Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 2002 and Ending December 31, 2002
To The
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
NISOURCE CORPORATE SERVICES COMPANY, INC.
-----------------------------------------
(Exact Name of Report Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Data of Incorporation December 31, 1932
State or Sovereign Power Under which Incorporated or Organized - Delaware
Location of Principal Executive Offices of Reporting Company:
801 East 86th Avenue, Merrillville, IN
VINCENT DEVITO, CONTROLLER
200 Civic Center Drive
Columbus, OH 43215
---------------------------------------------------------------------
(Name, title and address of officer to whom correspondence concerning
this report should be addressed)
NISOURCE, INC/COLUMBIA ENERGY GROUP
---------------------------------------------------------------------
(Name of Principal Holding Company whose Subsidiaries are served by
Reporting Company)
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing - Rule 94 provides that on or before the first day of May
in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable
finding pursuant to Rule 88, and every service company whose application
for approval or declaration pursuant to Rule 88 is pending shall file with
the Commission an annual report on Form U-13-60 and in accordance with the
instructions for that form.
2. Number of Copies - Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in
case correspondence with reference to the report become necessary.
3. Period Covered by Report - The first report filed by any company shall
cover the period from the date the Uniform System of Accounts was required
to be made effective as to that company under Rules 82 and 93 to the end
of that calendar year. Subsequent reports should cover a calendar year.
4. Report Format - Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted on the same size as a sheet of the form
or folded to such size.
5. Money Amounts Displayed - All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (Section 210.3-01[b]).
6. Deficits Displayed - Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference
in footnotes. (Regulation S-X, Section 210.3-01[C]).
7. Major Amendments or Corrections - Any company desiring to amend or correct
a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages,
schedules, and entries that are to be amended or corrected. A cover letter
shall be submitted requesting the Commission to incorporate the amended
report changes and shall be signed by a duly authorized officer of the
company.
8. Definitions - Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February
2, 1979, shall be applicable to words or terms used specifically within
this Form U-13-60.
9. Organization Chart - The service company shall submit with each annual
report a copy of its current organization chart.
10. Methods of Allocation - The service company shall submit with each annual
report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed - The service
company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use of capital billed during the calendar year.
Page 2
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or
Account Page
Description of Schedules and Accounts Number Number
---------------------------------------------------------- ------------- ------
COMPARATIVE BALANCE SHEET Schedule I 5-6
Service Company Property Schedule II 7-8
Accumulated Provision For Depreciation and Schedule III 9
Amortization of Service Company Property
Investments Schedule IV 10
Accounts Receivable From Associated Companies Schedule V 11-12
Fuel Stock Expenses Undistributed Schedule VI 13
Stores Expense Undistributed Schedule VII 14
Miscellaneous Current and Accrued Assets Schedule VIII 15
Miscellaneous Deferred Debits Schedule IX 16
Research, Development or Demonstration Expenditures Schedule X 17
Proprietary Capital Schedule XI 18
Long-Term Debt Schedule XII 19
Current and Accrued Liabilities Schedule XIII 20-21
Notes to Financial Statements Schedule XIV 22-23
COMPARATIVE INCOME STATEMENT Schedule XV 24
Analysis of Billing - Associate Companies Account 457 25
Analysis of Billing - Nonassociate Companies Account 458 26
Analysis of Charges for Service - Associate and Schedule XVI 27
Nonassociate Companies
Schedule of Expense by Department or Service Function Schedule XVII 28-30
Departmental Analysis of Salaries Account 920 31
Outside Services Employed Account 923 32-35
Employee Pensions and Benefits Account 926 36
General Advertising Expenses Account 930.1 37
Miscellaneous General Expenses Account 930.2 38
Rents Account 931 39
Taxes Other Than Income Taxes Account 408 40
Donations Account 426.1 41
Other Deductions Account 426.5 42
Notes to Statement of Income Schedule XVIII 43
Page 3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
---------------------------------------------------------- ------
Organization Chart 44
Methods of Allocation 45
Annual Statement of Compensation for Use of Capital Billed 46-47
Officer Authorization 48
Page 4
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
2002
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the
current and prior year
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
------- ----------------------- ---------------------------
CURRENT PRIOR
------- -------
$000 $000
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) 77,421 87,727
107 Construction work in progress (Schedule II) -- --
------- -------
Total Property 77,421 87,727
------- -------
108 Less accumulated provision for depreciation and
amortization of service company property
(Schedule III) 34,091 31,223
------- -------
Net Service Company Property 43,330 56,504
------- -------
INVESTMENTS
123 Investments in associate companies (Schedule IV) -- --
124 Other investments (Schedule IV) -- --
------- -------
Total Investments -- --
------- -------
CURRENT AND ACCRUED ASSETS
131 Cash 424 22
134 Special deposits 171 171
135 Working funds 656 21
136 Temporary cash investments (Schedule IV) -- --
141 Notes receivable -- --
143 Accounts receivable 8,065 (7,268)
144 Accumulated provision for uncollectible accounts -- --
146 Accounts receivable from associate companies
(Schedule V) 72,248 171,728
152 Fuel stock expenses undistributed (Schedule VI) -- --
154 Materials and supplies -- --
163 Stores expense undistributed (Schedule VII) -- --
165 Prepayments 685 195
174 Miscellaneous current and accrued assets 1,317 2,099
(Schedule VIII) -- --
------- -------
Total Current and Accrued Assets 83,566 166,968
------- -------
DEFERRED DEBITS
181 Unamortized debt expense -- --
184 Clearing accounts 9,207 71,784
186 Miscellaneous deferred debits (Schedule IX) 41,259 13,062
188 Research, development, or demonstration
expenditures (Schedule X) -- --
190 Accumulated deferred income taxes 27,667 7,677
------- -------
Total Deferred Debits 78,133 92,523
------- -------
TOTAL ASSETS AND OTHER DEBITS 205,029 315,995
======= =======
Page 5
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
2002
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
------- ----------------------------------- ----------------------------
CURRENT PRIOR
------- -------
$000 $000
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 400 400
211 Miscellaneous paid-in-capital (Schedule XI) -- --
215 Appropriated retained earnings (Schedule XI) -- --
216 Unappropriated retained earnings (Schedule XI) -- --
219 Other Comprehensive Income (21,165)
------- -------
Total Proprietary Capital (20,765) 400
------- -------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 23,930 23,930
224 Other long-term debt (Schedule XII) -- --
225 Unamortized premium on long-term debt -- --
226 Unamortized discount on long-term debt -- --
------- -------
Total Long-Term Debt 23,930 23,930
------- -------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable -- --
232 Accounts payable 13,947 34,094
233 Notes payable to associate companies (Schedule XIII) 74 21,479
234 Accounts payable to associate companies (Schedule XIII) 49,667 165,875
236 Taxes accrued 20,440 (4,171)
237 Interest accrued 783 1
238 Dividends declared -- --
241 Tax collections payable 90 9,484
242 Miscellaneous current and accrued liabilities (Schedule XIII) 57,522 44,357
------- -------
Total Current and Accrued Liabilities 142,523 271,119
------- -------
DEFERRED CREDITS
253 Other deferred credits 55,391 9,329
255 Accumulated deferred investment tax credits -- --
------- -------
Total Deferred Credits 55,391 9,329
------- -------
282 ACCUMULATED DEFERRED INCOME TAXES 3,950 11,217
------- -------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 205,029 315,995
======= =======
Page 6
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE II - SERVICE COMPANY PROPERTY
BALANCE BALANCE
AT AT
BEGINNING RETIREMENTS OTHER CLOSE
DESCRIPTION OF YEAR ADDITIONS OR SALES CHANGES OF YEAR
----------------------------------------------- ------ ------ ------ ----- ------
$000 $000 $000 $000 $000
SERVICE COMPANY PROPERTY
Account:
301 ORGANIZATION -- -- -- -- --
303 MISCELLANEOUS
INTANGIBLE PLANT -- -- -- -- --
304 LAND AND LAND RIGHTS 62 -- -- -- 62
305 STRUCTURES AND
IMPROVEMENTS 23,404 288 -- -- 23,692
306 LEASEHOLD IMPROVEMENTS -- -- -- --
307 EQUIPMENT (1),(2) 43,121 12,157 22,722 -- 32,556
308 OFFICE FURNITURE AND
EQUIPMENT 7,318 16 -- -- 7,334
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT 472 -- 45 -- 427
310 AIRCRAFT AND AIRPORT
EQUIPMENT 13,207 -- -- -- 13,207
311 OTHER SERVICE COMPANY
PROPERTY (3) 143 -- -- -- 143
------ ------ ------ ----- ------
SUB-TOTAL 87,727 12,461 22,767 -- 77,421
------ ------ ------ ----- ------
107 CONSTRUCTION WORK IN
PROGRESS (4) -- -- -- -- --
------ ------ ------ ----- ------
TOTAL 87,727 12,461 22,767 -- 77,421
====== ====== ====== ====== ======
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
307 - The decrease in the information technology and telecommunications
areas was due to consolidation and integration of business operations.
