Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 2001 and Ending December 31, 2001
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, Merillville, 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)
Page 1
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.
2001
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) 87,727 49,324
107 Construction work in progress (Schedule II) -- --
-------- --------
Total Property 87,727 49,324
-------- --------
108 Less accumulated provision for depreciation and
amortization of service company property
(Schedule III) 31,223 20,088
-------- --------
Net Service Company Property 56,504 29,236
-------- --------
INVESTMENTS
123 Investments in associate companies (Schedule IV) -- --
124 Other investments (Schedule IV) -- --
-------- --------
Total Investments -- --
-------- --------
CURRENT AND ACCRUED ASSETS
131 Cash 22 23
134 Special deposits 171 1,466
135 Working funds 21 20
136 Temporary cash investments (Schedule IV) -- --
141 Notes receivable -- --
143 Accounts receivable (7,268) 2,752
144 Accumulated provision for uncollectible accounts -- --
146 Accounts receivable from associate companies
(Schedule V) 171,728 73,995
152 Fuel stock expenses undistributed (Schedule VI) -- --
154 Materials and supplies -- --
163 Stores expense undistributed (Schedule VII) -- --
165 Prepayments 195 106
174 Miscellaneous current and accrued assets 2,099
(Schedule VIII) -- --
-------- --------
Total Current and Accrued Assets 166,968 78,362
-------- --------
DEFERRED DEBITS
181 Unamortized debt expense -- --
184 Clearing accounts 71,784 7,276
186 Miscellaneous deferred debits (Schedule IX) 13,062 11,038
188 Research, development, or demonstration
expenditures (Schedule X) -- --
190 Accumulated deferred income taxes 7,677 9,391
-------- --------
Total Deferred Debits 92,523 27,705
-------- --------
TOTAL ASSETS AND OTHER DEBITS 315,995 135,303
======== ========
Page 5
\
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
2001
--------------------------------------------------------------------------------
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) 400 300
211 Miscellaneous paid-in-capital (Schedule XI) -- --
215 Appropriated retained earnings (Schedule XI) -- --
216 Unappropriated retained earnings (Schedule XI) -- --
-------- --------
Total Proprietary Capital 400 300
-------- --------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 23,930 26,176
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 26,176
-------- --------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable -- --
232 Accounts payable 34,094 9,598
233 Notes payable to associate companies (Schedule XIII) 21,479 --
234 Accounts payable to associate companies (Schedule XIII) 165,875 39,501
236 Taxes accrued (4,171) 14,291
237 Interest accrued 1 13
238 Dividends declared -- --
241 Tax collections payable 9,484 153
242 Miscellaneous current and accrued liabilities (Schedule XIII) 44,357 39,493
-------- --------
Total Current and Accrued Liabilities 271,119 103,049
-------- --------
DEFERRED CREDITS
253 Other deferred credits 9,329 2,437
255 Accumulated deferred investment tax credits -- --
-------- --------
Total Deferred Credits 9,329 2,437
-------- --------
282 ACCUMULATED DEFERRED INCOME TAXES 11,217 3,341
-------- --------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 315,995 135,303
======== ========
Page 6
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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 21,597 1,807 -- -- 23,404
306 LEASEHOLD IMPROVEMENTS -- -- -- --
307 EQUIPMENT (1),(2) 17,801 25,824 504 -- 43,121
308 OFFICE FURNITURE AND
EQUIPMENT 7,057 4,503 4,242 7,318
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT -- 503 31 472
310 AIRCRAFT AND AIRPORT
EQUIPMENT (1) 2,664 12,581 2,038 -- 13,207
311 OTHER SERVICE COMPANY
PROPERTY (3) 143 -- -- -- 143
------ ------ ------ ------ ------
SUB-TOTAL 49,324 45,218 6,815 -- 87,727
------ ------ ------ ------ ------
107 CONSTRUCTION WORK IN
PROGRESS (4) -- -- -- -- --
------ ------ ------ ------ ------
TOTAL 49,324 45,218 6,815 -- 87,727
====== ====== ====== ====== ======
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
307 increase in the capital program of the
information technology and telecommunications
areas due to the merger with NiSource, Inc.
310 increase due to the purchase of an aircraft.
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 825 880
307-4 Print Services Equipment -- --
307-5 Research & Laboratory Equipment -- --
307-6 Telecommunications Equipment 4,211 9,660
307-7 EDP Equipment - 4 years 8,470 15,396
307-8 EDP Equipment - 10 years -- 5
307-9 Personal Computer and Peripheral Equipment 7,321 9,581
307-10 Distribution Research Equipment -- --
307-11 Electrical Supply Generators -- 1,788
307-14 CGT EQUIPMENT 34 34
307-37 CPA EQUIPMENT 98 98
307-51 TCO Equipment 100 100
307-90 NiSource Equipment 4,765 4,765
------- -------
TOTAL 25,824 43,121
----------------------------------------------------------------------------------------------------
(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, 2001
--------------------------------------------------------------------------------
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 6,683 444 -- -- 7,127
306 LEASEHOLD IMPROVEMENTS -- -- -- --
307 EQUIPMENT (1) 11,182 6,592 504 3,294 20,564
308 OFFICE FURNITURE AND
FIXTURES 1,947 926 4,242 4,244 2,875
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT -- 63 31 87 119
310 AIRCRAFT AND AIRPORT
EQUIPMENT 134 262 2,038 2,038 396
311 OTHER SERVICE COMPANY
PROPERTY 142 -- -- -- 142
------ ------ ------ ------ ------
TOTAL 20,088 8,287 6,815 9,663 31,223
====== ====== ====== ====== ======
(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, 2001
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, 2001
--------------------------------------------------------------------------------
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
Columbia Energy Group 25,035 (905)
Columbia Gulf Transmission Company 4,926 4,455
Columbia Energy Services Corporation 439 228
Columbia Propane Corporation 8,476 6,556
Columbia Electric Corporation 1,118 --
Columbia LNG Corporation 52 158
Columbia Network Services Corporation -- 76
Columbia Insurance Corporation, Ltd. -- --
Columbia Transmission Communication Corporation 91 150
Columbia Gas of Kentucky, Inc. 1,143 6,879
Columbia Gas of Ohio, Inc. 10,237 18,779
Columbia Gas of Maryland, Inc. 352 2,432
Columbia Gas of Pennsylvania, Inc. 4,710 17,687
Columbia Gas of Virginia, Inc. 2,303 8,920
Columbia Energy Group Capital Corporation 2 56
Columbia Finance Corporation -- 13
Columbia Petroleum Corporation (26) (214)
Columbia Gas Transmission Corporation 11,598 17,084
Columbia Atlantic Trading Corporation -- --
Columbia Energy Resources, Inc. 3,077 2,814
Columbia Remainder Corporation -- 267
NiSource, Inc. 462 15,175
NiSourceCrossroads Pipeline -- 512
Northern Indiana Public Service Company -- 32,910
Nisource Development Company, Inc -- 1,107
Nisource Capital Markets -- 14
Nisource Energy Services, Inc -- 308
Kokomo Gas and Fuel Company -- 47
Northern Indiana Fuel and Light Company -- 61
Bay State Gas Company -- 2,014
Nisource Pipeline Group, Inc -- (38)
Energy USA, Inc -- 9,759
Primary Energy, Inc -- 1,067
IWC Resource Corporation -- 9,424
SM&P Resources, Inc -- 12,113
Northern Utilities Maine -- 34
Northern Utilities New Hampshire -- 50
Nisource Energy Technology -- 296
Bay State Massachusetts -- 423
Northern Indiana Public Merchant -- 1,017
--------- ---------
TOTAL 73,995 171,728
========= =========
--------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL
PAYMENTS
--------
$000
See Schedule V-A, page 12
TOTAL PAYMENT 1,107,960
================
Page 11
SCHEDULE V-A
NISOURCE CORPORATE SERVICES COMPANY, INC.
