Mark KempicPresident Columbia Gas of Maryland, Inc.

Maryland-District of Columbia Utilities Association Fall Conference

Fueling the Economic Engine

• One of America’s largest regulated energy companies

• Serving high-value energy markets from the Gulf Coast through the Midwest to the Northeast

• Providing a wide range of services:– Natural gas transmission and

storage– Natural gas distribution service in

seven states– Electricity generation, transmission

and distribution

2

Who is NiSource?

Serving 3.8 million energy customers

Approximately 580 miles of pipe

Columbia Gas of Maryland, Inc.

• Gas distribution service provided in Garrett, Allegany and Washington Counties

• 644 Miles of Pipe

• 33,000 customers

Modernizing Distribution Infrastructure

Maintaining a safe, reliable and efficient system

• Replacing First Generation Pipe – 105 miles of “First Generation Pipe” remain– Historical replacement rate of 3 miles per year – Accelerated replacement rate of 6.5 miles per year

• Investing in Maryland– Invested more than $63 million replacing more than

52 miles of pipe since 2003– Average investment per customer: $2,000

• Creating Jobs– Nearly 70 Columbia Gas of Maryland, Columbia Gas

Pipeline and NiSource staff are employed in Maryland– Approximately 60-70 contractors working to replace

infrastructure in Maryland on any given day

Modernizing Maryland

Upgrading Entire Communities

Maintaining a safe, reliable and efficient system

• Completely Replaced Infrastructure – June 2013: Mt. Savage, Allegany County– Year End 2014: Kitzmiller, Garrett County

• Infrastructure Projects Underway– City of Cumberland: 1,600 feet– Frostburg: 3,300 feet– Hagerstown: 7,200 feet

Providing economic development for Maryland

Impact of Infrastructure Investment

Serve and Secure More Residential,

Commercial & Industrial Customers

New Business Opportunities

Expand & Enhance Existing Services

Builds Positive, Healthy Communities

Builds Positive, Healthy

Communities

Economic Development

Infrastructure Replacement

Job Creation

- $32.3 million spend in Maryland

Thank you!