Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 2003 and Ending December 31, 2003
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")
Date of Incorporation December 31, 1932
State or Sovereign Power Under which Incorporated or Organized - Delaware
Location of Principal Executive Offices of Reporting Company:
801 East 86th Avenue, Merrillville, IN
VINCENT DEVITO, CONTROLLER
200 Civic Center Drive
Columbus, OH 43215
---------------------------------------------------------------------
(Name, title and address of officer to whom correspondence concerning
this report should be addressed)
NISOURCE, INC/COLUMBIA ENERGY GROUP
--------------------------------------------------------------------
(Name of Principal Holding Company whose Subsidiaries are served by
Reporting Company)
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing - Rule 94 provides that on or before the first day of May
in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable
finding pursuant to Rule 88, and every service company whose application
for approval or declaration pursuant to Rule 88 is pending shall file with
the Commission an annual report on Form U-13-60 and in accordance with the
instructions for that form.
2. Number of Copies - Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in
case correspondence with reference to the report become necessary.
3. Period Covered by Report - The first report filed by any company shall
cover the period from the date the Uniform System of Accounts was required
to be made effective as to that company under Rules 82 and 93 to the end
of that calendar year. Subsequent reports should cover a calendar year.
4. Report Format - Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted on the same size as a sheet of the form
or folded to such size.
5. Money Amounts Displayed - All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (Section 210.3-01[b]).
6. Deficits Displayed - Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference
in footnotes. (Regulation S-X, Section 210.3-01[C]).
7. Major Amendments or Corrections - Any company desiring to amend or correct
a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages,
schedules, and entries that are to be amended or corrected. A cover letter
shall be submitted requesting the Commission to incorporate the amended
report changes and shall be signed by a duly authorized officer of the
company.
8. Definitions - Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February
2, 1979, shall be applicable to words or terms used specifically within
this Form U-13-60.
9. Organization Chart - The service company shall submit with each annual
report a copy of its current organization chart.
10. Methods of Allocation - The service company shall submit with each annual
report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed - The service
company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use of capital billed during the calendar year.
Page 2
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or
Account Page
Description of Schedules and Accounts Number Number
---------------------------------------------------------- ------------- ------
COMPARATIVE BALANCE SHEET Schedule I 5-6
Service Company Property Schedule II 7-8
Accumulated Provision For Depreciation and Schedule III 9
Amortization of Service Company Property
Investments Schedule IV 10
Accounts Receivable From Associate 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 28-31
Departmental Analysis of Salaries Account 920 32-33
Outside Services Employed Account 923 34-37
Employee Pensions and Benefits Account 926 38
General Advertising Expenses Account 930.1 39
Miscellaneous General Expenses Account 930.2 40
Rents Account 931 41
Taxes Other Than Income Taxes Account 408 42
Donations Account 426.1 43
Other Deductions Account 426.5 44
Notes to Statement of Income Schedule XVIII 45
Page 3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
---------------------------------------------------------- ------
Organization Chart 46
Methods of Allocation 47
Annual Statement of Compensation for Use of Capital Billed 48-49
Officer Authorization 50
Page 4
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
2003
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) 71,844 77,421
107 Construction work in progress (Schedule II) -- --
------- -------
Total Property 71,844 77,421
------- -------
108 Less accumulated provision for depreciation and
amortization of service company property
(Schedule III) 31,312 34,091
------- -------
Net Service Company Property 40,532 43,330
------- -------
INVESTMENTS
123 Investments in associate companies (Schedule IV) -- --
124 Other investments (Schedule IV) -- --
------- -------
Total Investments -- --
------- -------
CURRENT AND ACCRUED ASSETS
131 Cash 1,460 424
134 Special deposits 171 171
135 Working funds 755 656
136 Temporary cash investments (Schedule IV) -- --
141 Notes receivable -- --
143 Accounts receivable 5,372 8,065
144 Accumulated provision for uncollectible accounts -- --
146 Accounts receivable from associate companies
(Schedule V) 43,024 72,248
152 Fuel stock expenses undistributed (Schedule VI) -- --
154 Materials and supplies -- --
163 Stores expense undistributed (Schedule VII) -- --
165 Prepayments 1,178 685
174 Miscellaneous current and accrued assets 1,387 1,317
(Schedule VIII) -- --
------- -------
Total Current and Accrued Assets 53,347 83,566
------- -------
DEFERRED DEBITS
181 Unamortized debt expense -- --
184 Clearing accounts 1,172 9,207
186 Miscellaneous deferred debits (Schedule IX) 45,126 41,259
188 Research, development, or demonstration
expenditures (Schedule X) -- --
190 Accumulated deferred income taxes 30,458 27,667
------- -------
Total Deferred Debits 76,756 78,133
------- -------
TOTAL ASSETS AND OTHER DEBITS 170,635 205,029
======= =======
Page 5
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
2003
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
------- ----------------------------------- ----------------------------
CURRENT PRIOR
------- -------
$000 $000
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 400 400
211 Miscellaneous paid-in-capital (Schedule XI) -- --
215 Appropriated retained earnings (Schedule XI) -- --
216 Unappropriated retained earnings (Schedule XI) -- --
219 Other Comprehensive Income (10,319) (21,165)
------- -------
Total Proprietary Capital (9,919) (20,765)
------- -------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 23,930 23,930
224 Other long-term debt (Schedule XII) -- --
225 Unamortized premium on long-term debt -- --
226 Unamortized discount on long-term debt -- --
------- -------
Total Long-Term Debt 23,930 23,930
------- -------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable -- --
232 Accounts payable 8,560 13,947
233 Notes payable to associate companies (Schedule XIII) -- 74
234 Accounts payable to associate companies (Schedule XIII) 47,664 49,667
236 Taxes accrued (949) 20,440
237 Interest accrued 945 783
238 Dividends declared -- --
241 Tax collections payable 577 90
242 Miscellaneous current and accrued liabilities (Schedule XIII) 60,866 57,522
------- -------
Total Current and Accrued Liabilities 117,663 142,523
------- -------
DEFERRED CREDITS
253 Other deferred credits 34,893 55,391
255 Accumulated deferred investment tax credits -- --
------- -------
Total Deferred Credits 34,893 55,391
------- -------
282 ACCUMULATED DEFERRED INCOME TAXES 4,068 3,950
------- -------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 170,635 205,029
======= =======
Page 6
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
SCHEDULE II - SERVICE COMPANY PROPERTY
BALANCE BALANCE
AT AT
BEGINNING RETIREMENTS OTHER CLOSE
DESCRIPTION OF YEAR ADDITIONS OR SALES CHANGES OF YEAR
----------------------------------------------- --------- --------- ----------- ------- --------
$000 $000 $000 $000 $000
SERVICE COMPANY PROPERTY
Account:
301 ORGANIZATION -- -- -- -- --
303 MISCELLANEOUS
INTANGIBLE PLANT -- -- -- -- --
304 LAND AND LAND RIGHTS 62 -- -- -- 62
305 STRUCTURES AND
IMPROVEMENTS 23,692 546 317 -- 23,921
306 LEASEHOLD IMPROVEMENTS -- -- -- --
307 EQUIPMENT (1) 32,556 3,813 4,875 (51) 31,443
308 OFFICE FURNITURE AND
EQUIPMENT (1) 7,334 3 4,672 -- 2,665
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT 427 -- 24 -- 403
310 AIRCRAFT AND AIRPORT
EQUIPMENT 13,207 -- -- -- 13,207
311 OTHER SERVICE COMPANY
PROPERTY (3) 143 -- -- -- 143
------ ----- ----- --- ------
SUB-TOTAL 77,421 4,362 9,888 (51) 71,844
------ ----- ----- --- ------
107 CONSTRUCTION WORK IN
PROGRESS (4) -- -- -- -- --
------ ----- ----- --- ------
TOTAL 77,421 4,362 9,888 (51) 71,844
====== ===== ===== === ======
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
307 - A fixed asset inventory was completed and those assets determined to
be obsolete or disposed of were retired.
