Introductions

2. Introductions Ce Largura NIPSCO, Director Strategic Execution Charles AdkinsVentyx LLC, Vice President, Consulting 2

3. Agenda Objective: Assist Bidders in understanding NIPSCO’s Base and Intermediate Power RFP Welcome and Introduction to NIPSCO NIPSCO 2011 RFP Process/Needs/Communications NIPSCO 2011 RFP Forms Questions 3

4. • Indiana’s largest natural gas distribution company  and fourth largest electric distribution company with more than 786,000 gas customers 457,000 electric customers• Transmission Owning Member and Market  Participant under the Midwest ISO • Subsidiary of NiSource whose service area  reaches across nine states 3.8 million total gas & electric customers 4

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12. • Peak Demand 2010: 3,102 MW 2009: 3,239 MW • Energy Sales (2010)  17,106 GWH • Coal Capacity Factor 2010: 51% 12

13. NIPSCO RFP Process Needs Key Dates Errata Communications Description of RFP Package Submittal Requirements Evaluation Process Instructions Next Steps 13

14. NIPSCO 2011 RFP Process NIPSCO is seeking proposals for the purposes of identifying and negotiating contracts for firm electric capacity and associated energy from base and/or intermediate resources. The goal of this RFP is to provide NIPSCO with capacity and associated energy proposals as a potential alternative to NIPSCO’s Michigan City Unit 12. Reliability Cost Pricing Stability 14

15. NIPSCO Statement of Projected Needs NIPSCO’s 2011 IRP, filed with the IURC, illustrates that the long-term plan capacity needs starting in 2013; NIPSCO may be able to meet its projected capacity needs with additional interruptible service and when needed, will purchase capacity until 2023, when NIPSCO anticipates the need for a CCGT. Another CCGT may be needed in 2029. NIPSCO’s Short-Term Action Plan for the years 2012 and 2013, will utilize available interruptible resources and continue to purchase short-term capacity as needed. 15

16. NIPSCO Statement of Projected Needs Base and/or intermediate resources Commencing no sooner than January 2016. 450 megawatts (“MW”) to potentially replace the 450 MW of Midwest Independent Transmission System Operator, Inc. (“MISO”) unforced capacity from MC12. 16

17. NIPSCO Statement of Projected Needs In order to thoroughly examine NIPSCO’s options, NIPSCO is turning to market alternatives such as the purchase of an existing CCGT facility and/or entering into one or more long-term Purchase Power Agreement(s) (“PPA”). NIPSCO projects a need by June 1, 2016 of 450 megawatts (“MW”). 17

18. Key Dates RFP Bid Webcast December 8, 2011 Notice of Intent to Bid December 20, 2011 Proposals Due January 13, 2012 Short List Determination January 27, 2012 18

19. Errata 19

20. NIPSCO RFP Contact Person Charles Adkins NIPSCO RFP Contact Person 801 E. 86th Avenue Merrillville, Indiana 46410-6271 E-mail: nipsco2011rfp@ventyx.com Telephone: (912) 228-4278 (Office) (404) 512-3584 (Mobile) Fax: (770) 989-4445 (confidential fax number) 20

21. Communications Questions should be submitted in writing. All questions and NIPSCO’s responses will be posted at www.nipsco2011rfp.com. Bidders that do not submit a Notice of Intent to Bid may not receive any further correspondence from NIPSCO. 21

22. Communications Please note that proposals for this RFP are to be submitted electronically to nipsco2011rfp@ventyx.com AND tshebesh@nisource.com. NIPSCO will not accept physical proposals. All other communications, including the Notice of Intent to Bid, should be directed to the NIPSCO RFP Contact Person (Charles Adkins). 22

23. Description of RFP Package NIPSCO 2011 Supply-Side RFP Appendix 1 – Confidentiality Agreement Appendix 2 – Master Power Purchase and Sale Agreement Appendix 3 – RFP Forms Buy Versus Build Debt Aspects of Purchased Power Agreements Bid Webinar Presentation Bidder Questions and Answer 23