Convenience & Accommodation Payments
For the Year Ended December 31, 2001
Employee Employee Corporate Audit PH&H
Associate Company Benefits Payroll Insurance Fees Leases Other Total
---------------------------------------- ---------- ----------- ---------- ------- -------- ---------- ----------
$000 $000 $000 $000 $000 $000 $000
Columbia Energy Group 154 4,401 217,299 1) 221,854
Columbia Gulf Transmission Company 7,068 32,027 2,083 3,165 2) 44,343
Columbia Energy Services Corporation 207 2,687 195 33 (3) 9,543 2) 12,662
Columbia Propane Corporation 10,206 47,507 2,334 65 2,416 4,916 2) 67,444
Columbia Electric Corporation 738 736 1 1 2) 1,476
Columbia LNG Corporation 178 836 1 6 5,218 2) 6,239
Columbia Network Services Corporation 17 154 47 19 2) 237
Columbia Service Partners 1 41 2) 42
Columbia Transcom Company 132 1,373 83 18 10,883 2) 12,489
Columbia Gas of Kentucky, Inc. 4,252 15,345 513 11 966 2,127 2) 23,214
Columbia Gas of Ohio, Inc. 32,297 91,299 10,084 115 3,397 41,710 2) 178,902
Columbia Gas of Maryland, Inc. 922 4,933 99 6 177 1,068 2) 7,205
Columbia Gas of Pennsylvania, Inc. 9,313 53,537 1,584 40 1,376 10,764 2) 76,614
Columbia Gas of Virginia, Inc. 5,122 24,975 737 10 1,259 7,760 2) 39,863
Commonwealth Propane, Inc. (11) (11)
Columbia Pipeline Company 4 1 191 2) 196
Columbia Petroleum Corporation 694 6,400 398 10 195 532 2) 8,229
Columbia Finance Company 30 24 18,869 2) 18,923
Columbia Capital Corporation 4 2 2) 6
Columbia Gas Transmission Corporation 31,409 106,899 5,692 145 6,896 27,182 2) 178,223
Columbia Atlantic Trading, Inc. 4 98 2) 102
Columbia Energy Resources, Inc. 6,221 23,985 1,294 25 3,216 17,462 2) 52,203
Columbia Remainder Corporation 4 217 8 254 2) 483
NiSource, Inc. 2,094 10 1,230 2,800 2) 6,134
NiSourceCrossroads Pipeline 1 8 2) 9
Northern Indiana Public Service Company 7,460 85,799 6,673 1,725 5,311 2) 106,968
Nisource Development Company, Inc 22 230 16 2 2) 270
Nisource Capital Markets 1 10 2) 11
Nisource Energy Services, Inc 20 2 238 2) 260
Kokomo Gas and Fuel Company 167 73 16 64 2) 320
Northern Indiana Fuel and Light Company 1 99 45 33 2) 178
Bay State Gas Company 17 1,198 85 382 2) 1,682
Nisource Pipeline Group, Inc 72 37 2 2) 111
Energy USA, Inc 630 3,883 279 85 135 2) 5,012
Primary Energy, Inc 191 1,327 468 4 136 2) 2,126
IWC Resource Corporation 0 9,015 794 185 510 2) 10,504
SM&P Resources, Inc 0 21,711 40 31 2) 21,782
NiSource Finance Company 61 2) 61
Northern Utilities Maine 2 1 1 2) 4
Northern Utilities New Hampshire 1 11 2) 12
Nisource Energy Technology 27 1,243 5 1 75 2) 1,351
Bay State Massachusetts 30 2) 30
Northern Indiana Public Merchant 87 93 17 2) 197
---------- ----------- ---------- ------- -------- ---------- ----------
Total 119,630 535,671 39,821 4,055 19,896 388,887 1,107,960
========== =========== ========== ======= ======== ========== ==========
Note 1: Primarily reflects electronic funds transfer for System Federal Tax
Payments.
Note 2: Primarily reflects a service offered by the Corporate Treasury
Department to provide a non-repetitive electronic funds transfer to
third parties.
Page 12
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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, 2001
--------------------------------------------------------------------------------
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, 2001
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 None 2,099
Non-Compete Deferred Debit (Amortized over 15 Years
Phantom Stock)
-------- -------
TOTAL None None
-----------------------------------------------------------------------------------------------------------------
Page 15
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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 6,370 8,636
Deferred Insurance Receivables 3,541 3,299
Intangible Asset - Pension Restoration Plan 1,127 1,127
------ ------
TOTAL 11,038 13,062
------ ------
Page 16
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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, 2001
--------------------------------------------------------------------------------
SCHEDULE XI - PROPRIETARY CAPITAL
NUMBER OF SHARES PAR OR STATED VALUE OUTSTANDING CLOSE OF PERIOD
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
201 COMMON STOCK 4,000 $100 4000 $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 (1)
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 0
Rate/Share Amount of Dividend Date Declared Date Paid
$ $000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL 0 0 0 0
--------------------------------------------------------------------------------
Page 18
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
TERMS OF OBLIG DATE BALANCE AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR
---------------- ------------- -------- ---- ---------- -------
% $000 $000
ACCOUNT 223 - ADVANCES FROM
ASSOCIATE COMPANIES:
Columbia Energy Group Promissory Note 11/28/02 7.11 2,246 2,246
Columbia Energy Group Promissory Note 11/28/05 7.30 2,246 2,246
Columbia Energy Group Promissory Note 11/28/07 7.55 2,246 2,246
Columbia Energy Group Promissory Note 11/28/10 7.82 2,246 2,246
Columbia Energy Group Promissory Note 03/01/14 7.33 12,700 12,700
Columbia Energy Group Promissory Note 11/28/15 7.92 2,246 2,246
Columbia Energy Group Promissory Note 11/28/25 8.12 2,246 2,246
ACCOUNT 224 - OTHER LONG-TERM DEBT: -- --
TOTAL 26,176 26,176
------ ------
DEDUC- BALANCE AT
ADDI- TIONS CLOSE
NAME OF CREDITOR TIONS (1) OF YEAR
---- -- -------- ----- --- -- ----
$000 $000 $000
ACCOUNT 223 - ADVANCES FROM
ASSOCIATE COMPANIES:
Columbia Energy Group -- -- --
Columbia Energy Group -- -- 2,246
Columbia Energy Group -- -- 2,246
Columbia Energy Group -- -- 2,246
Columbia Energy Group -- 12,700
Columbia Energy Group -- -- 2,246
Columbia Energy Group -- -- 2,246
ACCOUNT 224 - OTHER LONG-TERM DEBT: -- -- --
TOTAL -- -- 23,930
------------ ------------ ----------
-------------------------------------------------------------------------------------------
Page 19
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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
--------------- ---------------
TOTAL -- 21,479
---------------------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
System Money Pool Principal 36,484 116,981
System Money Pool Interest 214 340
Columbia Energy Group 2,803 4,890
Columbia Gulf Transmission Company -- 98
Columbia Gas of Kentucky, Inc. -- 13
Columbia Gas of Ohio, Inc. -- 1,988
Columbia Gas of Maryland, Inc. -- 11
Columbia Gas of Pennsylvania, Inc. -- 160
Columbia Gas of Virginia, Inc. -- 137
Columbia Gas Transmission Corporation -- 1,401
NiSourceCrossroads Pipeline -- 206
Nisource, Inc. 30,879
Northern Indiana Public Service Company -- 6,565
Nisource Development Company, Inc -- 351
Bay State Gas Company -- 25
Energy USA, Inc -- 1,762
Primary Energy, Inc 68
--------------- ---------------
TOTAL 39,501 165,875
---------------------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Deferred Compensation 2,117 3,906
Accrued Vacation 2,276 6,548
LTIP Dividend Credit (806) -
Retirement Income Plan (2,290) (497)
Pension Retirement Benefits 2,250 2,250
Thrift Restoration Plan 890 1,642
Pension Restoration Plan 907 334
401k Loan -- 793
Building 520 215
Flexible Spending 318 213
SICA Group Life -- 202
Comprehensive Medical Expense Plan Accrual 258 258
EmployeeThrift Plan 153 (217)
Post Employment Benefit Obligation 74 74
Thrift Plan - Company 60 60
Credit Union - -- 31
United Way -- (95)
Contract Retainage 5,183 174
Aircraft Engine Overhaul Accrual 14 7
Dental Assistance Plan Accrual 20 412
Phantom Stock 8,349 600
Restricted Stock Options -- 8,879
Severence- 9,817 11,545
Job Placement - 875 1,026
Relocation - 7,685 3,341
Miscellaneous 794 2,630
Voluntary Personal Accident Insurance (13) (16)
Employment Agreements 24 24
Release & Retention Program 18 18
--------------- ---------------
TOTAL 39,493 44,357
---------------------------------------------------------------------------------------------------
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 None 2,246
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 None 2,246
============== ============
Page 21
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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 $1,794,000 in 2001 and $(4,389,014) in 2000.
