
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 1,121,034
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 747,299
Deferred investment tax credits 26,893
Deferred credits 49,092
Noncurrent deferred revenue 112,922
Accrued liability for postretirement and postemployment benefits 103,135
Preferred stock liabilities with mandatory redemption provisions -
Liabilities of discontinued operations and liabilities held for sale -
Regulatory liabilities 309,078
Other noncurrent liabilities 116,755
-----------------------------------------------------------------------------------------------------------------------------------
Total Other 1,465,174
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 6,522,927
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
64
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, 2003 ($ in thousands) KOKO NESI NCM NCT NCS NDEV Total
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 56,183 * * * - * *
Accumulated depreciation and amortization (32,576) -
-----------------------------------------------------------------------------------------------------------------------------------
Net utility plant 23,607 -
-----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation - 40,532
-----------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 23,607 40,532
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries - -
Assets of discontinued operations and assets held for sale - -
Unconsolidated affiliates 5 -
Other investments - -
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments 5 -
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 496 2,215
Restricted cash - -
Accounts receivable (less reserve) 7,233 48,396
Unbilled revenue (less reserve) 2,933 -
Gas inventory 698 -
Underrecovered gas and fuel costs 401 -
Materials and supplies, at average cost 371 -
Electric production fuel, at average cost - -
Price risk management assets - -
Exchange gas receivable - -
Regulatory assets - -
Prepayments and other 75 20,395
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 12,207 71,006
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets - -
Regulatory assets 381 -
Goodwill 16,439 -
Intangible assets 159 16,824
Deferred charges and other 189 38,204
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 17,168 55,028
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 52,987 166,566
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
65
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, 2003 ($ in thousands) KOKO NESI NCM NCT NCS NDEV Total
------------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 37,799 * * * (9,919) * *
Preferred Stocks-
Series without mandatory redemption provisions - -
Long-term debt, excluding amounts due within one year - 23,930
------------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 37,799 14,011
------------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt - -
Short-term borrowings - 35,246
Accounts payable 6,012 20,978
Dividends declared on common and preferred stocks - 665
Customer deposits 503 -
Taxes accrued 563 (949)
Interest accrued 150 945
Overrecovered gas and fuel costs - -
Price risk management liabilities - -
Exchange gas payable - -
Current deferred revenue - -
Regulatory liabilities - -
Accrued liability for postretirement and
postemployment benefits - 20,389
Other accruals 1,621 40,388
------------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 8,849 117,662
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities - -
Deferred income taxes 3,332 -
Deferred investment tax credits 429 -
Deferred credits - -
Noncurrent deferred revenue - -
Accrued liability for postretirement and postemployment benefits 1,097 34,893
Preferred stock liabilities with mandatory redemption provisions - -
Liabilities of discontinued operations and liabilities held for sale - -
Regulatory liabilities 1,477 -
Other noncurrent liabilities 4 -
------------------------------------------------------------------------------------------------------------------------------------
Total Other 6,339 34,893
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES - -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 52,987 166,566
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
66
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, 2003 ($ in thousands) NET NFC NRS NIFL NIP PEI Total
------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * * * 6,636,139 * *
Accumulated depreciation and amortization (3,082,743)
-------------------------------------------------------------------------------------------------------------------------------
Net utility plant 3,553,396
-------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 2,353
-------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 3,555,749
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries -
Assets of discontinued operations and assets held for sale -
Unconsolidated affiliates -
Other investments -
-------------------------------------------------------------------------------------------------------------------------------
Total Investments -
-------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 315
Restricted cash 2,585
Accounts receivable (less reserve) 69,702
Unbilled revenue (less reserve) 74,186
Gas inventory 131,839
Underrecovered gas and fuel costs -
Materials and supplies, at average cost 43,817
Electric production fuel, at average cost 29,039
Price risk management assets 4,555
Exchange gas receivable -
Regulatory assets 12,392
Prepayments and other 41,004
-------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 409,434
-------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets 210,410
Goodwill -
Intangible assets 25,161
Deferred charges and other 6,620
-------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 242,191
-------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 4,207,374
===============================================================================================================================
*CONFIDENTIAL TREATMENT REQUESTED
67
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, 2003 ($ in thousands) NEI NFC NRS NFL NIP PEI Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * 971,745 * *
Preferred Stocks--
Series without mandatory redemption provisions 81,114
Long-term debt, excluding amounts due within one year 682,027
-----------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 1,734,886
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 32,000
Short-term borrowings 578,417
Accounts payable 159,982
Dividends declared on common and preferred stocks 1,124
Customer deposits 51,098
Taxes accrued 58,847
Interest accrued 6,892
Overrecovered gas and fuel costs 26,882
Price risk management liabilities 442
Exchange gas payable -
Current deferred revenue -
Regulatory liabilities -
Accrued liability for postretirement and postemployment benefits 13,627
Other accruals 77,361
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 1,006,672
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 472,206
Deferred investment tax credits 57,233
Deferred credits 16,870
Noncurrent deferred revenue -
Accrued liability for postretirement and postemployment benefits 224,220
Preferred stock liabilities with mandatory redemption provisions 2,438
Liabilities of discontinued operations and liabilities held for sale -
Regulatory liabilities 667,179
Other noncurrent liabilities 25,670
-----------------------------------------------------------------------------------------------------------------------------------
Total Other 1,465,816
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 4,207,374
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
68
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, 2003 ($ in thousands) BSG BSGPE NU Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 746,801 * 177,631 * * *
Accumulated depreciation and amortization (200,274) (42,820)
-----------------------------------------------------------------------------------------------------------------------------------
Net utility plant 546,527 134,811
-----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 74 1,972
-----------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 546,601 136,783
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries -- --
Assets of discontinued operations and assets held for sale -- --
Unconsolidated affiliates 115,004 2
Other investments -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments 115,004 2
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 1,523 274
Restricted cash -- 806
Accounts receivable (less reserve) 54,003 15,000
Unbilled revenue (less reserve) 33,660 8,173
Gas inventory 33,071 1,220
Underrecovered gas and fuel costs 29,238 5,961
Materials and supplies, at average cost 3,076 700
Electric production fuel, at average cost -- --
Price risk management assets -- 580
Exchange gas receivable 8,392 19,501
Regulatory assets 8,694 1,168
Prepayments and other 3,161 343
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 174,818 53,726
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -- 82
Regulatory assets 16,082 18,196
Goodwill -- --
Intangible assets 394,038 80,122
Deferred charges and other 13,530 1,940
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 423,650 100,340
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,260,073 290,851
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
69
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, 2003 ($ in thousands) BSG BSGPE NU Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 529,215 * 114,935 * * *
Preferred Stocks--
Series without mandatory redemption provisions -- --
Long-term debt, excluding amounts due within one year 118,500 65,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 647,715 179,935
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt -- 833
Short-term borrowings 192,359 16,362
Accounts payable 42,834 10,187
Dividends declared on common and preferred stocks -- --
Customer deposits 3,193 967
Taxes accrued 10,298 (1,138)
Interest accrued 1,545 135
Overrecovered gas and fuel costs -- --
Price risk management liabilities -- --
Exchange gas payable -- --
Current deferred revenue 495 --
Regulatory liabilities 1,064 1,263
Accrued liability for postretirement and postemployment
benefits -- --
Other accruals 23,833 7,547
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 275,621 36,156
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -- --
Deferred income taxes 238,944 53,439
Deferred investment tax credits 2,239 239
Deferred credits -- --
Noncurrent deferred revenue -- --
Accrued liability for postretirement and postemployment
benefits 14,122 2,114
Liabilities of discontinued operations and liabilities held
for sale -- --
Preferred stock liabilities with mandatory redemption
provisions -- --
Regulatory liabilities 77,058 12,427
Other noncurrent liabilities 4,374 6,541
-----------------------------------------------------------------------------------------------------------------------------------
Total Other 336,737 74,760
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -- --
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 1,260,073 290,851
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
70
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (1 of 10)
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 F-1B Consolidating F-1B
As of December 31, 2003 ($ in thousands) Page 3 Page 5 Page 7 Page 9 Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility Plant * * * * * * 8,263,099
Accumulated depreciation and amortization (3,696,371)
-----------------------------------------------------------------------------------------------------------------------------------
Net utility plant 4,566,728
-----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 1,798
-----------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 4,568,526
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries -
Assets of discontinued operations and assets held for
sale 6,500
Unconsolidated affiliates 33,545
Other investments 40,877
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments 80,922
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 69,882
Restricted cash 3,608
Accounts receivable (less reserve) 299,497
Unbilled revenue (less reserve) 181,021
Gas inventory 246,300
Underrecovered gas and fuel costs 163,710
Materials and supplies, at average cost 22,217
Electric production fuel, at average cost -
Price risk management assets 35,155
Exchange gas receivable 145,108
Regulatory assets 92,031
Prepayments and other 75,840
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 1,334,369
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets 110,446
Regulatory assets 338,650
Goodwill -
Intangible assets 931
Deferred charges and other 89,083
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 539,110
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 6,522,927
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
71
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (2 of 10)
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 F-1B Consolidating F-1B
As of December 31, 2003 ($ in thousands) Page 4 Page 6 Page 8 Page 10 Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * * 2,568,576
Preferred Stocks--
Series without mandatory redemption provisions --
Long-term debt, excluding amounts due within one year 1,368,143
------------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 3,936,719
------------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 272
Short-term borrowings -
Accounts payable 232,726
Dividends declared on common and preferred stocks 20
Customer deposits 24,206
Taxes accrued 147,122
Interest accrued 13,628
Overrecovered gas and fuel costs 2,287
Price risk management liabilities 3,317
Exchange gas payable 288,422
Current deferred revenue 19,546
Regulatory liabilities 71,333
Accrued liability for postretirement and postemployment
benefits 22,813
Other accruals 295,342
------------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 1,121,034
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities --
Deferred income taxes 747,299
Deferred investment tax credits 26,893
Deferred credits 49,092
Noncurrent deferred revenue 112,922
Accrued liability for postretirement and postemployment
benefits 103,135
Preferred stock liabilities with mandatory redemption
provisions --
Liabilities of discontinued operations and liabilities
held for sale --
Regulatory liabilities 309,078
Other noncurrent liabilities 116,755
------------------------------------------------------------------------------------------------------------------------------------
Total Other 1,465,174
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 6,522,927
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
72
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (3 of 10)
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, 2003 ($ in thousands) CG CAR CAT CDW CCC CER 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
73
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (4 of 10)
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, 2003 ($ in thousands) CG CAR CAT CDW CCC CER 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment
benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment
benefits
Preferred stock liabilities with mandatory redemption
provisions
Liabilities of discontinued operations and liabilities
held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
74
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (5 of 10)
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, 2003 ($ in thousands) CES CKY CMD COH CPA CGV Total
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * 238,766 85,681 1,573,882 681,751 518,619 *
Accumulated depreciation and amortization (86,765) (25,823) (548,263) (231,007) (114,582)
------------------------------------------------------------------------------------------------------------------------------------
Net utility plant 152,001 59,858 1,025,619 450,744 404,037
------------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated
depreciation - - 1,270 8 -
------------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 152,001 59,858 1,026,889 - 450,752 404,037 -
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of
subsidiaries - - - - -
Assets of discontinued operations and assets
held for sale - - - - -
Unconsolidated affiliates - - - - -
Other investments - - - - -
------------------------------------------------------------------------------------------------------------------------------------
Total Investments - - - - -
------------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 789 337 5,964 3,394 1,673
Restricted cash - - - - -
Accounts receivable (less reserve) 14,885 10,383 54,888 52,604 30,537
Unbilled revenue (less reserve) 13,868 4,235 97,509 42,878 22,377
Gas inventory 8,850 3,871 157,055 61,689 14,835
Underrecovered gas and fuel costs 19,476 - 95,742 44,955 3,537
Materials and supplies, at average cost 173 623 1,974 710 1,480
Electric production fuel, at average cost - - - - -
Price risk management assets - - - - -
Exchange gas receivable 197 1 70,571 25,842 12
Regulatory assets 916 331 68,005 4,377 235
Prepayments and other 1,974 1,863 24,549 1,848 2,163
------------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 61,128 21,644 576,257 238,297 76,849
------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets - - - - -
Regulatory assets 2,954 1,810 210,880 69,001 7,692
Goodwill - - - - -
Intangible assets - - 318 36 39
Deferred charges and other 399 19 75,138 1,963 7,743
------------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 3,353 1,829 286,336 71,000 15,474
------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 216,482 83,331 1,889,482 760,049 496,360
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
75
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (6 of 10)
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, 2003 ($ in thousands) CES CKY CMD COH CPA CGV Total
------------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * 77,755 29,010 451,524 208,663 190,241 *
Preferred Stocks--
Series without mandatory redemption provisions - - - - -
Long-term debt, excluding amounts due within
one year 42,149 18,975 306,833 185,215 130,175
------------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 119,904 47,985 758,357 393,878 320,416
------------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 32 - 222 - -
Short-term borrowings 4,013 - 194,565 78,319 20,836
Accounts payable 18,739 6,575 146,698 50,685 35,948
Dividends declared on common and preferred
stocks - - - - -
Customer deposits 2,709 405 12,753 2,438 5,901
Taxes accrued 4,033 907 32,005 (5,556) 433
Interest accrued 15 5 895 33 94
Overrecovered gas and fuel costs - 2,287 - - -
Price risk management liabilities 388 - 1,803 1,127 -
Exchange gas payable 7,312 659 112,904 42,562 9,126
Current deferred revenue - - - - -
Regulatory liabilities (52) 8 70,507 (1,244) 56
Accrued liability for postretirement and
postemployment benefits 256 390 7,228 4,228 2,335
Other accruals 16,067 3,331 144,876 48,846 13,244
------------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 53,512 14,567 724,456 221,438 87,973
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities - - - - -
Deferred income taxes 13,540 6,289 149,999 105,004 36,289
Deferred investment tax credits 1,207 699 15,059 7,145 1,928
Deferred credits - - - - -
Noncurrent deferred revenue - - - - -
Accrued liability for postretirement and
postemployment benefits 1,601 1,329 47,214 11,700 5,540
Preferred stock liabilities with mandatory
redemption provisions - - - - -
Liabilities of discontinued operations and
liabilities held for sale - - - - -
Regulatory liabilities 25,463 11,933 140,435 10,666 20,501
Other noncurrent liabilities 1,255 529 53,962 10,218 23,713
------------------------------------------------------------------------------------------------------------------------------------
Total Other Liabilities and Deferred Credits 43,066 20,779 406,669 144,733 87,971
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES - - - - -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 216,482 83,331 1,889,482 760,049 496,360
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
76
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (7 of 10)
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, 2003 ($ in thousands) TCO CGT CNS CRC CSP CTC Total
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 3,800,811 1,363,545 * * * * *
Accumulated depreciation and amortization (1,627,249) (1,060,573)
-----------------------------------------------------------------------------------------------------------------------------------
Net utility plant 2,173,562 302,972
-----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation - -
-----------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 2,173,562 302,972
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries - -
Assets of discontinued operations and assets held for sale 6,500 -
Unconsolidated affiliates 32,471 -
Other investments 10,278 -
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments 49,249 -
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 35 3
Restricted cash - -
Accounts receivable (less reserve) 132,168 15,918
Unbilled revenue (less reserve) - 153
Gas inventory - -
Underrecovered gas and fuel costs - -
Materials and supplies, at average cost 10,190 7,067
Electric production fuel, at average cost - -
Price risk management assets - -