24. Useful Links NIPSCO - Home Indiana Utility Regulatory Commission Indiana Economic Development Corporation Midwest ISO PJM Interconnection Standard & Poor’s 24

25. Description of Appendix 3 – RFP Forms APPENDIX 3 RFP Forms is organized with the following worksheets: Instructions General Bid Information SS PPA Bid Form VOM Calculator 25

26. Submittal Requirements Submit Proposals to: nipsco2011rfp@ventyx.com AND tshebesh@nisource.com Proposals must be received electronically on or before 4:00 p.m. CST on January 13, 2012. Bidders must submit: an electronic version of the Proposal electronic copy of the completed forms hard copies will NOT be accepted 26

27. Evaluation Process 27

28. Instructions The RFP Forms reflect the minimum information needed by NIPSCO to effectively evaluate the Proposal. The input fields in the RFP Forms are unlocked. Input fields with an orange background require data entry. Upon valid data entry, the orange background will change to a white background. Input fields with blue backgrounds are drop down lists. Upon valid data entry, the blue background will change to a white background. Fields with grey backgrounds are formula driven and do not require data entry. 28

29. Instructions (cont’d) All required data fields have a “hover” help generally describing the required input. A successful Proposal will respond to all questions in the RFP Forms. A status indicator is provided. NIPSCO provides no representations or warranties associated with the status indicator. It is the responsibility of the Bidder to ensure that all required fields are filled out. 29

30. Instructions (cont’d) A number of fields are dynamically set based upon user inputs. For example, energy pricing consists of four components: Type of pricing structure, First year price, Type of Price Escalation, and Fixed Escalation Rate. If the user selects a type of pricing structure equal to “Tolling”, then the background fields for First Year Price, Type of Price Escalation, and Fixed Escalation Rate will disappear indicating that data is not required. 30

31. Instructions (cont’d) All Proposals must be signed by an officer or other agent of the Bidder and certify that such officer or other agent is duly authorized to make such binding Proposal(s) on behalf of the Bidder. By selecting “Yes” in Cell B45, you are certifying that the typed name in the Signature field, below, acts as an electronic signature. There is no need to paste in an electronic image of the actual signature. Please note that a “No” response will subject the Proposal to immediate disqualification for failure to comply. 31

32. Instructions (cont’d) All Proposals must offer firm capacity and energy, with liquidated damages, at a MISO commercial pricing node throughout the term of the Proposal. Firm capacity and energy shall not include any electric generating capacity that another party, including the Bidder, has a priority to utilize that is superior to that of NIPSCO. If the Bidder agrees, select “Yes” in Cell D49. Please note that a “No” response will subject the Proposal to disqualification under Threshold Screening. 32

33. Instructions (cont’d) All Proposals must provide scheduling flexibility commensurate with the operating characteristics of the proposed generation. If the Bidder agrees, select “Yes” in Cell D50. All Proposals must not be restricted or limited as a result of other assets, not related to the Proposal, at that site. If the Bidder agrees, select “Yes” in Cell D51. All Proposals must be supported by identified units, including system sales, to satisfy MISO requirements for NIPSCO to use this capacity as a network resource. If the Bidder agrees, select “Yes” in Cell D52. Please note that a “No” response to any of the above will subject the Proposal to disqualification under Threshold Screening. 33

34. Instructions (cont’d) Some names are inherited from the General Bid Information. Pricing is broken down in to four categories: Capacity, Fixed O&M, Variable O&M, and Energy. Operating data is broken down in two sections: Capacity states and Other Operating Data. The Variable O&M (VOM) Calculator is a tool to help bidders allocate per start or per hour charges into an average Variable O&M rate. 34

35. Instructions (cont’d) All Proposals must be submitted in accordance with the instructions and on the forms provided in APPENDIX 3. All required Forms must be submitted in unlocked Microsoft Excel format. All forms must be submitted electronically. 35

36. Next Steps Submit Notice of Intent to Bid by December 20, 2011. E-Mail questions to nipsco2011rfp@ventyx.com. Check www.nipsco2011rfp.com for updates. Submit Proposals on or before 4:00 PM CST on January 13, 2012. 36

37. Questions? 37