Page 7
SCHEDULE II - CONTINUED
(2) SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
BALANCE AT
CLOSE OF
SUBACCOUNT DESCRIPTION ADDITIONS YEAR
---------------------- ------ ------
$000 $000
307-1 Telecommunications Equipment -- 90
307-2 Communications Management Center -- 724
307-3 Data Processing Equipment -- 872
307-4 Print Services Equipment -- --
307-5 Research & Laboratory Equipment -- --
307-6 Telecommunications Equipment 733 6,791
307-7 EDP Equipment - 4 years 6,466 10,834
307-8 EDP Equipment - 10 years -- 5
307-9 Personal Computer and Peripheral Equipment 4,958 6,687
307-10 Distribution Research Equipment -- --
307-11 Electrical Supply Generators -- 1,788
307-14 CGT EQUIPMENT -- --
307-37 CPA EQUIPMENT -- --
307-51 TCO Equipment -- --
307-90 NiSource Equipment -- 4,765
------ ------
TOTAL 12,157 32,556
====== ======
(3) DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Costs incurred in the internal development of the Employee Accounting
System Interface, Labor Distribution System, and Intercompany Billing
software.
(4) DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Not Applicable
Page 8
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
ADDITIONS
BALANCE CHARGED OTHER BALANCE
AT TO CHANGES AT
BEGINNING ACCOUNT ADD CLOSE
DESCRIPTION OF YEAR 403 RETIREMENTS (DEDUCT) OF YEAR
--------------------------------------------- -------- -------- -------- -------- --------
$000 $000 $000 $000 $000
ACCOUNT
301 ORGANIZATION -- -- -- -- --
303 MISCELLANEOUS INTANGIBLE
PLANT -- -- -- -- --
304 LAND AND LAND RIGHTS -- -- -- -- --
305 STRUCTURES AND
IMPROVEMENTS 7,127 470 -- -- 7,597
306 LEASEHOLD IMPROVEMENTS -- -- --
307 EQUIPMENT (1) 20,564 6,518 22,722 17,600 21,960
308 OFFICE FURNITURE AND
FIXTURES 2,875 460 -- -- 3,335
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT 119 78 45 3 155
310 AIRCRAFT AND AIRPORT
EQUIPMENT 396 506 -- -- 902
311 OTHER SERVICE COMPANY
PROPERTY 142 -- -- -- 142
-------- -------- -------- -------- --------
TOTAL 31,223 8,032 22,767 17,603 34,091
======== ======== ======== ======== ========
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Please refer to page 7
Page 9
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments," state each investment
separately, with description, including, the name of issuing
company, number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each
investment separately.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
----------------------------------------------- ---------- ----------
Account 123 - Investment in Associate Companies None None
Account 124 - Other Investments None None
Account 136 - Temporary Cash Investments
System Money Pool - Unaffiliated None None
---------- ----------
TOTAL None None
========== ==========
Page 10
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
from each associate company. Where the service company has
provided accommodation or convenience payments for associate
companies, a separate listing of total payments for each
associate company
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
----------------------------------------------------------- --------- --------
$ 000 $ 000
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
Bay State Gas Company 2,014 1
Bay State Massachusetts 423 2,476
Columbia Atlantic Trading Corporation -- 4
Columbia Energy Group 5,437 13,853
Columbia Energy Group Capital Corporation 56 --
Columbia Energy Resources, Inc. 2,814 934
Columbia Energy Services Corporation 228 249
Columbia Finance Company 13 --
Columbia Gas of Kentucky, Inc. 6,879 1,201
Columbia Gas of Maryland, Inc. 2,432 551
Columbia Gas of Ohio, Inc. 18,779 8,832
Columbia Gas of Pennsylvania, Inc. 17,687 4,691
Columbia Gas of Virginia, Inc. 8,920 2,432
Columbia Gas Transmission Corporation 17,084 8,608
Columbia Gulf Transmission Company 4,455 2,392
Columbia LNG Corporation 158 209
Columbia Network Services Corporation 76 163
Columbia Remainder Corporation 267 233
Columbia Service Partners -- 6
Columbia Transmission Communications Corporation 150 (57)
Energy USA, Inc 9,759 2,004
Granite State Gas -- 47
Indianapolis Water Resources -- 5
Kokomo Gas and Fuel Company 47 155
NiSource Capital Markets 14 12
NiSource Crossroads Pipeline 512 42
NiSource Development Company, Inc 1,107 6
NiSource Energy Services, Inc 308 421
NiSource Energy Technology 296 (2)
NiSource Finance Company -- 67
NiSource Insurance Corporation, Ltd. -- 7
NiSource Pipeline Group, Inc (38) 17
NiSource, Inc. 36,712 14,517
Northern Indiana Fuel and Light Company 61 458
Northern Indiana Public Merchant 1,017 --
Northern Indiana Public Service Company 32,910 6,621
Northern Utilities Maine 34 660
Northern Utilities New Hampshire 50 277
Primary Energy, Inc 1,067 156
--------- --------
TOTAL 171,728 72,248
========= ========
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL
PAYMENTS
--------
$000
See Schedule V-A, page 12
TOTAL PAYMENT 807,187
=======
Page 11
SCHEDULE V-A
NISOURCE CORPORATE SERVICES COMPANY, INC.
Convenience & Accommodation Payments
For the Year Ended December 31, 2002
Employee Corporate Audit PH&H
Associate Company Benefits Telecomm Insurance Fees Leases Other (1) Total
--------------------------------------------- --------- -------- ---------- --------- --------- ---------- -----------
$000 $000 $000 $000 $000 $000 $000
Bay State Gas Company 833 83 50 985 (3) 1,951
Bay State Massachusetts 25,381 1,776 2,023 127 10,480 (3) 39,787
Columbia Energy Group Capital Corporation 7 1 8
Columbia Atlantic Trading Corporation 14 1,407 1,421
Columbia Energy Group 1,923 79 7,588 153 26 413,863 (2) 423,632
Columbia Energy Resources, Inc. 6,349 666 2,473 148 3,099 8,851 21,586
Columbia Energy Services Corporation 47 36 22 19,676 19,781
Columbia Finance Company 7 228 235
Columbia Gas of Kentucky, Inc. 4,148 319 (129) 967 753 6,058
Columbia Gas of Maryland, Inc. 934 102 (238) 182 288 1,268
Columbia Gas of Ohio, Inc. 27,940 2,979 (4,419) 374 3,393 8,967 39,234
Columbia Gas of Pennsylvania, Inc. 11,211 1,564 789 136 1,513 4,175 19,388
Columbia Gas of Virginia, Inc. 4,845 626 (1,225) 16 927 5,871 11,060
Columbia Gas Transmission Corporation 31,978 4,553 6,536 505 6,361 6,941 56,874
Columbia Gulf Transmission Company 6,389 957 4,024 84 479 1,405 13,338
Columbia LNG Corporation 52 3 32 87
Columbia Network Services Corporation 36 20 6 62
Columbia Pipeline Corporation 4 2 6
Columbia Remainder Corporation 155 (1,340) 3,089 1,904
Columbia Service Partners 21 3 13 34 71
Columbia Transcom Company 55 4 131 8,653 8,843
Crossroads Pipeline Company 8 11 38 16 73
Energy USA, Inc 2,338 19 742 215 1,987 5,301
Granite State Gas 285 91 167 (3) 543
Indianapolis Water Resources 6 2,959 2,965
IWC Resource Corporation 2,046 14 77 25 1,780 (3) 3,942
Kokomo Gas and Fuel Company 1,040 4 145 45 382 (3) 1,616
NiSource Capital Markets 1 1
NiSource Development Company, Inc 30 (82) 46 (6)
NiSource Energy Services, Inc 20 15 35
NiSource Energy Technology 591 6 20 137 (3) 754
NiSource Finance Company 13 43 56
NiSource Insurance Corporation, Ltd. 4 20 24
NiSource Pipeline Group, Inc 5 - 5
NiSource, Inc. -121 (91) 601 2,129 2,518
Northern Indiana Fuel and Light Company 1,397 111 76 315 (3) 1,899
Northern Indiana Public Merchant 309 22 512 434 1,277
Northern Indiana Public Service Company 69,866 1,908 13,217 658 20,373 (3) 106,022
Northern Utilities Maine 2,283 140 120 1,124 (3) 3,667
Northern Utilities New Hampshire 691 194 138 211 (3) 1,234
Primary Energy, Inc 1,311 50 1,180 353 (3) 2,894
SM&P Resources, Inc 3,033 2,740 5,773
--------- -------- ---------- --------- --------- ---------- -----------
Total 207,396 16,118 32,586 3,201 16,947 530,939 807,187
========= ======== ========== ========= ========= ========== ===========
1) Primarily reflects a service offered by the Corporate Treasury Department to
provide a non-repetitive electronic funds transfer.
2) Interest and principal payments on long term debentures made on behalf of
CEG.
3) Includes one month of payroll.
Page 12
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to fuel stock expenses during the year and indicate amount
attributable to each associate company. Under the section
headed "Summary" listed below give an overall report of the
fuel functions performed by the service company.
DESCRIPTION LABOR EXPENSES TOTAL
--------------- --------------- -----------------
$000 $000 $000
Account 152 - Fuel Stock Expenses Undistributed None None None
--------------- --------------- -----------------
TOTAL None None None
SUMMARY:
Not Applicable
Page 13
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES
For the Year Ended December 31, 2002
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to stores expense during the year and indicate amount
attributable to each associate company.