Exchange gas receivable 40,369 8,117
Regulatory assets 14,133 4,034
Prepayments and other 48,182 4,146
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 245,077 39,438
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets - -
Regulatory assets 39,775 6,537
Goodwill - -
Intangible assets 490 -
Deferred charges and other 6,042 953
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 46,307 7,490
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 2,514,195 349,900
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
77
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (8 of 10)
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, 2003 ($ in thousands) TCO CGT CNS CRC CSP CTC Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 1,309,218 151,659 * * * * *
Preferred Stocks--
Series without mandatory redemption provisions - -
Long-term debt, excluding amounts due within one year 385,890 67,890
-----------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 1,695,108 219,549
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 19 -
Short-term borrowings 113,569 10,653
Accounts payable 21,186 8,273
Dividends declared on common and preferred stocks - -
Customer deposits - -
Taxes accrued 59,278 3,026
Interest accrued - 34
Overrecovered gas and fuel costs - -
Price risk management liabilities - -
Exchange gas payable 105,515 10,344
Current deferred revenue - -
Regulatory liabilities 1,567 489
Accrued liability for postretirement and postemployment
benefits 1,625 922
Other accruals 39,378 10,809
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 342,137 44,550
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities - -
Deferred income taxes 377,078 35,810
Deferred investment tax credits 647 207
Deferred credits - -
Noncurrent deferred revenue - -
Accrued liability for postretirement and postemployment
benefits 16,808 5,540
Preferred stock liabilities with mandatory redemption
provisions - -
Liabilities of discontinued operations and liabilities
held for sale - -
Regulatory liabilities 64,118 35,962
Other noncurrent liabilities 18,299 8,282
-----------------------------------------------------------------------------------------------------------------------------------
Total Other 476,950 85,801
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES - -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 2,514,195 349,900
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
78
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (9 of 10)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B Page 9
As of December 31, 2003 ($ in thousands) NICL 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
79
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1B (10 of 10)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1B Page 10
As of December 31, 2003 ($ in thousands) NICL 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment
benefits
Preferred stock liabilities with mandatory redemption
provisions
Liabilities of discontinued operations and liabilities
held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
80
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1C (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidated F-1C
As of December 31, 2003 ($ in thousands) CCC TGT 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
81
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1C (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidated F-1C
As of December 31, 2003 ($ in thousands) CCC TGT 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities and other removal costs
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
82
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1D (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1D Consolidating F-1D
As of December 31, 2003 ($ in thousands) Page 3 CER AD 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
83
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1D (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1D Consolidating F-1D
As of December 31, 2003 ($ in thousands) Page 4 CER AD 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities and other removal costs
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
84
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1D (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1D Page 3
As of December 31, 2003 ($ in thousands) CNR CNRCL HH 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
85
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1D (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1D Page 3
As of December 31, 2003 ($ in thousands) CNR CNRCL HH 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
---------------------------------------------------------------------------------------------------------------
Total Current Liabilities
---------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities and other removal costs
Other noncurrent liabilities
---------------------------------------------------------------------------------------------------------------
Total Other
---------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
---------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===============================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
86
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1E (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-1E
As of December 31, 2003 ($ 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
87
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1E (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-1E
As of December 31, 2003 ($ 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
Current deferred revenue
Regulatory liabilities
Accrued liability for post retirement and post employment benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and post employment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
88
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1F (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA SERVICE PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1F
As of December 31, 2003 ($ in thousands) CSP CAA 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
89
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1F (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA SERVICE PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1F
As of December 31, 2003 ($ in thousands) CSP CAA 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
Current deferred revenue
Regulatory liabilities
Accrued liability for post retirement and post employment benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and post employment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
90
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (1 of 6)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1G F-1G Consolidating F-1G
As of December 31, 2003 ($ in thousands) Page 3 Page 5 EUII 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
Investments and undistributed earnings of subsidiaries
Assets of operations and assets held for sale
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
91
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (2 of 6)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1G F-1G Consolidating F-1G
As of December 31, 2003 ($ in thousands) Page 4 Page 6 EUII 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
Current deferred revenue
Regulatory liabilities
Accrued liability for post retirement and post employment benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and post employment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
92
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (3 of 6)
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, 2003 ($ in thousands) EUC EUR EUIM TPC NEST 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
Unconsolidated affiliates
Other investments
--------------------------------------------------------------------------------------------------------------------
Total Investments and Other Assets
--------------------------------------------------------------------------------------------------------------------
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
93
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (4 of 6)
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, 2003 ($ in thousands) EUC EUR EUIM TPC NEST Total
--------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * * * *
Preferred Stocks--
Series with 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
--------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
--------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
--------------------------------------------------------------------------------------------------------------------
Total Other Liabilities and Deferred Credits
--------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
====================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
94
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (5 of 6)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1G Page 5
As of December 31, 2003 ($ in thousands) NIFC NITEX NGS 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
95
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1G (6 of 6)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1G Page 6
As of December 31, 2003 ($ in thousands) NIFC NITEX NGS Total
-------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * * *
Preferred Stocks--
Series with 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
-------------------------------------------------------------------------------------------------------
Total Current Liabilities
-------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
-------------------------------------------------------------------------------------------------------
Total Other
-------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
=======================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
96
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1H (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. (MA) AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1H
As of December 31, 2003 ($ in thousands) EUIM ESPE EUIC 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
97
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1H (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. (MA) AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1H
As of December 31, 2003 ($ in thousands) EUIM ESPE EUIC 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and
postemployment benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and
postemployment benefits
Preferred stock liabilities with mandatory
redemption provisions
Liabilities of discontinued operations and
liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
98
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1I (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1I Consolidating F-1I
As of December 31, 2003 ($ in thousands) Page 3 EUIC EUE 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
99
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1I (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1I Consolidating F-1I
As of December 31, 2003 ($ in thousands) Page 4 EUIC EUE 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
----------------------------------------------------------------------------------------------------------------------------------
Total Other
----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
100
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1I (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1I Page 3
As of December 31, 2003 ($ in thousands) EUM 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
101
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1I (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1I Page 4
As of December 31, 2003 ($ in thousands) EUM 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
------------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
------------------------------------------------------------------------------------------------------------------------------------
Total Other
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
102
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1J (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA-TPC CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1J
As of December 31, 2003 ($ in thousands) TPC EUA 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
Investments and undistributed earning of subsidiaries
Assets of discontinued operations and assets held for sale
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
103
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1J (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGY USA-TPC CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1J
As of December 31, 2003 ($ in thousands) TPC EUA 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
----------------------------------------------------------------------------------------------------------------------------------
Total Other
----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
104
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1K (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
GRANITE STATE GAS TRANSMISSION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1K
As of December 31, 2003 ($ in thousands) GSGT BSEE Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 13,342 * * * *
Accumulated depreciation and amortization (6,045)
----------------------------------------------------------------------------------------------------------------------------------
Net utility plant 7,297
----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation 600
----------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 7,897
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries -
Assets of discontinued operations and assets held for sale -
Unconsolidated affiliates -
Other investments -
----------------------------------------------------------------------------------------------------------------------------------
Total Investments -
----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents (119)
Restricted cash -
Accounts receivable (less reserve) 2,605
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 111
Prepayments and other 63
----------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 2,660
----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets -
Goodwill 2,493
Intangible assets 9,215
Deferred charges and other -
----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 11,708
----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 22,265
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
105
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1K (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
GRANITE STATE GAS TRANSMISSION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
Consolidating F-1K
As of December 31, 2003 ($ in thousands) GSGT BSEE Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 11,972 * * * *
Preferred Stocks--
Series without mandatory redemption provisions -
Long-term debt, excluding amounts due within one year -
----------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 11,972
----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt -
Short-term borrowings 6,837
Accounts payable 1,353
Dividends declared on common and preferred stocks -
Customer deposits 32
Taxes accrued (3,874)
Interest accrued 4
Overrecovered gas and fuel costs -
Price risk management liabilities -
Exchange gas payable -
Current deferred revenue -
Regulatory liabilities -
Accrued liability for postretirement and postemployment benefits -
Regulatory liabilities -
Other accruals 38
----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 4,390
----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 5,940
Deferred investment tax credits 18
Deferred credits 35
Noncurrent deferred revenue -
Accrued liability for postretirement and pension benefits (90)
Preferred stock liabilities with mandatory redemption provisions -
Liabilities of discontinued operations -
Other noncurrent liabilities -
----------------------------------------------------------------------------------------------------------------------------------
Total Other 5,903
----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 22,265
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
106
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1L (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1L Consolidating F-1L Page 1
As of December 31, 2003 ($ in thousands) Page 3 IWCR LWC 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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, less accumulated amortization
Deferred charges and other
------------------------------------------------------------------------------------------------------------------------------------
Total Other Assets
------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
107
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1L (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1L Consolidating F-1L Page 2
As of December 31, 2003 ($ in thousands) Page 4 IWCR LWC 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
------------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
------------------------------------------------------------------------------------------------------------------------------------
Total Other
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
108
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1L (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1L Page 3
As of December 31, 2003 ($ in thousands) DWWC HWC IWC LWAC IWCM IRAC 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
109
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1L (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
IWC RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1L Page 4
As of December 31, 2003 ($ in thousands) DWWC HWC IWC LWAC IWCM IRAC 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
------------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
------------------------------------------------------------------------------------------------------------------------------------
Total Other
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
110
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1M (1 of 4)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1M Consolidating F-1M
As of December 31, 2003 ($ in thousands) Page 3 NESI CROSS Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant * * 35,511 * * *
Accumulated depreciation and amortization (8,362)
------------------------------------------------------------------------------------------------------------------------------------
Net utility plant 27,149
------------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation -
------------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 27,149
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries -
Assets of discontinued operations and assets held for sale -
Unconsolidated affiliates -
Other investments -
------------------------------------------------------------------------------------------------------------------------------------
Total Investments -
------------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents -
Restricted cash -
Accounts receivable (less reserve) 464
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 1,828
Regulatory assets 60
Prepayments and other 14
------------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 2,366
------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets
Goodwill -
Intangible assets -
Deferred charges and other -
------------------------------------------------------------------------------------------------------------------------------------
Total Other Assets -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 29,515
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
111
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1M (2 of 4)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1M Consolidating F-IM
As of December 31, 2003 ($ in thousands) Page 4 NESI CROSS Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity * * 6,001 * * *
Preferred Stocks--
Series without mandatory redemption provisions -
Long-term debt, excluding amounts due within one year -
------------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 6,001
------------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt -
Short-term borrowings 14,914
Accounts payable 1,842
Dividends declared on common and preferred stocks -
Customer deposits -
Taxes accrued 534
Interest accrued -
Overrecovered gas and fuel costs -
Price risk management liabilities -
Exchange gas payable 1,270
Current deferred revenue -
Regulatory liabilities -
Accrued liability for postretirement and postemployment benefits -
Other accruals 29
------------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 18,589
------------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 4,566
Deferred investment tax credits -
Deferred credits 336
Noncurrent deferred revenue 23
Accrued liability for postretirement and postemployment benefits -
Liabilities of discontinued operations and liabilities held for sale -
Regulatory liabilities -
Other noncurrent liabilities -
------------------------------------------------------------------------------------------------------------------------------------
Total Other 4,925
------------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 29,515
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
112