d. Leases
Payments made by the Corporation in connection with operating leases are
charged to expense incurred. No capitalized leases existed in 2001.
e. Account Numbers
The Corporation uses certain FERC accounts which do not match existing
SEC accounts; therfore, the year-end balances of the following FERC
accounts were reclassified to a corresponding SEC account.
Account Number Year-End
------------------ Balance
Account Description FERC SEC $000
Interest Receivable 171 143 6
Deferred Income Taxes 283 282 (10)
--------------------------------------------------------------------------------
Page 22
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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 $62,595,332 as of December 31, 2001, 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, 2001, liabilities were recorded for
termination benefits related to the Operational Excellence program of the
Energy Distribution Group and other cost reduction programs. NiSource
Corprate Services' portion expensed in 2001 was $2,087,912 for severance
and $167,990 for job placement.
Page 23
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year ended December 31, 2001
--------------------------------------------------------------------------------
SCHEDULE XV
STATEMENT OF INCOME
--------------------------------------------------------------------------------
2001 2000
--------------------- -----------------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
$000 $000
INCOME
457 Services rendered to associate companies 339,527 184,262
458 Services rendered to nonassociate companies -- --
419 Interest Revenue - Other 8 70
421 Miscellaneous Income or Loss -- --
--------------------- -----------------
Total Income 339,535 184,332
EXPENSE
920 Salaries and wages 120,210 122,678
921 Office supplies and expenses 38,421 6,765
922 Administrative expense transferred - credit 4,961 (1)
923 Outside services employed 93,227 12,185
924 Property insurance (10) 147
925 Injuries and damages 729 305
926 Employee pensions and benefits 18,428 3,559
928 Regulatory commission expense -- --
930.1 General advertising expenses 1,065 9
930.2 Miscellaneous general expenses (1,361) 2,095
931 Rents 31,298 8,112
932 Maintenance of structures and equipment 8,666 2,990
403 Depreciation and amortization expense 8,288 4,750
408 Taxes other than income taxes 8,129 4,272
409 Income taxes (11,889) 20,823
410 Provision for deferred income taxes 28,559 6,278
411 Provision for deferred income taxes - credit (16,174) (14,914)
426.1 Donations 984 31
426.3 Other deductions 4 4
430 Interest on debt to associate companies 5,688 3,813
431 Other interest expense 312 431
--------------------- -----------------
Total Expense 339,535 184,332
--------------------- -----------------
Net Income or (Loss) -- --
===================== =================
--------------------------------------------------------------------------------
Page 24
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC,
For the Year ended December 31, 2001
--------------------------------------------------------------------------------
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
--------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSAT'N 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
Columbia Energy Group 2,765 760 18 3,543
Columbia Gulf Transmission Company 8,826 4,929 94 13,849
Columbia Energy Services Corporation 1,817 589 12 2,418
Columbia Propane Corporation 4,095 993 26 5,114
Columbia Electric Corporation 242 7 2 251
Columbia Service Partners 65 13 1 79
Columbia LNG Corporation 89 81 0 170
Columbia Network Services Corporation 9 15 0 24
Columbia Insurance Corporation, Ltd 167 121 2 290
Columbia Transmission Communications Corporation 2,542 753 14 3,309
Columbia Gas of Kentucky, Inc. 3,983 2,441 46 6,470
Columbia Gas of Ohio, Inc. 36,196 18,549 352 55,097
Columbia Gas of Maryland, Inc. 1,378 1,064 19 2,461
Columbia Gas of Pennsylvania, Inc. 13,805 8,117 149 22,071
Columbia Gas of Virginia, Inc. 8,050 5,144 99 13,293
Columbia Pipeline Corporation 15 17 0 32
Columbia Finance Corporation 7 7 0 14
Columbia Energy Group Capital Corporation 30 47 1 78
Columbia Petroleum Corporation 189 125 3 317
Columbia Gas Transmission Corporation 36,956 18,102 338 55,396
Columbia Atlantic Trading Corporation 4 2 0 6
Columbia Energy Resources, Inc. 7,568 7,504 135 15,207
Columbia Remainder Corporation 76 58 1 135
NiSource, Inc. 2,892 739 12 3,643
NiSourceCrossroads Pipeline 246 192 3 441
Northern Indiana Public Service Company 31,017 21,391 357 52,765
Nisource Development Company, Inc 456 330 7 793
Nisource Capital Markets 19 17 0 36
Nisource Energy Services, Inc 666 27 1 694
Kokomo Gas and Fuel Company 288 243 4 535
Northern Indiana Fuel and Light Company 340 270 4 614
Bay State Gas Company 9,890 6,551 108 16,549
Nisource Pipeline Group, Inc 104 77 1 182
Energy USA, Inc 4,191 2,064 35 6,290
Primary Energy, Inc 965 339 6 1,310
IWC Resource Corporation 1,945 1,094 19 3,058
SM&P Resources, Inc 443 311 5 759
Granite Gas Transmission 4 2 0 6
Nisource Finance Company 505 190 3 698
Northern Utilities Maine 228 108 2 338
Northern Utilities New Hampshire 238 266 4 508
Nisource Energy Technology 98 21 0 119
Bay State Massachusetts 402 28 1 431
Northern Indiana Public Merchant 5,598 4,763 74 10,435
----------- ---------------- ------------------ -------------
Total Amount Billed in 2001 189,409 108,461 1,960 299,830
Reconciliations to Total Revenues:
Difference between Amount of
Unbilled Revenue December 2000 and
December 2001 25,703 10,266 3,728 39,697
----------- ---------------- ------------------ -------------
215,112 118,727 5,688 339,527
=========== ================ ================== =============
--------------------------------------------------------------------------------
Page 25
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC,
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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, 2001
--------------------------------------------------------------------------------
Schedule XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
--------------------------------------------------------------------------------
ASSOCIATE COMPANY NONASSOCIATE COMPANY
CHARGES CHARGES
------------------------------------------ -------------------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL
------------------------------------------------------------- ------------ ------------- ------------ ------------ ---------
$000 $000 $000 $000 $000 $000
920 Salaries and Wages 68,854 51,356 120,210 -- -- --
921 Office Supplies and Expenses 30,869 7,552 38,421 -- -- --
922 Administrative Expenses Transferred -
Credit 1,382 3,579 4,961 -- -- --
923 Outside Services Employed 81,421 11,806 93,227 -- -- --
924 Property Insurance 21 (31) (10) -- -- --
925 Injuries and Damages 221 508 729 -- -- --
926 Employee Pensions and Benefits 1,155 17,273 18,428 -- -- --
928 Regulatory Commission Expense - - - -- -- --
930.1 General Advertising Expenses 803 262 1,065 -- -- --
930.2 Miscellaneous General Expense (2,481) 1,120 (1,361) -- -- --
931 Rents 23,373 7,925 31,298 -- -- --
932 Maintenance of Structure and Equipment 3,926 4,740 8,666 -- -- --
403 Depreciation and Amortization Expense 4,624 3,664 8,288 -- -- --
408 Taxes Other Than Income Taxes 386 7,743 8,129 -- -- --
409 Income Taxes -- (11,889) (11,889) -- -- --
410 Provision for Deferred Income Taxes -- 28,559 28,559 -- -- --
411 Provision for Deferred Income Taxes - -- -- --
Credit -- (16,174) (16,174) -- -- --
411.5 Investment for Credit -- -- -- -- -- --
419 Other Interest -- (8) (8)
426.1 Donations 558 430 988 -- -- --
426.5 Other Deductions -- -- -- -- -- --
427 Interest on Long-Term Debt -- -- -- -- --
431 Other Interest Expense -- 312 312 -- -- --
------------------------------------------------------------- ------------ ------------- ------------ --------- ------------
Instructions: Total cost of service will equal
for associate and nonassociate
companies the total amount
billed under their separate
analysis of billing schedules.
