NISOURCE HELPS ENERGIZE THE LIVES OF NEARLY 4 MILLION CUSTOMERS ACROSS SEVEN STATES. OUR LOCAL UTILITIES ENSURE THAT CUSTOMERS RECEIVE SAFE, RELIABLE AND AFFORDABLE NATURAL GAS AND ELECTRICITY EACH AND EVERY DAY. NISOURCE STAKEHOLDERS: I’m pleased to present our first Integrated Annual Report. We’ve combined our Annual Report to Stockholders and Sustainability Report into a single publication to further demonstrate the integration of our operational, financial and social performance across our well- established business strategy. This means that in addition to our financial performance, this report focuses on other sustainability issues of importance to our stakeholders. Through the lens of our Stakeholder Commitments, these highest-ranked areas include safety, reliability, affordability and growth. Using these priority areas and others core to our sustained business performance, we 2 have identified milestones that our teams are working to achieve. This past year marked our first full fiscal year of operating exclusively as a regulated utility company, following the separation of our interstate gas transmission, storage and midstream business in July 2015. During the year, we’ve maintained our focus on enhancing our services and infrastructure to support our customers. Our operating companies—known best by their local Columbia Gas and NIPSCO brands—serve nearly 4 million customers, supporting modern living, comfort and economic vitality across our service territories. As we’ll highlight in the coming pages and in the supplemental materials available on our website, we are relentlessly focused on serving our customers in a way that is safe, reliable, environmentally responsible and sustainable, while making it easier to do business with us. At the same time, we’re ensuring NiSource is a great place for our employees to work, grow and build a career. By delivering on our commitments and executing in a disciplined, thoughtful manner, we are continuing to build value for all of our stakeholders. ENDURING STRENGTH AND FOCUS OF OUR STRATEGY Since the separation on July 1, 2015, we’ve delivered a 48 percent total return to INVESTMENTS THAT DELIVER SERVICE RELIABILITY Across NiSource, we are engaged in a robust, multiyear effort to replace existing cast iron and unprotected steel natural gas distribution pipes with modern, state-of-the-art materials, such as advanced plastics and protected steel. Over the past nine years, our companies have replaced more than 2,700 miles of priority natural gas distribution pipes, including more than 400 miles in 2016. In Indiana, we’re also engaged in a long-term effort to modernize our electric systems, as well as overhaul our electric generation fleet to meet our customers’ long-term energy needs and improve environmental performance. We replaced 60 miles of underground electric cable and more than 1,200 electric poles in 2016. These investments, $30+ billion of identified long-term opportunities, enhance the safety and reliability of our energy systems, improve the environment and create shareholder value. $1.5B CAPITAL INVESTMENT IN 2016; $1.37B IN 2015 406 MILES PRIORITY PIPE REPLACED IN 2016; 360 MILES IN 2015 3