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1M (3 of 4)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1M Page 3
As of December 31, 2003 ($ in thousands) NPM NESCL 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
113
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1M (4 of 4)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1M Page 4
As of December 31, 2003 ($ in thousands) NPM NESCL 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
Current deferred revenue
Regulatory liabilities
Accrued liabilities for postretirement and postemployment benefits
Other accruals
---------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
---------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
---------------------------------------------------------------------------------------------------------------------------------
Total Other
---------------------------------------------------------------------------------------------------------------------------------
Commitments and Contingencies
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
=================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
114
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1N (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-1N Consolidating F-1N
As of December 31, 2003 ($ in thousands) Page 3 NDEV CARD JOF 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
115
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1N (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-1N Consolidating F-1N
As of December 31, 2003 ($ in thousands) Page 4 NDEV CARD JOF 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment
benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* Confidential treatment requested
116
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1N (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-1N Page 3
As of December 31, 2003 ($ in thousands) LEL NDC 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
117
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1N (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-1N Page 4
As of December 31, 2003 ($ in thousands) LEL NDC 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
--------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
--------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
--------------------------------------------------------------------------------------------------------------------------------
Total Other
--------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
118
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1O (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-1O Page 1
As of December 31, 2003 ($ 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
==================================================================================================================================
119
* CONFIDENTIAL TREATMENT REQUESTED
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1O (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-1O Page 2
As of December 31, 2003 ($ 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment
benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
120
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1P (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-1P Page 1
As of December 31, 2003 ($ in thousands) NIFL NITC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 56,601 * * * *
Accumulated depreciation and amortization (23,587)
-----------------------------------------------------------------------------------------------------------------------------------
Net utility plant 33,014
-----------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated depreciation -
-----------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 33,014
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of subsidiaries 5,574
Assets of discontinued operations and assets held for sale -
Unconsolidated affiliates -
Other investments -
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments 5,574
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 175
Restricted cash -
Accounts receivable (less reserve) 8,701
Unbilled revenue (less reserve) 3,276
Gas inventory 5,763
Underrecovered gas and fuel costs 3,909
Materials and supplies, at average cost 296
Electric production fuel, at average cost -
Price risk management assets -
Exchange gas receivable -
Regulatory assets -
Prepayments and other 120
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 22,240
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets -
Regulatory assets 92
Goodwill 13,307
Intangible assets 591
Deferred charges and other 341
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 14,331
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 75,159
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
121
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1P (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-1P Page 2
As of December 31, 2003 ($ in thousands) NIFL NITC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 49,432 * * * *
Preferred Stocks--
Series without mandatory redemption provisions
-
Long-term debt, excluding amounts due within one year -
-----------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 49,432
-----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt -
Short-term borrowings -
Accounts payable 10,264
Dividends declared on common and preferred stocks -
Customer deposits 163
Taxes accrued 244
Interest accrued 32
Overrecovered gas and fuel costs -
Price risk management liabilities -
Exchange gas payable -
Current deferred revenue -
Regulatory liabilities -
Accrued liability for postretirement and postemployment
benefits -
Other accruals 739
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 11,442
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities -
Deferred income taxes 5,532
Deferred investment tax credits 266
Deferred credits 210
Noncurrent deferred revenue -
Accrued liability for postretirement and
postemployment benefits 7,062
Preferred stock liabilities with mandatory
redemption provisions -
Liabilities of discontinued operations and
liabilities held for sale -
Regulatory liabilities 1,000
Other noncurrent liabilities
215
-----------------------------------------------------------------------------------------------------------------------------------
Total Other 14,285
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES -
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 75,159
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
122
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1Q (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-1Q Page 1
As of December 31, 2003 ($ in thousands) NIP NRC Combined Entries Total
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
PROPERTY, PLANT AND EQUIPMENT
Utility plant 6,636,139 * * * 6,636,139
Accumulated depreciation and amortization (3,082,743) (3,082,743)
---------------------------------------------------------------------------------------------------------------------------------
Net utility plant 3,553,396 3,553,396
---------------------------------------------------------------------------------------------------------------------------------
Other property, at cost, less accumulated
depreciation 2,353 2,353
---------------------------------------------------------------------------------------------------------------------------------
Net Property, Plant, and Equipment 3,555,749 3,555,749
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Investments and undistributed earnings of
subsidiaries - -
Assets of discontinued operations and assets
held for sale - -
Unconsolidated affiliates 50,381 -
Other investments - -
---------------------------------------------------------------------------------------------------------------------------------
Total Investments 50,381 -
---------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 47 315
Restricted cash 2,585 2,585
Accounts receivable (less reserve) 54,675 69,702
Unbilled revenue (less reserve) 18,712 74,186
Gas inventory 131,839 131,839
Underrecovered gas and fuel costs - -
Materials and supplies, at average cost 43,817 43,817
Electric production fuel, at average cost 29,039 29,039
Price risk management assets 4,555 4,555
Exchange gas receivable - -
Regulatory assets 12,392 12,392
Prepayments and other 40,890 41,004
---------------------------------------------------------------------------------------------------------------------------------
Total Current Assets 338,551 409,434
---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Price risk management assets - -
Regulatory assets 210,410 210,410
Goodwill - -
Intangible assets 25,161 25,161
Deferred charges and other 6,620 6,620
---------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 242,191 242,191
---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 4,186,872 4,207,374
=================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
123
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1Q (2 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-1Q Page 2
As of December 31, 2003 ($ in thousands) NIP NRC Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity 971,745 * * * 971,745
Preferred Stocks--
Series without mandatory redemption
provisions 81,114 81,114
Long-term debt, excluding amounts due within
one year 682,027 682,027
----------------------------------------------------------------------------------------------------------------------------------
Total Capitalization 1,734,886 1,734,886
----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Current portion of long-term debt 32,000 32,000
Short-term borrowings 578,417 578,417
Accounts payable 160,327 159,982
Dividends declared on common and preferred stocks 1,124 1,124
Customer deposits 51,098 51,098
Taxes accrued 58,713 58,847
Interest accrued 6,892 6,892
Overrecovered gas and fuel costs 26,882 26,882
Price risk management liabilities 442 442
Exchange gas payable - -
Current deferred revenue - -
Regulatory liabilities - -
Accrued liability for postretirement and
postemployment benefits 13,627 13,627
Other accruals 56,648 77,361
----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 986,170 1,006,672
----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities - -
Deferred income taxes 472,206 472,206
Deferred investment tax credits 57,233 57,233
Deferred credits 1,949 16,870
Noncurrent deferred revenue - -
Accrued liability for postretirement and
postemployment benefits 224,220 224,220
Preferred stock liabilities with mandatory
redemption provisions 2,438 2,438
Liabilities of discontinued operations and
liabilities held for sale - -
Regulatory liabilities 667,179 667,179
Other noncurrent liabilities 40,591 25,670
----------------------------------------------------------------------------------------------------------------------------------
Total Other 1,465,816 1,465,816
----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES - -
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES 4,186,872 4,207,374
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
124
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1R (1 of 6)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1R F-1R Consolidating F-1R
As of December 31, 2003 ($ in thousands) Page 3 Page 5 PEI 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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, less accumulated amortization
Deferred charges and other
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Assets
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
125
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1R (2 of 6)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1R F-1R Consolidating F-1R
As of December 31, 2003 ($ in thousands) Page 4 Page 5 PEI 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment benefits
Other accruals
---------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
---------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
---------------------------------------------------------------------------------------------------------------------------------
Total Other
---------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
---------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
=================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
126
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1R (3 of 6)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1R Page 3
As of December 31, 2003 ($ in thousands) CEI HCC IEL LEC NLEC PORT 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
127
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1R (4 of 6)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1R Page 4
As of December 31, 2003 ($ in thousands) CEI HCC IEL LEC NLEC PORT 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and
postemployment benefits
Other accruals
--------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
--------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and
postemployment benefits
Preferred stock liabilities with mandatory
redemption provisions
Liabilities of discontinued operations and
liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
--------------------------------------------------------------------------------------------------------------------------
Total Other
--------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
==========================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
128
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1R (5 of 6)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1R Page 5
As of December 31, 2003 ($ in thousands) WCE WLC 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
Investments and undistributed earnings of subsidiaries
Assets of discontinued operations and assets held for sale
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
129
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-1R (6 of 6)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Not covered by Report of Independent Public Accountants)
F-1R Page 6
As of December 31, 2003 ($ in thousands) WCE WLC 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
Current deferred revenue
Regulatory liabilities
Accrued liability for postretirement and postemployment
benefits
Other accruals
-----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES AND DEFERRED CREDITS
Price risk management liabilities
Deferred income taxes
Deferred investment tax credits
Deferred credits
Noncurrent deferred revenue
Accrued liability for postretirement and postemployment benefits
Preferred stock liabilities with mandatory redemption provisions
Liabilities of discontinued operations and liabilities held for sale
Regulatory liabilities
Other noncurrent liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Total Other
-----------------------------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
130
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2 (1 OF 4)
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, 2003 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * 3,619,395
Gas Transmission and Storage 1,033,476
Electric 1,115,862
Other 477,857
----------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 6,246,590
Cost of Sales 3,186,258
----------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 3,060,332
----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 1,185,898
Depreciation and amortization 496,996
Loss (gain) on sale or impairment of assets (24,842)
Other taxes 285,981
----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 1,944,033
----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 1,116,299
----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (464,654)
Minority interests (2,544)
Preferred stock dividends of subsidiaries (4,503)
Other, net 15,308
----------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (456,393)
----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 659,906
INCOME TAXES 234,190
----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 425,716
----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes (435)
Gain (Loss) on Disposition of Discontinued
Operations - net of taxes (331,246)
Change in Accounting - net of tax (8,834)
Subsidiary Earnings -
----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 85,201
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
131
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, 2003 ($ in thousands) NI BSG CG EUII GSGT IWCR Total
-----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * 2,085,226 * * * *
Gas Transmission and Storage 945,900
Electric -
Other 19,404
-----------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 3,050,530
Cost of Sales 1,277,988
-----------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 1,772,542
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 664,256
Depreciation and amortization 163,178
Loss (gain) on sale or impairment of assets (18,409)
Other taxes 172,905
-----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 981,930
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 790,612
-----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (84,618)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 21,786
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (62,832)
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 727,780
INCOME TAXES 249,635
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 478,145
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations - net of taxes (477)
Gain (Loss) on Disposition of Discontinued
Operations - net of taxes (47,711)
Change in Accounting - net of tax (16,845)
Subsidiary Earnings -
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 413,112
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
(a) BSG includes two subsidiaries, CG includes twenty subsidiaries, EUII
includes ten subsidiaries, GSGT includes one subsidiary and IWCR includes seven
subsidiaries as noted in Item 1. Consolidating financial statement of BSG, CG,
EUII, GSGT and IWCR are presented herewith in Exhibits F-1A through F4-A, F-1B
through F-4B and F-1G through F-4G, F-1K through F-4K and F-1L through F-4L,
respectively.
132
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, 2003 ($ in thousands) KOKO NESI NCM NCT NCS NDEV Total
-----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 36,946 * * * - * *
Gas Transmission and Storage 1,677 -
Electric - -
Other 17,285 277,807
-----------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 55,908 277,807
Cost of Sales 44,050 -
-----------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 11,858 277,807
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 5,896 257,129
Depreciation and amortization 1,955 7,067
Loss (gain) on sale or impairment of assets - -
Other taxes 1,174 9,110
-----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 9,025 273,306
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 2,833 4,501
-----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (25) (3,236)
Minority interests - -
Preferred stock dividends of subsidiaries - -
Other, net 55 (380)
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) 30 (3,616)
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 2,863 885
INCOME TAXES 1,202 885
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1,661 -
-----------------------------------------------------------------------------------------------------------------------------------
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) 1,661 -
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
(a) NESI includes three subsidiaries and NDEV includes ten subsidiaries as noted
in Item 1. Consolidating financial statement of NESI and NDEV are presented
herewith in Exhibits F-1M through F4-M and F-1N and F-4N, respectively.
133
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, 2003 ($ in thousands) NET NFC NRS NIFL NIP PEI Total
------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * 949,392 * 949,392
Gas Transmission and Storage 49,747 49,747
Electric 1,092,764 1,092,764
Other - -
------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 2,091,903 2,091,903
Cost of Sales 1,078,660 1,078,660
------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 1,013,243 1,013,243
------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 332,115 332,115
Depreciation and amortization 259,638 259,638
Loss (gain) on sale or impairment of assets - -
Other taxes 90,547 90,547
------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 682,300 682,300
------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 330,943 330,943
------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (52,100) (52,100)
Minority interests - -
Preferred stock dividends of subsidiaries - -
Other, net (3,900) (3,900)
------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (56,000) (56,000)
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 274,979 274,979
INCOME TAXES 112,200 112,200
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 162,779 162,779
------------------------------------------------------------------------------------------------------------------------------
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) 162,779 162,779
==============================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
(a) NIFL includes one subsidiary, NIP includes one subsidiary and PEI includes
eight subsidiaries as noted in Item 1. Consolidating financial statement of
NIFL, NIP and PEI are presented herewith in Exhibits F-1P through F-4P, F-1Q
through F-4Q and F-1R through F-4R, respectively.