308 - A fixed asset inventory was completed and those assets determined to
be obsolete or disposed of were retired.
Page 7
SCHEDULE II - CONTINUED
(2) SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
BALANCE AT
CLOSE OF
SUBACCOUNT DESCRIPTION ADDITIONS YEAR
---------------------- ----- ------
$000 $000
307-1 Telecommunications Equipment -- 90
307-2 Communications Management Center -- 724
307-3 Data Processing Equipment -- 872
307-4 Print Services Equipment -- --
307-5 Research & Laboratory Equipment -- --
307-6 Telecommunications Equipment 139 6,921
307-7 EDP Equipment - 4 years 3,649 14,331
307-8 EDP Equipment - 10 years -- 5
307-9 Personal Computer and Peripheral Equipment 25 6,712
307-10 Distribution Research Equipment -- --
307-11 Electrical Supply Generators -- 1,788
307-14 CGT EQUIPMENT -- --
307-37 CPA EQUIPMENT -- --
307-51 TCO Equipment -- --
307-90 NiSource Equipment -- --
----- ------
TOTAL
3,813 31,443
===== ======
(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, 2003
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
ADDITIONS
BALANCE CHARGED OTHER BALANCE
AT TO CHANGES AT
BEGINNING ACCOUNT ADD CLOSE
DESCRIPTION OF YEAR 403 RETIREMENTS (DEDUCT) OF YEAR
------------------------------------------------- ------- --------- ----------- -------- -------
$000 $000 $000 $000 $000
ACCOUNT
301 ORGANIZATION -- -- -- -- --
303 MISCELLANEOUS INTANGIBLE
PLANT -- -- -- -- --
304 LAND AND LAND RIGHTS -- -- -- -- --
305 STRUCTURES AND
IMPROVEMENTS 7,597 484 81 -- 8,000
306 LEASEHOLD IMPROVEMENTS -- -- --
307 EQUIPMENT (1) 21,960 5,811 8,528 446 19,689
308 OFFICE FURNITURE AND
FIXTURES (1) 3,335 207 1,194 (653) 1,695
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT 155 56 85 250 376
310 AIRCRAFT AND AIRPORT
EQUIPMENT 902 506 -- 1 1,409
311 OTHER SERVICE COMPANY
PROPERTY 142 -- -- 1 143
------- -------- --------- -------- -------
TOTAL 34,091 7,064 9,888 45 31,312
======= ======== ========= ======== =======
(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, 2003
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, 2003
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
from each associate company. Where the service company has
provided accommodation or convenience payments for associate
companies, a separate listing of total payments for each
associate company
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
------------------------------------------------------------------------- ---------- ----------
$000 $000
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
Bay State Massachusetts 2,477 3,566
Columbia Atlantic Trading Corporation 4 2
Columbia Energy Group 14,062 2,143
Columbia Energy Resources, Inc. 934 --
Columbia Energy Services Corporation 249 64
Columbia Finance Company -- 5
Columbia Gas of Kentucky, Inc. 1,201 965
Columbia Gas of Maryland, Inc. 551 285
Columbia Gas of Ohio, Inc. 8,832 7,680
Columbia Gas of Pennsylvania, Inc. 4,691 3,227
Columbia Gas of Virginia, Inc. 2,432 1,968
Columbia Gas Transmission Corporation 8,608 6,467
Columbia Gulf Transmission Company 2,392 1,015
Columbia Network Services Corporation 163 20
Columbia Pipeline Corporation -- 3
Columbia Remainder Corporation 233 74
Columbia Service Partners 6 --
Columbia Transmission Communications Corporation (57) --
Energy USA, Inc 2,004 444
Granite State Gas 47 33
Indianapolis Water Resources 5 --
Kokomo Gas and Fuel Company 155 142
NiSource Capital Markets 12 3
NiSource Crossroads Pipeline 42 42
NiSource Development Company, Inc 6 (281)
NiSource Energy Services, Inc 421 116
NiSource Energy Technology (2) 52
NiSource Finance Company 67 70
NiSource Insurance Corporation, Ltd. 7 6
NiSource Pipeline Group, Inc 17 3
NiSource, Inc. 14,517 3,860
Northern Indiana Fuel and Light Company 458 395
Northern Indiana Public Service Company 6,621 9,657
Northern Utilities Maine 660 293
Northern Utilities New Hampshire 277 354
Primary Energy, Inc 156 351
------ ------
TOTAL 72,248 43,024
====== ======
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL
PAYMENTS
--------
$000
See Schedule V-A, page 12
TOTAL PAYMENT 462,223
=======
Page 11
SCHEDULE V-A
NISOURCE CORPORATE SERVICES COMPANY, INC.
Convenience & Accommodation Payments
For the Year Ended December 31, 2003
POSTAGE AND
AUDIT CORPORATE EMPLOYEE MAILING TELE-
Associate Company FEES INSURANCE BENEFITS LEASING SERVICES COMMUNICATIONS OTHER TOTAL
-------------------------------------- ---- --------- -------- ------- -------- -------------- ----- --------
$000 $000 $000 $000 $000 $000 $000
Bay State Massachusetts 222 3,065 10,653 119 4 1,914 1,588 17,564
Columbia Accounts Receivable 24,645 24,645
Columbia Atlantic Trading Corporation (3) 271 268
Columbia Capital Corporation 1 1
Columbia Deep Water Services (2) (2)
Columbia Energy Group (3,380) 1,247 11 43 74,036 71,957
Columbia Energy Resources, Inc. 359 2,718 4,825 2,145 457 26,726 37,230
Columbia Energy Services Corporation 15 46 33 48,227 48,321
Columbia Gas of Kentucky, Inc. 910 2,741 705 138 358 509 5,362
Columbia Gas of Maryland, Inc. 243 1,041 150 35 95 5,558 7,122
Columbia Gas of Ohio, Inc. 602 7,463 29,586 1,997 1,381 3,008 18,268 62,306
Columbia Gas of Pennsylvania, Inc. 266 4,355 11,859 1,161 412 1,616 1,770 21,439
Columbia Gas of Virginia, Inc. 1,340 4,612 876 212 770 8,097 15,906
Columbia Gas Transmission Corporation 887 7,595 31,923 4,666 5 4,078 4,221 53,375
Columbia Gulf Transmission Company 148 3,847 5,770 496 12 865 566 11,704
Columbia Insurance Company 1 3 4
Columbia Network Services 6 34 3 43
Columbia Remainder Corporation 23 15 177 216
Columbia Service Partners 25 28 2 4 760 820
Columbia Transmission Communications
Corporation 31 40 3 1,166 1,240
Energy USA Inc. 182 341 955 27 342 1,847
Energy USA TPC 39 16 53 4 113
Granite State Gas 111 85 1 0 140 337
Indianapolis Water Resources (1) 19 12 30
Kokomo Gas and Fuel Company 144 166 800 4 16 1,129
NiSource Capital Markets 1 23 24
NiSource Crossroads Pipeline 66 27 9 16 118
NiSource Development Company, Inc 170 430 600
NiSource Energy Services, Inc. 53 4,431 4,484
NiSource Energy Technology 14 230 12 7 264
NiSource Finance Company 103 10 245 357
NiSource, Inc. 888 548 2 1 768 2,206
Northern Indiana Fuel and Light Company 128 185 1,361 (25) 1,648
Northern Indiana Public Service Company 800 19,211 33,031 682 2,802 7,564 64,090
Northern Utilities Maine 254 1,029 22 172 348 1,825
Northern Utilities New Hampshire 257 757 3 197 107 1,320
Primary Energy, Inc. 1,888 318 55 48 2,309
----- ------ ------- ------ ----- ------ ------- -------
Grand Total 4,835 51,503 143,040 13,034 2,204 16,541 231,067 462,223
===== ====== ======= ====== ===== ====== ======= =======
Page 12
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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, 2003
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, 2003
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 1,317 1,387
Non-Compete Deferred Debit (Amortized over 15 Years
Phantom Stock)
----------- ----------
TOTAL 1,317 1,387
Page 15
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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 10,699 13,054
Deferred Insurance Receivables 1,953 1,456
Intangible Asset - Pension Restoration Plan 21,232 16,824
Miscellaneous Deferred Property 7,375 13,792
------ ------
TOTAL 41,259 45,126
Page 16
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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, 2003
SCHEDULE XI - PROPRIETARY CAPITAL
OUTSTANDING CLOSE OF PERIOD
NUMBER OF SHARES PAR OR STATED VALUE -------------------------------------
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
-------------- -------------- ---------------- ------------------- ------------- ------------
201 COMMON STOCK 4,000 $100 4,000 $400,000
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise
to the reported amount.