DESCRIPTION LABOR EXPENSES TOTAL
----------------------------------------------- ----------------- ----------------- -----------------
$000 $000 $000
Account 163 - Stores Expenses Undistributed None None None
----------------- ----------------- -----------------
TOTAL None None None
Page 14
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each
group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
---------------------------------------------------------------------- ----------------- -----------------
$000 $000
Account 174 - Miscellaneous Current and Accrued Assets 2,099 1,317
Non-Compete Deferred Debit (Amortized over 15 Years
Phantom Stock)
----------------- -----------------
TOTAL 2,099 1,317
Page 15
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items in
each class.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
---------- ----------
$ 000 $ 000
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Other Post Retirement Employee Benefits 8,636 10,699
Deferred Insurance Receivables 3,299 1,953
Intangible Asset - Pension Restoration Plan 1,127 21,232
Misc. Deferred Property -- 7,375
------- -------
TOTAL 13,062 41,259
Page 16
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide description of each material research, development, or
demonstration project which incurred costs by the service
corporation during the year.
DESCRIPTION AMOUNT
-------------------------------------------------------------------------- ------
$000
None
------
TOTAL None
Page 17
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE XI - PROPRIETARY CAPITAL
OUTSTANDING CLOSE OF PERIOD
NUMBER OF SHARES PAR OR STATED VALUE --------------------------------
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
-------------- -------------- ----------------- ------------------- ------------- ------------
201 COMMON STOCK 4,000 $100 4,000 $400,000
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise
to the reported amount.
DESCRIPTION AMOUNT
----------- ------
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL $0
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
------
TOTAL $0
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed
or net loss remaining from servicing nonassociates per the
General Instructions of the Uniform System of Accounts. For
dividends paid during the year in cash or otherwise, provide rate
percentage, amount of dividend, date declared and date paid.
BALANCE AT BALANCE AT
BEGINNING NET INCOME DIVIDENDS CLOSE
DESCRIPTION OF YEAR OR (LOSS) PAID OF YEAR
------------------------------------------------- ---------- ---------- --------- ----------
$000 $000 $000 $000
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS
Rate/Share Amount of Dividend Date Declared Date Paid
---------- ------------------ ------------- ---------
$ $000
----------------------------------------------------------------------------- ---------- ---------- --------- ---------
TOTAL - - - -
Page 18
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
Schedule XII - Long-Term Debt
INSTRUCTIONS: Advances From Associate Companies should be reported
separately for advances on notes, and advances on open
account. Names of associate companies from which advances were
received shall be shown under the class and series of
obligation column. For Account 224 - Other Long-Term Debt
provide the name of creditor company or organization, terms of
the obligation, date of maturity, interest rate, and the
amount authorized and outstanding.
BALANCE
TERMS OF OBLIG DATE BALANCE AT AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING DEDUCTIONS CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS (1) OF YEAR
---------------- ------------- -------- --------- ---------- --------- --------- --------- -------
% $000 $000 $000 $000 $000
ACCOUNT 223 - ADVANCES FROM
ASSOCIATE COMPANIES:
Columbia Energy Group Promissory Note 11/28/05 7.30 2,246 2,246 - - 2,246
Columbia Energy Group Promissory Note 11/28/07 7.55 2,246 2,246 - - 2,246
Columbia Energy Group Promissory Note 11/28/10 7.82 2,246 2,246 - - 2,246
Columbia Energy Group Promissory Note 03/01/14 7.33 12,700 12,700 - - 12,700
Columbia Energy Group Promissory Note 11/28/15 7.92 2,246 2,246 - - 2,246
Columbia Energy Group Promissory Note 11/28/25 8.12 2,246 2,246 - - 2,246
ACCOUNT 224 - OTHER
LONG-TERM DEBT: - - - - -
TOTAL 23,930 23,930 - - 23,930
Page 19
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give description and amount of
miscellaneous current and accrued liabilities. Items less than
$10,000 may be grouped, showing the number of items in each
group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
------------------------------------------------------------------- ---------- ----------
$000 $000
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
Installment Promissory Note - Current Note 11/28/02 - 7.11% 2,246 --
Nisource, Inc. 19,233 74
---------- ----------
TOTAL 21,479 74
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Bay State Gas Company 25 --
Columbia Energy Group 4,890 4,514
Columbia Gas of Kentucky, Inc. 13 2
Columbia Gas of Maryland, Inc. 11 --
Columbia Gas of Ohio, Inc. 1,988 387
Columbia Gas of Pennsylvania, Inc. 160 --
Columbia Gas of Virginia, Inc. 137 8
Columbia Gas Transmission Corporation 1,401 525
Columbia Gulf Transmission Company 98 150
Energy USA, Inc 1,762 --
NiSource Development Company, Inc 351 208
NiSource, Inc. 30,879 5,037
NiSource Crossroads Pipeline 206 --
Northern Indiana Public Service Company 6,565 1,321
Primary Energy, Inc 68 --
System Money Pool Interest 340 72
System Money Pool Principal 116,981 37,443
---------- ----------
TOTAL 165,875 49,667
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Deferred Compensation 3,906 5,325
Accrued Vacation 6,548 7,998
LTIP Dividend Credit -- --
Retirement Income Plan (497) 2,418
Pension Retirement Benefits 2,250 2,250
Thrift Restoration Plan 1,642 2,101
Pension Restoration Plan 334 4,178
401k Loan 793 --
Building 215 --
Flexible Spending 213 1,135
SICA Group Life 202 313
Comprehensive Medical Expense Plan Accrual 258 813
Employee Thrift Plan (217) 1,745
Post Employment Benefit Obligation 74 74
Thrift Plan - Company 60 60
Credit Union - 31 --
United Way (95) (72)
Contract Retainage 174 (152)
Aircraft Engine Overhaul Accrual 7 --
Dental Assistance Plan Accrual 412 28
Phantom Stock 600 600
Restricted Stock Options 8,879 9,883
Contingent Stock -- 6,641
Severance- 11,545 10,374
Job Placement - 1,026 793
Relocation - 3,341 9
Miscellaneous 2,630 1,028
Voluntary Personal Accident Insurance (16) (20)
Employment Agreements 24 --
Release & Retention Program 18 --
---------- ----------
TOTAL 44,357 57,522
Page 20
SCHEDULE XIII-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
Notes Payable to Associate Companies
Account 233
Balance at Balance at
Beginning Close
of Year of Year
---------- ----------
$000 $000
Columbia Energy Group
6.89% Installment Promissory Note None None
7.11% Installment Promissory Note 2,246 None
7.30% Installment Promissory Note None None
7.55% Installment Promissory Note None None
7.82% Installment Promissory Note None None
7.33% Installment Promissory Note None None
7.92% Installment Promissory Note None None
8.12% Installment Promissory Note None None
---------- ----------
Total 2,246 None
========== ==========
Page 21
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the end of
the year. Notes relating to financial statements shown
elsewhere in this report may be indicated here by
reference.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Property, Plant and Equipment and Related Depreciation
Property, Plant and Equipment is stated at historical cost.
Depreciation is provided on a composite straight-line basis using the
average of depreciable property at the beginning and end of each year.
b. Income Taxes
The Corporation provides deferred taxes with respect to timing
differences in the recognition of revenues and expenses for tax and
accounting purposes. The major difference results from using
accelerated depreciation for tax purposes. The Corporation is included
in the Consolidated Federal Income Tax Return filed for NiSource, Inc.
c. Pension Costs
The Corporation participates in the NiSource, Inc. Pension Plan and the
Retirement Income Plan of the Columbia Energy Group. These are trusteed
noncontributory pension plans which, with certain exceptions, cover all
regular employees. NiSource Corporate Services Company, Inc.'s portion
was $2,915,000 in 2002 and $1,794,000 in 2001.
d. Leases
Payments made by the Corporation in connection with operating leases
are charged to expense incurred. No capitalized leases existed in 2002.
e. Account Numbers
The Corporation uses certain FERC accounts which do not match existing
SEC accounts; therefore, the year-end balances of the following FERC
accounts were reclassified to a corresponding SEC account.
Account Number
-------------------- Year-End
Account Description FERC SEC Balance
------------------- ---- --- --------
$000
Interest Receivable 171 143 35
Deferred Income Taxes 283 282 90
Page 22
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
f. Post-Retirement Benefits Other Than Pensions
During 1991, the System adopted SFAS No. 106, Employer's Accounting for
Post-Retirement Benefits Other Than Pensions, retroactive to January 1, 1991.
The Corporation has elected to record and defer the full amount of its
estimated accumulated post-retirement obligations other than pensions. These
obligations total $7,920,378 as of December 31, 2002, and represent the
actuarial present value of the post-retirement benefits to be paid to current
employees and retirees based on services rendered.
g. System Money Pool
The Parent Company and its subsidiaries participate in the System Money Pool
(Pool) which is administered by the Corporation on behalf of the
participants.
Participants invest their excess funds to the Pool. Short-term financing
requirements of participants, with the exception of the Parent Company, are
satisfied by advances from the Pool. Excess funds in the Pool are invested by
the Corporation on a short-term basis on behalf of the depositors.
Participants depositing funds in the Pool share in the interest earned on
these investments plus interest paid to the Pool by borrowers on a basis
proportionate to their investment in the Pool. Participants borrowing from
the Pool pay interest at the rate equivalent to the composite rate on
short-term transactions of the Pool. Participants may withdraw their
investments in the Pool at any time. Borrowings from the Pool are payable on
demand, and may be prepaid at any time without premium or penalty.
h. Restructuring Activities
For the year ended December 31, 2002, liabilities were recorded for
termination benefits related to the corporate restructuring initiative and
other cost reduction programs. NiSource Corporate Services portion expensed
in 2002 was $6,358,160 for severance and $745,400 for job placement.