134
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, 2003 ($ in thousands) BSG BSGPE NU Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 413,079 * 104,811 * * *
Gas Transmission and Storage 24,985 7,693
Electric - -
Other 20,513 2,169
-----------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 458,577 114,673
Cost of Sales 267,666 73,886
-----------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 190,911 40,787
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 98,647 14,762
Depreciation and amortization 38,194 9,030
Loss (gain) on sale or impairment of assets - -
Other taxes 7,913 3,185
-----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 144,754 26,977
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 46,157 13,810
-----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (10,512) (3,365)
Minority interests - -
Preferred stock dividends of subsidiaries - -
Other, net 384 (189)
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (10,128) (3,554)
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 36,029 10,256
INCOME TAXES 13,170 4,255
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 22,859 6,001
-----------------------------------------------------------------------------------------------------------------------------------
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 5,933 -
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 28,792 6,001
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
135
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (1 of 5)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2B F-2B F-2B F-2B Consolidating F-2B
Year Ended December 31, 2003 ($ in thousands) Page 2 Page 3 Page 4 Page 5 Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * * * * * 2,085,226
Gas Transmission and Storage 945,900
Electric -
Other 19,404
-----------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 3,050,530
Cost of Sales 1,277,988
-----------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 1,772,542
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 664,256
Depreciation and amortization 163,178
Loss (gain) on sale or impairment of assets (18,409)
Other taxes 172,905
-----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 981,930
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 790,612
-----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (84,618)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 21,786
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (62,832)
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 727,780
INCOME TAXES 249,635
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 478,145
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from Discontinued Operations
- net of taxes (477)
Gain (Loss) on Disposition of Discontinued
Operations - net of taxes (47,711)
Change in Accounting - net of tax (16,845)
Subsidiary Earnings -
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 413,112
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
136
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (2 OF 5)
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, 2003 ($ in thousands) CG CAR CAT CDW CCC CER 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
137
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (3 OF 5)
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, 2003 ($ in thousands) CES CKY CMD COH CPA CGV Total
----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * 123,299 49,579 1,142,543 462,605 270,696 *
Gas Transmission and Storage 23,333 3,099 243,726 70,568 16,345
Electric - - - - -
Other 229 317 (21,524) 5,904 3,034
----------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 146,861 52,995 1,364,745 539,077 290,075
Cost of Sales 93,051 32,519 829,675 336,071 177,236
----------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 53,810 20,476 535,070 203,006 112,839
----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 25,400 7,109 195,019 105,478 45,296
Depreciation and amortization 5,762 2,452 14,556 16,479 15,072
Loss (gain) on sale or impairment of assets - - - - -
Other taxes 1,708 2,117 109,053 4,273 4,821
----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 32,870 11,678 318,628 126,230 65,189
----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 20,940 8,798 216,442 76,776 47,650
----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (3,150) (1,488) (24,395) (15,098) (10,195)
Minority interests - - - - -
Preferred stock dividends of subsidiaries - - - - -
Other, net 1,134 182 1,580 3,190 157
----------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (2,016) (1,306) (22,815) (11,908) (10,038)
----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 18,924 7,492 193,627 64,868 37,612
INCOME TAXES 6,537 2,899 67,995 26,185 14,365
----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 12,387 4,593 125,632 38,683 23,247
----------------------------------------------------------------------------------------------------------------------------------
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) 12,387 4,593 125,632 38,683 23,247
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
138
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (4 OF 5)
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, 2003 ($ in thousands) TCO CGT CNS CRC CSP CTC Total
-----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution - - * * * * *
Gas Transmission and Storage 685,562 133,026
Electric - -
Other 9,699 2,370
-----------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 695,261 135,396
Cost of Sales - -
-----------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 695,261 135,396
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 220,153 55,475
Depreciation and amortization 85,086 23,218
Loss (gain) on sale or impairment of assets (1,798) -
Other taxes 41,329 8,712
-----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 344,770 87,405
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 350,491 47,991
-----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (30,281) (6,072)
Minority interests - -
Preferred stock dividends of subsidiaries - -
Other, net 1,710 (24)
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (28,571) (6,096)
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 321,920 41,895
INCOME TAXES 121,467 16,231
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 200,453 25,664
-----------------------------------------------------------------------------------------------------------------------------------
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) 200,453 25,664
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
139
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2B (5 OF 5)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2B Page 5
Year Ended December 31, 2003 ($ in thousands) NICL 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
140
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2C (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
Consolidating F-2C
Year Ended December 31, 2003 ($ in thousands) CCC TGT 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
141
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2D (1 OF 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2D Consolidating F-2D
Year Ended December 31, 2003 ($ in thousands) Page 2 CER AD 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
142
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2D (2 OF 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2D Page 2
Year Ended December 31, 2003 ($ in thousands) CNR CNRCL HH 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
143
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2E (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA NETWORK SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
Consolidating F-2E
Year Ended December 31, ($ 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
144
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2F (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA SERVICE PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
Consolidating F-2F
Year Ended December 31, 2003 ($ in thousands) CSP CAA 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 BEFORE
CHANGE IN ACCOUNTING
------------------------------------------------------------------------------------------------------------------------------
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
145
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2G (1 OF 3)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2G F-2G Consolidating F-2G
Year Ended December 31, 2003 ($ in thousands) Page 2 Page 3 EUII 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
146
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2G (2 OF 3)
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, 2003 ($ in thousands) EUC EUR EUIM TPC NEST 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
147
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2G (3 OF 3)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2G Page 3
Year Ended December 31, 2003 ($ in thousands) NIFC NITEX NGS 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
148
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2H (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. (MA) AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
Consolidating F-2H
Year Ended December 31, 2003 ($ in thousands) EUIM ESPE EUIC 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
149
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2I (1 OF 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2I Consolidating F-2I
Year Ended December 31, 2003 ($ in thousands) Page 2 EUIC EUE 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
150
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2I (2 OF 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2I Page 2
Year Ended December 31, 2003 ($ in thousands) EUM 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
151
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2J (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA - TPC CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
Consolidating F-2J
Year Ended December 31, 2003 ($ in thousands) TPC EUA 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
152
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2K (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
GRANITE STATE GAS TRANSMISSION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
Consolidating F-2K
Year Ended December 31, 2003 ($ in thousands) GSGT BSEE Combined Entries Total
------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution - * * * *
Gas Transmission and Storage 18,765
Electric -
Other 851
------------------------------------------------------------------------------------------------------------------
Gross Revenues 19,616
Cost of Sales 15,979
------------------------------------------------------------------------------------------------------------------
Total Net Revenues 3,637
------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 1,929
Depreciation and amortization 637
Loss (gain) on sale or impairment of assets -
Other taxes 227
------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 2,793
------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 844
------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (114)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 401
------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) 287
------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 1,131
INCOME TAXES 852
------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 279
------------------------------------------------------------------------------------------------------------------
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) 279
==================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
153
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2L (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-2L Consolidating F-2L
Year Ended December 31, 2003 ($ in thousands) Page 2 IWCR HWC IWC 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
154
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2L (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-2L Page 2
Year Ended December 31, 2003 ($ in thousands) IRAC IWCM LWC LWAC DWWC 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
155
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2M (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not covered by Report of Independent Public Accountants)
F-2M Consolidating F-2M
Year Ended December 31, 2003 ($ in thousands) Page 2 NESI CROSS Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution * * - * * *
Gas Transmission and Storage 3,244
Electric -
Other 8
-----------------------------------------------------------------------------------------------------------------------------
Gross Revenues 3,252
Cost of Sales -
-----------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 3,252
-----------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 1,420
Depreciation and amortization 861
Loss (gain) on sale or impairment of assets -
Other taxes 338
-----------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 2,619
-----------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 633
-----------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (566)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net -
-----------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (566)
-----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 67
INCOME TAXES 7
-----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 60
-----------------------------------------------------------------------------------------------------------------------------
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) 60
=============================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
156
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2M (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2M Page 2
Year Ended December 31, 2003 ($ in thousands) NPM NESCL 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
157
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2N (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-2N Consolidating F-2N
Year Ended December 31, 2003 ($ in thousands) Page 2 NDEV CARD JOF 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
158
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2N (2 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-2N Page 2
Year Ended December 31, 2003 ($ in thousands) LEL NDC 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
159
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2O (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-2O
Year Ended December 31, 2003 ($ 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
160
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2P (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-2P
Year Ended December 31, 2003 ($ in thousands) NIFL NITC Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 51,230 * * * *
Gas Transmission and Storage 896
Electric -
Other -
------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 52,126
Cost of Sales 38,975
------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 13,151
------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 6,712
Depreciation and amortization 1,974
Loss (gain) on sale or impairment of assets -
Other taxes 1,057
------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 9,743
------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 3,408
------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (29)
Minority interests -
Preferred stock dividends of subsidiaries -
Other, net 221
------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) 192
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 3,600
INCOME TAXES 1,644
------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1,956
------------------------------------------------------------------------------------------------------------------------------
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 656
------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 2,612
==============================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
161
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2Q (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-2Q
Year Ended December 31, 2003 ($ in thousands) NIP NRC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas Distribution 947,178 * * * 949,392
Gas Transmission and Storage 49,747 49,747
Electric 1,091,418 1,092,764
Other - -
-----------------------------------------------------------------------------------------------------------------------------------
Gross Revenues 2,088,343 2,091,903
Cost of Sales 1,078,660 1,078,660
-----------------------------------------------------------------------------------------------------------------------------------
Total Net Revenues 1,009,683 1,013,243
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 332,061 332,115
Depreciation and amortization 259,638 259,638
Loss (gain) on sale or impairment of assets - -
Other taxes 90,584 90,547
-----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 682,283 682,300
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 327,400 330,943
-----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)
Interest expense, net (55,988) (52,100)
Minority interests - -
Preferred stock dividends of subsidiaries - -
Other, net 1,985 (3,900)
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Income (Deductions) (54,003) (56,000)
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND CHANGE IN ACCOUNTING 273,397 274,979
INCOME TAXES 110,815 112,200
-----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 162,582 162,779
-----------------------------------------------------------------------------------------------------------------------------------
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 197 -
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) 162,779 162,779
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
162
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2R (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2R Consolidating F-2R
Year Ended December 31, 2003 ($ in thousands) Page 2 PEI CEI HCC 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
163
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-2R (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Not Covered by Report of Independent Public Accountants)
F-2R Page 2
Year Ended December 31, 2003 ($ in thousands) IEL LEC NLEC PORT WCE WLC 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
164
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, 2003 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * 2,492
Common stock issued - 132
Long-term incentive plan 7
Employee stock purchase plan -
Common stock retired -
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 2,631
--------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 3,382,465
Common stock issued - 344,869
Employee stock purchase plan 627
Long-term incentive plan 21,604
Recapitalization -
Capital contributions -
Treasury stock acquired (2,449)
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 3,747,116
--------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 930,870
Net income (loss) 85,201
Cash dividends -
NI (284,735)
Subsidiaries (to parent) -
Other (23)
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 731,313
--------------------------------------------------------------------------------------------------------------------------------
OTHER
Balance at beginning of year (555)
Long-term Incentive Plan (4,521)
Amortization of Unearned Compensation 912
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (4,164)
--------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of year (140,550)
Other Comprehensive Income, net of tax
Unrealized 1,360
Realized -
Gain/Loss on foreign currency translation
Unrealized 827
Net unrealized gains on derivatives qualifying
as cash flow hedges 23,802
Minimum pension liability adjustment 53,545
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (61,016)
--------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 4,415,880
================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
165
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, 2003 ($ in thousands) NI BSG CG EUII GSGT IWCR Total
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * - * * * *
Common stock issued - -
Long-term incentive plan -
Employee stock purchase plan -
Common stock retired -
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year -
--------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 1,383,318
Common stock issued - -
Employee stock purchase plan -
Long-term incentive plan -
Recapitalization -
Capital contributions 15,434
Treasury stock acquired -
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 1,398,752
--------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 968,590
Net income (loss) 413,112
Cash dividends -
NI -
Subsidiaries (to parent) (300,000)
Other -
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 1,081,702
--------------------------------------------------------------------------------------------------------------------------------
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 44,458
Other Comprehensive Income, net of tax
Unrealized -
Realized -
Gain/Loss on foreign currency translation
Unrealized 909
Net unrealized gains on derivatives qualifying
as cash flow hedges 22,664
Minimum pension liability adjustment 20,091
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 88,122
--------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 2,568,576
================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
166
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, 2003 ($ in thousands) KOKO NESI NCM NCT NCS NDEV Total
-----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 46,170 * * * 400 * *
Common stock issued - - -
Long-term incentive plan - -