------------------------------------------------------------- ------------ ------------- ------------ ------------ ---------
Total Expenses 215,112 118,727 333,839 -- -- --
----------- ------------ ------------- ------------ ------------ ---------
430 Interest on Short-Term Debt 3,728
-------------
-------------
Compensation for Use of
Capital- Associated Companies
-------------
430 Intercompany Interest on Indebtedness 1,960
-------------
Compensation for Use of Equity Capital --
-------------
Total Cost of Service 339,527
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CHARGES FOR
SERVICE
------------------------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT
COST COST TOTAL
--------------------------------------------------- ------------ ------------ ------------
$000 $000 $000
920 Salaries and Wages 68,854 51,356 120,210
921 Office Supplies and Expenses 30,869 7,552 38,421
922 Administrative Expenses Transferred -
Credit 1,382 3,579 4,961
923 Outside Services Employed 81,421 11,806 93,227
924 Property Insurance 21 (31) (10)
925 Injuries and Damages 221 508 729
926 Employee Pensions and Benefits 1,155 17,273 18,428
928 Regulatory Commission Expense -- -- --
930.1 General Advertising Expenses 803 262 1,065
930.2 Miscellaneous General Expense (2,481) 1,120 (1,361)
931 Rents 23,373 7,925 31,298
932 Maintenance of Structure and Equipment 3,926 4,740 8,666
403 Depreciation and Amortization Expense 4,624 3,664 8,288
408 Taxes Other Than Income Taxes 386 7,743 8,129
409 Income Taxes -- (11,889) (11,889)
410 Provision for Deferred Income Taxes -- 28,559 28,559
411 Provision for Deferred Income Taxes -
Credit -- (16,174) (16,174)
411.5 Investment for Credit -- -- --
419 Other Interest -- (8) (8)
426.1 Donations 558 430 988
426.5 Other Deductions -- -- --
427 Interest on Long-Term Debt -- -- --
431 Other Interest Expense -- 312 312
--------------------------------------------------- ------------ ------------ ------------
Instructions: Total cost of service will equal
for associate and nonassociate
companies the total amount
billed under their separate
analysis of billing schedules.
--------------------------------------------------- ------------------------------------------
Total Expenses 215,112 118,727 333,839
------------ ------------ ------------
430 Interest on Short-Term Debt 3,728
------------
------------
Compensation for Use of
Capital- Associated Companies ------------
430 Intercompany Interest on Indebtedness 1,960
------------
Compensation for Use of Equity Capital --
------------
Total Cost of Service 339,527
-----------------------------------------------------------------------------------------------
Page 27
' ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------------
AIR
TOTAL ACCOUNTING TRANS- CONSOL-
DESCRIPTION OF ITEMS AMOUNT OVERHEAD SERVICES PORTATION AUDITING IDATION
------------------------------------------------- ------- -------- ---------- --------- -------- -------
920 Salaries and Wages 120,210 51,356 6,871 113 1,252 1,196
921 Office Supplies and Expenses 38,421 7,552 479 45 106 90
922 Administrative Expenses Transferred - -
Credit 4,961 3,579 - -
923 Outside Services Employed 93,227 11,806 3,585 989 50 48
924 Property Insurance (10) (31) - -
925 Injuries and Damages 729 508 - -
926 Employee Pensions and Benefits 18,428 17,273 132 4 40 2
928 Regulatory Commission Expense - - -
930.1 General Advertising Expense 1,065 262 10
930.2 Miscellaneous General Expense (1,361) 1,120 36 536 20 16
931 Rents 31,298 7,925 (12) 5 -
932 Maintenance of Structures and Equipment 8,666 4,740 39 113 -
403 Depreciation and Amortization Expense 8,288 3,664 261
408 Taxes Other Than Income Taxes 8,129 7,743 -
409 Income Taxes (11,889) (11,889)
410 Provision for Deferred Income Taxes 28,559 28,559
411 Provision for Deferred Income Taxes -
Credit (16,174) (16,174)
411.5 Investment Tax Credit - -
419 Other Interest (8) (8)
421 Miscellaneous Income or Loss - -
426.1 Donations 988 430
426.3 Other Deductions - -
427 Interest on Long-Term Debt - -
430 Interest on Debt to Associate Companies 5,688 5,688
431 Other Interest Expense 312 312 - - -
-------------------------------------------------
Instruction: Indicate each department or service
function. (See Instruction 01-3
General Structure of Accounting
System: Uniform System Account)
------------------------------------------------- ------- -------- ---------- --------- -------- -------
Total Expenses 339,527 124,415 11,142 2,049 1,473 1,362
------------------------------------------------- ------- -------- ---------- --------- -------- -------
DEPARTMENT OR SERVICE FUNCTION
---------------------------------------------
CORPORATE
COMMUNI- CORPORATE CORPORATE CORPORATE
DESCRIPTION OF ITEMS CATIONS INSURANCE SECRETARY TREASURY
------------------------------------------------- --------- --------- --------- ---------
920 Salaries and Wages 658 292 199 706
921 Office Supplies and Expenses 32 90 1 43
922 Administrative Expenses Transferred -
Credit
923 Outside Services Employed 215 25 593 273
924 Property Insurance - (48)
925 Injuries and Damages (457)
926 Employee Pensions and Benefits - 88 9
928 Regulatory Commission Expense
930.1 General Advertising Expense (12)
930.2 Miscellaneous General Expense 5 1 144
931 Rents - (119)
932 Maintenance of Structures and Equipment 17
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 12
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 910 (9) 793 1,073
------------------------------------------------- --------- --------- --------- ---------
Page 28
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------------------------------------------------------
ENTERPRISE ENVIRON-
Account ED REG. & ED MULTIMEDIA MENTAL FACILITIES FINANCE & FLEET
Number GOVT. MARKETING COMMUNICATIONS AFFAIRS EXECUTIVE MGMT STRATEGY MANAGEMENT
-------------- --------- --------- -------------- -------- --------- ---------- --------- ----------
$000 $000 $000 $000 $000 $000 $000 $000
#
920 1,679 2,933 1,421 3,365 4,740 269 1,481 500
921 355 173 475 480 289 37 138 14
922 - - 1,382
