Energy Efficiency Programs Presenter – Patty Terpin September 21, 2010

1. Energy Efficiency ProgramsPresenter – Patty TerpinSeptember 21, 2010 KEEA Conference 2010: The Future of Energy Efficiency in Pennsylvania

2. Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs About Columbia Gas of Pennsylvania, Inc. Columbia Gas of Pennsylvania, Inc. with headquarters in Canonsburg, Pa., serves approximately 413,000 customers in 26 counties. It is one of the energy distribution companies of NiSource Inc. (NYSE: NI). NiSource distribution companies serve 3.8 million natural gas and electric customers primarily in seven states.

3. Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Low Income Usage Reduction (LIURP) • Implemented 1988 • Mandated - Alphonso Deal Statute; Natural Gas Competition Act • Funding Level – $3 Million Annually • Recoverable in Rates • Customers – Residential Low Income • Measures – Audits, Education, Air Sealing; Insulation; Heating System Clean and Tune • Energy Savings 23% Average Pre/Post Comparison • Energy Savings 30% in 2008 !!! • Success due to CAP Program/Energy Education • Savings 60.75 MCF per year • Average Customer saved $542.90 per year • External Contractors – 10

4. Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Emergency Repair Program (ERP) Emergency Repair Program (ERP) • Implemented 1995 • Voluntary • Funding Level – $500,000 Annually (increase of $250,000 in 2010 Rate Case) • Recoverable in Rates • Customers – Residential Low Income Property Owners • Measures – Emergency Repairs of Gas Lines and Heating Equipment • Energy Savings – Not Tracked – Not an Energy Efficiency Program • External Contractors – 30 HVAC/Plumbers

5. Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Conservation AwarenessProgram • Implemented 2008 • Voluntary • Funding Level – Shareholder Funded • Customers – Residential – No Required Income Qualifications • Measures – Educational Material; Brochures, Video, Web Site • Energy Savings – Not Tracked • External Contractors – 1 Fulfillment Organization

6. Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Income Qualified Energy Efficiency Program ( IQEEP ) • Implemented 2008 • Voluntary • Funding Level – $750,000 Annually • Recoverable in Rates • Customers – Residential Moderate Low Income • Measures – Energy Efficiency Audits, Programmable Thermostats, (Incentives added in 2010 Rate Case) • Energy Savings – Not Currently Tracked • External Contractors – 30 Energy Efficiency Auditors

7. Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Joint Utility Usage Management Program • Implemented 2009 • PUC Encouraged Leveraging of Coordination of Programs • Solidified Current Processes • All Energy Efficiency Programs For Allegheny Power and Columbia Gas • Streamlined Referral Processes • Increase Refunds To All Programs • Joint Delivery of Program Benefit With Existing Weatherization Contractors

8. Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Home Energy Efficiency Pilot Program • Voluntary • Design of Pilot by Stakeholders Group • Funding Level – To Be Determined • Recoverable in Rates • Customers – Will Be Available To a Pilot Group of Residential Customers With No Income Requirements • Measures/Components – To Be Determined • Energy Savings – Will Be Tracked • External Contractors Will Be Hired For The Delivery of HEEP Benefits • Implementation 2011

9. Columbia Gas of Pennsylvania, Inc., Energy Efficiency Programs Questions? Thank you!