Employee stock purchase plan - -
Common stock retired - -
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 46,170 400
-----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 135 -
Common stock issued - - -
Employee stock purchase plan - -
Long-term incentive plan - -
Recapitalization -
Capital contributions 232 -
Treasury stock acquired - -
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 367 -
-----------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year (10,230) -
Net income (loss) 1,661 -
Cash dividends -
NI - -
Subsidiaries (to parent) - -
Other - -
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (8,569) -
-----------------------------------------------------------------------------------------------------------------------------------
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 (422) (21,166)
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 253 10,847
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (169) (10,319)
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 37,799 (9,919)
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
167
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, 2003 ($ in thousands) NET NFC NRS NIFL NIP PEI Total
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * 859,488 * *
Common stock issued - (Retired) -
Long-term incentive plan -
Employee stock purchase plan -
Common stock retired -
------------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 859,488
------------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 33,483
Common stock issued - -
Employee stock purchase plan -
Long-term incentive plan -
Recapitalization -
Capital contributions 16,807
Treasury stock acquired -
------------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 50,290
------------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 147,865
Net income (loss) 162,779
Cash dividends -
NI -
Subsidiaries (to parent) (122,412)
Other (4,503)
------------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 183,729
------------------------------------------------------------------------------------------------------------------------------------
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 (141,214)
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 284
Minimum pension liability adjustment 19,168
------------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (121,762)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 971,745
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
168
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, 2003 ($ in thousands) BSG BSGPE NU Combined Entries Total
-------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year - * 1 * * *
Common stock issued - - -
Long-term incentive plan - -
Employee stock purchase plan - -
Common stock retired - -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year - 1
-------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 526,165 109,136
Common stock issued - - -
Employee stock purchase plan - -
Long-term incentive plan - -
Recapitalization -
Capital contributions 477 -
Treasury stock acquired - -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 526,642 109,136
-------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 10,499 4,140
Net income (loss) 28,792 6,001
Cash dividends -
NI - -
Subsidiaries (to NI) (21,238) (2,656)
Other (1,190) -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 16,863 7,485
-------------------------------------------------------------------------------------------------------------------------------
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 (16,012) (2,532)
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 1,722 845
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (14,290) (1,687)
-------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 529,215 114,935
===============================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
169
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (1 OF 5)
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 F-3B Consolidating F-3B
Year Ended December 31, 2003 ($ in thousands) Page 2 Page 3 Page 4 Page 5 Combined Entries Total
---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * * -
Common stock issued -
Long-term incentive plan -
Employee stock purchase plan -
Common stock retired -
---------------------------------------------------------------------------------------------------------------------------------
Balance at end of year -
---------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 1,383,318
Common stock issued -
Employee stock purchase plan -
Long-term incentive plan -
Recapitalization -
Capital contributions 15,434
Treasury stock acquired -
---------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 1,398,752
---------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 968,590
Net income (loss) 413,112
Cash dividends -
NI -
Subsidiaries (to parent) (300,000)
Other -
---------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 1,081,702
---------------------------------------------------------------------------------------------------------------------------------
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 44,458
Other Comprehensive Income, net of tax
Unrealized -
Realized -
Gain/Loss on foreign currency translation
Unrealized 909
Net unrealized gains on derivatives qualifying
as cash flow hedges 22,664
Minimum pension liability adjustment 20,091
---------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 88,122
---------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 2,568,576
=================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
170
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (2 OF 5)
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, 2003 ($ in thousands) CG CAR CAT CDW CCC CER Total
--------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * * *
Common stock issued
Long-term incentive plan
Employee stock purchase plan
Common stock retired
--------------------------------------------------------------------------------------------------------------------------
Balance at end of year
--------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
171
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (3 OF 5)
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, 2003 ($ in thousands) CES CKY CMD COH CPA CGV Total
-------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * 23,806 72 119,240 45,128 65,305 *
Common stock issued - - - 40,000 - -
Long-term incentive plan - - - - -
Employee stock purchase plan - - - - -
Common stock retired - - - - -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 23,806 72 159,240 45,128 65,305
-------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 3,538 11,172 13,273 5,135 6,640
Common stock issued - - - - - -
Employee stock purchase plan - - - - -
Long-term incentive plan - - - - -
Recapitalization -
Capital contributions 613 17 3,863 166 -
Treasury stock acquired - - - - -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 4,151 11,189 17,136 5,301 6,640
-------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 43,886 17,344 271,116 158,902 95,049
Net income (loss) 12,387 4,593 125,632 38,683 23,247
Cash dividends -
NI - - - - -
Subsidiaries (to parent) (6,475) (4,188) (121,600) (39,351) -
Other - - - - -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 49,798 17,749 275,148 158,234 118,296
-------------------------------------------------------------------------------------------------------------------------------
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 (595) 183 (6,664) (2,284) (774)
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 595 (183) 6,664 2,284 774
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year - - - - -
-------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 77,755 29,010 451,524 208,663 190,241
===============================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
172
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (4 OF 5)
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, 2003 ($ in thousands) TCO CGT CNS CRC CSP CTC Total
-----------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 48 20 * * * * *
Common stock issued - - -
Long-term incentive plan - -
Employee stock purchase plan - -
Common stock retired - -
-----------------------------------------------------------------------------------------------------------------------------
Balance at end of year 48 20
-----------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 1,032,588 118,080
Common stock issued - - -
Employee stock purchase plan - -
Long-term incentive plan - -
Recapitalization -
Capital contributions 8,550 1,339
Treasury stock acquired - -
-----------------------------------------------------------------------------------------------------------------------------
Balance at end of year 1,041,138 119,419
-----------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 67,579 6,556
Net income (loss) 200,453 25,664
Cash dividends -
NI - -
Subsidiaries (to parent) - -
Other - -
-----------------------------------------------------------------------------------------------------------------------------
Balance at end of year 268,032 32,220
-----------------------------------------------------------------------------------------------------------------------------
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 (7,437) (1,323)
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 7,437 1,323
-----------------------------------------------------------------------------------------------------------------------------
Balance at end of year - -
-----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 1,309,218 151,659
=============================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
173
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3B (5 OF 5)
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 5
Year Ended December 31, 2003 ($ in thousands) NICL Total
----------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
----------------------------------------------------------------------------------------------------
Balance at end of year
----------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
174
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3C (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3C
Year Ended December 31, 2003 ($ in thousands) CCC TGT Combined Entries Total
--------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
--------------------------------------------------------------------------------------------------------------------
Balance at end of year
--------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
175
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3D (1 OF 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3D Consolidating F-3D
Year Ended December 31, 2003 ($ in thousands) Page 2 CER AD Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
176
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3D (2 OF 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3D Page 2
Year Ended December 31, 2003 ($ in thousands) CNR CNRCL HH Total
------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * *
Common stock issued -
Long-term incentive plan
Employee Stock Purchase Plan
Common stock retired
------------------------------------------------------------------------------------------------------------------------
Balance at end of year
------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee Stock Purchase Plan
Long-term incentive plan
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
177
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3E (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-3E
Year Ended December 31, 2003 ($ in thousands) CNS CMC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
-----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
178
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3F (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA SERVICE PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3F
Year Ended December 31, 2003 ($ in thousands) CSP CAA Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * *
Common stock issued
Long-term incentive plan
Employee stock purchase plan
Common stock retired
-----------------------------------------------------------------------------------------------------------------------------
Balance at end of year
-----------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
179
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3G (1 OF 3)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3G F-3G Consolidating F-3G
Year Ended December 31, 2003 ($ in thousands) Page 2 Page 3 EUII Combined Entries Total
---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
---------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
---------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
180
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3G (2 OF 3)
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, 2003 ($ in thousands) EUC EUR EUIM TPC NEST Total
------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
181
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3G (3 OF 3)
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 3
Year Ended December 31, 2003 ($ in thousands) NIFC NITEX NGS Total
---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
---------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
---------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
182
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3H (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. (MA) AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3H
Year Ended December 31, 2003 ($ in thousands) EUIM ESPE EUIC Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
-----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
183
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3I (1 OF 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3I Consolidating F-3I
Year Ended December 31, 2003 ($ in thousands) Page 2 EUIC EUE Combined Entries Total
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
--------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
184
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3I (2 OF 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3I Page 2
Year Ended December 31, 2003 ($ in thousands) EUM Total
---------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
---------------------------------------------------------------------------------------------------
Balance at end of year
---------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
185
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3J (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA-TPC CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3J
Year Ended December 31, 2003 ($ in thousands) TPC EUA Combined Entries Total
-------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
-------------------------------------------------------------------------------------------------------------------------
Balance at end of year
-------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
186
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3K (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
GRANITE STATE GAS TRANSMISSION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
Consolidating F-3K
Year Ended December 31, 2003 ($ in thousands) GSGT BSEE Combined Entries Total
-------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 30 * * * *
Common stock issued - -
Long-term incentive plan -
Employee stock purchase plan -
Common stock retired -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 30
-------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 26,361
Common stock issued - -
Employee stock purchase plan -
Long-term incentive plan -
Recapitalization/Dissolution -
Capital contributions 88
Treasury stock acquired -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 26,449
-------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year (14,723)
Net income (loss) 279
Cash dividends -
NI -
Subsidiaries (to parent) -
Other -
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (14,444)
-------------------------------------------------------------------------------------------------------------------------------
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 (77)
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 14
-------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (63)
-------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 11,972
===============================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
187
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3L (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-3L Consolidating F-3L
Year Ended December 31, 2003 ($ in thousands) Page 2 IWCR HWC IWC Combined Entries Total
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Treasury stock acquired
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
--------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
188
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3L (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-3L Page 2
Year Ended December 31, 2003 ($ in thousands) IRAC IWCM LWC LWAC DWWC Total
---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Treasury stock acquired
---------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
---------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
189
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3M (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3M Consolidating F-3M
Year Ended December 31, 2003 ($ in thousands) Page 2 NESI CROSS Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * 1 * * *
Common stock issued - -
Long-term incentive plan -
Employee stock purchase plan -
Common stock retired -
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 1
-----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year -
Common stock issued - -
Employee stock purchase plan -
Long-term incentive plan -
Recapitalization -
Capital contributions 15,000
Treasury stock acquired -
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 15,000
-----------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year (9,060)
Net income (loss) 60
Cash dividends -
NI -
Subsidiaries (to NI) -
Other -
-----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (9,000)
-----------------------------------------------------------------------------------------------------------------------------------
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 6,001
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
190
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3M (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3M Page 2
Year Ended December 31, 2003 ($ in thousands) NPM NESCL Total
----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
191
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3N (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-3N Consolidating F-3N
Year Ended December 31, 2003 ($ in thousands) Page 2 NDEV CARD JOF Combined Entries Total
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
--------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
--------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
192
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3N (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-3N Page 2
Year Ended December 31, 2003 ($ in thousands) LEL NDC SWP Total
---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
---------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
---------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
193
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3O (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-3O
Year Ended December 31, 2003 ($ in thousands) LEL SCC Combined Entries Total
---------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
---------------------------------------------------------------------------------------------------------------------------
Balance at end of year
---------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
194
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3P (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-3P
Year Ended December 31, 2003 ($ in thousands) NIFL NITC Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 30,674 * * * *
Common stock issued - -
Long-term incentive plan -
Employee stock purchase plan -
Common stock retired -
----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 30,674
----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 145
Common stock issued - -
Employee stock purchase plan -
Long-term incentive plan -
Recapitalization -
Capital contributions 190
Treasury stock acquired -
----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 335
----------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 16,130
Net income (loss) 2,612
Cash dividends -
NI -
Subsidiaries (to NI) -
Other -
----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 18,742
----------------------------------------------------------------------------------------------------------------------------------
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 (599)
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 280
----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (319)
----------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 49,432
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
195
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3Q (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-3Q
Year Ended December 31, 2003 ($ in thousands) NIP NRC Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year 859,488 * * * 859,488
Common stock issued/retired - - -
Long-term incentive plan - -
Employee stock purchase plan - -
Common stock retired - -
------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 859,488 859,488
------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year 33,483 33,483
Common stock issued - - -
Employee stock purchase plan - -