DESCRIPTION AMOUNT
-------------------------------------------------------------------- ------
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL $0
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS $0
------
TOTAL $0
INSTRUCTIONS: Give particulars concerning net income or (loss) during the
year, distinguishing between compensation for the use of
capital owed or net loss remaining from servicing
nonassociates per the General Instructions of the Uniform
System of Accounts. For dividends paid during the year in cash
or otherwise, provide rate percentage, amount of dividend,
date declared and date paid.
BALANCE AT BALANCE AT
BEGINNING NET INCOME DIVIDENDS CLOSE
DESCRIPTION OF YEAR OR (LOSS) PAID OF YEAR
---------------------------------------------------- ---------- ---------- --------- ----------
$000 $000 $000 $000
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS
Rate/Share Amount of Dividend Date Declared Date Paid
---------- ------------------ ------------- ---------
$ $000
---------------------------------------------------- ------- --------- ---- -------
TOTAL - - - -
Page 18
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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 BALANCE AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING DEDUCTIONS CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS (1) OF YEAR
---------------- -------------- -------- -------- ---------- ---------- --------- ----------- ----------
% $000 $000 $000 $000 $000
ACCOUNT 223 - ADVANCES FROM
ASSOCIATE COMPANIES:
Columbia Energy Group Promissory Note 11/28/05 7.30 2,246 2,246 - - 2,246
Columbia Energy Group Promissory Note 11/28/07 7.55 2,246 2,246 - - 2,246
Columbia Energy Group Promissory Note 11/28/10 7.82 2,246 2,246 - - 2,246
Columbia Energy Group Promissory Note 03/01/14 7.33 12,700 12,700 - - 12,700
Columbia Energy Group Promissory Note 11/28/15 7.92 2,246 2,246 - - 2,246
Columbia Energy Group Promissory Note 11/28/25 8.12 2,246 2,246 - - 2,246
ACCOUNT 224 - OTHER
LONG-TERM DEBT: - - - - -
TOTAL 23,930 23,930 - - 23,930
Page 19
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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
Nisource, Inc. 74 --
---------- ----------
TOTAL 74 --
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Bay State Massachusetts -- 202
Columbia Energy Group 4,514 4,476
Columbia Gas of Kentucky, Inc. 2 13
Columbia Gas of Maryland, Inc. -- 14
Columbia Gas of Ohio, Inc. 387 887
Columbia Gas of Pennsylvania, Inc. -- 105
Columbia Gas of Virginia, Inc. 8 207
Columbia Gas Transmission Corporation 525 98
Columbia Gulf Transmission Company 150 7
Energy USA, Inc -- 229
NiSource Development Company, Inc 208 208
NiSource Energy Technology -- 186
NiSource, Inc. 5,037 4,543
Northern Indiana Public Service Company 1,321 712
Northern Utilities Maine -- 15
Primary Energy, Inc -- 449
System Money Pool Interest 72 67
System Money Pool Principal 37,443 35,246
---------- ----------
TOTAL 49,667 47,664
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Accrued Vacation 7,998 8,670
Change in Control 600 600
Comprehensive Medical Expense Plan Accrual 813 803
Contingent Stock 6,641 --
Contingent Stock Dividend -- 470
Deferred Compensation 5,325 5,153
Dental Assistance Plan Accrual 28 20
Employee Thrift Plan 1,745 1,337
Flexible Spending 1,135 2,651
Group Life Insurance 313 --
Incentive/Bonus Accrual -- 7,787
Job Placement 793 --
LTIP Dividend Credit -- 195
Pension Restoration Plan 4,178 7,677
Pension Retirement Benefits 2,250 2,250
Phantom Stock Liability 9,883 7,856
Post Employment Benefit Obligation 74 52
Relocation 9 --
Retirement Income Plan 2,418 10,410
Severance 10,374 1,032
Thrift Plan - Company 60 60
Thrift Restoration Plan 2,101 2,243
Unclaimed Funds -- 94
United Way (72) (56)
Voluntary Personal Accident Insurance (20) --
Miscellaneous 876 1,562
---------- ----------
TOTAL 57,522 60,866
Page 20
SCHEDULE XIII-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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 NONE
7.30% Installment Promissory Note NONE NONE
7.55% Installment Promissory Note NONE NONE
7.82% Installment Promissory Note NONE NONE
7.33% Installment Promissory Note NONE NONE
7.92% Installment Promissory Note NONE NONE
8.12% Installment Promissory Note NONE NONE
---------- ----------
Total NONE NONE
========== ==========
Page 21
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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 $7,992,000 in
2003 and $2,915,000 in 2002.
d. Leases
Payments made by the Corporation in connection with operating
leases are charged to expense incurred. No capitalized leases
existed in 2003.
e. Account Numbers
The Corporation uses certain FERC accounts which do not match
existing SEC accounts; therefore, the year-end balances of the
following FERC accounts were reclassified to a corresponding
SEC account.
Account Number
--------------- Year-End
Account Description FERC SEC Balance
------------------- ---- --- --------
$000
Interest Receivable 171 143 --
Deferred Income Taxes 283 282 89
Page 22
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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 $33,830,038 as of December 31, 2003, 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 its 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.