Page 23
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC,
For the Year ended December 31, 2002
--------------------------------------------------------------------------------
SCHEDULE XV
STATEMENT OF INCOME
--------------------------------------------------------------------------------
2002 2001
------------ ----------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
------- ---------------------------------------------- ------------ ----------
$000 $000
INCOME
457 Services rendered to associate companies 304,443 339,527
458 Services rendered to nonassociate companies -- --
417 Interest Revenue 1 --
419 Interest Revenue - Other 187 8
421 Miscellaneous Income or Loss -- --
--------- ---------
Total Income 304,631 339,535
EXPENSE
920 Salaries and wages 139,915 120,210
921 Office supplies and expenses 11,997 38,421
922 Administrative expense transferred - credit -- 4,961
923 Outside services employed 72,981 93,227
924 Property insurance 49 (10)
925 Injuries and damages 1,249 729
926 Employee pensions and benefits 24,846 18,428
928 Regulatory commission expense -- --
930.1 General advertising expenses 542 1,065
930.2 Miscellaneous general expenses 2,909 (1,361)
931 Rents 19,700 31,298
932 Maintenance of structures and equipment 8,510 8,666
403 Depreciation and amortization expense 8,032 8,288
408 Taxes other than income taxes 9,844 8,129
409 Income taxes 11,571 (11,889)
410 Provision for deferred income taxes 59,405 28,559
411 Provision for deferred income taxes - credit (72,240) (16,174)
426.1 Donations 255 984
426.3 Other deductions 2 4
430 Interest on debt to associate companies 4,078 5,688
431 Other interest expense 986 312
--------- ---------
Total Expense 304,631 339,535
--------- ---------
Net Income or (Loss) -- --
========= =========
Page 24
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC,
For the Year ended December 31, 2002
--------------------------------------------------------------------------------
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
--------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
------------------------------------------------ ------- ------- ------------ --------
457-1 457-2 457-3
------- ------- -------
$000 $000 $000 $000
Bay State Gas Company 2,664 968 4 3,636
Bay State Massachusetts 15,336 6,551 161 22,048
Columbia Atlantic Trading Corporation 9 8 -- 17
Columbia Energy Group 3,437 217 3 3,657
Columbia Energy Group Capital Corporation 10 9 -- 19
Columbia Energy Resources, Inc. 9,468 5,008 94 14,570
Columbia Energy Services Corporation 528 156 3 687
Columbia Finance Company 12 9 -- 21
Columbia Gas of Kentucky, Inc. 5,173 2,669 54 7,896
Columbia Gas of Maryland, Inc. 1,787 1,026 21 2,834
Columbia Gas of Ohio, Inc. 39,840 18,338 370 58,548
Columbia Gas of Pennsylvania, Inc. 14,971 7,310 147 22,428
Columbia Gas of Virginia, Inc. 11,620 5,572 111 17,303
Columbia Gas Transmission Corporation 33,925 14,705 313 48,943
Columbia Gulf Transmission Company 7,420 3,737 78 11,235
Columbia LNG Corporation 13 15 -- 28
Columbia Network Services Corporation 23 22 0 45
Columbia Remainder Corporation 742 121 2 865
Columbia Service Partners 468 44 1 513
Columbia Transmission Communications Corporation 3,049 399 7 3,455
Energy USA, Inc 5,976 4,029 59 10,064
Granite Gas Transmission 173 107 3 283
Indianapolis Water Resources 27 2 -- 29
IWC Resource Corporation 1,457 547 9 2,013
Kokomo Gas and Fuel Company 573 225 5 803
NiSource Capital Markets 8 9 -- 17
NiSource Crossroads Pipeline 209 126 3 338
NiSource Development Company, Inc 483 248 5 736
NiSource Energy Services, Inc 1,859 51 1 1,911
NiSource Energy Technology 279 100 2 381
NiSource Finance Company 223 42 1 266
NiSource Insurance Corporation, Ltd 79 44 1 124
NiSource Pipeline Group, Inc 54 37 -- 91
NiSource, Inc. 4,386 621 9 5,016
Northern Indiana Fuel and Light Company 920 650 10 1,580
Northern Indiana Public Merchant 9,417 3,456 59 12,932
Northern Indiana Public Service Company 40,111 16,911 350 57,372
Northern Utilities Maine 1,390 686 16 2,092
Northern Utilities New Hampshire 1,581 800 19 2,400
Primary Energy, Inc 4,243 1,267 23 5,533
SM&P Resources, Inc 283 80 1 364
------- ------- ------- --------
Total Amount Billed in 2002 224,226 96,922 1,945 323,093
Reconciliation to Total Revenues:
Difference between Amount of
Unbilled Revenue December 2001 and
December 2002 852 (21,635) 2,133 (18,650)
------- ------- ------- --------
225,078 75,287 4,078 304,443
======= ======= ======= ========
Page 25
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC,
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
--------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION
COST COST FOR USE TOTAL EXCESS OR AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
---------------------------- ------- -------- ------------ ----- ---------- ------
458-1 458-2 458-3 458-4
------- -------- ------------ ----------
N/A $000 $000 $000 $000 $000
--------------------------------------------------------------------------------
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociate company:
Page 26
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
Schedule XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
--------------------------------------------------------------------------------
ASSOCIATE COMPANY NONASSOCIATE COMPANY TOTAL CHARGES FOR
CHARGES CHARGES SERVICE
---------------------------- ------------------------ ------------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL COST COST TOTAL
----------------------------------- ------- ------- ------- ------- -------- ----- ------- -------- -------
$000 $000 $000 $000 $000 $000 $000 $000 $000
920 Salaries and Wages 109,781 30,134 139,915 -- -- -- 109,781 30,134 139,915
921 Office Supplies and
Expenses 8,196 3,801 11,997 -- -- -- 8,196 3,801 11,997
922 Administrative Expenses
Transferred -- Credit 1,872 (1,872) -- -- -- -- 1,872 (1,872) --
923 Outside Services Employed 68,860 4,121 72,981 -- -- -- 68,860 4,121 72,981
924 Property Insurance 37 12 49 -- -- -- 37 12 49
925 Injuries and Damages 691 558 1,249 -- -- -- 691 558 1,249
926 Employee Pensions and
Benefits 945 23,901 24,846 -- -- -- 945 23,901 24,846
928 Regulatory Commission
Expense -- -- -- -- -- -- -- -- --
930.1 General Advertising
Expenses 470 72 542 -- -- -- 470 72 542
930.2 Miscellaneous General
Expense 3,166 (257) 2,909 -- -- -- 3,166 (257) 2,909
931 Rents 19,647 53 19,700 -- -- -- 19,647 53 19,700
932 Maintenance of Structure
and Equipment 5,579 2,931 8,510 -- -- -- 5,579 2,931 8,510
403 Depreciation and
Amortization Expense 5,470 2,562 8,032 -- -- -- 5,470 2,562 8,032
408 Taxes Other Than Income
Taxes 122 9,722 9,844 -- -- -- 122 9,722 9,844
409 Income Taxes -- 11,571 11,571 -- -- -- -- 11,571 11,571
410 Provision for Deferred
Income Taxes -- 59,405 59,405 -- -- -- -- 59,405 59,405
411 Provision for Deferred
Income Taxes -- -- -- --
Credit -- (72,240) (72,240) -- -- -- -- (72,240) (72,240)
417 Interest on Money Mkt
Sweep Account -- (1) (1) -- -- -- -- (1) (1)
419 Other Interest (2) (185) (187) (2) (185) (187)
426.1 Donations 244 11 255 -- -- -- 244 11 255
426.5 Other Deductions -- 2 2 -- -- -- -- 2 2
427 Interest on Long-Term
Debt -- -- -- -- -- -- -- -- --
431 Other Interest Expense -- 986 986 -- -- -- -- 986 986
----------------------------------- ------- ------- ------- ------- -------- ----- ------- -------- -------
Instructions:
Total cost of service will
equal the amount billed to
associate and nonassociate
companies under their separate
analysis of billing schedules.