Long-term incentive plan - -
Recapitalization -
Capital contributions 16,807 16,807
Treasury stock acquired - -
------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 50,290 50,290
------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance at beginning of year 147,865 147,865
Net income (loss) 162,779 162,779
Cash dividends - -
Preferred Stock - -
Subsidiaries to NI (122,412) (122,412)
Other (4,503) (4,503)
------------------------------------------------------------------------------------------------------------------------------
Balance at end of year 183,729 183,729
------------------------------------------------------------------------------------------------------------------------------
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 (141,214) (141,214)
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 284 284
Minimum pension liability adjustment 19,168 19,168
------------------------------------------------------------------------------------------------------------------------------
Balance at end of year (121,762) (121,762)
------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY 971,745 971,745
==============================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
196
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3R (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3R Consolidating F-3R
Year Ended December 31, 2003 ($ in thousands) Page 2 PEI CEI HCC Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
----------------------------------------------------------------------------------------------------------------------------------
Balance at end of year
----------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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 NI)
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
197
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-3R (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMMON STOCK EQUITY
(Not covered by Report of Independent Public Accountants)
F-3R Page 2
Year Ended December 31, 2003 ($ in thousands) IEL LEC NLEC PORT WCE WLC Total
------------------------------------------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning of year * * * * * * *
Common stock issued -
Long-term incentive plan
Employee stock purchase plan
Common stock retired
------------------------------------------------------------------------------------------------------------------
Balance at end of year
------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID IN CAPITAL
Balance at beginning of year
Common stock issued -
Employee stock purchase plan
Long-term incentive plan
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
198
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, 2003 ($ in thousands) Page 2 Page 3 Page 4 Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * 85,201
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 496,996
Net changes in price risk management activities (4,307)
Deferred income taxes and investment tax credits 77,874
Deferred revenue (6,411)
Amortization of unearned compensation 12,912
Loss (Gain) on sale of assets (24,850)
Loss (Income) from change in accounting 8,845
Earnings in subsidiaries -
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates 5,435
Loss (Gain) on sale of discontinued assets 331,246
Loss (Income) from discontinued operations 450
Amortization of discount/premium on debt 18,945
Changes in assets/liabilities:
Restricted cash 1,381
Accounts receivable and unbilled revenue 67,313
Inventories (166,948)
Accounts payable (41,432)
Customer deposits 15,211
Taxes accrued (89,464)
Interest accrued 5,892
(Under) Overrecovered gas and fuel costs 18,886
Exchange gas receivable/payable (196,047)
Prepayments and other current assets 9,948
Other accruals (55,542)
Regulatory assets/liabilities 3,302
Postretirement and postemployment benefits 82,588
Deferred credits (28,137)
Deferred charges and other noncurrent assets 14,174
Other noncurrent liabilities (29,111)
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 614,350
Net Cash from Discontinued Operations (141,500)
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 472,850
---------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (574,596)
Proceeds from disposition of assets 586,495
Other investing activities (17,631)
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities (5,732)
---------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 1,401,483
Retirement of long-term debt (1,366,890)
Change in short-term debt (227,630)
Change in intercompany notes receivable -
Change in intercompany notes payable -
Retirement of preferred shares (346,155)
Issuance of common stock and capital contributed 354,672
Acquisition of treasury stock (2,450)
Dividends paid - common shares (283,996)
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (470,966)
---------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents (3,848)
Cash and cash equivalents at beginning of period 31,132
---------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 27,284
=================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
199
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, 2003 ($ in thousands) NI BSG CG EUII GSGT IWCR Total
------------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * 413,112 * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 163,178
Net changes in price risk management activities 3,964
Deferred income taxes and investment tax credits 117,648
Deferred revenue (14,502)
Amortization of unearned compensation 667
Loss (Gain) on sale of assets (18,409)
Loss (Income) from change in accounting 16,845
Earnings in subsidiaries -
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates (1)
Loss (Gain) on sale of discontinued assets 47,711
Loss (Income) from discontinued operations 477
Amortization of discount/premium on debt 32
Changes in assets/liabilities:
Restricted cash 20,553
Accounts receivable and unbilled revenue 33,056
Inventories (32,367)
Accounts payable (96,520)
Customer deposits 3,204
Taxes accrued (71,117)
Interest accrued (5,212)
(Under) Overrecovered gas and fuel costs (28,298)
Exchange gas receivable/payable (184,979)
Prepayments and other current assets 12,079
Other accruals (92,085)
Regulatory assets/liabilities 19,171
Postretirement and postemployment benefits 10,082
Deferred credits 7,516
Deferred charges and other noncurrent assets (2,558)
Other noncurrent liabilities (70,381)
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 252,866
Net Cash from Discontinued Operations (87,400)
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 165,466
------------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (244,562)
Proceeds from disposition of assets 453,565
Other investing activities (18,265)
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities 190,738
------------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 2
Retirement of long-term debt (52)
Change in short-term debt (830)
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 (299,944)
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (300,824)
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents 55,380
Cash and cash equivalents at beginning of period 14,502
------------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 69,882
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
200
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, 2003 ($ in thousands) KOKO NESI NCM NCT NCS NDEV Total
------------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 1,661 * * * - * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 1,955 7,067
Net changes in price risk management activities - -
Deferred income taxes and investment tax credits (390) (6,198)
Deferred revenue - -
Amortization of unearned compensation - 11,797
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 - -
Changes in assets/liabilities:
Restricted cash - -
Accounts receivable and unbilled revenue (923) 26,718
Inventories 149 -
Accounts payable 782 17,646
Customer deposits 48 -
Taxes accrued 655 (9,133)
Interest accrued 6 162
(Under) Overrecovered gas and fuel costs 366 -
Exchange gas receivable/payable - -
Prepayments and other current assets (20) (563)
Other accruals (1,251) (28,347)
Regulatory assets/liabilities (381) -
Postretirement and postemployment benefits (403) 1,504
Deferred credits (1,110) -
Deferred charges and other noncurrent assets 218 (4,562)
Other noncurrent liabilities 480 (8,964)
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 1,842 7,127
Net Cash from Discontinued Operations - -
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 1,842 7,127
------------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures - (4,387)
Proceeds from disposition of assets - -
Other investing activities - -
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities - (4,387)
------------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt - -
Retirement of long-term debt - -
Change in short-term debt - -
Change in intercompany notes receivable (2,616) -
Change in intercompany notes payable - (2,271)
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 (2,616) (1,606)
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents (774) 1,134
Cash and cash equivalents at beginning of period 1,270 1,081
------------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 496 2,215
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
201
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, 2003 ($ in thousands) NET NFC NRS NIFL NIP PEI Total
------------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * 162,779 * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 259,638
Net changes in price risk management activities (1,149)
Deferred income taxes and investment tax credits (49,349)
Deferred revenue -
Amortization of unearned compensation 216
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 3,900
Changes in assets/liabilities:
Restricted cash (2,585)
Accounts receivable and unbilled revenue 19,949
Inventories (105,845)
Accounts payable (23,647)
Customer deposits 11,752
Taxes accrued 33,133
Interest accrued (2,962)
(Under) Overrecovered gas and fuel costs 76,979
Exchange gas receivable/payable -
Prepayments and other current assets (1,477)
Other accruals (1,183)
Regulatory assets/liabilities 6,370
Postretirement and postemployment benefits 27,992
Deferred credits (19,110)
Deferred charges and other noncurrent assets (1,650)
Other noncurrent liabilities (6,600)
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 387,151
Net Cash from Discontinued Operations -
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 387,151
------------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (271,685)
Proceeds from disposition of assets 2,805
Other investing activities 6,204
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities (262,676)
------------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 55,000
Retirement of long-term debt (185,000)
Change in short-term debt -
Change in intercompany notes receivable -
Change in intercompany notes payable 129,518
Retirement of preferred shares (1,155)
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares (126,923)
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (128,560)
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents (4,085)
Cash and cash equivalents at beginning of period 4,400
------------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 315
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
202
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, 2003 ($ in thousands) BSG BSGPE NU Combined Entries Total
------------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 28,792 * 6,001 * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 38,194 9,030
Net changes in price risk management activities - -
Deferred income taxes and investment tax credits 13,962 6,811
Deferred revenue (105) -
Amortization of unearned compensation - -
Loss (Gain) on sale of assets - -
Loss (Income) from change in accounting - -
Earnings in subsidiaries (5,933) -
Dividends received from subsidiaries 2,657 -
Loss (Income) from unconsolidated affiliates - -
Loss (Gain) on sale of discontinued assets - -
Loss (Income) from discontinued operations - -
Amortization of discount/premium on debt 538 178
Changes in assets/liabilities:
Restricted cash - (806)
Accounts receivable and unbilled revenue 7,993 (262)
Inventories (13,033) (400)
Accounts payable 33,921 7,238
Customer deposits 213 66
Taxes accrued 7,022 (717)
Interest accrued (1,085) (39)
(Under) Overrecovered gas and fuel costs (26,738) (3,404)
Exchange gas receivable/payable (3,678) (7,944)
Prepayments and other current assets (2,371) 41
Other accruals (28,877) (6,365)
Regulatory assets/liabilities (1,791) (603)
Postretirement and postemployment benefits 4,362 614
Deferred credits - -
Deferred charges and other noncurrent assets (942) (1,617)
Other noncurrent liabilities 631 888
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 53,732 8,710
Net Cash from Discontinued Operations - -
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 53,732 8,710
------------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (28,243) (9,776)
Proceeds from disposition of assets - -
Other investing activities - -
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities (28,243) (9,776)
------------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt - -
Retirement of long-term debt (27,000) (833)
Change in short-term debt - -
Change in intercompany notes receivable - -
Change in intercompany notes payable 23,824 4,515
Retirement of preferred shares - -
Issuance of common stock and capital contributed - -
Acquisition of treasury stock - -
Dividends paid - common shares (21,238) (2,657)
------------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (24,414) 1,025
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents 1,075 (41)
Cash and cash equivalents at beginning of period 448 315
------------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,523 274
====================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
203
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (1 OF 5)
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 F-4B Consolidating F-4B
Year Ended December 31, 2003 ($ in thousands) Page 2 Page 3 Page 4 Page 5 Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * * * * * 413,112
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 163,178
Net changes in price risk management activities 3,964
Deferred income taxes and investment tax credits 117,648
Deferred revenue (14,502)
Amortization of unearned compensation 667
Loss (Gain) on sale of assets (18,409)
Loss (Income) from change in accounting 16,845
Earnings in subsidiaries -
Dividends received from subsidiaries -
Loss (Income) from unconsolidated affiliates (1)
Loss (Gain) on sale of discontinued assets 47,711
Loss (Income) from discontinued operations 477
Amortization of discount/premium on debt 32
Changes in assets/liabilities:
Restricted cash 20,553
Accounts receivable and unbilled revenue 33,056
Inventories (32,367)
Accounts payable (96,520)
Customer deposits 3,204
Taxes accrued (71,117)
Interest accrued (5,212)
(Under) Overrecovered gas and fuel costs (28,298)
Exchange gas receivable/payable (184,979)
Prepayments and other current assets 12,079
Other accruals (92,085)
Regulatory assets/liabilities 19,171
Postretirement and postemployment benefits 10,082
Deferred credits 7,516
Deferred charges and other noncurrent assets (2,558)
Other noncurrent liabilities (70,381)
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 252,866
Net Cash from Discontinued Operations (87,400)
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 165,466
-----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (244,562)
Proceeds from disposition of assets 453,565
Other investing activities (18,265)
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities 190,738
-----------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 2
Retirement of long-term debt (52)
Change in short-term debt (830)
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 (299,944)
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (300,824)
-----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents 55,380
Cash and cash equivalents at beginning of period 14,502
-----------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 69,882
===================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
204
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (2 OF 5)
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, 2003 ($ in thousands) CG CAR CAT CDW CCC CER 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
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
205
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (3 OF 5)
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, 2003 ($ in thousands) CES CKY CMD COH CPA CGV Total
----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * 12,387 4,593 125,632 38,683 23,247 *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 5,762 2,452 14,556 16,479 15,072
Net changes in price risk management activities 149 (77) (508) 411 -
Deferred income taxes and investment tax credits 7,132 246 42,969 123 10,433
Deferred revenue - - - - -
Amortization of unearned compensation (52) - - - -
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 - - - - -
Changes in assets/liabilities:
Restricted cash - - - - -
Accounts receivable and unbilled revenue (7,832) (758) 16,562 6,368 (4,150)
Inventories 1,901 (473) (26,017) (8,400) 114
Accounts payable (303) 366 7,371 (813) 4,915
Customer deposits 154 16 1,809 135 1,091
Taxes accrued 94 (95) (32,213) 1,556 5,243
Interest accrued (615) 4 (436) 20 (148)
(Under) Overrecovered gas and fuel costs (11,035) 1,244 (64,533) 5,483 (15,604)
Exchange gas receivable/payable (15,146) (759) (143,543) (28,833) 3,724
Prepayments and other current assets (1,503) 50 45,946 (168) (15)
Other accruals 554 (3,697) 2,890 7,066 (603)
Regulatory assets/liabilities 1,004 118 39,675 4,353 (1,940)
Postretirement and postemployment benefits 830 (222) 1,766 (1,194) (326)
Deferred credits - - - - -
Deferred charges and other noncurrent assets 793 535 (48,127) (500) (1,496)
Other noncurrent liabilities 535 (456) (1,285) (302) (3,120)
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations (5,191) 3,087 (17,486) 40,467 36,437
Net Cash from Discontinued Operations - - - - -
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities (5,191) 3,087 (17,486) 40,467 36,437
----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (8,051) (2,285) (53,848) (24,439) (20,233)
Proceeds from disposition of assets - - - - -
Other investing activities - - - - -
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities (8,051) (2,285) (53,848) (24,439) (20,233)
----------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt - - - - -
Retirement of long-term debt - - - - -
Change in short-term debt - - - - -
Change in intercompany notes receivable 15,550 3,431 363 - -
Change in intercompany notes payable 4,012 - 194,565 22,417 (16,203)
Retirement of preferred shares - - - - -
Issuance of common stock and capital contributed - - - - -
Acquisition of treasury stock - - - - -
Dividends paid - common shares (6,475) (4,188) (121,600) (39,351) -
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities 13,087 (757) 73,328 (16,934) (16,203)
----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents (155) 45 1,994 (906) 1
Cash and cash equivalents at beginning of period 944 292 3,970 4,300 1,672
----------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 789 337 5,964 3,394 1,673
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
206
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (4 OF 5)
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, 2003 ($ in thousands) TCO CGT CNS CRC CSP CTC Total
---------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 200,453 25,664 * * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 85,086 23,218
Net changes in price risk management activities (25) -
Deferred income taxes and investment tax credits 39,223 6,934
Deferred revenue - -
Amortization of unearned compensation 635 84
Loss (Gain) on sale of assets (1,798) -
Loss (Income) from change in accounting - -
Earnings in subsidiaries - -
Dividends received from subsidiaries - -
Loss (Income) from unconsolidated affiliates (1) -
Loss (Gain) on sale of discontinued assets - -
Loss (Income) from discontinued operations - -
Amortization of discount/premium on debt 25 -
Changes in assets/liabilities:
Restricted cash - -
Accounts receivable and unbilled revenue 16,833 2,167
Inventories 266 243
Accounts payable (4,964) (3,044)
Customer deposits - -
Taxes accrued 1,359 (1,942)
Interest accrued (772) (103)
(Under) Overrecovered gas and fuel costs - -
Exchange gas receivable/payable (445) 22
Prepayments and other current assets 12,359 (546)
Other accruals (23,105) (9,016)
Regulatory assets/liabilities 33,316 (1,208)
Postretirement and postemployment benefits (2,331) 299
Deferred credits - -
Deferred charges and other noncurrent assets (477) 342
Other noncurrent liabilities (65,810) 4,739
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 289,827 47,853
Net Cash from Discontinued Operations - -
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 289,827 47,853
---------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (118,912) (16,800)
Proceeds from disposition of assets 6,360 -
Other investing activities (3,663) -
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities (116,215) (16,800)
---------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 2 -
Retirement of long-term debt (19) -
Change in short-term debt - -
Change in intercompany notes receivable - -
Change in intercompany notes payable (173,571) (31,053)
Retirement of preferred shares - -
Issuance of common stock and capital contributed - -
Acquisition of treasury stock - -
Dividends paid - common shares - -
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (173,588) (31,053)
