Larry Nowicki

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Credit coringA Help to Low Income Customers

• Presented by
• Larry Nowicki
• Manager, Regulatory Compliance
• Thursday, June 16, 2005

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ABOUT NISOURCE

• Fortune 500 holding company headquartered in
  Merrillville, Indiana.
• 15 subsidiary companies engage in natural gas
  transmission, storage distribution as well as
  electric generation, transmission distribution.
• Deliver energy to more than 3.7 million customers
  in high energy corridor stretching from the Gulf
  Coast through the Midwest to New England.
• Over 16,000 miles of interstate transmission
  pipeline 55,000 miles of distribution pipeline.
• Over 9,000 employees.
• Income from continuing operations of 430 million
  in 2004.

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ABOUT NISOURCE

• Northern Indiana Public Service Northern Indiana
  Fuel Light
• Kokomo Gas
• Customers
• Electric - 443,000
• Gas 776,000

• Bay State Gas/Northern Utilities
• Customers
• Mass. 279,000
• N.H. 26,000
• Maine 24,000

• Columbia Gas
• Customers
• Ohio 1,400,000
• Pennsylvania 401,000
• Virginia 209,000
• Kentucky 141,000
• Maryland 32,000

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Low-Income Customers

• 70,038 Average number of low-income customers.
• 357,006 Average All Residential Customers

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Credit Scoring Timeline
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123-45-6789
JOE SCHMO
222 W MAINRED LION
123-45-6789
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Application Process

• First Contact with Customer
• Screening
• Early referrals to Universal Services

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Results
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Results

• Verification
• 11 of customers who were credit scored were low
  income

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Results
Columbia Gas of Pennsylvania Inc.Credit Scoring
Pilot Program ReportSummary of Period June 2001
Through October 2003
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Results

• Waived deposits
• Number of deposits X average deposit amount

• 5,381 X 162 savings for low income
• customers

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Results

• Number of deposits waived X average CAP
  Charge-off

• 5,381 X 762 avoided costs to utility for
  charge-off

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Results

• Other utility bottom line benefits
• Cash working capital
• Reduced collection costs due to early
  identification

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Results

• Fewer complaints
• 17 complaints over four years

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Results

• Affordable benefits
• CAP payment credit (51) X number of waived CAP
  security deposits total payment credit for CAP
  customers who were credit scored

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Benefits of Credit Scoring

• Waived security deposits
• Affordable payment plans
• Energy assistance
• Building good credit
• Promotes goodwill with company

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Credit Scoring
vs.
Low Income Help
Utility Benefit
WIN/WIN