$1.2 million by the NiSource Charitable Foundation. PROGRESS ON OUR COMMITMENTS, ENHANCING VALUE We are continuing to execute on our robust regulatory strategy, supporting our infrastructure and customer-focused initiatives. In 2016, working collaboratively with stakeholders, we achieved base rate case settlement approvals in Indiana, Kentucky, Maryland and Pennsylvania. We also reached a base rate case settlement agreement in Virginia in January 2017. These cases focused on supporting the continued safe, reliable operation of our systems. Many also support customer- growth initiatives, employee training and various customer programs. Together, these cases represent an increase in annual revenues of more than $150 million. In addition to base rate cases, our teams also filed annual tracker updates related to their respective infrastructure modernization programs, including: • Indiana (NIPSCO Gas): Transmission, Distribution and Storage System Improvement Charge (TDSIC) • Kentucky: Accelerated Main Replacement Program (AMRP) • Maryland: Strategic Infrastructure Development and Enhancement (STRIDE) • Massachusetts: Gas System Enhancement Plan (GSEP) HELPING CUSTOMERS MANAGE ENERGY BILLS While natural gas costs have remained low and stable and our energy distribution rates remain competitive, we understand that many of our customers have financial situations that could make maintaining their utility service difficult. For income-qualified customers, we advocate for support and offer payment assistance programs, home energy checkups and low- or no-cost home weatherization services. In many cases, we partner with local community agencies to help our customers find solutions. 10 • Ohio: Infrastructure Replacement Program (IRP) • Pennsylvania: Distribution System Improvement Charge (DSIC) or Base Rate Case with Fully Forecasted Test Year • Virginia: Steps to Advance Virginia’s Energy Plan (SAVE) These regulatory programs are expected to allow us to begin earning on 75 percent of our capital investments in less than 12 months. 2017 FOCUS AND FINANCIAL OUTLOOK In 2017, we’ll continue our focus on delivering on our well-established plan, which calls for $30 billion of identified utility infrastructure investments over 20 years to enhance safety, increase GROWING OUR CUSTOMER BASE For potential customers currently living in areas where natural gas isn’t available, expanding service provides access to an abundant, domestic and environmentally responsible source of fuel. It can also make areas viable for industrial and commercial development, creating jobs and economic opportunities for the community. Growth also supports the sustainability and affordability of our programs. We’ve set an ambitious—but achievable—goal of 1 percent net annual natural gas customer growth by 2020, up from relatively flat to 0.5 percent in recent years. Our growth strategy targets both new construction and conversion opportunities across each of our states. 11 THE FOUNDATION OF NISOURCE’S BUSINESS STRATEGY REMAINS ~$30 BILLION OF IDENTIFIED LONG-TERM UTILITY INVESTMENTS, INCLUDING ~$20 BILLION OF NATURAL GAS SYSTEM INVESTMENTS AND ~$10 BILLION OF ELECTRIC SYSTEM INVESTMENTS.