FORM U-3A-2 SECURITIES AND EXCHANGE COMMISSION. NIPSCO Industries, Inc.

Transcription

1 FORM U-3A-2 File No SECURITIES AND EXCHANGE COMMISSION Washington, D. C. Statement by Holding Company Claiming Exemption Under Rule U-2 from Provisions of the Public Utility Holding Company Act of 1935 To be filed annually prior to March 1 NIPSCO Industries, Inc. (Name of Company) hereby files with the Securities and Exchange Commission, pursuant to Rule U-2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935 and submits the following information: 1. Name, State of organization, location and nature of business of claimant and every subsidiary thereof other than any exempt wholesale generator (EWG) or foreign utility company in which claimant directly or indirectly holds an interest.

2 State of Nature of Name of Company Organization Location Business == === ======= ==== NIPSCO Industries, Inc. Indiana Hammond, Indiana Holding company 801 East Corp. Indiana Merrillville, Management Indiana services Hamilton Harbour Indiana Hammond, Indiana Captive Services, Ltd. insurance program Kokomo Gas and Fuel Indiana Kokomo, Indiana Gas utility Company Lakeside Energy Indiana Merrillville, Electric Corporation Indiana generator project NIPSCO Capital Markets, Indiana Hammond, Indiana Funding agent Inc. for all non-utility ventures NIPSCO Development Indiana Hammond, Indiana Investments Company, Inc. including real estate Analytic Systems Indiana Hobart, Indiana Fluid Laboratories, Inc. (1) filtration systems G. R. Clark Corporation Indiana Hobart, Indiana Design of (2) pollution control systems Harbor Coal Company (2) Indiana Hammond, Indiana Coal pulverization joint venture JOF Transportation Indiana Hammond, Indiana Rail freight Company (2) joint-venture Lake Erie Land Company Indiana Hammond, Indiana Development (2) of commercial real estate SCC Services, Inc. (3) Indiana Hammond, Indiana Operation of golf course KOGAF Enterprises, Inc. Indiana Kokomo, Indiana Real estate (2) investments Metals Technology Indiana Shirley, Indiana Metals Corporation (4) foundry NDC Douglas Properties, Indiana Hammond, Indiana Affordable Inc. (2) housing projects NIPSCO International Indiana Hammond, Indiana Investing in Power System Company (2) overseas power

3 2. A brief description of the properties of claimant and each of its subsidiary public utility companies used for the generation, transmission and distribution of electric energy for sale, or for the production, transmission, and distribution of natural or manufactured gas, indicating the location of principal generating plants, transmission lines, producing fields, gas manufacturing plants, and electric and gas distribution facilities, including all such properties which are outside the State in which claimant and its subsidiaries are organized and all transmission or pipelines which deliver or receive electric energy or gas at the borders of such State. The claimant, NIPSCO Industries, Inc. (Industries), owns no physical properties. All the physical properties of Northern Indiana Public Service Company (Northern Indiana), Kokomo Gas and Fuel Company (Kokomo Gas) and Northern Indiana Fuel and Light Company, Inc. (NIFL) are located in the State of Indiana. Crossroads Pipeline Company (Crossroads) owns a 202-mile natural gas pipeline running from northwest Indiana to Cygnet, Ohio. Only the Indiana portion of the line is presently in service as an intrastate gas pipeline. The only significant real properties owned by other subsidiaries of Industries are: the Southlake Complex, a 325,000 square foot office building in Merrillville, Indiana, leased to Northern Indiana and owned by NIPSCO Development Company, Inc. (Development); a 36-mile intrastate natural gas pipeline, located in southern Texas and half-owned by NI-TEX, Inc.; a golf course and surrounding residential development in Chesterton, Indiana, owned by Lake Erie Land Company; and commercial real estate joint ventures, half-owned by KOGAF Enterprises, located in Kokomo, Indiana. Northern Indiana Public Service Company. Northern Indiana is a public utility operating company engaged in supplying natural gas and electrical energy to the public. It operates in 30 counties in the northern part of Indiana, serving an area of about 12,000 square miles with a population of approximately 2.2 million. Northern Indiana, at December 31, 1994, served approximately 631,800 customers with gas and approximately 400,500 with electricity. ELECTRIC. Northern Indiana owns and operates four electric generating stations using fossil fuels with net capability of 3,179,000 kilowatts (kw), two hydroelectric generating plants with rated net capabilities of 10,000 kw, four gas fired combustion turbine generating units with net capabilities of 203,000 kw, for a total system capacity of 3,392,000 kw. All of Northern Indiana's generating units are located in Northwest Indiana. Northern Indiana has 292 substations with an aggregate transformer capacity of 22,575,400 KVA. Its transmission system with voltages from 34,500 to 345,000 consists of approximately 3,050 circuit miles of line. The electric distribution system extends into 21 counties and consists of approximately 7,684 circuit miles of overhead and approximately 1,156 cable miles of underground primary distribution lines operating at various voltages from 2,400 to 12,500 volts. GAS. In 1994, all of the gas was transported by Natural Gas Pipeline Company of America (Natural), Midwestern Gas Transmission Company (Midwestern), Panhandle Eastern Pipe Line Company (Panhandle), Trunkline Gas Company (Trunkline) and ANR Pipeline Company (ANR). Approximately 20% of Northern Indiana's 1994 gas supply was purchased from the spot market and generally on a 30-day agreement. The transportation and storage rates of Natural, Midwestern, Panhandle, Trunkline and ANR to Northern Indiana are subject to change in accordance with rate proceedings filed with the Federal Energy Regulatory Commission. Northern Indiana has in operation an underground gas storage field at Royal Center, Indiana, which currently has a storage capacity of 6.75 million Mcf. In addition, Northern Indiana has several gas storage service agreements which make possible the withdrawal of substantial quantities of gas from other storage facilities. All of the storage agreements have limitations on the daily withdrawal volumes and the timing thereof. Northern Indiana has a liquefied natural gas plant in LaPorte County,Indiana, which is designed for peak shaving and has the following capacities: maximum storage of 4,000,000 Mcf; maximum liquefaction rate (gas to liquid), 20,000 Mcf per day; maximum vaporization rate (output to distribution system), 400,000 Mcf per day. Northern Indiana has approximately 12,854 miles of gas mains. OTHER PROPERTIES. Northern Indiana owns and has a substantial investment in offices and service buildings, salesrooms, garages, repair shops, motor vehicles, construction equipment and tools, and office furniture and equipment, and also leases offices and storerooms in various localities. It also owns miscellaneous parcels of real estate not now used in utility operations. Kokomo Gas and Fuel Company. Kokomo Gas is a public utility operating company which provides natural gas and natural gas transportation services to approximately 31,500 customers at December 31, Kokomo's service territories include all of Howard County, and parts of Carroll, Cass, Clinton, Miami, and Tipton Counties in Indiana. Kokomo's service area has a population in excess of 100,000 people and includes 23 cities, towns, and communities. Kokomo Gas purchased gas on the spot market from NI-TEX, Inc. a subsidiary of NIPSCO Energy Services, Inc., to satisfy all of its system requirements in 1994.