923 947 1,077 835 294 1,861 41 5,160
924
925
926 15 30 58 145 48 35
928
930.1 6 160 543 11
930.2 66 26 154 29 381 1,950 16
931 4 4 1 11 17 (1,022)
932 1 - 13 4 239
403 - 2
408 - - - - - 195
409 - - - - -
410 - - - - -
411 - - - - -
411.5 - - - - -
419 - - - - -
421 - - - - -
426.1 10 16 136 14 369
426.5 - - - - -
427 - - - - -
430 - - - - -
431 - - - - -
-------------- --------- --------- -------------- -------- --------- ---------- --------- ----------
Total Expenses 3,082 4,390 3,595 4,264 7,817 3,139 6,832 514
--------- --------- -------------- -------- --------- ---------- --------- ----------
DEPARTMENT OR SERVICE FUNCTION
------------------------------------------------------------------------------------------
HUMAN
Account GOVERNMENT RESOURCES INFORMATION INVESTOR MATERIALS &
Number AFFAIRS /BENEFITS TECHNOLOGY RELATIONS LEGAL SUPPLIES
-------------- ---------- --------- ----------- --------- -------- -----------
$000 $000 $000 $000 $000 $000
920 71 478 19,987 303 3,470 865
921 14 68 27,091 36 379 22
922 - -
923 19 489 28,485 162 33,999 32
924
925
926 445 66 5 26
928
930.1 5 46 22
930.2 6 64 382 2 29 1
931 28 1 8,444 - - -
932 3,487 - -
403 4,361
408 - - 191 - - -
409 - - - - -
410 - - - - -
411 - - - - -
411.5 - - - - -
419 - - - - -
421 - - - - -
426.1 - - - 1 -
426.5 - - - - -
427 - - - - -
430 - - - - -
431 - - - - -
-------------- ---------- --------- ----------- --------- -------- -----------
Total Expenses 138 1,550 92,540 503 37,905 946
---------- --------- ----------- --------- -------- -----------
Page 29
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------------------------------------------
Account MERCHANT PROCURE- REAL ESTATE RISK
Number GAS SUPPLY OTHER PAYROLL MENT MANAGEMENT MANAGEMENT SECURITY TAX
-------------- ---------- -------- ------- -------- ----------- ---------- -------- -------
$000 $000 $000 $000 $000 $000 $000 $000
920 3,263 9,549 6 322 211 947 4 1,703
921 163 14 13 13 1 106 2 100
922 -
923 363 - 246 542 27 11 1,053
924 42 - 27
925 655 (4)
926 - 2 5
928
930.1 9 3
930.2 3 (6,377) 10 2 4 3 10
931 - 16,006 4 1 -
932 13
403 -
408 -
409 - - - -
410 - - - -
411 - - - -
411.5 - - - -
419 - - - -
421 - - - -
426.1 - - - -
426.5 - - - -
427 - - - -
430 - - - -
431 - - - -
-------------- ---------- -------- ------- -------- ----------- ---------- -------- -------
Total Expenses 3,805 19,898 275 884 243 1,097 9 2,866
---------- -------- ------- -------- ----------- ---------- -------- -------
Page 30
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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 6,871 427 6,444 - 173
Air Transportation 113 3 110 - 2
Auditing 1,252 132 1,120 24
Consolidation Accounting 1,196 190 1,006 - 22
Corporate Communications 658 - 658 - 11
Corporate Insurance 292 4 288 - 6
Corporate Secretary 199 - 199 3
Corporate Treasury 706 6 700 - 12
ED Reg. & Govt. 1,679 - 1,679 - 30
ED Marketing 2,933 - 2,933 - 26
Enterprise Multimedia Communication 1,421 - 1,421 - 25
Environmental Affairs 3,365 9 3,356 - 115
Executive 4,740 - 4,740 - 39
Facilities Management 269 - 269 13
Finance & Strategy 1,481 (12) 1,493 34
Fleet Management 500 - 500 - 28
Government Affairs 71 - 71 - 2
Human Resources/ Benefits 478 1 477 - 54
Information Technology 19,987 19 19,968 - 538
Investor Relations 303 - 303 - 3
Legal 3,470 (203) 3,673 - 58
Materials and Supplies 865 1 864 - 40
Merchant Gas Supply 3,263 - 3,263 - 91
Other 9,549 - 9,549 - 8
Payroll 6 - 6 - 11
Corporate Procurement 322 2 320 - 8
Real Estate Management 211 2 209 5
Risk Management 947 2 945 - 15
Security 4 - 4 - -
Tax 1,703 78 1,625 - 29
------ ------- ---------- ---------- ---------
Total 68,854 661 68,193 - 1,425
------ ------- ---------- ---------- ---------
---------------------------------------------------------------------------------------------
Page 31
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
--------------------------------------------------------------------------------
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 93,226
--------------------------------------------------------------------------------
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 2,244
Total Special Services - Audit 2,244
------
2-Special Services - Legal
--------------------------
Akin, Gump, Strauss, Hauer & Feld 1900 Pennzoil Pl. - South Twr, Houston, TX 77002 NA 1,313
Baker & Daniels 300 North Meridan St., Indianapolis, IN 46204-1782 NA 941
Barnes & Thornburg 11 South Meridian St., Indianapolis, IN 46204-3556 NA 246
Borden Ladner Gervais LLP 1000 Canterra Tower, Calgary Alberta, T2P 4H2 NA 129
Boss & Tormey, P.C. 952 Echo Lane Suite 330, Houston, TX 77024 NA 237
Brickley, Sears & Sorett, P.A. 75 Federal St., Boston, MA 02110-2699 NA 618
C.D. Bengtson Resource Mgt LTD 2900, 350 - 7th Av. SW, Calgary, Alberta T2P 3NP NA 157
Crane, Greene & Parente 90 State St., Albany, NY 12207 NA 134
Deloitte & Touche LLP 333 Clay St., Houston, TX 77002-4196 NA 312
Doerner, Saunders, Daniels & Ander 320 South Boston Av., Tulsa, OK 74103-3725 NA 540
Drinker, Biddle & Reath 1500 K St., Washington, DC 20005 NA 2,345
Eastwick Rose & Wright, P.A. 201 N. Charles St., Baltimore, MD 21201 NA 103
Eichhorn & Eichhorn 200 Russell St., Hammond, IN 46325 NA 1,171
Frederick J. Rawski 18 Providence Court, Newtown, PA 18940 NA 139
Greenbaum Doll & McDonald Section 469, Louisville, KY 40289 NA 166
Hagemier, Allen & Smith 1170 Market Tower, Indianapolis, IN 46204-2964 NA 115
Jackson & Kelly P.O. Box 11276, Charleston, WV 25339 NA 801
Leboeuf, Lamb, Greene & Macrae, LLP 125 West 55th St., New York, NY 10019-5389 NA 400
Legg, LLC Dept 33210, San Francisco, CA 94139-3210 NA 147
Mark W. Cooper 1449 North College Av., Indianapolis, IN 46202 NA 145
McGuire Woods One James Center-Accounting, Richmond, VA 23219-4030 NA 265
Morgan Lewis and Bockius P.O. Box 8500 S-6050, Philadelphia, PA 19178-6050 NA 510
Neal, Gerber & Eisenberg 2 N. Lasalle St., Chicago, IL 60602 NA 360
Ogletree, Deakins, Nash, Smoak Stewart, P.C., Atlanta, GA 30392-1860 NA 568
Porter & Hedges, LLP Bank Lockbox, Dallas, TX 75284-1184 NA 839