---------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents 24 -
Cash and cash equivalents at beginning of period 11 3
---------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 35 3
=================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
207
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4B (5 OF 5)
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 5
Year Ended December 31, 2003 ($ in thousands) NICL 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
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
208
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4C (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY GROUP CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4C
Year Ended December 31, 2003 ($ in thousands) CCC TGT 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
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
209
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4D (1 OF 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4D Consolidating F-4D
Year Ended December 31, 2003 ($ in thousands) Page 2 CER AD 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
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
210
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4D (2 OF 2)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA ENERGY RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4D Page 2
Year Ended December 31, 2003 ($ in thousands) CNR CNRCL HH 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
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
211
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4E (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-4E
Year Ended December 31, 2003 ($ 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
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
212
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4F (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
COLUMBIA SERVICE PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4F
Year Ended December 31, 2003 ($ in thousands) CSP CAA 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
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
213
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4G (1 OF 3)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4G F-4G Consolidating F-4G
Year Ended December 31, 2003 ($ in thousands) Page 2 Page 3 EUII 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
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
214
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4G (2 OF 3)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4G Page 2
Year Ended December 31, 2003 ($ in thousands) EUC EUR EUIM TPC NEST 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
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
215
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4G (3 OF 3)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4G Page 3
Year Ended December 31, 2003 ($ in thousands) NIFC NITEX NGS 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
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
216
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4H (1 OF 1)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA, INC. (MA) AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4H
Year Ended December 31, 2003 ($ in thousands) EUIM ESPE EUIC 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
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
217
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4I (1 OF 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4I Consolidating F-4I
Year Ended December 31, 2003 ($ in thousands) Page 2 EUIC EUE 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
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
218
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4I (2 OF 2)
NISOURCE INC. AND SUBSIDIARIES
ENERGYUSA (CONNECTICUT), INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4I Page 2
Year Ended December 31, 2003 ($ in thousands) EUM 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
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
219
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4J (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
ENERGY USA-TPC CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4J
Year Ended December 31, 2003 ($ in thousands) TPC EUA 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
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
220
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4K (1 of 1)
NISOURCE INC. AND SUBSIDIARIES
GRANITE STATE GAS TRANSMISSION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
Consolidating F-4K
Year Ended December 31, 2003 ($ in thousands) GSGT BSEE Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 279 * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 637
Net changes in price risk management activities -
Deferred income taxes and investment tax credits 471
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 -
Changes in assets/liabilities:
Restricted cash -
Accounts receivable and unbilled revenue 216
Inventories -
Accounts payable (18)
Customer deposits 32
Taxes accrued (1,159)
Interest accrued 1
(Under) Overrecovered gas and fuel costs -
Exchange gas receivable/payable -
Prepayments and other current assets 55
Other accruals 37
Regulatory assets/liabilities 1,031
Postretirement and postemployment benefits 23
Deferred credits (37)
Deferred charges and other noncurrent assets (56)
Other noncurrent liabilities 146
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 1,658
Net Cash from Discontinued Operations -
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 1,658
----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (1,076)
Proceeds from disposition of assets -
Other investing activities -
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities (1,076)
----------------------------------------------------------------------------------------------------------------------------------
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 (490)
Retirement of preferred shares -
Issuance of common stock and capital contributed -
Acquisition of treasury stock -
Dividends paid - common shares -
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (490)
----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents 92
Cash and cash equivalents at beginning of period (211)
----------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD (119)
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
221
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4L (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-4L Consolidating F-4L
Year Ended December 31, 2003 ($ in thousands) Page 2 IWCR HWC IWC 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
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
222
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4L (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-4L Page 2
Year Ended December 31, 2003 ($ in thousands) IRAC IWCM LWC LWAC DWWC 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
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
223
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4M (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4M Consolidating F-4M
Year Ended December 31, 2003 ($ in thousands) Page 2 ESI CROSS Combined Entries Total
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income * * 60 * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 861
Net changes in price risk management activities -
Deferred income taxes and investment tax credits 329
Deferred revenue 23
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 -
Changes in assets/liabilities:
Restricted cash -
Accounts receivable and unbilled revenue 49
Inventories -
Accounts payable (297)
Customer deposits -
Taxes accrued (20)
Interest accrued -
(Under) Overrecovered gas and fuel costs -
Exchange gas receivable/payable (559)
Prepayments and other current assets 9
Other accruals (1,051)
Regulatory assets/liabilities (1)
Postretirement and postemployment benefits -
Deferred credits 305
Deferred charges and other noncurrent assets 1,613
Other noncurrent liabilities -
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 1,321
Net Cash from Discontinued Operations -
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 1,321
-----------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (6)
Proceeds from disposition of assets -
Other investing activities -
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities (6)
-----------------------------------------------------------------------------------------------------------------------------------
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 (16,315)
Retirement of preferred shares -
Issuance of common stock and capital contributed 15,000
Acquisition of treasury stock -
Dividends paid - common shares -
-----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (1,315)
-----------------------------------------------------------------------------------------------------------------------------------
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
224
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4M (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
NI ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4M Page 2
Year Ended December 31, 2003 ($ in thousands) NPM NESCL 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
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
225
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4N (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-4N Consolidating F-4N
Year Ended December 31, 2003 ($ in thousands) Page 2 NDEV CARD JOF 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
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
226
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4N (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-4N Page 2
Year Ended December 31, 2003 ($ in thousands) LEL NDC 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
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 Flows 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
227
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F - 4O (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-4O
Year Ended December 31, 2003 ($ 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
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
228
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4P (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)
Consolidating F-4P
Year Ended December 31, 2003 ($ in thousands) NIFL NITC Combined Entries Total
----------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 2,612 * * * *
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 1,974
Net changes in price risk management activities -
Deferred income taxes and investment tax credits (573)
Deferred revenue -
Amortization of unearned compensation -
Loss (Gain) on sale of assets -
Loss (Income) from change in accounting -
Earnings in subsidiaries (656)
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
Changes in assets/liabilities:
Restricted cash -
Accounts receivable and unbilled revenue (214)
Inventories (1,839)
Accounts payable 1,676
Customer deposits 11
Taxes accrued 920
Interest accrued 1
(Under) Overrecovered gas and fuel costs (18)
Exchange gas receivable/payable -
Prepayments and other current assets (67)
Other accruals (2,275)
Regulatory assets/liabilities (870)
Postretirement and postemployment benefits 392
Deferred credits 163
Deferred charges and other noncurrent assets 305
Other noncurrent liabilities 187
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 1,750
Net Cash from Discontinued Operations -
----------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 1,750
----------------------------------------------------------------------------------------------------------------------------------
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 (1,909)
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 (1,909)
----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents (159)
Cash and cash equivalents at beginning of period 334
----------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 175
==================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
229
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4Q (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-4Q
Year Ended December 31, 2003 ($ in thousands) NIP NRC Combined Entries Total
--------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 162,779 * * * 162,779
Adjustments to reconcile net income to net cash:
Depreciation, depletion and amortization 259,638 259,638
Net changes in price risk management activities (1,149) (1,149)
Deferred income taxes and investment tax credits (49,349) (49,349)
Deferred revenue - -
Amortization of unearned compensation 216 216
Loss (Gain) on sale of assets - -
Loss (Income) from change in accounting - -
Earnings in subsidiaries (197) -
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 3,900 3,900
Changes in assets/liabilities:
Restricted cash (2,585) (2,585)
Accounts receivable and unbilled revenue 90,937 19,949
Inventories (105,845) (105,845)
Accounts payable (23,790) (23,647)
Customer deposits 11,752 11,752
Taxes accrued 32,999 33,133
Interest accrued (2,962) (2,962)
(Under) Overrecovered gas and fuel costs 76,979 76,979
Exchange gas receivable/payable - -
Prepayments and other current assets (1,362) (1,477)
Other accruals (21,896) (1,183)
Regulatory assets/liabilities 6,370 6,370
Postretirement and postemployment benefits 27,992 27,992
Deferred credits (19,110) (19,110)
Deferred charges and other noncurrent assets (1,650) (1,650)
Other noncurrent liabilities (6,600) (6,600)
--------------------------------------------------------------------------------------------------------------------------------
Net Cash from Continuing Operations 437,067 387,151
Net Cash from Discontinued Operations - -
---------------------------------------------------------------------------------------------------------------------------------
Net Cash from Operating Activities 437,067 387,151
---------------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (271,685) (271,685)
Proceeds from disposition of assets 2,805 2,805
Other investing activities (43,980) 6,204
--------------------------------------------------------------------------------------------------------------------------------
Net Cash from Investing Activities (312,860) (262,676)
---------------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of long-term debt 55,000 55,000
Retirement of long-term debt (185,000) (185,000)
Change in short-term debt - -
Change in intercompany notes receivable - -
Change in intercompany notes payable 129,518 129,518
Retirement of preferred shares (1,155) (1,155)
Issuance of common stock and capital contributed - -
Acquisition of treasury stock - -
Dividends paid - common shares (126,923) (126,923)
--------------------------------------------------------------------------------------------------------------------------------
Net Cash from Financing Activities (128,560) (128,560)
---------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents (4,353) (4,085)
Cash and cash equivalents at beginning of period 4,400 4,400
---------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 47 315
=================================================================================================================================
* CONFIDENTIAL TREATMENT REQUESTED
230
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4R (1 of 2)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4R Consolidating F-4R
Year Ended December 31, 2003 ($ in thousands) Page 2 PEI CEI HCC 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
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
231
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued) F-4R (2 of 2)
NISOURCE INC. AND SUBSIDIARIES
PEI HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Not covered by Report of Independent Public Accountants)
F-4R Page 2
Year Ended December 31, 2003 ($ in thousands) IEL LEC NLEC PORT WCE WLC 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
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
232
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 26, 2004 By: /s/ Jeffrey W. Grossman
---------------- ----------------------------------
Jeffrey W. Grossman
Vice President and Controller
(Principal Accounting Officer)
COLUMBIA ENERGY GROUP
----------------------------------
(Registrant)
Dated: April 26, 2004 By: /s/ Jeffrey W. Grossman
---------------- ----------------------------------
Jeffrey W. Grossman
Vice President
233
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. Corporate Organization Documents and Bylaws.
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. System Organization Chart.
H. Financial Statements of EWG or Foreign Utility Company.
L. Acquisition Debt Schedule
234
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 12, 2004 001-16189
Columbia Energy Group March 19, 2004 001-01098
Northern Indiana Public Service Company March 19, 2004 001-04125
---------------------------------------------------------------------------------------------------------------------------
235
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) (4)
Bay State GPE, Inc. (5) (6)
Northern Utilities, Inc. (7) B-1 (8)
Columbia Energy Group (9) (10)
Columbia Accounts Receivable Corporation (11) (12)
Columbia Atlantic Trading Corporation (13) (14)
Columbia Energy Services Corporation (15) (16)
Columbia Gas of Kentucky, Inc. (17) (18)
Columbia Gas of Maryland, Inc. (19) (20)
Columbia Gas of Ohio, Inc. (21) B-2 (22)
Columbia Gas of Pennsylvania, Inc. (23) (24)
Columbia Gas of Virginia, Inc. (25) (26)
Columbia Gas Transmission Corporation (27) (28)
Columbia Gulf Transmission Company (29) (30)
Columbia Network Services Corporation (31) (32)
CNS Microwave, Inc. (33) (34)
Columbia Remainder Corporation A-1 (35) (36)
Haverstraw Bay, LLC (37) (38)
Columbia Assurance Agency, Inc. (39) (40)
NiSource Insurance Corporation, Limited A-2 (41) (42)
EnergyUSA, Inc. (IN) (43) (44)
EnergyUSA Commercial Energy Services, Inc. (45) (46)
EnergyUSA, Inc. (MA) (47) (48)
EnergyUSA-TPC Corp. (49) (50)
NI Energy Services Transportation, Inc. (51) (52)
NI Fuel Company, Inc. (53) (54)
NI-TEX, Inc. (55) (56)
Granite State Gas Transmission, Inc. (57) (58)
IWC Resources Corporation (59) (60)
Harbour Water Company (61) (62)
Indianapolis Water Company (63) (64)
Irishman's Run Acquisition Company (65) (66)
IWC Morgan Water Corporation (67) (68)
Liberty Water Corporation (69) (70)
The Darlington Water Works Company (71) (72)
--------------------------------------------------------------------------------------------------------------
236
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
-----------------------------------------------------------------------------------------------------------------
Kokomo Gas and Fuel Company (73) (74)
KGF Trading Company (75) (76)
NI Energy Services, Inc. (77) (78)
Crossroads Pipeline Company (79) (80)
NESI Power Marketing, Inc. (81) (82)
NiSource Capital Markets, Inc. (83) (84)
NiSource Corporate Services Company (85) (86)
NiSource Development Company, Inc. (87) (88)
Cardinal Property Management, Inc. (89) (90)
JOF Transportation Company (91) (92)
Lake Erie Land Company (93) (94)
SCC Services, Inc. (95) (96)
NDC Douglas Properties, Inc. (97) (98)
South Works Power Company (99) (100)
NiSource Energy Technologies, Inc. (101) (102)
NiSource Finance Corp. (103) (104)
NiSource Retail Services, Inc. A-3 (105) B-3 (106)
Northern Indiana Fuel and Light Company, Inc. (107) (108)
Northern Indiana Trading Company, Inc. (109) (110)
Northern Indiana Public Service Company (111) B-4 (112)
NIPSCO Receivables Corporation A-4 (113) B-5 (114)
PEI Holdings, Inc. A-5 (115) (116)
Whiting Clean Energy, Inc. (117) (118)
Whiting Leasing LLC A-6 (119) B-6 (120)
-----------------------------------------------------------------------------------------------------------------
237
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).
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).
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).
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 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.
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.
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.
238
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:
13 CAT 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.
14 CAT 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.
15 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.
16 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.
17 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.
18 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.
19 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.
20 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.
21 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.
239
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:
22 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).
23 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.
24 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.
25 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.
26 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.
27 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.
28 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.
240
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:
29 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.
30 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.
31 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.
32 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).
33 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.
34 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).
35 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).
36 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).