4 Kokomo Gas has a liqueified natural gas plant in Howard County which has the following capacities: maximum storage of 400,000 Mcf; maximum liquefication rate (gas to liquid), 2,850 Mcf per day; maximum vaporization rate (output to distribution system), 30,000 Mcf per day. Kokomo Gas also has a gas holder with a storage capacity of 12,000 Mcf. Kokomo Gas has approximately 719 miles of mains. Northern Indiana Fuel and Light Company, Inc. NIFL is a public utility operating company which provides natural gas and natural gas transportation services to approximately 29,800 customers at December 31, NIFL's service territories include all of DeKalb and Steuben, and parts of Allen, LaGrange, and Noble Counties in Indiana. NIFL's service area has a population in excess of 66,700 people and includes 22 cities, towns, and communities. NIFL purchased gas on the spot market from a number of suppliers including NI-TEX, Inc., a subsidiary of NIPSCO Energy Services, Inc., to satisfy all of its system requirements in NIFL has approximately 751 miles of gas mains. Crossroads Pipeline Company. In April 1993, Industries purchased a 20-inch crude-oil pipeline that extends from near the Illinois-Indiana state line east 202 miles to Cygnet, Ohio. The Crossroads line has been converted from oil to natural gas and was approved in late December, 1993, by the Indiana Utility Regulatory Commission as an intrastate gas pipeline. Crossroads was in operation during The following information for the year 1994 with respect to claimant and each of its subsidiary public utility companies: (a) Number of Kwh of electric energy sold (at retail or wholesale) and Mcf of natural or manufactured gas distributed at retail. Total Electric Retail Gas Sales Distributed Company (Kwh) (Mcf) = ===== === Northern Indiana Public Service Company 15,536,393, ,215,335 Kokomo Gas and Fuel Company NONE 8,057,901 Northern Indiana Fuel and Light Company, Inc. NONE 8,626,056 </TABLE) (b) Number of Kwh of electric energy and Mcf of natural or manufactured gas distributed at retail outside the State in which each such company is organized. NONE. (c) Number of Kwh of electric energy and Mcf of natural or manufactured gas sold at wholesale outside the State in which each such company is organized, or at the State line.

5 Electric Sales Gas Sales Company (Kwh) (Mcf) = ===== === Northern Indiana Public Service Company 188,417,000* NONE Kokomo Gas and Fuel Company NONE NONE Northern Indiana Fuel and Light Company, Inc. NONE NONE * Sold 101,098,000 Kwh to Consumers Power Company at the Indiana-Michigan state line, 8,013,000 Kwh to Central Illinois Public Service Company at the Indiana-Illinois state line, and 79,306,000 Kwh to Commonwealth Edison Company, Inc. at the Indiana-Illinois state line. (d) Number of Kwh of electric energy and Mcf of natural or manufactured gas purchased outside the State in which each such company is organized or at the State line. Electric Purchases Gas Purchases Company (Kwh) (Mcf) = ===== === Northern Indiana Public Service Company 694,912,000** NONE Kokomo Gas and Fuel Company NONE NONE Northern Indiana Fuel and Light Company, Inc. NONE NONE ** Purchased 10,904,000 Kwh from Consumers Power Company at the Indiana-Michigan state line, 60,028,000 Kwh from Central Illinois Public Service Company at the Indiana-Illinois state line, and 623,980,000 Kwh from Commonwealth Edison Company, Inc. at the Indiana-Illinois state line. 4. The following information for the reporting period with respect to claimant and each interest it holds directly or indirectly in an EWG or a foreign utility company, stating monetary amounts in United States dollars: (a) Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation,transmission and distribution of electric energy for sale or for the distribution at retail of natural or manufactured gas. Elm Energy and Recycling (UK) Ltd. ("Elm Energy"), an exempt wholesale generator, is a whole tires-to-energy facility whose registered address is Sparklemore House, Biddings Lane, Bilston, Wolverhampton WV159NN, England. The facility incinerates waste tires, raises steam and generates electricity for export to the grid. (b) Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held. Development holds a 95% equity ownership position in Elm Energy. (c) Type and amount of capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company.

6 Industries invested $23,121,000 for Ordinary Shares of Elm Energy indirectly through Development. Industries has provided no guarantees nor is there any debt having recourse to Industries. (d) Capitalization and earnings of the EWG or foreign utility company during the reporting period. Elm Energy and Recycling (UK) Ltd. (Dollars in 1994 thousands) ======== == Capitalization at December 31, 1994: Shareholders' equity $17,993 Long-term debt 37,868 Total $55,861 ======= Net income $ 369 ======= (e) Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s). Pursuant to the Engineering Services Agreement dated June 22, 1994 between Elm Energy and Development, Development has agreed to provide personnel to supervise the engineering operations and planning related to the Whole Tyre Recycling Facility at Wolverhampton. Development is to be paid 250,000 pounds sterling yearly for these services with quarterly invoicing in arrears. Development received $194, in payment of these services during 1994.

