shareholders through February 28, 2017. This included a 6.1 percent dividend increase in January 2017. In 2016, we grew our business and delivered net operating earnings per share of $1.09*, near the upper end of our guidance range for the year, and up 16 percent from 2015. We invested a record $1.5 billion in capital programs across our seven states in 2016 to support safety, reliability and environmental improvements. We expect to invest between $1.6 and $1.8 billion annually through 2020. CREATING VALUE THROUGH CUSTOMER-FOCUSED INVESTMENTS Our investments are contributing to increased safety and reliability, including a NIPSCO’S GENERATION STRATEGY WILL SIGNIFICANTLY REDUCE THE PRODUCTION OF COAL ASH AND THE AMOUNT OF WATER WITHDRAWN FROM LOCAL WATER RESOURCES, SUCH AS LAKE MICHIGAN AND THE KANKAKEE RIVER. RAISING THE BAR ON ELECTRIC ENVIRONMENTAL IMPROVEMENTS Our recently outlined coal unit retirements are expected to significantly reduce air emissions, including carbon dioxide, sulfur dioxide, nitrogen oxide and mercury. While NIPSCO has already significantly reduced these emissions through investments in pollution-control technologies such as flue gas desulfurization and activated carbon injection measures, NIPSCO has projected further environmental improvements as part of the company’s electric generation strategy. DIVERSIFYING ELECTRIC GENERATION PORTFOLIO 4 *Net operating earnings per share (non-GAAP); for a reconciliation to GAAP, see Schedule 1 on page 20; see also Regulation G statement on inside back cover. 14 percent reduction in found gas system leaks when compared to 2015. We also added more than 30,000 new natural gas customers—our highest net customer growth since 2006—as customers are seeing the value of natural gas. Our goal is to build sustainable net customer growth of 1 percent annually by 2020. In 2016, we committed to further improve the environment through our proactive infrastructure investments and plans to diversify our electric generation portfolio. As a founding member of the United States Environmental Protection Agency’s Methane Challenge Program, we expect to reduce methane emissions from our natural gas systems by 300 million cubic feet over the next five years—equivalent to taking more than 30,000 cars off the road. And in our NIPSCO Integrated Resource Plan submitted in November 2016, we outlined a plan to retire 50 percent of our coal-fired generating capacity by the end of 2023. We are evaluating the most viable options to meet long-term customer needs, while maintaining our commitment to the well-being of our employees potentially impacted by this change. A FOUNDATION OF SAFETY At the foundation of our business is the safety of and care for our employees, business partners, customers and the NIPSCO ELECTRIC GENERATION PAST AND PROJECTED ENVIRONMENTAL IMPROVEMENTS 2005-2016 ACTUAL 2005-2025 ESTIMATED >80% SULFUR DIOXIDE NITROGEN OXIDE MERCURY >90% >40% >50% CARBON DIOXIDE >35% >60% COAL ASH >15% >90% WATER WITHDRAWAL 5