Page 23
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year ended December 31, 2003
--------------------------------------------------------------------------------
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
--------------------------------------------------------------------------------
2003 2002
------------ ----------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
------- ---------------------------------------------- ------------ ----------
$000 $000
INCOME
457 Services rendered to associate companies 277,807 304,443
458 Services rendered to nonassociate companies -- --
417 Interest Revenue -- 1
419 Interest Revenue - Other 14 187
421 Miscellaneous Income or Loss (24) --
------- -------
Total Income 277,797 304,631
EXPENSE
920 Salaries and wages 118,019 139,915
921 Office supplies and expenses 13,180 11,997
922 Administrative expense transferred - credit -- --
923 Outside services employed 52,443 72,981
924 Property insurance 2 49
925 Injuries and damages 1,472 1,249
926 Employee pensions and benefits 30,189 24,846
928 Regulatory commission expense 568 --
930.1 General advertising expenses 531 542
930.2 Miscellaneous general expenses 3,948 2,909
931 Rents 21,162 19,700
932 Maintenance of structures and equipment 15,621 8,510
403 Depreciation and amortization expense 7,064 8,032
408 Taxes other than income taxes 9,111 9,844
409 Income taxes 7,083 11,571
410 Provision for deferred income taxes 1,543 59,405
411 Provision for deferred income taxes - credit (7,741) (72,240)
426.1 Donations 370 255
426.5 Other deductions 49 2
430 Interest on debt to associate companies 2,737 4,078
431 Other interest expense 446 986
------- -------
Total Expense 277,797 304,631
------- -------
Net Income or (Loss) -- --
======= =======
Page 24
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year ended December 31, 2003
--------------------------------------------------------------------------------
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
--------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
------------------------------------------ ------- -------- ------------ --------
457-1 457-2 457-3
------- ------- ------------
$000 $000 $000 $000
Bay State Massachusetts 14,963 6,862 166 21,991
Columbia Atlantic Trading Corporation 14 3 -- 17
Columbia Energy Group 9,928 2,704 67 12,699
Columbia Energy Group Capital Corporation 8 1 - 9
Columbia Energy Services Corporation 531 68 2 601
Columbia Finance Corporation 23 7 -- 30
Columbia Gas of Kentucky, Inc. 4,723 2,518 59 7,300
Columbia Gas of Maryland, Inc. 1,754 873 21 2,648
Columbia Gas of Ohio, Inc. 32,688 15,180 364 48,232
Columbia Gas of Pennsylvania, Inc. 13,764 6,418 154 20,336
Columbia Gas of Virginia, Inc. 8,355 3,931 96 12,382
Columbia Gas Transmission Corporation 26,240 12,119 292 38,651
Columbia Gulf Transmission Company 5,599 2,959 71 8,629
Columbia Network Services Corporation 32 15 -- 47
Columbia Pipeline Company 20 8 -- 28
Columbia Remainder Corporation 705 83 2 790
Energy USA, Inc 3,016 1,761 35 4,812
Granite State Gas 315 143 3 461
Indianapolis Water Resources (113) 2 -- (111)
Kokomo Gas and Fuel Company 270 149 4 423
NiSource Capital Markets 40 7 -- 47
NiSource Development Company, Inc 2,675 183 6 2,864
NiSource Energy Services, Inc 3,343 118 3 3,464
NiSource Energy Technology 213 134 4 351
NiSource Finance Company 424 21 1 446
NiSource Insurance Corporation, Ltd. 25 9 -- 34
NiSource, Inc. 26,341 1,325 28 27,694
NiSource Crossroads Pipeline 177 106 2 285
Northern Indiana Fuel and Light Company 340 104 5 449
Northern Indiana Public Service Company 34,263 15,476 364 50,103
Northern Utilities Maine 1,471 650 16 2,137
Northern Utilities New Hampshire 1,526 679 17 2,222
Primary Energy, Inc 3,134 806 19 3,959
------- ------- ------------ --------
Total Amount Billed in 2003 196,807 75,422 1,801 274,030
Reconciliation to Total Revenues:
Difference between Amount of
Unbilled Revenue December 2002 and
December 2003 1,947 894 936 3,777
------- ------- ------------ --------
198,754 76,316 2,737 277,807
======= ======= ============ ========
Page 25
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
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, 2003
--------------------------------------------------------------------------------
Schedule XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
--------------------------------------------------------------------------------
ASSOCIATE COMPANY NONASSOCIATE COMPANY TOTAL CHARGES FOR
CHARGES CHARGES SERVICE
------------------------------ ------------------------- -----------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL COST COST TOTAL
---------------------------------------- ------- -------- --------- ------ -------- ----- ------- -------- -------
$000 $000 $000 $000 $000 $000 $000 $000 $000
920 Salaries and Wages 90,109 27,910 118,019 -- -- -- 90,109 27,910 118,019
921 Office Supplies and Expenses 10,171 3,009 13,180 -- -- -- 10,171 3,009 13,180
922 Administrative Expenses
Transferred -- Credit 1,202 (1,202) -- -- -- -- 1,202 (1,202) --
923 Outside Services Employed 50,669 1,774 52,443 -- -- -- 50,669 1,774 52,443
924 Property Insurance (1) 3 2 -- -- -- (1) 3 2
925 Injuries and Damages 1,382 90 1,472 -- -- -- 1,382 90 1,472
926 Employee Pensions and Benefits 471 29,718 30,189 -- -- -- 471 29,718 30,189
928 Regulatory Commission Expense 568 -- 568 -- -- -- 568 -- 568
930.1 General Advertising Expenses 516 15 531 -- -- -- 516 15 531
930.2 Miscellaneous General Expense 3,445 503 3,948 -- -- -- 3,445 503 3,948
931 Rents 20,820 342 21,162 -- -- -- 20,820 342 21,162
932 Maintenance of Structure and
Equipment 13,232 2,389 15,621 -- -- -- 13,232 2,389 15,621
403 Depreciation and Amortization
Expense 5,463 1,601 7,064 -- -- -- 5,463 1,601 7,064
408 Taxes Other Than Income Taxes 469 8,642 9,111 -- -- -- 469 8,642 9,111
409 Income Taxes -- 7,083 7,083 -- -- -- -- 7,083 7,083
410 Provision for Deferred Income
Taxes -- 1,543 1,543 -- -- -- -- 1,543 1,543
411 Provision for Deferred Income
Taxes -- Credit -- (7,741) (7,741) -- -- -- -- (7,741) (7,741)
419 Other Interest -- (14) (14) -- -- -- -- (14) (14)
421 Gain/Loss on Sale of Property -- 24 24 -- -- -- -- 24 24
426.1 Donations 236 134 370 -- -- -- 236 134 370
426.5 Other Deductions 2 47 49 -- -- -- 2 47 49
427 Interest on Long-Term Debt -- -- -- -- -- -- -- -- --
431 Other Interest Expense -- 446 446 -- -- -- -- 446 446
---------------------------------------- ------- --------- --------- ------ -------- ----- -------- --------- -------
Instructions: Total cost of service will
equal the amount billed to
associate and nonassociate
companies under their
separate analysis of
billing schedules.