7 ARTICLE OPUR3 This schedule contains summary financial information extracted from the financial statements of NIPSCO Industries, Inc. for twelve months ended December 31, 1994, and is qualified in its entirety by reference to such financial statements. MULTIPLIER: 1,000 PERIOD TYPE 12 MOS FISCAL YEAR END DEC PERIOD START JAN PERIOD END DEC BOOK VALUE PER BOOK TOTAL ASSETS 3,944,543 TOTAL OPERATING REVENUES 1,676,401 NET INCOME 163,987

8 (EXHIBIT A) December 31, 1994 ORGANIZATION CHART A.1 NIPSCO Industries, Inc. A East Corp.: Income Statement (No Activity) Statement of Retained Earnings (None - Zero Amounts) A.3 Hamilton Harbour Insurance Services, Ltd.: Income Statement (No Activity) Statement of Retained Earnings (None - Zero Amounts) A.4 Kokomo Gas and Fuel Company A.5 Lakeside Energy Corporation: Balance Sheet (None - Zero Amounts) Income Statement (No Activity) Statement of Retained Earnings (None - Zero Amounts) A.6 NIPSCO Capital Markets, Inc. A.7 NIPSCO Development Company, Inc. A.8 Analytic Systems Laboratories, Inc. A.9 G. R. Clark Corporation A.10 Harbor Coal Company A.11 JOF Transportation Company A.12 Lake Erie Land Company A.13 SCC Services, Inc. A.14 KOGAF Enterprises, Inc. A.15 Metals Technology Corporation A.16 NDC Douglas Properties, Inc. A.17 NIPSCO International Power Systems Company: Income Statement (No Activity) A.18 NIPSCO Security Services, Inc. A.19 Process and Control Technology Corporation: Income Statement (No Activity) A.20 Riverside Caloric Company A.21 RIC, Inc. A.22 Cardinal Property Management, Inc. A.23 NIPSCO Energy Services, Inc. A.24 Crossroads Pipeline Company A.25 NIPSCO Energy Trading Corp. A.26 NIPSCO Fuel Company, Inc. A.27 NFCO Acquisition Company A.28 NI-TEX, Inc. A.29 Triumph Natural Gas, Inc.: Balance Sheet (None - Zero Amounts) Income Statement (No Activity) Statement of Retained Earnings (None - Zero Amounts) A.30 Northern Indiana Fuel & Light Company, Inc. A.31 Northern Indiana Trading Company A.32 Northern Indiana Public Service Company A.33 NIPSCO Exploration Company, Inc. A.34 Shore Line Shops, Incorporated A.35 North Lake Energy Corporation: Income Statement (No Activity) Statement of Retained Earnings (None - Zero Amounts)

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10 A.1 NIPSCO INDUSTRIES, INC. CONSOLIDATED BALANCE SHEET December 31, 1994 ASSETS Utility Plant, At Original Cost (including construction work in progress of $221,830): Electric $3,858,118 Gas 1,258,801 Common 316,120 5,433,039 Less-Accumulated provision for depreciation and amortization 2,202,082 Total Utility Plant 3,230,957 Other Property and Investments: Other property, at cost, less accumulated provision for depreciation 126,632 Investments, at equity 27,023 Investments, at cost 10,355 Total Other Property and Investments 164,010 Current Assets: Cash and cash equivalents 40,441 Accounts receivable, less reserve of $4,899 86,299 Fuel adjustment clause 1,614 Gas cost adjustment clause 25,972 Materials and supplies, at average cost 66,397 Electric production fuel, at average cost 18,347 Natural gas in storage, at last-in, first-out cost 77,794 Payments and other 11,081 Total Current Assets 327,945 Other Assets: Regulatory assets 195,449 Deferred charges and other non-current assets 26,182 Total Other Assets 221,631 TOTAL ASSETS $3,944,543 CAPITALIZATION AND LIABILITIES Capitalization: Common shareholders' equity $1,107,848 Preferred stocks - Northern Indiana Public Service Company: Series without mandatory redemption provisions 86,389 Series with mandatory redemption provisions 66,057 NIPSCO Industries, Inc.: Series with mandatory redemption provisions 35,000 Long-term debt, excluding amounts due within one year 1,180,338 Total Capitalization 2,475,632 Current Liabilities: Obligations due within one year - Northern Indiana Public Service Company: Commercial paper 156,500 First Mortgage Bonds - Series N, 4-5/8% - due May 15, ,436 Notes payable -

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12 A.1 NIPSCO INDUSTRIES, INC. CONSOLIDATED INCOME STATEMENT December 31, 1994 Operating Revenues: Gas $ 681,909 Electric 994,492 1,676,401 Cost of Energy: Gas costs 403,437 Fuel for electric generation 247,134 Power purchased 32, ,074 Operating Margin 993,327 Operating Expenses and Taxes (except income): Operation 287,766 Maintenance 80,170 Depreciation and amortization 194,283 Taxes (except income) 72, ,446 Operating Income Before Utility Income Taxes 358,881 Utility Income Taxes 97,732 Operating Income 261,149 Other Income (Deductions): Other, net 2,216 Income Before Interest and Other Charges 263,365 Interest and Other Charges: Interest on long-term debt 78,292 Other interest 11,650 Allowance for borrowed funds used during construction and carrying charges (4,374) Amortization of premium, reacquisition premium, discount and expense on debt, net 3,897 Dividend requirements on preferred stocks of subsidiary 9,913 99,378 Net Income 163,987 Dividend Requirements on Preferred Shares 3,063 Balance Available for Common Shareholders $ 160,924 Average Common Shares Outstanding 64,820,039 Earnings Per Average Common Share $ 2.48 Dividends Declared Per Common Share $ 1.47

