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Columbia Gas of Maryland Files to Recover Investment in Replacing Aging Infrastructure

Friday, April 14, 2017

Columbia Gas of Maryland, Inc. (Columbia Gas), a subsidiary of NiSource Inc. (NYSE: NI), filed a request today with the Public Service Commission of Maryland (PSC) to adjust its base rates for distribution service so it can continue to replace aging pipeline and adopt pipeline safety upgrades.

“Our number one priority is maintaining the safety of our customers and the communities we serve,” said Mike Huwar, president of Columbia Gas of Maryland. “We have made, and will continue to make, substantial capital investments in our system to update the safe and reliable system we currently operate. We believe this filing provides a number of tangible benefits to our customers.”

From 2007 – 2016, Columbia Gas invested over $100 million in the modernization and expansion of its distribution system in Maryland. Of that amount, approximately $65 million was dedicated to replacing 63 miles of priority pipe. In 2017, Columbia Gas will invest approximately $20.5 million in Maryland, with nearly $16 million being invested to upgrade aging underground infrastructure.

“We are proud of our pipeline replacement program and our ability to continue to serve our valued customers safely and reliably, but our work doesn’t stop there,” said Columbia Gas of Maryland Vice President and General Manager Mike Davidson. “We also remain committed to providing a positive customer experience through an educated and trained workforce focused on safely meeting or exceeding all federal and state requirements while operating our distribution system.”

In today’s filing, Columbia Gas is seeking an annual revenue increase of approximately $6 million.

“We are working more efficiently than ever, and we will continue to look for additional ways to make the most cost-effective decisions for our customers,” said Huwar.

If the adjustment is approved by the PSC, the average total bill for a residential customer who purchases 70 therms of gas per month from Columbia Gas would increase from $84.24 to $98.17 (16.54 percent increase). The average total bill for a small commercial customer who purchases 240 therms of gas per month from Columbia Gas would increase from $284.31 to $322.29 (13.36 percent increase). The average total bill for an industrial customer who purchases 3,660 therms of gas per month from Columbia Gas would increase from $3,190.45 to $3,205.86 (0.48 percent increase).

Columbia Gas of Maryland Director of Rates and Regulatory Affairs Adam Lanier noted, “The impact on the customer’s bill associated with this filing is softened thanks to continued low, stable natural gas costs. On behalf of our customers, we work with suppliers to secure the best possible natural gas prices, while maintaining the reliability of gas supply during peak demand periods.”

Gas costs generally represent about a quarter of a residential customer’s total bill. Columbia Gas purchases its gas on the wholesale market and under Maryland law, passes these costs on to its customers without mark-up or profit. The gas cost portion of a residential customer’s monthly bill is based entirely on a home’s monthly gas consumption.

The process for a general rate proceeding before the PSC can take up to nine months and Columbia Gas expects that new rates would be effective near the end of 2017. Customers with questions regarding the proposal may call 1-888-460-4332 or visit for more information.

About Columbia Gas of Maryland

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. Examples of forward-looking statements in this press release include statements and expectations regarding NiSource’s business, performance, growth, investment opportunities, and planned, identified, infrastructure or utility investments. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially. Factors that could cause actual results to differ materially from the projections, forecasts, estimates, plans, expectations and strategic discussed in this news release include, among other things, NiSource’s debt obligations; any changes in NiSource’s credit rating; NiSource’s ability to execute its growth strategy; changes in general economic, capital and commodity market conditions; pension funding obligations; economic regulation and the impact of regulatory rate reviews; NiSource's ability to obtain expected financial or regulatory outcomes; any damage to NiSource's reputation; compliance with environmental laws and the costs of associated liabilities; fluctuations in demand from residential and commercial customers; economic conditions of certain industries; the success of NIPSCO's electric generation strategy; the price of energy commodities and related transportation costs; the reliability of customers and suppliers to fulfill their payment and contractual obligations; potential impairments of goodwill or definite-lived intangible assets; changes in taxation and accounting principles; potential incidents and other operating risks associated with our business; the impact of an aging infrastructure; the impact of climate change; potential cyber-attacks; construction risks and natural gas costs and supply risks; extreme weather conditions; the attraction and retention of a qualified work force; advances in technology; the ability of NiSource's subsidiaries to generate cash; uncertainties related to the expected benefits of the Separation and other matters set forth in Item 1A, "Risk Factors" section of NiSource’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in other filings with the Securities and Exchange Commission. NiSource expressly disclaims any duty to update, supplement or amend any of its forward-looking statements contained in this press release, whether as a result of new information, subsequent events or otherwise, except as required by applicable law

Media Contact: 
Russell Bedell 
(717) 849-0129