Climate Change Policy

Whereas, economic, social and environmental values and considerations are integrated with NiSource business activities;

Whereas, climate change is an issue on which there is considerable debate and concern;

Whereas, NiSource companies engage in activities to reduce potential risks and pursue opportunities associated with the climate change issue; and,

Consistent with its Environmental Health and Safety Policy, NiSource intends to both reduce the carbon intensity of its operations and provide products that are a solution for reducing our nation's greenhouse gas emissions. Accordingly, NiSource will meet the energy needs of its customers and address global climate change challenges with business activity compatible with sustained economic growth.

To these ends, NiSource will find effective and efficient ways to:

• Inventory greenhouse gas emissions from all relevant NiSource companies' operations.
• Increase the efficiency with which NiSource companies generate, transport and distribute energy products.
• Reduce the carbon intensity of our energy products.
• Promote the role that clean, highly efficient generation can serve in achieving our nation's energy and environmental objectives.
• Advocate that power generation projects that increase the efficiency in converting fuel to useful energy products should be recognized in climate registries and environmental regulations.
• Encourage our customers to use natural gas wisely; including using highly efficient on-site energy systems, such as combined heat and power.
• Develop objectives and targets that advance NiSource and customer efforts to meet these positions.
• Measure the progress that NiSource and our customers are making in meeting these positions.

See Carbon Disclosure Project document for further information on NiSource's Climate Strategy.

Adopted May 10, 2004
Environmental Health and Safety Committee
NiSource Board of Directors

Please address general inquiries to environmental@nisource.com