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14 CONSOLIDATED STATEMENT OF COMMON SHAREHOLDERS' EQUITY December 31, 1994 Additional Common Paid-In Total Shares Capital Balance, December 31, 1993 $1,094,672 $ 870,930 $ 27,631 Net income 163,987 Dividends: Preferred shares (3,063) Common shares (94,803) Treasury shares acquired (58,717) Issued: Employee stock purchase plan Long-term incentive plan 1, Other 3,725 1,702 Balance, December 31, 1994 $1,107,848 $ 870,930 $ 29,657 Unearned Retained Treasury Compen- Earnings Shares sation Balance, December 31, 1993 $ 380,888 $ (180,212) $ (1,684) Net income 163,987 Dividends: Preferred shares (3,063) Common shares (94,803) Treasury shares acquired (58,717) Issued: Employee stock purchase plan 305 Long-term incentive plan 1,431 (13) Other (81) 727 Balance, December 31, 1994 $ 446,928 $ (237,193) $ (970) (Dollars in Thousands) Shares Currency Translation Common Treasury Adjustment Shares Shares Balance, December 31, 1993 $ (2,881) 73,892,109 (8,063,271) Net income Dividends: Preferred shares Common shares

15 A EAST CORP. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 149 Accounts receivable - associated companies 237 Total Current Assets 386 $ 386 TOTAL ASSETS CAPITALIZATION AND LIABILITIES Current Liabilities: Total accounts payable $ 177 Taxes accrued (3) Notes payable to associated companies 256 Taxes withheld payables (44) Total Current Liabilities 386 TOTAL LIABILITIES $ 386 A EAST CORP. INCOME STATEMENT (No Activity) $ 0 A East Corp. STATEMENT OF RETAINED EARNINGS (None - Zero Amounts) $ 0

16 A.3 HAMILTON HARBOUR INSURANCE SERVICES, LTD. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Prepayments $ 40 Total Current Assets TOTAL ASSETS $ CAPITALIZATION AND LIABILITIES Current Liabilities: Total accounts payable $ 40 Total Current Liabilities TOTAL LIABILITIES $ A.3 HAMILTON HARBOUR INSURANCE SERVICES, LTD. INCOME STATEMENT (No Activity) $ 0 A.3 HAMILTON HARBOUR INSURANCE SERVICES, LTD. STATEMENT OF RETAINED EARNINGS (None - Zero Amounts) $ 0

17 A.4 KOKOMO GAS AND FUEL COMPANY BALANCE SHEET December 31, 1994 ASSETS Utility Plant: Utility Plant $ 67,506 Less - accumulated provision for depreciation (24,271) Total Utility Plant 43,235 Other Property and Investments: Investments at cost 5 Total Other Property and Investments 5 Current Assets: Cash and cash equivalents 2,664 Accounts receivable, less reserve 3,281 Gas cost adjustment clause (1,561) Material and supplies at average cost 333 Natural gas in storage, at LIFO cost 2,273 Prepayments and other 6,502 Total Current Assets 13,492 Other Assets: Regulatory assets 167 Deferred charges and other 48 Total Other Assets 215 TOTAL ASSETS $ 56,947 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 46,170 Retained earnings (605) Total Capitalization 45,565 Current Liabilities: Total accounts payable 3,310 Customer deposits 443 Taxes accrued 1,315 Interest accrued 132 Other accruals 126 Total Current Liabilities 5,326 Other: Deferred income taxes 2,354 Deferred income tax credits amortized 753 Deferred credits 2 Regulatory income tax liability 1,644 Other non-current liabilities 1,303 Total Other 6,056 TOTAL LIABILITIES $ 56,947

18 A.4 KOKOMO GAS AND FUEL COMPANY INCOME STATEMENT Operating Revenues: Gas $ 31,164 Other income (183) Total 30,981 Operating Expenses and Taxes: Gas costs 19,946 Operation expenses 3,516 Administrative and general expenses 3,338 Taxes other than income 965 Interest expense 24 Tax expense 1,122 Total 28,911 Net Income (Loss) $ 2,070 A.4 KOKOMO GAS AND FUEL COMPANY STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (275) Net Income 2,070 Dividends declared common (2,400) Balance at End of Year $ (605) A.5 LAKESIDE ENERGY CORPORATION BALANCE SHEET December 31, 1994 (None - Zero Amounts) $ 0

19 A.5 LAKESIDE ENERGY CORPORATION INCOME STATEMENT (No Activity) $ 0 A.5 LAKESIDE ENERGY CORPORATION STATEMENT OF RETAINED EARNINGS (None - Zero Amounts) $ 0

20 A.6 NIPSCO CAPITAL MARKETS, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 6 Accounts receivable - associated companies 1,062 Notes receivable - associated companies 130,227 Prepayments 131 Total Current Assets 131,426 Other Assets: Deferred charges and other 444 Total Other Assets 444 TOTAL ASSETS $ 131,870 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1,000 Retained earnings 2,206 Retained earnings - current year 366 NIPSCO Industries, Inc: Long-term debt other 65,873 Unamortized discount - long term debt (9) Total Capitalization 69,436 Current Liabilities: Commercial paper - NIPSCO Capital Markets, Inc. 49,600 Notes payable - NIPSCO Capital Markets, Inc. 12,700 Total accounts payable 34 Interest accrued 97 Total Current Liabilities 62,431 Other: Deferred credits 3 Total Other 3 TOTAL LIABILITIES $ 131,870

21 A.6 NIPSCO CAPITAL MARKETS, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ 8,208 Total 8,208 Operating Expenses and Taxes: Administrative and general expenses 57 Taxes other than income 1 Interest expense 7,574 Tax expense 210 Total 7,842 Net Income (Loss) $ 366 A.6 NIPSCO CAPITAL MARKETS, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 2,206 Net Income 366 Balance at End of Year $ 2,572