----------------------------------- ------- ------- ------- ------- -------- ----- ------- -------- -------
Total Expenses 225,078 75,287 300,365 -- -- -- 225,078 75,287 300,365
------- ------- ------- ------- -------- ----- ------- -------- -------
430 Interest on Short-Term Debt 2,133 2,133
------- -------
------- -------
Compensation for Use of
Capital-Associated
Companies
------- -------
430 Intercompany Interest on
Indebtedness 1,945 1,945
------- -------
Compensation for Use of
Equity Capital -- --
------- -------
Total Cost of Service 304,443 304,443
----------------------------------------------------------------------------------------------------------------------------------
Page 27
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------------------
AIR CONSOL-
TOTAL ACCOUNTING TRANS- IDATION
DESCRIPTION OF ITEMS AMOUNT OVERHEAD SERVICES PORTATION AUDITING ACCOUNTING
----------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
920 Salaries and Wages 139,915 30,134 6,833 100 1,490 1,068
921 Office Supplies and Expenses 11,997 3,801 235 165 86 47
922 Administrative Expenses Transferred - -- -- -- -- --
Credit -- (1,872) -- -- -- --
923 Outside Services Employed 72,981 4,121 782 884 73 92
924 Property Insurance 49 12 -- -- -- --
925 Injuries and Damages 1,249 558 -- -- -- --
926 Employee Pensions and Benefits 24,846 23,901 (98) -- (21) (1)
928 Regulatory Commission Expense -- -- -- -- -- --
930.1 General Advertising Expense 542 72 -- -- -- --
930.2 Miscellaneous General Expense 2,909 (257) 1,028 287 19 13
931 Rents 19,700 53 1 505 -- --
932 Maintenance of Structures and Equipment 8,510 2,931 3 -- -- --
403 Depreciation and Amortization Expense 8,032 2,562 -- 506 -- --
408 Taxes Other Than Income Taxes 9,844 9,722 -- -- -- --
409 Income Taxes 11,571 11,571 -- -- -- --
410 Provision for Deferred Income Taxes 59,405 59,405 -- -- -- --
411 Provision for Deferred Income Taxes - -- -- -- -- -- --
Credit (72,240) (72,240) -- -- -- --
411.5 Investment Tax Credit (1) (1) -- -- -- --
419 Other Interest (187) (185) -- -- -- --
421 Miscellaneous Income or Loss -- -- -- -- -- --
426.1 Donations 255 11 -- -- -- --
426.3 Other Deductions 2 2 -- -- -- --
427 Interest on Long-Term Debt -- -- -- -- -- --
430 Interest on Debt to Associate Companies 4,078 -- -- -- -- --
431 Other Interest Expense 986 986 -- -- -- --
-----------------------------------------------------
Instruction:
Indicate each department or service
function. (See Instruction 01-3 General
Structure of Accounting System: Uniform
System Account)
----------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Total Expenses 304,443 75,287 8,784 2,447 1,647 1,219
----------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------------------
CORPORATE
COMMUNI- CORPORATE CORPORATE CORPORATE
DESCRIPTION OF ITEMS CATIONS PLANNING SECRETARY TREASURY
----------------------------------------------------- ---------- ---------- ----------- ----------
920 Salaries and Wages 865 489 252 1,093
921 Office Supplies and Expenses 33 80 16 14
922 Administrative Expenses Transferred - -- -- -- --
Credit -- -- -- --
923 Outside Services Employed 74 9 1,457 219
924 Property Insurance -- -- -- --
925 Injuries and Damages -- -- -- --
926 Employee Pensions and Benefits -- -- -- --
928 Regulatory Commission Expense -- -- -- --
930.1 General Advertising Expense -- -- -- --
930.2 Miscellaneous General Expense 3 5 64 410
931 Rents -- 2 -- --
932 Maintenance of Structures and Equipment -- -- -- 6
403 Depreciation and Amortization Expense -- -- -- --
408 Taxes Other Than Income Taxes -- -- -- --
409 Income Taxes -- -- -- --
410 Provision for Deferred Income Taxes -- -- -- --
411 Provision for Deferred Income Taxes - -- -- -- --
Credit -- -- -- --
411.5 Investment Tax Credit -- -- -- --
419 Other Interest -- -- -- --
421 Miscellaneous Income or Loss -- -- -- --
426.1 Donations 3 -- 1 --
426.3 Other Deductions -- -- -- --
427 Interest on Long-Term Debt -- -- -- --
430 Interest on Debt to Associate Companies -- -- -- --
431 Other Interest Expense -- -- -- --
-----------------------------------------------------
Instruction:
Indicate each department or service
function. (See Instruction 01-3 General
Structure of Accounting System: Uniform
System Account)
----------------------------------------------------- ---------- ---------- ---------- ----------
Total Expenses 978 585 1,790 1,742
----------------------------------------------------- ---------- ---------- ---------- ----------
Page 28
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
ENTERPRISE ENVIRON-
Account ED ENERGY USA MULTIMEDIA MENTAL
Number MARKETING TPC COMMUNICATIONS AFFAIRS EXECUTIVE
-------------------- ----------------- ----------------- ----------------- ----------------- -----------------
$000 $000 $000 $000 $000
920 2,262 1,452 1,911 6,222 22,086
921 166 6 446 706 708
922 -- -- -- -- --
923 828 42 460 282 8,168
924 -- -- -- -- --
925 -- -- -- -- 3
926 -- 32 1 -- 848
928 -- -- -- -- --
930.1 -- -- 433 -- --
930.2 26 -- 216 82 211
931 -- -- 5 147 (498)
932 -- -- 3 -- 6
403 -- -- -- -- --
408 -- -- -- -- --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- (2)
421 -- -- -- -- --
426.1 -- -- 156 15 56
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- 4,078
431 -- -- -- -- --
-------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Total Expenses 3,282 1,532 3,631 7,454 35,664
----------------------------------------------------------------------------------------------------
Account FACILITIES FINANCE & FLEET GOVERNMENTAL
Number MGMT STRATEGY MANAGEMENT GAS SUPPLY AFFAIRS
-------------------- ----------------- ----------------- ----------------- ----------------- -----------------
$000 $000 $000 $000 $000
920 759 3,034 1,496 7,556 293
921 16 176 55 207 42
922 1,872 -- -- -- --
923 46 4,462 2 614 118
924 -- -- -- -- --
925 -- -- -- -- --
926 119 -- -- 33 --
928 -- -- -- -- --
930.1 -- -- -- -- --
930.2 10 10 4 12 1
931 7,960 -- -- 2 76
932 1,253 -- -- 12 --
403 60 2 -- -- --
408 (86) -- -- -- --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 -- -- -- -- 3
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Total Expenses 12,009 7,684 1,557 8,436 533
----------------------------------------------------------------------------------------------------
Page 29
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
Account INFORMATION INVESTOR MATERIALS &
Number TECHNOLOGY RELATIONS LEGAL SUPPLIES PAYROLL
-------------------- ----------------- ----------------- ----------------- ----------------- -----------------
$000 $000 $000 $000 $000
920 33,410 359 4,860 2,711 184
921 3,416 62 545 66 7
922 -- -- -- -- --
923 13,351 117 33,284 50 (23)
924 -- -- -- -- --
925 -- -- -- -- --
926 7 -- 3 -- --
928 -- -- -- -- --
930.1 6 -- 20 2 --
930.2 320 3 225 1 32
931 11,402 3 1 1 --
932 4,296 -- -- -- --
403 4,902 -- -- -- --
408 208 -- -- -- --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 3 -- 1 -- --
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-- --
-------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Total Expenses 71,321 544 38,939 2,831 200
----------------------------------------------------------------------------------------------------
Account PROCURE- REG. & RISK
Number MENT GOVT. MANAGEMENT SECURITY TAX
-------------------- ----------------- ----------------- ----------------- ----------------- -----------------
$000 $000 $000 $000 $000
920 596 2,944 1,443 128 1,680
921 54 443 137 21 77
922 -- -- -- -- --
923 158 2,478 66 23 486
924 -- -- 37 -- --
925 -- -- 688 -- --
926 -- 84 (73) -- --
928 -- -- -- -- --
930.1 1 8 -- -- --
930.2 1 133 2 14 7
931 1 18 1 -- 1
932 -- -- -- -- --
403 -- -- -- -- --
408 -- -- -- -- --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 -- 6 -- -- --
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-- -- -- -- --
-------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Total Expenses 811 6,114 2,301 186 2,251
----------------------------------------------------------------------------------------------------
Page 30
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
--------------------------------------------------------------------------------
DEPARTMENTAL SALARY EXPENSE
-------------------------------------------------- NUMBER
INCLUDED IN AMOUNTS BILLED TO PERSONNEL
NAME OF DEPARTMENT -------------------------------------------------- ---------
Indicate each department or TOTAL PARENT OTHER NON END OF
service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
----------------------------------- ------- ------- ---------- ---------- -------
$000 $000 $000 $000
Accounting Services 6,833 93 6,740 -- 136
Air Transportation 100 -- 100 -- 2
Auditing 1,490 31 1,459 -- 23
Consolidation Accounting 1,068 37 1,031 -- 18
Corporate Communications 865 -- 865 -- 7
Corporate Planning 489 17 472 -- 5
Corporate Secretary 252 3 249 -- 3
Corporate Treasury 1,093 20 1,073 -- 10
ED Marketing 2,262 -- 2,262 -- 39
Energy USA -- TPC 1,452 -- 1,452 -- 4
Enterprise Multimedia Communication 1,912 -- 1,912 -- 23
Environmental Affairs 6,223 42 6,181 -- 87
Executive 22,086 5,166 16,920 -- 42
Facilities Management 759 12 747 -- 16
Finance & Strategy 3,034 -- 3,034 -- 50
Fleet Management 1,496 -- 1,496 -- 25
Gas Supply 7,556 -- 7,556 -- 85
Governmental Affairs 293 -- 293 -- 2
Human Resources/ Benefits 2,205 -- 2,205 -- 40
Information Technology 33,410 2 33,408 -- 501
Investor Relations 359 4 355 -- 3
Legal 4,860 1 4,859 -- 49
Materials and Supplies 2,711 -- 2,711 -- 38
Payroll 184 -- 184 -- 9
Procurement 596 -- 596 -- 9
Reg. & Govt 2,944 -- 2,944 -- 44
Risk Management 1,443 -- 1,443 -- 13
Security 127 3 124 -- 5
Tax 1,679 49 1,630 -- 28
------- ----- ------- -- -----
Total 109,781 5,480 104,301 -- 1,316
------- ----- ------- -- -----
Page 31
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee and
included within one subaccount is less than $100,000, only the
aggregate number and the amount of all such payments included
within the subaccount need be shown. Provide a subtotal for
each type of service.