---------------------------------------- ------- --------- --------- ------ -------- ----- -------- --------- -------
Total Expenses 198,754 76,316 275,070 -- -- -- 198,754 76,316 275,070
------- --------- --------- ------ -------- ----- -------- --------- -------
430 Interest on Short-Term Debt 936 936
--------- -------
--------- -------
Compensation for Use of Capital-
Associated Companies
--------- -------
430 Intercompany Interest on
Indebtedness 1,801 1,801
--------- -------
Compensation for Use of
Equity Capital -- --
--------- -------
Total Cost of Service 277,807 277,807
-----------------------------------------------------------------------------------------------------------------------------------
Page 27
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
----------------------------------------------
Chairman,
TOTAL Aviation President
DESCRIPTION OF ITEMS AMOUNT OVERHEAD Accounting Auditing Services and CEO
------------------------------------------------------ ------ -------- ---------- -------- -------- --------
$000 $000 $000 $000 $000 $000
920 Salaries and Wages 118,019 27,910 6,846 1,473 161 1,076
921 Office Supplies and Expenses 13,180 3,009 205 153 143 65
922 Administrative Expenses Transferred - Credit -- (1,202) -- -- -- --
923 Outside Services Employed 52,443 1,774 647 122 812 1,103
924 Property Insurance 2 3 -- -- -- (2)
925 Injuries and Damages 1,472 90 -- -- -- --
926 Employee Pensions and Benefits 30,189 29,718 15 -- -- 7
928 Regulatory Commission Expense 568 -- -- -- -- --
930.1 General Advertising Expense 531 15 6 -- -- 2
930.2 Miscellaneous General Expense 3,948 503 111 180 179 131
931 Rents 21,162 342 11 2 505 14
932 Maintenance of Structures and Equipment 15,621 2,389 1 -- 78 --
403 Depreciation and Amortization Expense 7,064 1,601 -- -- 506 --
408 Taxes Other Than Income Taxes 9,111 8,642 -- -- 2 --
409 Income Taxes 7,083 7,083 -- -- -- --
410 Provision for Deferred Income Taxes 1,543 1,543 -- -- -- --
411 Administrative Expenses Transferred - Credit (7,741) (7,741) -- -- -- --
411.5 Investment Tax Credit -- -- -- -- -- --
419 Other Interest (14) (14) -- -- -- --
421 Miscellaneous Income or Loss 24 24 -- -- -- --
426.1 Donations 370 134 2 -- -- 2
426.5 Other Deductions 49 47 -- -- -- --
427 Interest on Long-Term Debt -- -- -- -- -- --
430 Interest on Debt to Associate Companies 2,737 2,737 -- -- -- --
431 Other Interest Expense 446 446 -- -- -- --
------------------------------------------------------
Instruction: Indicate each department or service
function. (See Instruction 01-3 General
Structure of Accounting System:
Uniform System Account)
------------------------------------------------------ ------- -------- ---------- --------- -------- --------
Total Expenses 277,807 79,053 7,844 1,930 2,386 2,398
------------------------------------------------------ ------- -------- ---------- --------- -------- --------
DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------
Company
General Company Corporate Corporate
DESCRIPTION OF ITEMS Managers Presidents Communications Insurance
------------------------------------------------------- -------- ---------- -------------- ---------
$000 $000 $000 $000
920 Salaries and Wages 478 388 1,580 672
921 Office Supplies and Expenses 28 69 502 22
922 Administrative Expenses Transferred - Credit -- -- -- --
923 Outside Services Employed 22 11 932 140
924 Property Insurance -- -- -- --
925 Injuries and Damages -- -- -- 1,382
926 Employee Pensions and Benefits -- -- 1 --
928 Regulatory Commission Expense -- -- -- --
930.1 General Advertising Expense -- -- 266 --
930.2 Miscellaneous General Expense 7 117 254 48
931 Rents 4 7 30 1
932 Maintenance of Structures and Equipment -- -- -- --
403 Depreciation and Amortization Expense -- -- -- --
408 Taxes Other Than Income Taxes -- -- -- --
409 Income Taxes -- -- -- --
410 Provision for Deferred Income Taxes -- -- -- --
411 Administrative Expenses Transferred - Credit -- -- -- --
411.5 Investment Tax Credit -- -- -- --
419 Other Interest -- -- -- --
421 Miscellaneous Income or Loss -- -- -- --
426.1 Donations -- -- 188 --
426.5 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 539 592 3,753 2,265
------------------------------------------------------- -------- ---------- -------------- ---------
Page 28
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
Customer Energy
Account Corporate Corporate Contact Supply Environmental
Number Secretary Treasury Centers Services Affairs
-------------- --------- --------- -------- -------- -------------
$000 $000 $000 $000 $000
920 229 786 1,505 4,930 5,044
921 56 25 71 194 598
922 -- -- -- -- --
923 2,089 177 4 295 437
924 -- -- -- -- --
925 -- -- -- -- --
926 -- -- -- 33 17
928 -- -- -- -- --
930.1 -- -- -- 2 --
930.2 53 517 66 15 110
931 -- 1 11 20 200
932 -- -- -- 17 52
403 -- -- -- -- --
408 -- -- -- -- --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 -- -- -- -- 16
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-------------- --------- --------- -------- -------- -------------
Total Expenses 2,427 1,506 1,657 5,506 6,474
--------- --------- -------- -------- -------------
Executive VP
Account Executive Executive Regulated Facilities Financial
Number VP and CFO VP and COO Revenue Management Planning
-------------- --------- --------- ------------ ---------- ---------
$000 $000 $000 $000 $000
920 505 1,330 378 771 3,448
921 48 275 65 334 156
922 -- -- -- 1,202 --
923 8 1,336 137 59 560
924 -- -- -- -- --
925 -- -- -- -- --
926 4 3 -- 226 33
928 -- -- -- -- --
930.1 -- -- -- -- 3
930.2 4 70 8 9 79
931 13 13 11 10,767 11
932 -- -- -- 3,004 1
403 -- -- -- -- --
408 -- -- -- -- --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 -- -- -- -- --
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-------------- --------- --------- ------------ ---------- ---------
Total Expenses 582 3,027 599 16,372 4,291
--------- --------- ------------ ---------- ---------
Page 29
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
Human
Account Fleet Governmental Resources/ Information Investor
Number Management Affairs Benefits Technology Relations
-------------- ---------- ------------ ---------- ----------- ---------
$000 $000 $000 $000 $000
920 1,281 209 3,042 26,985 262
921 92 39 172 3,250 79
922 -- -- -- -- --
923 -- 110 1,105 7,151 132
924 -- -- -- 1 --
925 -- -- -- -- --
926 -- -- 37 35 --
928 -- -- -- -- --
930.1 -- -- -- 9 --
930.2 2 3 27 806 7
931 3 87 3 8,971 --
932 -- -- 1 10,025 --
403 -- -- -- 4,957 --
408 -- -- -- 249 --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 -- 5 -- -- --
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-------------- ---------- ------------ ---------- ----------- ---------
Total Expenses 1,378 453 4,387 62,439 480
---------- ------------ ---------- ----------- ---------
Large
Customer
Relationships NiSource
Account and Materials Retail
Number Transportation Legal & Supplies Meter-to-Cash Services
-------------- -------------- -------- ---------- ------------- --------
$000 $000 $000 $000 $000
920 1,363 3,993 2,026 782 23
921 226 1,526 83 323 6
922 -- -- -- -- --
923 1,457 28,724 82 58 41
924 -- -- -- -- --
925 -- -- -- -- --
926 8 11 -- -- --
928 -- -- -- -- --
930.1 183 -- -- -- 14
930.2 10 135 12 6 27
931 4 25 3 3 --
932 -- 25 1 14 1