22 A.7 NIPSCO DEVELOPMENT COMPANY, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 1,918 Notes receivable 427 Other accounts receivable 161 Accounts receivable - associated companies 3,632 Notes receivable - associated companies 1,515 Prepayments 21 Total Current Assets 7,674 Other Property and Investments: Other property at cost less depreciation 11,094 Investments at equity 24,521 Investments at cost 4,842 Total Other Property and Investments 40,457 Other Assets: Deferred charges and other 76 Total Other Assets 76 TOTAL ASSETS $ 48,207 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Foreign currency translation adjustment (1,504) Retained earnings (7,193) Retained earnings - current year (8,091) Total Capitalization (16,787) Current Liabilities: Total accounts payable 3,390 Taxes accrued 672 Notes payable to associated companies 63,393 Total Current Liabilities 67,455 Other: Deferred income taxes (2,690) Deferred credits 229 Total Other (2,461) TOTAL LIABILITIES $ 48,207

23 A.7 NIPSCO DEVELOPMENT COMPANY, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ 3,343 Other income (1,858) Total 1,485 Operating Expenses and Taxes: Administrative and general expenses 2,614 Taxes other than income 72 Depreciation expense 341 Interest expense 4,425 Tax expense (2,595) Total 4,857 Income (Loss) Before Subsidiaries (3,372) Subsidiary Gain (Loss) (4,719) Net Income (Loss) $ (8,091) A.7 NIPSCO DEVELOPMENT COMPANY, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (7,194) Net Income (8,091) Balance at End of Year $ (15,285)

24 A.8 ANALYTIC SYSTEMS LABORATORIES, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 21 Other accounts receivable 81 Material and supplies at average cost 81 Prepayments 2 Total Current Assets 185 Other Property and Investments: Other property at cost less depreciation 97 Total Other Property and Investments 97 Other Assets: Deferred charges and other 3 Total Other Assets 3 TOTAL ASSETS $ 285 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 561 Retained earnings (1,672) Retained earnings - current year (935) Total Capitalization (2,046) Current Liabilities: Total accounts payable 807 Notes payable to associated companies 1,515 Other accruals 9 Total Current Liabilities 2,331 TOTAL LIABILITIES $ 285

25 A.8 ANALYTIC SYSTEMS LABORATORIES, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ 749 Other income 5 Total 754 Operating Expenses and Taxes: Operating expenses 275 Administrative and general expenses 1,202 Taxes other than income 21 Depreciation expense 23 Interest expense 168 Total 1,689 Net Income (Loss) $ (935) A.8 ANALYTIC SYSTEMS LABORATORIES, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (1,672) Net Income (935) Balance at End of Year $ (2,607)

26 A.9 G. R. CLARK CORPORATION BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 561 Other accounts receivable 766 Accounts receivable - associated companies 135 Prepayments 15 Total Current Assets 1,477 Other Property and Investments: Other property at cost less depreciation 17 Total Other Property and Investments 17 Other Assets: Deferred Charges and Other 12 Total Other Assets 12 TOTAL ASSETS $ 1,506 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Additional paid-in-capital 2,236 Retained earnings (813) Retained earnings - current year (173) Total Capitalization 1,251 Current Liabilities: Total accounts payable 69 Notes payable to associated companies 3 Other accruals 27 Total Current Liabilities 99 Other: Deferred income taxes 156 Total Other 156 TOTAL LIABILITIES $ 1,506

27 A.9 G. R. CLARK CORPORATION INCOME STATEMENT Operating Revenues: Total operating revenue $ 294 Other income (13) Total 281 Operating Expenses and Taxes: Operating expenses 272 Administrative and general expenses 274 Interest expense 17 Tax expense (109) Total 454 Net Income (Loss) $ (173) A.9 G. R. CLARK CORPORATION STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (813) Net Income (173) Balance at End of Year $ (986)

28 A.10 HARBOR COAL COMPANY BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 5 Accounts receivable - associated companies 2,311 Prepayments 33 Total Current Assets 2,349 Other Property and Investments: Investments at equity (322) Total Other Property and Investments (322) TOTAL ASSETS $ 2,027 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings (249) Retained earnings - current year (3,327) Total Capitalization (3,575) Current Liabilities: Total accounts payable 325 Notes payable to associated companies 6,910 Total Current Liabilities 7,235 Other: Deferred income taxes (1,633) Total Other (1,633) TOTAL LIABILITIES $ 2,027

29 A.10 HARBOR COAL COMPANY INCOME STATEMENT Operating Revenues: Total operating revenue $ (4,939) Total (4,939) Operating Expenses and Taxes: Administrative and general expenses 101 Taxes other than income 51 Interest expense 300 Tax expense (2,064) Total (1,612) Net Income (Loss) $ (3,327) A.10 HARBOR COAL COMPANY STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (249) Net Income (3,327) Balance at End of Year $ (3,576)

30 A.11 JOF TRANSPORTATION COMPANY BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 2,538 Accounts receivable - associated companies 122 Total Current Assets 2,660 Other Property and Investments: Investments at equity 2,284 Total Other Property and Investments 2,284 TOTAL ASSETS $ 4,944 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings 2,999 Retained earnings - current year 955 Total Capitalization 3,955 Current Liabilities: Total accounts payable 585 Taxes accrued (55) Total Current Liabilities 530 Other: Deferred income taxes 459 Total Other 459 TOTAL LIABILITIES $ 4,944

31 A.11 JOF TRANSPORTATION COMPANY INCOME STATEMENT Operating Revenues: Total operating revenue $ 1,412 Other income 75 Total 1,487 Operating Expenses and Taxes: Administrative and general expenses 1 Taxes other than income (4) Tax expense 535 Total 532 Net Income (Loss) $ 955 A.11 JOF TRANSPORTATION COMPANY STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 2,999 Net Income 955 Balance at End of Year $ 3,954