RELATIONSHIP
------------
"A"= ASSOCIATE
FOR WHOM PURCHASED ADDRESS "NA"= NON-ASSOCIATE AMOUNT
------------------ ------- ------------------ ------
$000
See schedule 923-A 72,981
Page 32
SCHEDULE 923-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
RELATIONSHIP
"A"=ASSOCIATE AMOUNT
"NA"=NON ---------------
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
------------------------------- ---------------------------------------------------------- ------------- ------ ------
1-Special Services - Audit
ARTHUR ANDERSEN LLP P.O. BOX 13882, NEWARK, NJ 07188-0882 NA 531
Total Special Services - Audit 531
------
2-Special Services - Legal
AKIN,GUMP,STRAUSS,HAUER&FELD 1900 PENNZOIL PL - SOUTH TWR, HOUSTON, TX 77002 NA 864
BAKER & DANIELS 300 N MERIDAN ST STE 2700, INDIANAPOLIS, IN 46204-1750 NA 536
BAKER, DONELSON, BEARMAN & 165 MADISON AVE STE 2000, MEMPHIS, TN 38103-2799 NA 101
BORDEN LADNER GERVAIS LLP 400 3RD AVE SW STE 1000, CALGARY, AB T2P 4H2 NA 345
BOSS&TORMEY,P.C. 952 ECHO LN STE 330, HOUSTON, TX 77024-2774 NA 359
BRICKER & ECKLER LLP 100 S THIRD ST, COLUMBUS, OH 43215-4236 NA 448
BRICKLEY, SEARS & SORETT, P.A. 75 FEDERAL ST, BOSTON, MA 02110-2699 NA 914
C.D. BENGTSON RESOURCE MGT LTD 2900, 350 - 7TH AVENUE S.W., CALGARY, ALBERTA, T2P 3NP NA 109
CRANE, GREENE & PARENTE 90 STATE STREET, ALBANY, NY 12207 NA 345
DELOITTE & TOUCHE PO BOX 840148, DALLAS, TX 75284-0148 NA 101
DOERNER,SAUNDERS,DANIELS&ANDER 320 S BOSTON AVE STE 500, TULSA, OK 74103-3725 NA 473
DRINKER, BIDDLE & REATH 1500 K STREET, WASHINGTON, DC 20005 NA 1,697
EICHHORN & EICHHORN 200 RUSSELL ST., HAMMOND, IN 46325 NA 797
HAGEMIER, ALLEN & SMITH 1170 MARKET TOWER, INDIANAPOLIS, IN 46204-2964 NA 121
HOWREY SIMON ARNOLD&WHITE LLP 1299 PENNSYLVANIA AVE NW, WASHINGTON, DC 20004-2402 NA 750
JACKSON & KELLY PO BOX 11276, CHARLESTON, WV 25339 NA 404
LEBOEUF, LAMB, GREENE & MACRAE 99 WASHINGTON AVENUE, ALBANY, NY 12210-2820 NA 165
LECG, LLC dept 33210, SAN FRANCISO, CA 94139-3210 NA 167
LEXECON P.O. BOX 3600-81, BOSTON, MA 02241-0681 NA 159
MARK W COOPER 1449 N COLLEGE AVE, INDIANAPOLIS, IN 46202-2720 NA 113
MCGUIRE WOODS ONE JAMES CENTER-ACCOUNTING, RICHMOND, VA 23219-4030 NA 471
MORGAN LEWIS AND BOCKIUS PO BOX 8500 S-6050, PHILADELPHIA, PA 19178-6050 NA 314
MORGAN, BROWN, & JOY LLP 1 BOSTON PLACE, BOSTON, MA 02108-4472 NA 135
OGLETREE, DEAKINS, NASH, SMOAK 2 FIRST NATIONAL PLAZA, CHICAGO, IL 60603 NA 106
PAUL HASTINGS 75 EAST 55TH STREET, NEW YORK, NY 10022-3205 NA 447
PORTER, WRIGHT, MORRIS & WRIGH 41 SOUTH HIGH STREET, COLUMBUS, OH 43215-6194 NA 321
REED SMITH LLP PO BOX 360074M, PITTSBURGH, PA 15251-6074 NA 848
ROBERT G KERN ESQ 1200 CRA-MER LN, CHAPEL HILL, NC 27516-8382 NA 158
ROBERTSON, FREILICH, BRUNO & COHEN, LLC, NEWARK, NJ 07102 NA 282
ROBINSON & MCELWEE LLP P.O. BOX 1791, CHARLESTON, WV 25326 NA 1,183
RUBIN & RUDMAN, LLP 50 ROWES WHARF, BOSTON, MA 02110-3319 NA 554
SCHIFF HARDIN & WAITE 6600 SEARS TOWER, CHICAGO, IL 60606-6473 NA 15,415
SIDLEY & AUSTIN 1501 K STREET NW, WASHINGTON, DC 20005 NA 283
SIDLEY AUSTIN BROWN & WOOD BANK ONE PLAZA, CHICAGO, IL 60603 NA 511
STATE OF MAINE EXECUTIVE DEPARTMENT, AUGUSTA, ME 04333-0112 NA 250
STEPTOE & JOHNSON CLARKSBURG, WV 26302-1732 NA 1,363
THELEN REID & PRIEST LLP 40 WEST 57TH STREET, NEW YORK, NY 10019-4097 NA 468
THORP REED & ARMSTRONG ONE OXFORD CENTRE, PITTSBURGH, PA 15219-1425 NA 164
240 Organizations 3,377
------
Total Special Services - Legal 35,618
======
Page 33
SCHEDULE 923-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
RELATIONSHIP
"A"=ASSOCIATE AMOUNT
"NA"=NON ----------------------
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
--------------------------------- ------------------------------------------------- ------------- --------- ---------
3- Special Services - Consulting
ACCENTURE LLP PO BOX 70629, CHICAGO, IL 60673-0629 NA 6,517
ANALYTECH CONSULTING BROADFIELD CENTER-SUITE K, MERRILLVILLE, IN 46410 NA 135
BRICKLEY, SEARS & SORETT, P.A. 75 FEDERAL ST, BOSTON, MA 02110-2699 NA 611
COMPUTER TASK GROUP INC P. O. BOX 711778, CINCINNATI, OH 45271-1778 NA 626
COMPUWARE CORPORATION DRAWER #64376, DETROIT, MI 48264-0376 NA 104
CUSTOMER INFORMATION CONSULTI CONSULTING INC, PORTER, IN 46304-2982 NA 276
DELOITTE & TOUCHE PO BOX 840148, DALLAS, TX 75284-0148 NA 193
ENERGY STRATEGIES 111 WEST 5TH STREET, TULSA, OK 74103 NA 164
F1, INC. 359 S. FRANKLIN ST., VALPARAISO, IN 46383-6423 NA 1,808
FRANK SHAMBO 26000 FITZROY ST., WESTLAKE, OH 44145 NA 234
HMB 191 W. NATIONWIDE BLVD., COLUMBUS, OH 43215 NA 197
INFORMATION CONTROL CORP. 2500 CORPORATE EXCHANGE DRIVE, COLUMBUS, OH 43231 NA 104
INFORMATION INTEGRATORS, INC. 2540 FOSSIL STONE ROAD, DYER, IN 46311-1956 NA 1,328
JAMES W TROST, CONSULTING 606 DISKIN PLACE SW, LEESBURG, VA 20175-5052 NA 209
KLS ENTERPRISES, INC 1760 STAGECOACH CT, POWELL, OH 43065-9283 NA 115
LECG LLC DEPT 33210, SAN FRANCISCO, CA 94139-3210 NA 285
NAVIGANT CONSULTING, INC. 135 S. LASALLE, CHICAGO, IL 60674-3720 NA 191
P. L. PRAIRIE, LTD 18272 EDENDERRY, NORTHVILLE, MI 48167 NA 124
PA CONSULTING SERVICES INC PO BOX 406301, ATLANTA, GA 30384-6301 NA 306
RUBINO SOFTWARE SOLUTIONS 8943 ARBOR HILL DR, HIGHLAND, IN 46322-2172 NA 103
STATEGIC GLOBAL POLICY CONSULT 17 SOUTH HIGH STREET, COLUMBUS, OH 43215 NA 275
THOMAS GREEN & ASSOCIATES LLC COLUMBUS, OH 43215-4243 NA 236
WILKERSON & ASSOCIATES 3339 TAYLORSVILLE ROAD, LOUISVILLE, KY 40205-3103 NA 477
WINTERS INVESTMENT CONSULTING 9138 S CLAREMONT STREET, CHICAGO, IL 60620 NA 192
230 Organizations 4,384
---------
Total Special Services - Consulting 19,194
---------
Page 34
SCHEDULE 923-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
RELATIONSHIP
"A"=ASSOCIATE AMOUNT
"NA"=NON ----------------------
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
--------------------------------- ----------------------------------------------------- ------------- --------- ---------
4-Special Services - Other
ADVANCED WASTE MGMT SYSTEMS PO BOX 100, HIXSON, TN 37343-0100 NA 87
A T KEARNEY PO BOX 96796, CHICAGO, IL 60693-6796 NA 4,150
ACCENTURE LLP PO BOX 70629, CHICAGO, IL 60673-0629 NA 1,045
ADDECO TECHNICAL PO BOX 371084, PITTSBURGH, PA 15250-7084 NA 195
ADECCO EMPL SVCS - PALATINE DEPT CH 14091, PALATINE, IL 60055-4091 NA 179
AT&T 7872 7872 COLLECTION CENTER DRIVE, CHICAGO, IL 60693 NA 357
BMC SOFTWARE DISTRIBUTORS, INC P.O. BOX 201040, HOUSTON, TX 77216 NA 627
CANDLE CORPORATION PO BOX 92278, CHICAGO, IL 60675-2278 NA 104
CEDAR ENTERPRISE SOLUTION ACCOUNT RECEIVABLE, BALTIMORE, MD 21275-5209 NA 207
COMPUTER ASSOCIATES INTL.,INC. PO BOX 360355, PITTSBURGH, PA 15251 NA 1,710
COMPUWARE CORPORATION DRAWER #64376, DETROIT, MI 48264-0376 NA 461
CORPORATE TRANSFER SERVICES PO BOX 691527, CINCINNATI, OH 45269-1527 NA 265
FREDERICK J. RAWSKI 18 PROVIDENCE COURT, NEWTOWN, PA 18940 NA 135
KEVIN M. CONSIDINE, P C 1 BEACON ST STE 1320, BOSTON, MA 02108-3107 NA 120
LAWSON SOFTWARE SDS 12-1095, MINNEAPOLIS, MN 55486-1095 NA 112
LEXIS-NEXIS P.O. BOX 2314, CAROL STREAM, IL 601322314 NA 183
MARKETING SERVICES BY VECTRA I 3990 BUSINESS PARK DRIVE, COLUMBUS, OH 43204 NA 212
MELLON INVESTOR SERVICES ACCOUNTING DEPARTMENT, PITTSBURGH, PA 15251-6857 NA 892
META GROUP INC PO BOX 19114, NEWARK, NJ 07195-0114 NA 324
MOSSBERG & COMPANY INC 301 E SAMPLE STREET, SOUTH BEND, IN 46601-3547 NA 204
NORTHERN INDIANA PUBLIC SERVIC 5201 INDUSTRIAL HIGHWAY, GARY, IN 46406-1125 A 753
PEOPLESOFT, USA, INC. DEPT. CH10699, PALATINE, IL 60055-0699 NA 737
POMEROY COMPUTER RESOURCES, INC., CINCINNATI, OH 452640381 NA 489
PRICEWATERHOUSE COOPERS LLP P.O. BOX 75647, CHICAGO, IL 60675-5647 NA 313
RHI CONSULTING INC P.O. BOX 6248, CAROL STREAM, IL 601976248 NA 163
SAS INSTITUTE, INC. PO BOX 406922, ATLANTA, GA 30384-6922 NA 272
SUNGARD RECOVERY SERVICES INC. CHICAGO, IL 60693 NA 145
TECHNICAL SOLUTIONS GROUP 200 CAMPUS VIEW, COLUMBUS, OH 43235 NA 138