Porter, Wright, Morris & Wright 41 South High Street, Columbus, OH 43215-6194 NA 432
Reed Smith, LLP P.O. Box 36007 4M, Pittsburgh, PA 15251-6074 NA 1,156
Robert G. Kern, ESQ. 1200 CRA-MER LN., Chapel Hill, NC 27516 NA 216
Robertson, Freilich, Bruno & Cohen, LLC, Newark, NJ 07102 NA 827
Robinson & McElwee LLP P.O. Box 1791, Charleston, WV 25326 NA 731
Roy R. Robertson, Jr. 2909 Belle Plaine Trail, Michigan City, IN 46360-1703 NA 183
Rubin & Rudman, LLP 50 Rowes Wharf, Boston, MA 02110-3319 NA 595
Schiff Hardin & Waite 6600 Sears Tower, Chicago, IL 60606-6473 NA 13,154
Sidley & Austin 1501 K Street NW, Washington, DC 20005 NA 688
Simon Peragine Smith & Redfearn LLP, New Orleans, LA 70163-3000 NA 246
Steptoe & Johnson Clarksburg, WV 26302-1732 NA 711
Thelen Reid & Priest LLP 40 West 57th Street, New York, NY 10019-4097 NA 588
Thorp Reed & Armstrong One Oxford Centre, Pittsburgh, PA 15219-1425 NA 198
Wolf Block Schorr and Solis Co. 1650 Arch Street, Philadelphia, PA 19103-2097 NA 191
Wooden & McLaughlin LLP 1600 Capital Center South, Indianapolis, IN 46204 NA 114
Wyatt, Tarrant & Combs 250 West Main St. Suite 1700, Lexington, KY 40507-1746 NA 253
256 Organizations 3,630
------
Total Special Services - Legal 36,614
======
Page 33
SCHEDULE 923-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
RELATIONSHIP
"A"=ASSOCIATE
"NA"=NON AMOUNT
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
------------------ ------- --------- ---- ----
3- Special Services - Consulting
--------------------------------
A. T. Kearney P. O. Box 96796, Chicago, IL 60693 NA 4,660
ACLOCHE LLC P O BOX 632997, Cincinnati, OH 45263-2997 NA 273
ADROIT SYSTEMS, INC. 8 PARTRIDGE WAY, Holliston, MA, 01746 NA 131
ALTRA SOFTWARE SERVICES, INC 1221 LAMAR, SUITE 950, Houston, TX, 77010 NA 117
AMERICAN MANAGEMENT SYSTEMS P.O. BOX 101043, Atlanta, GA, 30392 NA 130
ANALYTECH CONSULTING 9111 BROADWAY, SUITE K, Merrillville, IN, 46410 NA 124
ARTHUR ANDERSEN LLP P.O. BOX 13882, Newark, NJ, 07188-0882 NA 526
CEDAR ENTERPRISE SOLUTION PO BOX 75209, Baltimore, MD, 21275-5209 NA 340
COMPUTER TASK P. O. BOX 711778, Cincinnati, OH, 45271-1778 NA 501
COMPUWARE CORPORATION DRAWER #64376, Detroit, MI, 48264-0376 NA 123
CUSTOMER INFORMATION CONSULTI 134 W. ARBRE CROCHE CT., Porter, IN, 46304 NA 323
F1, INC. 359 S. FRANKLIN ST., Valparaiso, IN, 46838-6423 NA 1,409
GARTNER GROUP, INC. PO BOX 911319, Dallas, TX, 75391-1319 NA 142
GLOBAL INFORMATION TECH. PO BOX 60839, Charlotte, NC, 28260-0839 NA 107
HARRIS, MACKESSY & BRENNAN,INC 42 E. GAY ST., STE.1310, Columbus, OH 43215 NA 204
INFORMATION CONTROL CORP. 2500 CORPORATE EXCHANGE DRIVE SUITE 310, Columbus, OH 43231 NA 303
INFORMATION INTEGRATORS, INC. 2540 FOSSIL STONE ROAD, Dyer, IN, 46311-1956 NA 1,532
JEFFERSON WELLS INTERNATIONAL BOX 68-4031, Milwaukee, WI, 53268-4031 NA 134
KINGWOOD CONSULTING GROUP, INC 17 SOUTH HIGH ST., STE. 1220, Columbus, OH, 43215 NA 250
KLS ENTERPRISES, INC 1760 STAGECOACH COURT, Powell, OH 43065 NA 117
L.E.K. CONSULTING LLC P.O. BOX 845288, Boston, MA, 02284-5288 NA 113
MARKET STRATEGIES, INC PO BOX 67000, Detroit, MI, 48267-1844 NA 119
MAXIM GROUP PO BOX 198572, Atlanta, GA, 30384-8572 NA 269
MCKINSEY & COMPANY INC 21 SOUTH CLARK STREET STE 2900, Chicago, IL, 60603-2900 NA 1,410
MDSI MOBILE DATA SOLUTIONS INC 10271 SHELLBRIDGE WAY, Richmond, BC, V6X2S8 NA 217
MOBILE SOLUTION, INC. 14720 HARRISVILLE ROAD, Mt. Airy, MD, 21771 NA 267
RAPIDIGM 8800 LYRA DRIVE SUITE 450, Columbus, OH, 43240 NA 203
RICHARD A SHEMENSKI 248 CAVENAUGH CT., Powell, OH, 43065 NA 146
STRATEGIC DECISIONS GROUP 135 SOUTH LASALLE STREET, Chicago, IL, 60674-4628 NA 276
STRICTLY BUSINESS 611 3RD AVE., SUITE 300, Hunington, WV, 25720-2076 NA 147
TECHNOLOGY CONTRACT SOLUTIONS 820 LAFAYETTE RD., Hampton, NH, 03842 NA 354
TEKSYSTEMS P.O. BOX 198568, ATLANTA, GA 30384-8568 NA 228
TRANSTECH P.O. BOX 930798, ATLANTA, GA 31193-0798 NA 174
VISION INFORMATION SOLUTIONS 945 GLYN MORGAN CT, Newark, OH, 43055 NA 139
WILKERSON & ASSOCIATES 3339 TAYLORSVILLE ROAD, Louisville, KY, 40205-3103 NA 407
WILLIAM M MERCER, INC 21633 NETWORK PLACE, Chicago, IL, 60673-1216 NA 139
218 Organizations 3,735
-----
Total Special Services - Consulting 19,789
======
Page 34
SCHEDULE 923-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
RELATIONSHIP
"A"=ASSOCIATE
"NA"=NON AMOUNT
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
------------------ ------- --------- ---- ----
4-Special Services - Other
--------------------------
ACCOUNTEMPS P.O. BOX 6248, CAROL STREAM, IL 60197-6248 154
ACLOCHE LLC P.O. BOX 62997, CINCINNATI, OH 45263-2997 193
ADP INVESTOR COMMUNICATION 51 MERCEDES WAY, ENGEWOOD, NY 11717 108
ARCUS DATA SECURITY DEPARTMENT 2022, SEATTLE, WA 98124-1936 144
ARTHUR ANDERSEN LLP P.O. BOX 70630, CHICAGO, IL 63673-0630 320
AT&T 7872 7872 COLLECTION CENTER DRIVE, CHICAGO, IL 60693 320
BAY STATE GAS 200 CIVIC CENTER DRIVE, COLUMBUS, OH 43215 207
BMC SOFTWARE DISTRIBUTORS, INC P.O. BOX 201040, HOUSTON, TX 77216 248
CHASE MELLON SHAREHOLDER SERVICES, ACCOUNTING DEPT., PITTSBURGH, PA 15251-6857 260
CHRISTENSEN & ASSOCIATES P.O. BOX 4344, SCOTTSDALE, AZ 85261-4344 158
CLARITAS P.O. BOX 7247-7380, PHILADELPHIA, PA 19170-7380 175
COLUMBIA GAS TRANSMISSION 200 CIVIC CENTER DRIVE, COLUMBUS, OH 43215 2,265
COLUMBIA GULF TRANSMISSION 200 CIVIC CENTER DRIVE, COLUMBUS, OH 43215 118
COMPUTER ASSOCIATES INT. P.O. BOX 360655, PITTSBURGH, PA 15251-6355 725
COMPUWARE CORPORATION DRAWER #64376, DETROIT, MI 48264-0376 107
DISPATCH CONSUMER SERVICES INC DEPTL-2335, COLUMBUS, OH 43260 208
EMC2 CORPORATION DEPT CH 10648, PALATINE, IL 60055-0648 386
EQUANT INTEGRATION SERVICES P.O. BOX 861419, ORLANDO, FL 32886-1419 284
EXPRESS PERSONNEL SERVICES P.O. BOX 268951, OKLAHOMA CITY, OK 73126-8951 113
F1, INC 359 S. FRANKLIN ST., VALPARAISO, IN 46383-6423 104
GARTNER GROUP, INC. P.O. BOX 911319, DALLAS, TX 75391-1319 204
HEWITT ASSOCIATES, LLC (WIRE) 13880 DULLES CORNER LANE, HERNDON, VA 20171 105
HEWLETT-PACKARD P.O. BOX 101149, ATLANTA, GA 30392-1149 171