32 A.12 LAKE ERIE LAND COMPANY BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 294 Notes receivable 375 Other accounts receivable 194 Accounts receivable - associated companies 1,599 Material and supplies at average cost 967 Prepayments 142 Total Current Assets 3,571 Other Property and Investments: Other property at cost less depreciation 7,909 Investments at equity 56 Investments at cost 3,211 Total Other Property and Investments 11,176 TOTAL ASSETS $ 14,747 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Additional paid-in capital 6,050 Retained earnings (1,994) Retained earnings - current year (909) Long term debt excluding amounts due 3,155 Total Capitalization 6,303 Current Liabilities: Total accounts payable 1,324 Customer deposits 8 Taxes accrued 76 Interest accrued 20 Notes payable to associated companies 6,856 Other accruals 128 Total Current Liabilities 8,412 Other: Deferred income taxes 23 Deferred credits 9 Total Other 32 TOTAL LIABILITIES $ 14,747

33 A.12 LAKE ERIE LAND COMPANY INCOME STATEMENT Operating Revenues: Total operating revenue $ 2,058 Other income (372) Total 1,686 Operating Expenses and Taxes: Operating expenses 529 Administrative and general expenses 1,107 Taxes other than income 40 Depreciation expense 406 Interest expense 753 Tax expense (361) Total 2,474 Income (Loss) Before Subsidiaries (788) Subsidiary Gain (Loss) (121) Net Income (Loss) $ (909) A.12 LAKE ERIE LAND COMPANY STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (1,994) Net Income (909) Balance at End of Year $ (2,903)

34 A.13 SCC SERVICES, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 109 Other accounts receivable 96 Accounts receivable - associated companies 1,038 Material and supplies at average cost 144 Total Current Assets 1,387 Other Assets: Deferred charges and other 29 Total Other Assets 29 TOTAL ASSETS $ 1,416 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Additional paid-in-capital 57 Retained earnings 119 Retained earnings - current year (121) Total Capitalization 56 Current Liabilities: Total accounts payable 1,280 Total Current Liabilities 1,280 Other: Deferred credits 80 Total Other 80 TOTAL LIABILITIES $ 1,416

35 A.13 SCC SERVICES, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ 2,578 Total 2,578 Operating Expenses and Taxes: Administrative and general expenses 2,634 Taxes other than income 138 Tax expense (73) Total 2,699 Net Income (Loss) $ (121) A.13 SCC SERVICES, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 119 Net Income (121) Balance at End of Year $ (2)

36 A.14 KOGAF ENTERPRISES, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 42 Notes receivable 605 Other accounts receivable 188 Total Current Assets 835 Other Property and Investments: Other property at cost less depreciation 243 Investments at equity 1,551 Total Other Property and Investments 1,794 TOTAL ASSETS $ 2,629 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 2,103 Retained earnings 29 Retained earnings - current year 188 Total Capitalization 2,320 Current Liabilities: Total accounts payable 3 Taxes accrued 52 Notes payable to associated companies 300 Total Current Liabilities 355 Other: Deferred income taxes (46) Total Other (46) TOTAL LIABILITIES $ 2,629

37 A.14 KOGAF Enterprises, Inc. INCOME STATEMENT Operating Revenues: Total operating revenue $ 256 Total 256 Operating Expenses and Taxes: Administrative and general expenses 120 Depreciation expense 6 Tax expense 5 Total 131 Income (Loss) Before Subsidiaries 125 Subsidiary Gain (Loss) 63 Net Income (Loss) $ 188 A.14 KOGAF ENTERPRISES, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 29 Net Income 188 Balance at End of Year $ 217

38 A.15 METALS TECHNOLOGY CORPORATION BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 547 Other accounts receivable 462 Material and supplies at average cost 400 Total Current Assets 1,409 Other Property and Investments: Other property at cost less depreciation 441 Total Other Property and Investments 441 TOTAL ASSETS $ 1,850 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 310 Additional paid-in-capital 1 Retained earnings 1,116 Retained earnings - current year 92 Less - cost of treasury shares (212) Long term debt - other 98 Total Capitalization 1,405 Current Liabilities: Other current liabilities 10 Total accounts payable 224 Taxes accrued 154 Other accruals 57 Total Current Liabilities 445 TOTAL LIABILITIES $ 1,850

39 A.15 METALS TECHNOLOGY CORPORATION INCOME STATEMENT Operating Revenues: Total operating revenue $ 147 Total 147 Operating Expenses and Taxes: Tax expense 55 Total 55 Net Income (Loss) $ 92 A.15 METALS TECHNOLOGY CORPORATION STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 1,115 Net Income 92 Balance at End of Year $ 1,207

40 A.16 NDC DOUGLAS PROPERTIES, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 39 Notes receivable 63 Other accounts receivable 2 Accounts receivable - associated companies 936 Total Current Assets 1,040 Other Property and Investments: Investments at equity 12,836 Total Other Property and Investments 12,836 TOTAL ASSETS $ 13,876 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings (11) Retained earnings - current year (314) Long term debt excluding amounts due 11,264 Total Capitalization 10,940 Current Liabilities: Total accounts payable 21 Interest accrued 234 Notes payable to associated companies 1,647 Other accruals 1,013 Total Current Liabilities 2,915 Other: Deferred income taxes 11 Deferred credits 10 Total Other 21 TOTAL LIABILITIES $ 13,876

41 A.16 NDC DOUGLAS PROPERTIES, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ (1,162) Total (1,162) Operating Expenses and Taxes: Administrative and general expenses 90 Taxes other than income 1 Interest expense 351 Tax expense (1,290) Total (848) Net Income (Loss) $ (314) A.16 NDC DOUGLAS PROPERTIES, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (11) Net Income (314) Balance at End of Year $ (325)

42 A.17 NIPSCO INTERNATIONAL POWER SYSTEMS COMPANY BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 1 Total Current Assets 1 TOTAL ASSETS $ 1 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings (1) Total Capitalization 0 Current Liabilities: Notes payable to associated companies 1 Total Current Liabilities 1 TOTAL LIABILITIES $ 1 A.17 NIPSCO INTERNATIONAL POWER SYSTEMS COMPANY INCOME STATEMENT (No Activity) $ 0 A.17 NIPSCO INTERNATIONAL POWER SYSTEMS COMPANY STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (1) Net Income 0 Balance at End of Year $ (1)