37 Haverstraw Bay, LLC Articles of Formation dated September 19, 1999,
filed as Exhibit A-3 to Form U5S (2002).
38 Haverstraw Bay, LLC Operating Agreement is not currently available and
would be filed in an amendment upon it becoming available.
39 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).
40 Code of Regulations of Columbia Assurance Agency, Inc., dated July 30,
1997, filed as Exhibit 3-B to Form U5S (1998).
241
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:
41 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).
42 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.
43 EnergyUSA, Inc. (IN) Certificate of Incorporation dated March 26, 1999,
filed as Exhibit A-7 to Form U5S (2001).
44 EnergyUSA, Inc. (IN) Amended By-Laws dated May 1, 1999, filed as
Exhibit B-21 to Form U5S (2001).
45 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).
46 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).
47 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).
48 EnergyUSA, Inc. (MA) Amended By-Laws dated April 11, 2001, filed as
Exhibit B-22 to Form U5S (2001).
49 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).
50 EnergyUSA-TPC Corp. Amended and Restated By-Laws dated September 19,
2000 filed as Exhibit B-33 to Form U5S (2001).
51 NI Energy Services Transportation, Inc. Articles of Incorporation dated
June 18, 1998, filed as Exhibit A-33 to Form U5S (2001).
52 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).
242
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 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).
54 NI Fuel Company, Inc. Amended and Restated By-Laws dated April 10, 1991
filed as Exhibit B-38 to Form U5S (2001).
55 NI-TEX, Inc. Certificate of Incorporation dated August 26, 1988, filed
as Exhibit A-36 to Form U5S (2001).
56 NI-TEX, Inc. Amended and Restated By-Laws dated April 11, 2001, as
Exhibit B-39 to From U5S (2001).
57 Granite State Gas Transmission, Inc. Articles of Organization are
currently not available and will be filed by amendment.
58 Granite State Gas Transmission, Inc. Amended and Restated By-Laws dated
June 14, 2001, filed as Exhibit B-65 to Form U5S (2001).
59 IWC Resources Corporation Articles of Incorporation are currently not
available and will be filed by amendment.
60 IWC Resources Corporation By-Laws are currently not available and will
be filed by amendment.
61 Harbor Water Company Articles of Incorporation are not available and
will be filed by amendment.
62 Harbor Water Company By-Laws not available and will be filed by
amendment.
63 Indianapolis Water Company Articles of Incorporation are currently not
available and will be filed by amendment.
64 Indianapolis Water Company By-Laws are currently not available and will
be filed by amendment.
65 Irishman's Run Acquisition Company Certificate of Incorporation and
Articles of Incorporation dated November 22, 1999 filed as Exhibit A-9
to Form U5S (2002).
66 Irishman's Run Acquisition Company By-Laws not available and will be
filed by amendment.
67 IWC Morgan Water Corporation Certificate of Incorporation and Articles
of Incorporation dated February 12, 1999, filed as Exhibit A- 10 to
Form U5S (2002).
68 IWC Morgan Water Corporation By-Laws are currently not available and
will be filed by amendment.
69 Liberty Water Corporation Articles of Incorporation are currently not
available and will be filed by amendment.
70 Liberty Water Corporation By-Laws are currently not available and will
be filed by amendment.
243
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:
71 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).
72 The Darlington Water Works Company By-Laws are currently not available
and will be filed by amendment.
73 Kokomo Gas and Fuel Company Restatement of Articles of Incorporation,
filed as Exhibit A-37 to Form U5S (2001).
74 Kokomo Gas and Fuel Company Amended and Restated By-Laws dated February
28, 2002, filed as Exhibit B-41 to Form U5S (2001).
75 KGF Trading Company certificate of Incorporation dated July 31, 1992,
filed as Exhibit A-39 to Form U5S (2001).
76 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-
3 to Form U5S (2002).
77 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).
78 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).
79 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).
80 Crossroads Pipeline Company Amended and Restated By-Laws dated May 1,
2001 filed as Exhibit B-45 to Form U5S (2001).
81 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.
82 NESI Power Marketing, Inc. By-Laws dated November 15, 1996, filed as
Exhibit B-46 to Form U5S (2001).
83 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).
84 NiSource Capital Markets, Inc. Amended and Restated By-Laws dated April
21, 1999, filed as Exhibit B-47 to Form U5S (2001).
244
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:
85 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).
86 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).
87 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).
88 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).
89 Cardinal Property Management, Inc. Certificate of Incorporation dated
November 14, 1990, filed as Exhibit A-57 on Form U5S (2001).
90 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).
91 JOF Transportation Company Certificate of Incorporation dated December
8, 1989, filed as Exhibit A-60 on Form U5S (2001)
92 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).
93 Lake Erie Land Company Certificate of Incorporation dated October 12,
1989, filed as Exhibit A-62 on From U5S (2001).
94 Lake Erie Land Company By-Laws dated April 4, 1990, filed as Exhibit
B-55 to Form U5S (2001).
95 SCC Services, Inc. Certificate of Incorporation dated January 23, 1992,
filed as Exhibit A-64 on Form U5S (2001).
96 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).
97 NDC Douglas Properties, Inc. Certificate of Incorporation dated March
19, 1992, filed as Exhibit A-64 on From U5S (2001).
98 NDC Douglas Properties, Inc. By-Laws dated March 24, 1992, filed as
Exhibit B-58 to Form U5S (2001).
99 South Works Power Company Certificate of Incorporation dated June 10,
1999, filed as Exhibit A-68 on Form U5S (2001).
245
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:
100 South Works Power Company By-Laws dated June 10, 1999, filed as Exhibit
B-61 to Form U5S (2001).
101 NiSource Energy Technologies, Inc. Certificate of Incorporation dated
October 27, 2000, filed as Exhibit A-69 on Form U5S (2001).
102 NiSource Energy Technologies, Inc. By-Laws dated October 27, 2000,
filed as Exhibit B-62 to Form U5S (2001).
103 NiSource Finance Corp. Certificate of Incorporation dated March 31,
2000, filed as Exhibit A-70 on From U5S (2001).
104 NiSource Finance Corp. By-Laws dated March 31, 2000, filed as Exhibit
B-63 to Form U5S (2001).
105 NiSource Retail Services, Inc. Certificate of Incorporation, dated
November 12, 2003, filed as Exhibit A-3 on Form U5S (2003).
106 By-Laws of NiSource Retail Services, Inc. dated November 12, 2003,
filed as Exhibit B-1 on Form U5S (2003).
107 Northern Indiana Fuel & Light Company, Inc. Articles of Incorporation
are currently not available and will be filed by amendment.
108 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).
109 Northern Indiana Trading Company, Inc. Certificate of Incorporation
dated February 10, 1988, filed as Exhibit A-76 on From U5S (2001).
110 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).
111 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).
112 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).
113 NIPSCO Receivables Corporation Certificate of Incorporation dated
November 13, 2003, filed as Exhibit A-4 on Form U5S (2003).
114 By-Laws of NIPSCO Receivables Corporation dated November 13, 2003,
filed as Exhibit B-5 on Form U5S (2003).
115 PEI Holdings, 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).
116 PEI Holdings, Inc. By-Laws dated December 1, 2001, filed as Exhibit
B-72 to Form U5S (2001).
246
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:
117 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).
118 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).
119 Whiting Leasing, LLC Articles of Organization dated April 23, 2003,
filed as Exhibit A-6 on Form U5S (2003).
120 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 2003 Form
10-K, Columbia Energy Group's 2003 Form 10-K and Northern Indiana Public Service
Company's 2003 Form 10-K as shown in Exhibit A filed herewith.
247
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.
"Consolidated Taxable Income" is the taxable income of the Consolidated
Group as computed for federal or state income tax purposes.
248
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
"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.
(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
249
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
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;
(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.
250
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
(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 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
251
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
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.
(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.
252
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
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.
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.
253
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
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 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.
254
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT D. TAX ALLOCATION AGREEMENT FOR 2002. (CONTINUED)
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
By: /s/ David J. Vajda
-----------------------------------------
Printed Name: David J. Vajda
Title: Vice President and Treasurer
NIPSCO Receivables Corporation
Dated: April 14, 2004
255
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.
256
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.
257
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT E. OTHER DOCUMENTS PRESCRIBED BY RULE OR ORDER.
None.
258
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT F. REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS.
NiSource Inc.:
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF DIRECTORS OF NISOURCE INC.:
We have audited the accompanying consolidated balance sheets and statements of
consolidated capitalization and long-term debt of NiSource Inc. and subsidiaries
as of December 31, 2003 and 2002, and the related statements of consolidated
income, common stockholders' equity and cash flows for each of the three years
in the period ended December 31, 2003. Our audits also included the financial
statement Schedules I & II. These consolidated financial statements and
financial statement schedules are the responsibility of NiSource's management.
Our responsibility is to express an opinion on these consolidated financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of NiSource Inc. and
subsidiaries as of December 31, 2003 and 2002, and the results of their
operations and their cash flows for each of the three years in the period ended
December 31, 2003, in conformity with accounting principles generally accepted
in the United States of America. Also, in our opinion, such financial statement
schedules, when considered in relation to the basic consolidated financial
statements taken as a whole, present fairly in all material respects the
information set forth therein.
As explained in Note 1P to the consolidated financial statements, effective
January 1, 2001, NiSource Inc. adopted Statement of Financial Accounting
Standards ("SFAS") 133, "Accounting for Derivative Instruments and Hedging
Activities," as amended. As explained in Notes 1H and 5 to the consolidated
financial statements, effective January 1, 2002, NiSource adopted SFAS 142,
"Goodwill and Other Intangible Assets." As explained in Notes 1I and 5 to the
consolidated financial statements, effective January 1, 2003, NiSource Inc.
adopted EITF Issue No. 02-03, "Issues Involved in Accounting for Derivative
Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and
Risk Management Activities." Amounts for the years 2001 and 2002 have been
reclassified in the accompanying consolidated statement of income to conform to
this new method of presentation. As explained in Note 5 to the consolidated
financial statements, effective January 1, 2003, NiSource Inc. adopted SFAS 143,
"Accounting for Asset Retirement Obligations."
DELOITTE & TOUCHE LLP
Chicago, Illinois
March 11, 2004
259
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT F. REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS. (CONTINUED)
Columbia Energy Group:
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDER OF COLUMBIA ENERGY GROUP:
We have audited the accompanying consolidated balance sheets of Columbia Energy
Group (a Delaware corporation, the "Corporation" and a wholly owned subsidiary
of NiSource Inc.) and subsidiaries as of December 31, 2003 and 2002, and the
related statements of consolidated income, common stock equity, and cash flows
for each of the three years in the period ended December 31, 2003. Our audits
also included the consolidated financial statement schedule listed in the index
at Item 8. These financial statements and the financial statement schedule are
the responsibility of the Corporation's management. Our responsibility is to
express an opinion on these financial statements and the financial schedule
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all
material respects, the financial position of the Corporation and subsidiaries as
of December 31, 2003 and 2002, and the results of their operations and their
cash flows for each of the three years in the period ended December 31, 2003, in
conformity with accounting principles generally accepted in the United States of
America. Also, in our opinion, the consolidated financial statement schedule,
when considered in relation to the basic consolidated financial statements taken
as a whole, presents fairly, in all material respects, the information set forth
therein.
As explained in Note 1. L. to the consolidated financial statements, effective
January 1, 2001, the Corporation. adopted Statement of Financial Accounting
Standards No. 133, "Accounting for Derivative Instruments and Hedging
Activities," as amended. As explained in Note 6 to the consolidated financial
statements, effective January 1, 2003, the Corporation adopted Statement of
Financial Accounting Standards No. 143, "Accounting for Asset Retirement
Obligations."
DELOITTE & TOUCHE LLP
Columbus, Ohio
March 11, 2004
260
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT G. SYSTEM ORGANIZATION CHART.
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.
261
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (continued)
EXHIBIT H. FINANCIAL STATEMENTS OF EWG OR FOREIGN UTILITY COMPANY.
Confidential treatment requested.
EXHIBIT L. DEBT ACQUISITION SCHEDULE.
Confidential treatment requested.
262
NISOURCE INC.
FORM U5S ANNUAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003
EXHIBITS
Exhibit
Number Description
-------- -----------
Exhibit A-1 Columbia Electric Remainder Corporation Certificate of
Amendment of Certificate of Incorporation dated December 4,
2001.
Exhibit A-2 Columbia Insurance Corporation, Ltd. Certificate of
Incorporation On Change of Name dated October 21, 2002.
Exhibit A-3 NiSource Retail Services, Inc. Certificate of Incorporation
dated November 12, 2003.
Exhibit A-4 NIPSCO Receivables Corporation Articles of Incorporation dated
November 13, 2003.
Exhibit A-5 Primary Energy, Inc. Articles of Amendment of the Articles of
Incorporation dated October 17, 2003.
Exhibit A-6 Whiting Leasing LLC Articles of Organization dated April 23,
2003.
Exhibit B-1 Northern Utilities, Inc. Unanimous Written Consent in Lieu of
Annual Meeting of the Shareholders dated April 9, 2003.
Exhibit B-2 Columbia Gas of Ohio, Inc. Resolutions Amending By-Laws dated
April 21, 2003.
Exhibit B-3 NiSource Retail Services, Inc. By-Laws dated December 12,
2003.
Exhibit B-4 Northern Indiana Public Service Company Unanimous Written
Consent in Lieu of a Special Meeting of the Board of Directors
dated October 6, 2003.
Exhibit B-5 NIPSCO Receivables Corporation By-Laws dated November 13,
2003.
Exhibit B-6 Whiting Leasing LLC Operating Agreement dated April 24, 2003.
263