IBM CORP BANK OF AMERICA, CHICAGO, IL 60693 10,348
INFORMATION CONTROL COPR. 2500 CORPORATE EXCHANGE DR. S, COLUMBUS, OH 43231 493
INTERNOS, LLC P.O. BOX 711503, CINCINNATI, OH 45271-1503 102
KFORCE P.O. BOX 277997, ATLANTA, GA 30384-7997 145
KINGSTON & FAM, INC. 171-SO. 450-W, VALPARAISO, IN 46385 123
LEVI, RAY & SHOUP, INC. 2401 WEST MONROE, SPRINGFIELD, IL 62704 188
LEXIS-NEXIS P.O. BOX 2314, CAROL STREAM, IL 60132-2314 129
MANPOWER, INC. P.O. BOX 68-6003, MILWAUKEE, WI 53267-6003 109
MARKETING SERVICES BY VECTRA 3990 BUSINESS PARK DR., COLUMBUS, OH 43204 397
MELLON INVESTOR SERVICES ACCOUNTING DEPT, PITTSBURGH, PA 15251-6857 970
MOBILE DATA SOLUTION 10271 SHELLBRIDGE WAY, RICHMOND BC, V6X2W8 156
MOSSBERG & COMPANY, INC P.O. BOX 210, SOUTH BEND, IN 46624-0210 404
N SQUARED AVIATION, LLC 5201 INDUSTRIAL HIGHWAY, GARY, IN 46406-1125 714
NEW YORK STOCK EXCHANGE, INC P.O. BOX 4530, NEW YORK, NY 10163 278
NORTHERN INDIANA PUBLIC SERVICE 5201 INDUSTRIAL HIGHWAY, GARY, IN 46406-1125 384
PEOPLESOFT, USA, INC. DEPT. CH10699, PALATINE, IL 60055-0699 547
POMEROY COMPUTER RESOURCES RESOURCES, INC., CINCINNATI, OH 45264-0381 758
RHI CONSULTING P.O. BOX 6248, CAROL STREAM, IL 60197-6248 295
S A S INSTITUTE, INC. P.O. BOX 65505, CHARLOTTE, NC 28265-0505 262
STANDARD & POOR'S INSTITUTIONAL 2542 COLLECTION CENTER DR., CHICAGO, IL 60693 250
STERLING SOFTWARE LEASING CO. 135 S. LASALLE DEPT 8210, CHICAGO, IL 60674-8210 142
STRICTLY BUSINESS P.O. BOX 2076, HUNINGTON, WV 25720-2076 341
TEKSYSTEMS P.O. BOX 198568, ATLANTA, GA, 30384-8568 1,431
WILLIAMS COMM SOLUTIONS, INC. 21398 NETWORK PLACE, CHICAGO, IL 60673-1213 114
XEROX CORPORATION P.O. BOX 802555, CHICAGO, IL 60680-2555 542
951 ORGANIZATIONS 7,880
------
Total Special Services - Other 34,579
------
Total All Special Services 93,226
======
Page 35
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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
Other Post-Employment Benefits 274
Medical Expense Plan 8,242
Thrift Plan 2,210
Pension Restoration Plan 369
Long-Term Disability Insurance 392
Dental Assistance Plan 961
Employee Relocation Expense 2,174
Educational Assistance 270
Miscellaneous 354
Employee Cafeteria Subsidy 58
Employee Assistance Plan 540
Flexible Spending Health & Dental 47
Group Life Insurance 713
Employee Retirement Expense 1,824
-----
Total 18,428
======
Page 36
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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 Alpha Beta Press, Inc 77
Employee Recruiting/Advertising Capital City Consulting, Inc 11
Employee Recruiting/Advertising Clear Channel Outdoor 52
Employee Recruiting/Advertising Columbus Broadcasting 4
Employee Recruiting/Advertising Debra MCClelland-Parker 3
Employee Recruiting/Advertising Delite Outdoor Advertising 7
Employee Recruiting/Advertising Eller Media Company 28
Employee Recruiting/Advertising First Impression Promotional 11
Employee Recruiting/Advertising Fort Wayne Newspaper 15
Employee Recruiting/Advertising Franklin Communications 34
Employee Recruiting/Advertising Green Light 7
Employee Recruiting/Advertising Heritage Media Corp 4
Employee Recruiting/Advertising HIS Energy 4
Employee Recruiting/Advertising Holcomb Gallager Adams 8
Employee Recruiting/Advertising Infinity Radio, INC 24
Employee Recruiting/Advertising Jacob Agency 28
Employee Recruiting/Advertising Lord, Sullivn & Yoder 43
Employee Recruiting/Advertising Marconi Company 14
Employee Recruiting/Advertising Matric Media 16
Employee Recruiting/Advertising Newspaper Network of Central Ohio 14
Employee Recruiting/Advertising Pittsburgh Post Gazette 4
Employee Recruiting/Advertising RedredBus. Class Production Products 13
Employee Recruiting/Advertising Renard Represents 9
Employee Recruiting/Advertising Service Web Offset Corporation 13
Employee Recruiting/Advertising Shaker Advertising Agency 71
Employee Recruiting/Advertising Suburban News Publications 8
Employee Recruiting/Advertising Susquehanna Radio Corp 9
Employee Recruiting/Advertising The Columbus Dispatch 3
Employee Recruiting/Advertising The David Group 31
Employee Recruiting/Advertising The Jefferson Company 7
Employee Recruiting/Advertising The Lamar Companies 71
Employee Recruiting/Advertising WAXF 7
Employee Recruiting/Advertising WBZZ 15
Employee Recruiting/Advertising WDVE-FM 24
Employee Recruiting/Advertising WFLS 5
Employee Recruiting/Advertising WGET/WGTY 3
Employee Recruiting/Advertising WHP-AM 9
Employee Recruiting/Advertising WJLM 4
Employee Recruiting/Advertising WKJM-FM 12
Employee Recruiting/Advertising WKKO-FM 18
Employee Recruiting/Advertising WMJI 47
Employee Recruiting/Advertising WRNL 3
Employee Recruiting/Advertising WRVA 9
Employee Recruiting/Advertising WTAM 36
Employee Recruiting/Advertising All Others 230
----
TOTAL 1065
====
Page 37
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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 65
Dues and Memberships - Corporate 269
Aircraft Service 304
Relocation 1,020
Employee Training 1,107
Other (4,126)
-------
TOTAL (1,361)
=======
Page 38
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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 7,614
Office Space 21,634
Air Transportation 112
Miscellaneous 1,857
Auto and General Tools 12
Communications 69
------
TOTAL 31,298
------
Page 39
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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 1,332
Sales and Use 30
Unemployment 72
License or Franchise 10
-----
Total - other 1,444
(2) U.S. Government Taxes:
Federal Insurance Contribution 6,638
Unemployment 47
Miscellaneous 0
-----
Total - Federal 6,685
TOTAL 8,129
-----
Page 40
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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
Advance Air and Waste Management Community Welfare 14
Community Hospital Cancer Fund Community Welfare 10
Congregation of Holy Cross Community Welfare 125
Elkhart Air Show Community Welfare 6
First Night Columbus Community Welfare 8
Gary Arrord Communities in School Community Welfare 25
Griffith Special Event Community Welfare 3