43 A.18 NIPSCO SECURITY SERVICES, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 3 Other accounts receivable 118 Accounts receivable - associated companies 184 Material and supplies at average cost 62 Prepayments 4 Total Current Assets 371 Other Property and Investments: Other property at cost less depreciation 12 Total Other Property and Investments 12 TOTAL ASSETS $ 383 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Additional paid-in-capital 54 Retained earnings (10) Retained earnings - current year (286) Total Capitalization (241) Current Liabilities: Total accounts payable 51 Customer deposits 12 Taxes accrued 1 Notes payable to associated companies 538 Taxes withheld payables 2 Total Current Liabilities 604 Other: Deferred income taxes (1) Deferred credits 21 Total Other 20 TOTAL LIABILITIES $ 383

44 A.18 NIPSCO SECURITY SERVICES, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ 282 Total 282 Operating Expenses and Taxes: Operating expenses 150 Administrative and general expenses 560 Taxes other than income 24 Depreciation expense 1 Interest expense 19 Tax expense (185) Total 569 Net Income (Loss) $ (287) A.18 NIPSCO SECURITY SERVICES, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (10) Net Income (287) Balance at End of Year $ (297)

45 A.19 PROCESS AND CONTROL TECHNOLOGY CORPORATION BALANCE SHEET December 31, 1994 ASSETS Other Assets: Deferred charges and other $ 1,184 Total Other Assets 1,184 TOTAL ASSETS $ 1,184 CAPITALIZATION AND LIABILITIES Capitalization: Additional paid-in-capital $ 800 Retained earnings (755) Total Capitalization 45 Current Liabilities: Total accounts payable 1,118 Other accruals 21 Total Current Liabilities 1,139 TOTAL LIABILITIES $ 1,184 A.19 PROCESS AND CONTROL TECHNOLOGY CORPORATION INCOME STATEMENT (No Activity) $ 0 A.19 PROCESS AND CONTROL TECHNOLOGY CORPORATION STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (755) Net Income 0 Balance at End of Year $ (755)

46 A.20 RIVERSIDE CALORIC COMPANY BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 1 Accounts receivable - associated companies 39 Total Current Assets 40 Other Property and Investments: Investments at equity 2,000 Total Other Property and Investments 2,000 TOTAL ASSETS $ 2,040 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings - current year (73) Total Capitalization (72) Current Liabilities: Total accounts payable 15 Taxes accrued (9) Notes payable to associated companies 2,104 Total Current Liabilities 2,110 Other: Deferred credits 2 Total Other 2 TOTAL LIABILITIES $ 2,040

47 A.20 RIVERSIDE CALORIC COMPANY INCOME STATEMENT Operating Expenses and Taxes: Administrative and general expenses $ 17 Interest expense 104 Tax expense (48) Total 73 Net Income (Loss) $ (73) A.20 RIVERSIDE CALORIC COMPANY STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 0 Net Income (73) Balance at End of Year $ (73)

48 A.21 RIC, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 7 Other accounts receivable 14 Accounts receivable - associated companies 225 Total Current Assets 246 Other Property and Investments: Other property at cost less depreciation 14 Investments at equity (27) Total Other Property and Investments (13) Other Assets: Deferred charges and other 20 Total Other Assets 20 TOTAL ASSETS $ 253 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Additional paid-in-capital 350 Retained earnings (2,680) Retained earnings - current year (493) Total Capitalization (2,822) Current Liabilities: Total accounts payable 67 Customer deposits 1 Notes payable to associated companies 2,875 Total Current Liabilities 2,943 Other: Deferred income taxes 121 Deferred credits 11 Total Other 132 TOTAL LIABILITIES $ 253

49 A.21 RIC, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ 6 Total 6 Operating Expenses and Taxes: Operating expenses 129 Administrative and general expenses 145 Taxes other than income 9 Depreciation expense 1 Interest expense 219 Tax expense (51) Total 452 Income (Loss) Before Subsidiaries (446) Subsidiary Gain (Loss) (46) Net Income (Loss) $ (492) A.21 RIC, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (2,680) Net Income (492) Balance at End of Year $ (3,172)

50 A.22 CARDINAL PROPERTY MANAGEMENT, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 43 Accounts receivable - associated companies 70 Total Current Assets 113 Other Property and Investments: Other property at cost less depreciation 24 Total Other Property and Investments 24 Other Assets: Deferred charges and other 2 Total Other Assets 2 TOTAL ASSETS $ 139 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings 18 Retained earnings - current year (46) Total Capitalization (27) Current Liabilities: Total accounts payable 57 Notes payable to associated companies 44 Total Current Liabilities 101 Other: Deferred income taxes 3 Deferred credits 62 Total Other 65 TOTAL LIABILITIES $ 139

51 A.22 CARDINAL PROPERTY MANAGEMENT, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ 518 Total 518 Operating Expenses and Taxes: Administrative and general expenses 568 Taxes other than income 15 Depreciation expense 4 Interest expense 1 Tax expense (24) Total 564 Net Income (Loss) $ (46) A.22 CARDINAL PROPERTY MANAGEMENT, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 19 Net Income (46) Balance at End of Year $ (27)

52 A.23 NIPSCO ENERGY SERVICES, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 55 Other accounts receivable 25 Accounts receivable - associated companies 6,262 Total Current Assets 6,342 Other Property and Investments: Other property at cost less depreciation 51 Investments at equity 8,527 Total Other Property and Investments 8,578 TOTAL ASSETS $ 14,920 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings 848 Retained earnings - current year (169) Total Capitalization 680 Current Liabilities: Total accounts payable 5,777 Notes payable to associated companies 8,412 Taxes withheld payables (1) Total Current Liabilities 14,188 Other: Deferred credits 52 Total Other 52 TOTAL LIABILITIES $ 14,920