TEKSYSTEMS P.O. BOX 198568, ATLANTA, GA 303848568 NA 277
World Com/UUnet Payment Processing Center, Richmond, VA 23285-4100 NA 144
XEROX CORPORATION P.O. BOX 802555, CHICAGO, IL 60680-2555 NA 218
701 ORGANIZATIONS 2,420
---------
Total Special Services - Other 17,638
---------
Total All Special Services 72,981
=========
Page 35
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited
to $25,000.
DESCRIPTION AMOUNT
$000
----------
Medical Expense Plan 6,972
Thrift Plan 2,873
Pension Restoration Plan 6,839
Long-Term Disability Insurance 892
Dental Assistance Plan 1,024
Employee Relocation Expense 947
Educational Assistance 459
Miscellaneous 170
Employee Cafeteria Subsidy 60
Employee Assistance Plan 272
Flexible Spending Health & Dental 46
Group Life Insurance 702
Employee Retirement Expense 3,590
----------
Total 24,846
----------
Page 36
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses," classifying the items
according to the nature of the advertising and as defined in
the account definition. If a particular class includes an
amount in excess of $3,000 applicable to a single payee, show
separately the name of the payee and the aggregate amount
applicable thereto.
--------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
------------------------------- -------------------------------- ----------
$000
Employee Recruiting/Advertising Clear Channel Outdoor 11
Employee Recruiting/Advertising Gary Steelheads 10
Employee Recruiting/Advertising Infinityesp 9
Employee Recruiting/Advertising KPC 27
Employee Recruiting/Advertising Lord, Sullivan & Yoder 20
Employee Recruiting/Advertising Marketing Services By Vectra Inc 3
Employee Recruiting/Advertising Metromedia Technologies Inc 5
Employee Recruiting/Advertising Personnel Consultants Internet 31
Employee Recruiting/Advertising Pilot News 12
Employee Recruiting/Advertising Rendell Inaugural Committee 10
Employee Recruiting/Advertising Scott Advertising 4
Employee Recruiting/Advertising Service Web Offset Corporation 20
Employee Recruiting/Advertising Shaker Advertising Agency 16
Employee Recruiting/Advertising South Bend Silver Hawks 5
Employee Recruiting/Advertising St George Broadcasting Llc 8
Employee Recruiting/Advertising The David Group 8
Employee Recruiting/Advertising The Ehrlich - Steele Inaugural 15
Employee Recruiting/Advertising The Goshen News 23
Employee Recruiting/Advertising The News-Dispatch 11
Employee Recruiting/Advertising The Times 33
Employee Recruiting/Advertising Think, Inc. 124
Employee Recruiting/Advertising Truth Publishing Company, Inc 44
Employee Recruiting/Advertising Wasserman Barry Group 28
Employee Recruiting/Advertising WJJJ/WWSW/WKST 10
Employee Recruiting/Advertising WKKJ 4
Employee Recruiting/Advertising WLJE-FM RADIO 4
Employee Recruiting/Advertising WSBA AM 910 3
Employee Recruiting/Advertising York Newspaper Company 3
Employee Recruiting/Advertising All Others 41
----------
TOTAL 542
----------
Page 37
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses," classifying such expenses
according to their nature. Payments and expenses permitted by
Section 321 (b)(2) of the Federal Election Campaign Act, as
amended by Public Law 94-283 in 1976 (2 U.S.C. Section 441
(b)(2) shall be separately classified.
--------------------------------------------------------------------------------
DESCRIPTION AMOUNT
-------------------------------- ------------
$000
Employee Recruiting 5
Dues and Memberships - Corporate 365
Aircraft Service 18
Relocation 850
Employee Training 496
Other 1,175
---------
TOTAL 2,909
---------
Page 38
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
RENTS
ACCOUNT 931
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents", classifying such expenses by major grouping of
property, as defined in the account definition of the Uniform
System of Accounts.
--------------------------------------------------------------------------------
AMOUNT
-----------
$000
Data Processing 7,676
Office Space 7,518
Air Transportation 424
Miscellaneous 3,330
Auto and General Tools 691
Communications 61
-----------
TOTAL 19,700
-----------
Page 39
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes." Separate the analysis into two groups: (1) other than
U.S. Government taxes, and (2) U.S. Government taxes. Specify
each of the various kinds of taxes and show the amounts
thereof. Provide a subtotal for each class tax.
--------------------------------------------------------------------------------
AMOUNT
------------
$000
(1) Other than U.S. Government Taxes:
Property 1,057
Sales and Use 1
Unemployment 172
License or Franchise (27)
-----------
Total - other 1,203
(2) U.S. Government Taxes:
Federal Insurance Contribution 8,551
Unemployment 90
Miscellaneous -
-----------
Total - Federal 8,641
TOTAL 9,844
-----------
Page 40
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
DONATIONS
ACCOUNT 426.1
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426-1,
"Donations," classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000
may be shown in lieu of details.
--------------------------------------------------------------------------------
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
------------------------------- ------------------- ------
$000
Calumet College Of St Joseph Community Welfare 50
Catholic Social Services Inc. Community Welfare 5
First Night Columbus Community Welfare 5
Fitz Gerald & Robbins Inc. Community Welfare 9
Indiana Environmental Institute Community Welfare 12
Indiana Fiscal Policy Institute Community Welfare 6
Lakeshore Chamber Of Commerce Community Welfare 4
Louisiana Alive!, Inc. Community Welfare 3
Operation Feed Community Welfare 4
Team Columbus Soccer LLC Community Welfare 3
Miscellaneous (362) 154
------
TOTAL 255
------
Page 41
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
OTHER DONATIONS
ACCOUNT 426.5
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions," classifying such expenses according to
their nature.
--------------------------------------------------------------------------------
DESCRIPTION AMOUNT
--------------------------------------------------------------------------------
$000
Fees 2
----------------
TOTAL 2
--------------------------------------------------------------------------------
Page 42
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
--------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish
particulars as to any significant increase in services
rendered or expenses incurred during the year. Notes relating
to financial statements shown elsewhere in this report may be
indicated here by reference.
--------------------------------------------------------------------------------
Salary and wage expense was higher $6.5 million in 2002 when compared to 2001.
This was primarily due to higher severance charges in 2002 due to a corporate
restructuring initiative. Also, NiSource Corporate Services had fewer employees
the first half of 2001 thus labor costs for the year were lower than in 2002.
Office supplies and expenses decreased approximately $26.4 million from 2001 to
2002. This primarily relates to $21.6 million of Telecommunications costs being
convenience billed in 2002 as opposed to being expensed through Corporate
Services in 2001. See schedule V-A for an analysis of Telecommunications
convenience billing. Also, travel expenses related to the merger were $1.7
million higher in 2001 than in 2002.
Outside Services decreased approximately $20 million from 2001 to 2002. $14
million of this decrease was a result of decreased Information Technology (IT)
expenses. These IT expenses were higher in 2001 due to increased spending as a
result of the merger. Legal and Auditing expenses were also $5.4 million higher
in 2001 than in 2002 as a result of additional merger related costs.