Indiana Environmental Institute Community Welfare 12
Indiana State Museum Foundation Community Welfare 167
Indiana Symphony Orchestra Community Welfare 13
Lundquist CNG Race Team Community Welfare 26
Louisiana Alive Community Welfare 3
Martin University Community Welfare 10
Northern Indiana Arts Association Community Welfare 84
Northwest Indiana Symphony Community Welfare 41
Rebuilding Together Community Welfare 8
Thomas Green Associates Community Welfare 55
Utility Business Coalition Community Welfare 10
Valparaiso University Community Welfare 68
United way Community Welfare 124
Youth Links Charity Golf Tournament Community Welfare 13
Miscellaneous (136) 158
---
TOTAL 983
---
Page 41
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
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 4
TOTAL 4
Page 42
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2001
-------------------------------------------------------------------
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
-------------------------------------------------------------------
Salaries and wages decreased $2.5 million in 2001 due to the
offsetting effects of the merger accruals in 2000 and the
increase in NiSource Corporate Services employees from 380
at 12/31/2000 to 1,425 at 12/31/2001.
Other categories of expense that increased due to the
restructuring of the Corporation include:
Office supplies and expenses $31.6 million
Employee pensions and benefits $14.8 million
Rents $23.2 million
Outside services $81.0 million
Page 43
NISOURCE CORPORATE SERVICES COMPANY, INC.
Organization Chart
Chairman, President and
CEO
Gary Neala
-----------------------
Vice Chairman COO Executive VP General Counsel President Primary Human Resources
Steve Adik Sam Miller and CFO Peter Fazio Energy Officer
Mike O'Donnell Shiff Hardin & Waite Mark Wyckoff LaNette
Zimmerman
------------- --------------- -------------- -------------------- ----------------- ---------------
Accounting Auditing Corporate Corporate
Services Secretary Communications
--------------- -------------- -------------------- ---------------
Air Consolidation Environmental Human Resources
Transportation Affairs Benefits
--------------- -------------- -------------------- ---------------
ED Regulatory Corporate Legal Payroll
& Gov't. Treasury
--------------- -------------- -------------------- ---------------
ED Investor Security
Marketing Relations
--------------- -------------- --------------------
Enterprise Risk
Multimedia Management
Communications
--------------- --------------
Executive Tax
--------------- --------------
Facilities
Management
---------------
Finance &
Strategy
---------------
Fleet
Management
---------------
Government
Affairs
---------------
?? &
Supplies
---------------
Merchant
Gas Supply
---------------
Procurement
---------------
Real Estate
Management
---------------
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, 2001
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
Columbia Energy Group 297 18
Columbia Gulf Transmission Company 2,387 94
Columbia Energy Services Corporation 279 12
Columbia Propane Corporation 491 26
Columbia Electric Corporation 10 2
Columbia LNG Corporation 36 1
Columbia Service Partners 6 0
Columbia Network Services Corporation 8 0
Columbia Insurance Corporation, Ltd. 57 2
Columbia Transmission Communications Corporation 356 14
Columbia Gas of Kentucky, Inc. 1,159 46
Columbia Gas of Ohio, Inc. 8,843 352
Columbia Gas of Maryland, Inc. 499 19
Columbia Gas of Pennsylvania, Inc. 3,803 149
Columbia Gas of Virginia, Inc. 2,446 99
Columbia Pipeline Corporation 9 0
Columbia Finance Co. 4 0
Columbia Energy Group Capital Corporation 17 1
Columbia Petroleum Corporation 62 3
Columbia Gas Transmission Corporation 8,680 338
Columbia Atlantic Trading Corporation 1 0
Columbia Energy Resources, Inc. 3,519 135
Columbia Remainder Corporation 30 1
NiSource, Inc. 338 12
NiSourceCrossroads Pipeline 92 3
Northern Indiana Public Service Company 9,896 357
Nisource Development Company, Inc 189 7
Nisource Capital Markets 8 0
Nisource Energy Services, Inc 15 1
Kokomo Gas and Fuel Company 111 4
Northern Indiana Fuel and Light Company 126 4
Bay State Gas Company 3,005 108
Nisource Pipeline Group, Inc 41 1
Energy USA, Inc 971 35
Primary Energy, Inc 170 6
IWC Resource Corporation 518 19
SM&P Resources, Inc 145 5
Granite Gas Transmission 1 0
Nisource Finance Company 86 3
Northern Utilities Maine 52 2
Northern Utilities New Hampshire 128 4
Nisource Energy Technology 9 0
Bay State Massachusetts 18 1
Northern Indiana Public Merchant 2,302 74
--------------- ------------------
Total 51,222 1,960
=============== ==================
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 2001
--------------------------------------------------------------------------------
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 0.00 163,335.62 912,098.93 17.90766 60,813.20 10,890.22
FEBRUARY 163,335.62 0.00 163,335.62 3,923,139.67 4.16339 208,999.39 8,701.46
MARCH 163,335.62 0.00 163,335.62 3,664,214.60 4.45759 153,881.55 6,859.41
APRIL 163,335.62 0.00 163,335.62 4,061,435.34 4.02162 214,392.04 8,622.04
MAY 163,335.62 0.00 163,335.62 4,290,803.03 3.80664 174,119.10 6,628.10
JUNE 163,335.62 0.00 163,335.62 4,138,578.64 3.94666 172,603.87 6,812.09
JULY 163,335.62 0.00 163,335.62 4,506,799.97 3.62420 197,698.05 7,164.98
AUGUST 163,335.62 0.00 163,335.62 4,378,608.29 3.73031 193,802.87 7,229.45
SEPTEMBER 163,335.62 0.00 163,335.62 4,829,113.23 3.38231 233,029.02 7,881.77
OCTOBER 163,335.62 0.00 163,335.62 4,783,366.67 3.41466 228,717.04 7,809.91
NOVEMBER 163,335.62 0.00 163,335.62 6,814,967.13 2.39672 337,433.74 8,087.34
DECEMBER 163,335.35 0.00 163,335.35 4,918,398.24 3.32091 211,728.18 7,031.29
------- ------------- -------------- --------- ------------- --------------
1,960,027.17 0.00 1,960,027.17 51,221,523.74 3.82657 2,387,218.05 93,718.04
============= ======= ============= ============== ========= ============= ==============
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 26, 2002
Page 48