53 A.23 NIPSCO ENERGY SERVICES, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ (17) Total (17) Operating Expenses and Taxes: Administrative and general expenses 780 Taxes other than income 11 Interest expense 280 Tax expense (379) Total 692 Income (Loss) Before Subsidiaries (709) Subsidiary Gain (Loss) 540 Net Income (Loss) $ (169) A.23 NIPSCO ENERGY SERVICES, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 848 Net Income (169) Balance at End of Year $ 679

54 A.24 CROSSROADS PIPELINE COMPANY BALANCE SHEET December 31, 1994 ASSETS Utility Plant: Plant $ 26,320 Less - accumulated provision for depreciation and amortization (475) Total Utility Plant 25,845 Current Assets: Cash and cash equivalents 28 Accounts receivable, less reserve 1,349 Material and supplies at average cost 44 Prepayments and other 106 Total Current Assets 1,527 TOTAL ASSETS $ 27,372 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings (109) Retained earnings - current year (1,056) Total Capitalization (1,164) Current Liabilities: Total accounts payable 1,114 Taxes accrued 383 Notes payable to associated companies 26,844 Total Current Liabilities 28,341 Other: Deferred income taxes 106 Deferred credits 89 Total Other 195 TOTAL LIABILITIES $ 27,372

55 A.24 CROSSROADS PIPELINE COMPANY INCOME STATEMENT Operating Revenues: Gas $ 1,770 Other income 1 Total 1,771 Operating Expenses and Taxes: Operation expenses 801 Administrative and general expenses 951 Taxes other than income 184 Interest expense 1,542 Tax expense (651) Total 2,827 Net Income (Loss) $ (1,056) A.24 CROSSROADS PIPELINE COMPANY STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (109) Net Income (1,056) Balance at End of Year $ (1,165)

56 A.25 NIPSCO ENERGY TRADING CORP. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 3,822 Other accounts receivable 4,456 Reserve - customer accounts (465) Accounts receivable - associated companies 1,105 Total Current Assets 8,918 Other Property and Investments: Other property at cost less depreciation 89 Total Other Property and Investments 89 TOTAL ASSETS $ 9,007 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings 4,044 Retained earnings - current year 438 Total Capitalization 4,483 Current Liabilities: Total accounts payable 4,759 Total Current Liabilities 4,759 Other: Deferred income taxes (300) Deferred credits 65 Total Other (235) TOTAL LIABILITIES $ 9,007

57 A.25 NIPSCO Energy Trading Corp. INCOME STATEMENT Operating Revenues: Total operating revenue $ 1,014 Other income 207 Total 1,221 Operating Expenses and Taxes: Administrative and general expenses 514 Taxes other than income 18 Depreciation expense 12 Tax expense 239 Total 783 Net Income (Loss) $ 438 A.25 NIPSCO ENERGY TRADING CORP. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 4,044 Net Income 438 Balance at End of Year $ 4,482

58 A.26 NIPSCO FUEL COMPANY, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Other accounts receivable $ 175 Accounts receivable - associated companies 1,814 Prepayments 25 Total Current Assets 2,014 Other Property and Investments: Other property at cost less depreciation 37,558 Investments at equity 477 Investments at cost 1,000 Total Other Property and Investments 39,035 Other Assets: Deferred charges and other 435 Total Other Assets 435 TOTAL OTHER ASSETS $ 41,484 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings (5,291) Retained earnings - current year (2,471) Total Capitalization (7,761) Current Liabilities: Total accounts payable 1,933 Notes payable to associated companies 40,818 Total Current Liabilities 42,751 Other: Deferred income taxes 6,483 Deferred credits 11 Total Other 6,494 TOTAL LIABILITIES $ 41,484

59 A.26 NIPSCO FUEL COMPANY, INC. INCOME STATEMENT Operating Revenues: Total operating revenue $ 4,571 Other income 14 Total 4,585 Operating Expenses and Taxes: Operating expenses 1,763 Administrative and general expenses 446 Taxes other than income 2 Amortization and depletion 3,606 Interest expense 2,691 Tax expense (1,426) Total 7,082 Income (Loss) Before Subsidiaries (2,497) Subsidiary Gain (Loss) 26 Net Income (Loss) $ (2,471) A.26 NIPSCO FUEL COMPANY, INC. STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ (5,291) Net Income (2,471) Balance at End of Year $ (7,762)

60 A.27 NFCO ACQUISITION COMPANY BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 68 Other accounts receivable 23 Material and supplies at average cost 2 Total Current Assets 93 Other Property and Investments: Other property at cost less depreciation 429 Total Other Property and Investments TOTAL ASSETS $ CAPITALIZATION AND LIABILITIES Capitalization: Additional paid-in-capital $ 451 Retained earnings - current year 26 Total Capitalization 477 Current Liabilities: Total accounts payable 45 Total Current Liabilities TOTAL LIABILITIES $

61 A.27 NFCO ACQUISITION COMPANY INCOME STATEMENT Operating Revenues: Total operating revenue $ 177 Total 177 Operating Expenses and Taxes: Operating expenses 105 Administrative and general expense 1 Amortization and depletion 29 Tax expense 16 Total 151 Net Income (Loss) $ 26 A.27 NFCO ACQUISITION COMPANY STATEMENT OF RETAINED EARNINGS Balance at Beginning of Year $ 0 Net Income 26 Balance at End of Year $ 26

62 A.28 NI-TEX, INC. BALANCE SHEET December 31, 1994 ASSETS Current Assets: Cash and cash equivalents $ 3,534 Other accounts receivable 1 Accounts receivable - associated companies 5,402 Natural gas in storage, at LIFO cost 530 Prepayments 23 Total Current Assets 9,490 Other Property and Investments: Investments at equity 5,219 Total Other Property and Investments 5,219 Other Assets: Deferred charges and other 40 Total Other Assets 40 TOTAL ASSETS $ 14,749 CAPITALIZATION AND LIABILITIES Capitalization: Common shares without par value $ 1 Retained earnings 2,269 Retained earnings - current year 3,546 Total Capitalization 5,816 Current Liabilities: Total accounts payable 8,234 Taxes accrued 327 Total Current Liabilities 8,561