403 -- -- -- -- --
408 -- -- -- -- --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 -- -- -- -- --
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-------------- -------------- -------- ---------- ------------- --------
Total Expenses 3,251 34,439 2,207 1,186 112
-------------- -------- ---------- ------------- --------
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
Schedule XVII
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
Account Operations Real Estate Regulatory &
Number Integration Procurement Investments Government Security
-------------- ----------- ----------- ----------- ------------ ------------
$000 $000 $000 $000 $000
920 381 1,122 203 3,359 426
921 53 133 16 477 51
922 -- -- -- -- --
923 78 113 137 1,970 52
924 -- -- -- -- --
925 -- -- -- -- --
926 -- -- -- -- --
928 -- -- -- 568 --
930.1 -- 2 -- 29 --
930.2 1 20 -- 316 16
931 3 6 7 39 --
932 -- 7 -- -- --
403 -- -- -- -- --
408 -- -- -- -- --
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 -- -- -- 23 --
426.5 -- 2 -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-------------- ----------- ----------- ----------- ----------- -----------
Total Expenses 516 1,405 363 6,781 545
----------- ----------- ----------- ----------- -----------
Account Support Technical Vice
Number Operations Tax Operations Chairman Other
-------------- ---------- ----- ---------- -------- -----
$000 $000 $000 $000 $000
920 1,049 1,580 1,762 915 7,746
921 137 110 351 38 --
922 -- -- -- -- --
923 5 416 108 39 --
924 -- -- -- -- --
925 -- -- -- -- --
926 -- -- 41 -- --
928 -- -- -- -- --
930.1 -- -- -- -- --
930.2 35 10 47 7 --
931 21 5 18 -- 1
932 -- -- 5 -- --
403 -- -- -- -- --
408 -- -- -- -- 218
409 -- -- -- -- --
410 -- -- -- -- --
411 -- -- -- -- --
411.5 -- -- -- -- --
419 -- -- -- -- --
421 -- -- -- -- --
426.1 -- -- -- -- --
426.5 -- -- -- -- --
427 -- -- -- -- --
430 -- -- -- -- --
431 -- -- -- -- --
-------------- ---------- ----- ---------- -------- -----
Total Expenses 1,247 2,121 2,332 999 7,965
---------- ----- ---------- -------- -----
Page 30
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
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 9,684 164 9,520 -- 152
Auditing 2,225 47 2,178 -- 25
Aviation Services 180 -- 180 -- 2
Chairman, President and CEO 1,625 263 1,362 -- 4
Company General Managers 684 -- 684 -- 3
Company Presidents 572 -- 572 -- 3
Corporate Communications 1,992 1 1,991 -- 22
Corporate Insurance 898 8 890 -- 7
Corporate Secretary 310 97 213 -- 4
Corporate Treasury 1,022 17 1,005 -- 9
Customer Contact Centers 1,877 -- 1,877 -- 36
Energy Supply Services 6,090 -- 6,090 -- 76
Environmental Affairs 6,165 51 6,114 -- 80
Executive VP and CFO 714 37 677 -- 2
Executive VP and COO 1,856 73 1,783 -- 7
Executive VP Regulated Revenue 540 1 539 -- 2
Facilities Management 1,048 10 1,038 -- 17
Financial Planning 4,623 19 4,604 -- 51
Fleet Management 1,547 -- 1,547 -- 24
Governmental Affairs 302 2 300 -- 2
Human Resources/Benefits 4,301 8 4,293 -- 64
Information Technology 36,590 95 36,495 -- 546
Investor Relations 367 5 362 -- 3
Large Customer Relationships
and Transportation 1,794 1 1,793 -- 29
Legal 5,240 336 4,904 -- 48
Materials & Supplies 2,436 2 2,434 -- 34
Meter-to-Cash 1,033 1 1,032 -- 28
NiSource Retail Services 31 13 18 -- 4
Operations Integration 459 104 355 -- 3
Procurement 2,245 22 2,223 -- 24
Real Estate Investments 299 5 294 -- --
Regulatory & Government 4,458 3 4,455 -- 47
Security 546 9 537 -- 5
Support Operations 1,290 -- 1,290 -- 13
Tax 2,096 34 2,062 -- 28
Technical Operations 2,178 -- 2,178 -- 25
Vice Chairman 1,189 32 1,157 -- 2
Other 7,513 16,110 (8,597) -- --
------- ------ ------- -- -----
Total 118,019 17,570 100,449 -- 1,431
------- ------ ------- -- -----
Page 31
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
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 52,443
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
5 Organizations 103
------
Total Special Services - Audit 103
------
2-Special Services - Legal
BAKER & DANIELS P.O. BOX 664091, INDIANAPOLIS, IN 46266-4091 NA 739
BARNES & THORNBURG 11 SOUTH MERIDIAN STREET, INDIANAPOLIS, IN 46204-3556 NA 325
BORDEN LADNER GERVAIS LLP 400 3RD AVE SW STE 1000, CALGARY, AB T2P 4H2 NA 592
BRICKER & ECKLER LLP 100 S THIRD ST, COLUMBUS, OH 43215-4236 NA 545
BRICKLEY, SEARS & SORETT, P.A. 75 FEDERAL ST, BOSTON, MA 02110-2699 NA 526
C.D. BENGSTON RESOURCE MAN 2900,350 7 AVENUE, CALGARY, ALBERTA, T2P3N9 NA 174
CARSCALLEN LOCKWOOD LLP 1500 407 2ND STREET SW, CALGARY, AB T2P2Y3 NA 121
CONNELLY ROBERTS & MCGIVNEY ONE NORTH FRANKLIN STREET, CHICAGO, IL 60606 NA 102
CRANE, GREENE & PARENTE 90 STATE STREET, ALBANY, NY 12207 NA 385
DOERNER, SAUNDERS, DANIELS & ANDER 320 S BOSTON AVE STE 500, TULSA, OK 74103-3725 NA 283
DRINKER, BIDDLE & REATH 1500 K STREET, WASHINGTON, DC 20005 NA 133
EICHHORN & EICHHORN 200 RUSSELL ST., HAMMOND, IN 46325 NA 998
HAGEMIER, ALLEN & SMITH 1170 MARKET TOWER, INDIANAPOLIS, IN 46204-2964 NA 120
JACKSON & KELLY P.O. BOX 11276, CHARLESTON, WV 25339 NA 141
ROBERT G KERN ESQ 1200 CRAMER LN, CHAPEL HILL, NC 27516-8382 NA 147
LEBOEUF, LAMB, GREENE & MACRAE 99 WASHINGTON AVENUE, ALBANY, NY 12210-2820 NA 141
MCGUIRE WOODS ONE JAMES CENTER-ACCOUNTING, RICHMOND, VA 23219-4030 NA 201
MORGAN, BROWN, & JOY LLP 1 BOSTON PLACE, BOSTON, MA 02108-4472 NA 152
MORGAN LEWIS AND BOCKIUS P.O. BOX 8500 S-6050, PHILADELPHIA, PA 19178-6050 NA 367
PAUL HASTINGS 1299 PENNSYLVANIA AVE NW, WASHINGTON, DC 20004 NA 283
PEACOCK LINDER & HALT 350 7TH AVE SW, CALGARY, ALBERTA T3P3N9 NA 215
REED SMITH LLP P.O. BOX 360074M, PITTSBURGH, PA 15251-6074 NA 1,126
ROBINSON & MCELWEE LLP P.O. BOX 1791, CHARLESTON, WV 25326 NA 1,639
RUBIN & RUDMAN, LLP 50 ROWES WHARF, BOSTON, MA 02110-3319 NA 430
SCHIFF HARDIN & WAITE 6600 SEARS TOWER, CHICAGO, IL 60606-6473 NA 13,929
SIDLEY AUSTIN BROWN & WOOD (DC) BANK ONE PLAZA, CHICAGO, IL 60603 NA 356
SIMON PERAGINE SMITH REDFEARN LLP, NEW ORLEANS, LA 701633000 NA 223
STEPTOE & JOHNSON BANK ONE CNT 6TH FLOOR, CLARKSBURG, WV 26302-2190 NA 1,572
SWIDLER BERLIN SHEREFF & FRIEDMAN 3000 K STREET NW, WASHINGTON, DC 20007-5116 NA 477
THELEN REID & PRIEST LLP 875 THIRD AVENUE, NEW YORK, NY 10022 NA 215
WOODEN & MCLAUGHLIN LLP ONE INDIANA SQUARE, INDIANAPOLIS, IN 46204-4208 NA 183
166 Organizations 1,733
------
Total Special Services - Legal 28,573
------
Page 33
SCHEDULE 923-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
RELATIONSHIP
"A"=ASSOCIATE AMOUNT
"NA"=NON -------------------
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
-------------------------------- ----------------------------------------------- ------------- ---- ----
3-Special Services - Consulting
ACCENTURE LLP P.O. BOX 70629, CHICAGO, IL 60673-0629 NA 974
ACLOCHE LLC P.O. BOX 632997, CINCINNATI, OH 45263-2997 NA 507
ADECCO TECHNICAL PA P.O. BOX 371084, PITTSBURGH, PA 15250-7084 NA 87
CDI CORPORATION P.O. BOX 532428, ATLANTA, GA 30353-2428 NA 132
CHRISTENSEN & ASSOCIATES P.O. BOX 60003, PHOENIX,, AZ 85082-0003 NA 159
JAMES M CLARKE 2912 ROSLYN TER, LONG BEACH, IN 46360-1726 NA 211
COMPUTER TASK GROUP INC P.O. BOX 711778, CINCINNATI, OH 45271-1778 NA 120
PETER M. CONNOR 3904 RIO GRANDE AVENUE, GROVEPORT, OH 43125 NA 103
F1, INC. 359 S. FRANKLIN ST., VALPARAISO, IN 46383-6423 NA 1,755
