Sustainability In Northern Indiana

1. Sustainability In Northern Indiana Kelly Carmichael Director, Environmental Policy and Permitting South Shore Clean Cities Annual Meeting February 14, 2012

2. Economic Development Job Creation Environmental Improvement Enhancing the Economic, Social and Environmentalway we do business and finding Shared Value opportunities in northern Indiana. 2

3. Our Sustainability Mission • Implement Customer-Focused Energy Solutions • Promote Strong, Stable Communities • Steward the Environment • Assure an Engaged, Aligned and Transparent Sustainability Approach 3

4. Customer Focused Energy Solutions Our Mission • Residential Energy Savings Programs • Appliance Recycling • Free Online Home Energy Audit • Appliance Rebate • Home Energy Report • Instant Savings on CFL Bulbs (new) • A/C Cycling (new) • Free In-Home Energy Audit (new) • Apartment/Landlord Direct-Install (new) • Expanded Low-Income Home Weatherization (available 2012) • Expanded Elementary Education (new) • Implement Customer-Focused Energy Solutions • Promote Strong, Stable Communities • Steward the Environment • Assure an Engaged, Aligned and Transparent Sustainability Approach 4

5. Customer Focused Energy Solutions • Commercial & Industrial Energy Savings Programs • C&I Incentives for Upgrading to Efficient Equipment/Systems • C&I Incentives for New Facility Construction/Expansion • C&I Appliance/Equipment Rebates (available 2012) • School Energy Audit/Improvement Program (available 2012) • Builders and Developers Energy Savings Programs • Builder and Developer Appliance Rebates • Expanded New Home Construction Incentives (new) 5

6. Customer Focused Energy Solutions Electric Vehicle Program – Phase I Available 2012 $2 million investment to spur electric vehicle deployment • Program Highlights • Voucher for in-home charging station • Free overnight charging • Installation of public charging stations Charging will use Renewable Energy Credits for Electric Usage This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement 6

7. Customer Focused Energy Solutions • Generate Your Own Power • Gives customers the option to generate their own power from renewable energy • Solar Feed-In likely fully subscribed Feed-in Tariff Buy-Back Amounts Wind ≤ 100 kW $0.17/kWh Wind 100 kW-2 MW $0.10/kWh Solar ≤ 10 kW $0.30/kWh Solar 10 kW-2 MW $0.26/kWh Biomass ≤ 5MW $0.106/kWh New Hydro ≤ 1 MW $0.12/kWh 7

8. Customer Focused Energy Solutions • Green Power Rate (under construction) • Customers can purchase renewable energy attributable to their usage • Can elect 50%, 75% or 100% of monthly energy usage • Costs passed through dollar-for-dollar (no markup) 8

9. Strong, Stable Communities Our Mission Supporting Economic Growth • Implement Customer-Focused Energy Solutions • Promote Strong, Stable Communities • Steward the Environment • Assure an Engaged, Aligned and Transparent Sustainability Approach Capital investment • Over $200 million in 2011 • Supporting over 430 different local businesses Local Philanthropy • $5.2 million in charitable contributions • Over 600 local organizations Next Generation of Leadership • 193 scholarships to support Economic Development courses • Ivy Tech partnership developing energy careers and skills Economic Development • Annually invest over $1 million in economic development • Partnered to help 100 businesses make new investments or expansions • Created nearly 10,000 jobs in last decade 9

10. Environmental Stewardship Our Mission Clean Diesel Vehicle Retrofits • Implement Customer-Focused Energy Solutions • Promote Strong, Stable Communities • Steward the Environment • Assure an Engaged, Aligned and Transparent Sustainability Approach • $3 million investment in Clean Diesel Projects across northern Indiana • Will reduce emissions by 30% - 90% per vehicle • Working in collaboration with IDEM, EPA and South Shore Clean Cities to develop program This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement

11. Environmental Stewardship Hybrid Fleet Project • Replace or retrofit bucket trucks and other vehicles with hybrid technology • Reduce emissions and improve fuel efficiency of NIPSCO’s fleet of gasoline or diesel powered motor vehicles This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement

12. Environmental Stewardship Local Conservation and Land Acquisition • Goal: Protect through acquisition and restoration high quality sensitive land with a focus on the Indiana Dunes National Lakeshore • Establish a stakeholder process to identify high quality projects • By 2Q 2012 complete plan for deployment of $1.5M to $2M This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement

13. Environmental Stewardship Wood Stove and Boiler Conversions • Replace existing inefficient wood burning stoves and boilers with: • Energy efficient natural gas boilers or furnaces • EPA approved hydronic heaters • Energy Star qualified geothermal heat pumps • More efficient hearth appliances • Implement in conjunction with EPA Burn Wise and State of Indiana programs This program may be classified as Supplemental Environmental Project under the NIPSCO NSR NOV settlement

14. Environmental Stewardship Planned Environmental Investments • Investing $800 million in environmental technology over next 8 years • Contributes to hundreds of new jobs for locally contracted companies • 100% of NIPSCO coal units will be scrubbed by 2018 • Further reduces emissions and contributes to attainment designation for region 14

15. Working Harder than Ever to Generate … “Our approach to sustainability is simple – to build a cleaner, more efficient and affordable energy future. Going forward, we will continue to focus on and improve our sustainability efforts and identify areas for continuous improvement; our focus on sustainability is never ending.” Bob Skaggs NiSource CEO … Sustainable Value for Our Stakeholders 15