Benefits expense increased in 2002 by $6.4 million. This increase was primarily
due to increased Pension Restoration Plan expense and Retirement Income Plan
expense from 2001 to 2002.
Rent expensed was less in 2002 than 2001 by approximately $11.6 million. This
decrease was primarily due to the sale of the former Columbia Energy Group
headquarters in Herndon, Virginia in 2001. This was offset by rent expense
incurred by NiSource Corporate Services to occupy office space in Columbus, Ohio
and Merrillville, Indiana.
Page 43
NiSource Corporate Services Company Inc.
Organization Chart
-----------------------------
| Chairman, President and |
| CEO |
| Gary Neale |
-----------------------------
|
|
_______________________________________________________________________________________________________
| | | | |
------------------ ----------------------- ---------------------- ------------------------- -----------------------
| Vice Chairman | | Executive VP and | | Executive VP and | | General Counsel | | Executive VP |
| Steve Adik | | COO | | CFO | | Peter Fazio | | Human Resources & |
| | | Sam Miller | | Mike O'Donnell | | Schiff Hardin & Waite | | Communications |
| | | | | | | | | LaNette Zimmerman |
------------------ ----------------------- ---------------------- ------------------------- -----------------------
| | | |
| | | |
| ----------------------- | ---------------------- | ------------------------- | -----------------------
|--| Accounting | |--| Auditing | |--| Corporate | |--| Corporate |
| | Services | | | | | | Secretary | | | Communications |
| ----------------------- | ---------------------- | ------------------------- | -----------------------
| | | |
| ----------------------- | ---------------------- | ------------------------- | -----------------------
|--| Air Transportation | |--| Consolidation | |--| Environmental | |--| Human Resources/ |
| | | | | Accounting | | | Affairs | | Benefits |
| ----------------------- | ---------------------- | ------------------------- -----------------------
| | |
| ----------------------- | ---------------------- | -------------------------
|--| Corporate | |--| Corporate | |--| Legal |
| | Planning | | | Treasury | | | |
| ----------------------- | ---------------------- | -------------------------
| | |
| ----------------------- | ---------------------- | -------------------------
|--| ED | |--| Investor | |--| Security |
| | Marketing | | | Relations | | |
| ----------------------- | ---------------------- -------------------------
| |
| ----------------------- | ----------------------
|--| Energy USA | |--| Risk |
| | TPC | | | Management |
| ----------------------- | ----------------------
| |
| ----------------------- | ----------------------
| | Enterprise | | | Tax |
|--| Multimedia | |--| |
| | Communication | | |
| ----------------------- ----------------------
|
| -----------------------
|--| Executive |
| | |
| -----------------------
|
| -----------------------
|--| Facilities |
| | Management |
| -----------------------
|
| -----------------------
|--| Finance & |
| | Strategy |
| -----------------------
|
| -----------------------
|--| Fleet Management |
| | |
| -----------------------
|
| -----------------------
|--| Gas |
| | Supply |
| -----------------------
|
| -----------------------
|--| Governmental |
| | Affairs |
| -----------------------
|
| -----------------------
|--| Information |
| | Technology |
| -----------------------
|
| -----------------------
|--| Materials & |
| | Supplies |
| -----------------------
|
| -----------------------
|--| Payroll |
| | |
| -----------------------
|
| -----------------------
|--| Procurement |
| | |
| -----------------------
|
| -----------------------
|--| Regulatory & |
| Government |
-----------------------
Page 44
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
METHODS OF ALLOCATION
--------------------------------------------------------------------------------
The following Basis of Allocation have been approved by the SEC as a
method of allocating Job Order charges and convenience payments directly to
Associate Companies.
- Total Gross Fixed Assets and Total Operating Expenses
- Total Gross Fixed Assets
- Total Distribution Property and Distribution Expenses
- Total Production Property and Expense
- Total Storage Property and Expense
- Transmission Property and Transmission Expenses
- Total Operating Expenses and Gross Depreciable Property
- Gross Depreciable Property
- Number of Automobile Units Owned and Leased
- Number of Retail Customers
- Number of Regular Employees
- Fixed Allocation
- Number of Transportation Customers
- Total Employees and Customers
- Total Plant, State Employees and Customers
- Total Tariff and Transportation Customers
- Direct Costs
Page 45
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2002
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
--------------------------------------------------------------------------------
COMPENSATION FOR USE OF CAPITAL
SUMMARY OF BILLING TO ASSOCIATE COMPANIES
Direct &
Allocated Compensation
Company Labor Billed
------------------------------------------------ --------- ------------
$000 $000
Bay State Gas Company 160 4
Bay State Massachusetts 6,450 161
Columbia Atlantic Trading Corporation 8 0
Columbia Energy Group 131 3
Columbia Energy Group Capital Corporation 6 0
Columbia Energy Resources, Inc. 3,719 94
Columbia Energy Services Corporation 116 3
Columbia Finance Company 8 0
Columbia Gas of Kentucky, Inc. 2,180 54
Columbia Gas of Maryland, Inc. 826 21
Columbia Gas of Ohio, Inc. 14,830 370
Columbia Gas of Pennsylvania, Inc. 5,887 147
Columbia Gas of Virginia, Inc. 4,428 111
Columbia Gas Transmission Corporation 12,532 313
Columbia Gulf Transmission Company 3,111 78
NiSource Insurance Corporation, Ltd. 29 1
Columbia LNG Corporation 7 0
Columbia Network Services Corporation 18 0
Columbia Pipeline Corporation 10 0
Columbia Remainder Corporation 96 2
Columbia Service Partners 35 1
Columbia Transmission Communications Corporation 297 7
Energy USA, Inc 2,339 59
Granite Gas Transmission 102 3
IWC Resource Corporation 325 9
Kokomo Gas and Fuel Company 182 5
NiSource Capital Markets 7 0
NiSource Crossroads Pipeline 103 3
NiSource Development Company, Inc 210 5
NiSource Energy Services, Inc 40 1
NiSource Energy Technology 77 2
NiSource Finance Company 35 1
NiSource Pipeline Group, Inc 11 0
NiSource, Inc. 388 9
Northern Indiana Fuel and Light Company 413 10
Northern Indiana Public Merchant 2,321 59
Northern Indiana Public Service Company 14,012 350
Northern Utilities Maine 658 16
Northern Utilities New Hampshire 745 19
Primary Energy, Inc 913 23
SM&P Resources, Inc 30 1
------ ------
Total 77,795 1,945
====== ======
The above is a summary of the Compensation for Use of Capital billed to each
company. Attached is a sample of the annual statement sent to each associate
company. Since they are identical except for the amount billed, the summary is
included in lieu of forty-four individual statements (see page 47).
--------------------------------------------------------------------------------
Page 46
NISOURCE CORPORATE SERVICES COMPANY, INC.
COMPENSATION FOR USE OF CAPITAL
---------------------------------------------------------------
BILLED TO
COLUMBIA GULF TRANSMISSION COMPANY
DURING 2002
---------------------------------------------------------------
SYSTEM MONTHLY MANAGEMENT
INTEREST DIRECT & RATE D&A LABOR COMPENSATION
BILLING TO NET TOTAL ALLOCATED COL. 3/ BILLED TO BILLED
MONTH PARENT INCOME COMPENSATION LABOR COL. 4 CGT COL. 5 x COL. 6
--------- ------------- ------------ ------------- ------------- ---------- ------------- ---------------
(1) (2) (3) (4) (5) (6) (7)
JANUARY 163,335.62 0.00 163,335.62 5,945,687.75 0.02747 940,147.22 25,827.04
FEBRUARY 163,335.62 0.00 163,335.62 5,915,849.92 0.02761 933,499.86 25,773.77
MARCH 163,335.62 0.00 163,335.62 6,046,350.40 0.02701 940,133.69 25,396.70
APRIL 163,335.62 0.00 163,335.62 6,638,843.45 0.02460 1,056,681.87 25,997.57
MAY 163,335.62 0.00 163,335.62 6,587,302.69 0.02480 1,062,697.12 26,350.13
JUNE 163,335.62 0.00 163,335.62 6,663,400.96 0.02451 1,093,563.29 26,805.81
JULY 163,335.62 0.00 163,335.62 6,622,468.70 0.02466 1,058,792.54 26,113.91
AUGUST 163,335.62 0.00 163,335.62 7,046,832.69 0.02318 1,158,392.20 26,849.89
SEPTEMBER 163,335.62 0.00 163,335.62 6,632,867.66 0.02463 1,142,590.97 28,136.52
OCTOBER 163,335.62 0.00 163,335.62 7,059,870.39 0.02314 1,158,303.71 26,798.26
NOVEMBER 162,004.84 0.00 162,004.84 6,404,240.69 0.02530 1,024,135.73 25,907.04
DECEMBER 150,028.04 0.00 150,028.04 6,231,703.29 0.02407 962,723.51 23,177.54
------------- ------------ ------------- ------------- ---------- ------------- -------------
1,945,389.08 0.00 1,945,389.08 77,795,418.59 0.30098 12,531,661.71 313,134.18
============= ============ ============= ============= ========== ============= =============
--------------------------------------------------------------------------------
Page 47
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of 1935
and the rules and regulations of the Securities and Exchange Commission issued
thereunder, the undersigned company has duly caused this report to be signed on
its behalf by the undersigned officer thereunto duly authorized.
NISOURCE CORPORATE SERVICES COMPANY, INC.
By:
------------------------------------------
Vincent DeVito
Controller
Date: April 30, 2003
--------------------------------------------------------------------------------
Page 48