GARTNER GROUP, INC. P.O. BOX 911319, DALLAS, TX 75391-1319 NA 113
HMB 191 W. NATIONWIDE BLVD., COLUMBUS, OH 43215 NA 250
INFORMATION INTEGRATORS, INC. 2540 FOSSIL STONE ROAD, DYER, IN 46311-1956 NA 676
IPSE CONSULTING (DD), INC 64 SENECA EAST, HAWTHORN WOODS, IL 60047 NA 244
META GROUP INC P.O. BOX 19114, NEWARK, NJ 07195-0114 NA 70
PATRICK J. MULCHAY 801 E86TH AVE, MERRILLVILLE, IN 46410 NA 155
ROBINSON & MCELWEE LLP P.O. BOX 1791, CHARLESTON, WV 25326 NA 68
RUSSELL REYNOLDS ASSOCIATES CHURCH STREET STATION, NEW YORK, NY 102496427 NA 212
FRANK SHAMBO 10828 CARIBOU LN, ORLAND PARK, IL 60467 NA 214
STATEGIC GLOBAL POLICY CONSULTING 17 SOUTH HIGH STREET, COLUMBUS, OH 43215 NA 300
TECHNOLOGY CONSULTING ASSOC. 5887 GLENRIDGE DRIVE, ATLANTA, GA 30328 NA 367
THOMAS GREEN & ASSOCIATES LLC 21 EAST STATE STREET, COLUMBUS, OH 43215-4243 NA 153
TRANSTECH INC P.O. BOX 95169, PALATINE, IL 60095-0169 NA 130
WILKERSON & ASSOCIATES 3339 TAYLORSVILLE ROAD, LOUISVILLE, KY 40205-3103 NA 469
210 Organizations 4,791
-----
Total Special Services - Consulting 12,260
------
Page 34
SCHEDULE 923-A
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
RELATIONSHIP
"A"=ASSOCIATE AMOUNT
"NA"=NON ---------------
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
------------------------------------ -------------------------------------------------- -------------- ---- ----
4-Special Services - Other
ADECCO TECHNICAL PA P.O. BOX 371084, PITTSBURGH, PA 15250-7084 NA 732
AT&T 7872 COLLECTION CENTER DRIVE, CHICAGO, IL 60693 NA 208
COLUMBIA GAS TRANSMISSION COMPANY 200 CIVIC CENTER DRIVE, COLUMBUS, OH 43215 A 163
COLUMBIA GAS OF PENNSYLVANIA 200 CIVIC CENTER DRIVE, COLUMBUS, OH 43215 A 457
KEVIN M. CONSIDINE, P C 1 BOSTON PLACE, 28TH FLOOR, BOSTON, MA 02108 NA 126
FITCH, INC P.O. BOX 26858, NEW YORK, NY 10087-6858 NA 188
HEWITT ASSOCIATES LLC P.O. BOX 95135, CHICAGO, IL 60694-5135 NA 952
LANIER WORLDWIDE INC LANIER PROFESSIONAL SERVICES, ATLANTA, GA 30392-1960 NA 275
MARKETING SERVICES BY VECTRA 3990 BUSINESS PARK DRIVE, COLUMBUS, OH 43204 NA 307
MELLON INVESTOR SERVICES ACCOUNTING DEPARTMENT, PITTSBURGH, PA 15251-6857 NA 894
META GROUP INC P.O. BOX 19114, NEWARK, NJ 07195-0114 NA 188
MORROW & COMPANY, INC. F.D.R. STATION, NEW YORK, NY 10150-0748 NA 103
MOSSBERG & COMPANY INC P.O. BOX 210, SOUTH BEND, IN 46624-0210 NA 434
NEW YORK STOCK EXCHANGE, INC P.O. BOX 4530, NEW YORK, NY 10163 NA 300
NORTHERN INDIANA PUBLIC SERVICE CO. 5201 INDUSTRIAL HIGHWAY, GARY, IN 46406-1125 A 698
POMEROY COMPUTER RESOURCES, INC., CINCINNATI, OH 452640381 NA 419
ROBERT HALF TECHNOLOGY 12400 COLLECTION CENTER DR, CHICAGO, IL 60693-0124 NA 172
SUNGARD RECOVERY SERVICES INC. P.O. BOX 91233, CHICAGO, IL 60693 NA 141
573 ORGANIZATIONS 4,750
-----
Total Special Services - Other 11,507
------
Total All Special Services 52,443
======
Page 35
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
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
Dental Assistance Plan 1,063
Educational Assistance 443
Employee Assistance Plan 136
Employee Cafeteria Subsidy 282
Employee Relocation Expense 796
Employee Retirement Expense 7,989
Flexible Spending Health & Dental 28
Group Life Insurance 355
Long-Term Disability Insurance 119
Medical Expense Plan 10,390
Pension Restoration Plan 5,231
Thrift Plan 3,283
Miscellaneous 74
------
Total 30,189
------
Page 36
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
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 Big River Advertising 30
Employee Recruiting/Advertising Brown Publishing Co. 3
Employee Recruiting/Advertising Buyrite Merchandising Corp 3
Employee Recruiting/Advertising California Unversity Of Pennsylvania 25
Employee Recruiting/Advertising Clear Channel Outdoor 4
Employee Recruiting/Advertising Clear Channel Radio 4
Employee Recruiting/Advertising Columbus Blue Jackets 50
Employee Recruiting/Advertising Columbus Dispatch 17
Employee Recruiting/Advertising Element Design Group 5
Employee Recruiting/Advertising Ferrante & Associates 14
Employee Recruiting/Advertising Hearld Star 6
Employee Recruiting/Advertising Lord, Sullivan, & Yoder 7
Employee Recruiting/Advertising Marketing Services By Vectra 10
Employee Recruiting/Advertising Nationwide Advertising 4
Employee Recruiting/Advertising Newspaper Network Of Central Ohio 10
Employee Recruiting/Advertising Shaker Advertising Agency 7
Employee Recruiting/Advertising Steelers Radio Network 9
Employee Recruiting/Advertising The David Group 22
Employee Recruiting/Advertising The Plain Dealer 9
Employee Recruiting/Advertising The Toledo Blade Company 9
Employee Recruiting/Advertising Think, Inc. 250
Employee Recruiting/Advertising All Others 33
---
TOTAL 531
--------------------------------------------------------------------------------
Page 37
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
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
Aircraft Service 164
Dues and Memberships - Corporate 333
Employee Recruiting 69
Employee Training 1,558
Other 1,824
----------
TOTAL 3,948
----------
Page 38
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
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
Air Transportation 498
Auto and General Tools 672
Communications 661
Data Processing 5,275
Office Space 10,935
Miscellaneous 3,121
----------
TOTAL 21,162
----------
Page 39
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
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 1,123
Sales and Use 6
Unemployment 313
License or Franchise --
--------------
Total - other 1,442
(2) U.S. Government Taxes:
Federal Insurance Contribution 7,381
Unemployment 88
Miscellaneous 200
--------------
Total - Federal 7,669
TOTAL 9,111
--------------
Page 40
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
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
Advantages in Marketing Community Welfare 7
Affiliated Chambers of Commerce Community Welfare 8
American Cancer Society Community Welfare 5
Energy and Environmental Analysis Community Welfare 10
First Night Columbus Community Welfare 5
Fitz Gerald & Robbins Inc. Community Welfare 9
Greater Columbus Chamber of Commerce Community Welfare 10
Indiana Port Commission Community Welfare 5
National Capital Area Council Community Welfare 5
Operation Defibrillator Community Welfare 3
The University of Toledo Foundation Community Welfare 17
United Way of Central Ohio Community Welfare 130
United Way of South Hampton Community Welfare 5
USCHPA Conference Headquarters Community Welfare 5
VMI Key Club Community Welfare 10
Miscellaneous (198) 136
------
TOTAL 370
------
Page 41
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
OTHER DEDUCTIONS
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 49
-----------------
TOTAL 49
--------------------------------------------------------------------------------
Page 42
ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2003
--------------------------------------------------------------------------------
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
--------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish
particulars as to any significant increase in services
rendered or expenses incurred during the year. Notes relating
to financial statements shown elsewhere in this report may be
indicated here by reference.
--------------------------------------------------------------------------------
Salary and wage expense was lower $21.9 million in 2003 when compared to 2002.
In 2002, salary and wage expense was higher $10.1 million as a result of
severance charges relating to a corporate restructuring initiative. Salary and
wage expense was also lower in 2003 due to a decrease in stock based
compensation and bonus payout of $11.1 and $1.7 million respectively.
Outside Services decreased approximately $20 million from 2002 to 2003. Outside
services was lower $14 million in 2003 when compared to 2002 due to a decrease
in Consulting and Legal expenses of $7 million and $7 million respectively.
Other outside services also decreased approximately $6 million in 2003 when
compared to 2002. The decrease in other outside services is primarily due to a
one-time payment to an outside firm in 2002 as a result of a restructuring
initiative.
Benefits expense increased in 2003 by $5.3 million. This increase was primarily
due to increased Retirement Income Plan expense from 2002 to 2003.
Page 43
NiSource Corporate Services Company Inc.
Organization Chart
---------------------------
| Chairman, President and |
| CEO |
| Gary Neale |
---------------------------
|
|
______________________________________________________________________________________________________________
| | | | | |
--------------- ------------------ ------------------ ------------------ ------------------- -------------------
|Vice Chairman| |Executive VP and| |Executive VP and| |Executive VP and| | Executive VP | | Executive VP |
| Steve Adik | | COO | | CFO | | General Counsel| |Human Resources &| |Regulated Revenue|
| | | Sam Miller | | Mike O'Donnell | | Peter Fazio | | Communications | | Bob Skaggs |
| | | | | | | | |LaNette Zimmerman| | |
--------------- ------------------ ------------------ ------------------ ------------------- -------------------
| | | | | |
| | | | | |
| --------------- | ------------------ | ------------------ | ------------------ | ------------------- | -------------------
|-| Auditing | |-| Aviation | |-| Accounting | |-| Corporate | |-| Corporate | |-| Company |
| | | | | Services | | | | | | Secretary | | | Communications | | | Presidents |
| --------------- | ------------------ | ------------------ | ------------------ | ------------------- | -------------------
| | | | | |
| --------------- | ------------------ | ------------------ | ------------------ | ------------------- | -------------------
|-| Real Estate | |-| Company | |-| Corporate | |-| Environmental | |-|Human Resources/ | |-| Energy |
| Investments | | |General Managers| | | Insurance | | | Affairs | | Benefits | | | Supply Services |
--------------- | ------------------ | ------------------ | ------------------ ------------------- | -------------------
| | | |
| ------------------ | ------------------ | ------------------ | -------------------
|-| Customer | |-| Corporate | |-| Legal | |-| Governmental |
| |Contact Centers | | | Treasury | | | | | | Affairs |
| ------------------ | ------------------ | ------------------ | -------------------
| | | |
| ------------------ | ------------------ | ------------------ | -------------------
|-| Facilities | |-| Financial | |-| Security | |-| Large Customer |
| | Management | | | Planning | | | | | Relationships & |
| | | | | | | | | | Transportation |
| ------------------ | ------------------ ------------------ | -------------------
| | |
| ------------------ | ------------------ | -------------------
|-|Fleet Management| |-| Investor | |-| Regulatory & |
| | | | | Relations | | Government |
| ------------------ | ------------------ -------------------
| |
| ------------------ | ------------------
|-| Information | |-| Tax |
| | Technology | | | |
| ------------------ | ------------------
| |
| ------------------ | ------------------
|-| Materials & | |-| Other |
| | Supplies | | |
| ------------------ ------------------
|
| ------------------
|-| Meter-to- |
| | Cash |
| ------------------
|
| ------------------
|-| NiSource |
| |Retail Services |
| ------------------
|
| ------------------
|-| Operations |
| | Integration |
| ------------------
|
| ------------------
|-| Procurement |
| | |
| ------------------
|
| ------------------
|-| Support |
| | Operations |
| ------------------
|
| ------------------
|-| Technical |
| Operations |
------------------
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 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, 2003
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
--------------------------------------------------------------------------------
COMPENSATION FOR USE OF CAPITAL
SUMMARY OF BILLING TO ASSOCIATE COMPANIES
Direct &
Allocated Compensation
Company Labor Billed
------------------------------------------ --------- ------------
$000 $000
Bay State Massachusetts 7,265 167
Columbia Atlantic Trading Corporation 3 --
Columbia Energy Group 2,923 67
Columbia Energy Group Capital Corporation 2 --
Columbia Energy Services Corporation 77 2
Columbia Finance Corporation 8 --
Columbia Gas of Kentucky, Inc. 2,592 60
Columbia Gas of Maryland, Inc. 911 21
Columbia Gas of Ohio, Inc. 15,875 364
Columbia Gas of Pennsylvania, Inc. 6,691 154
Columbia Gas of Virginia, Inc. 4,135 95
Columbia Gas Transmission Corporation 12,745 292
Columbia Gulf Transmission Company 3,114 71
Columbia Network Services Corporation 17 --
Columbia Pipeline Company 8 --
Columbia Remainder Corporation 91 2
Energy USA, Inc 1,533 35
Granite State Gas 144 3
Indianapolis Water Resources 1 --
Kokomo Gas and Fuel Company 160 4
NiSource Capital Markets 8 --
NiSource Development Company, Inc 228 5
NiSource Energy Services, Inc 114 3
NiSource Energy Technology 154 4
NiSource Finance Company 25 1
NiSource Insurance Corporation, Ltd. 10 --
NiSource, Inc. 1,236 28
NiSource Crossroads Pipeline 109 2
Northern Indiana Fuel and Light Company 232 5
Northern Indiana Public Service Company 15,885 364
Northern Utilities Maine 703 16
Northern Utilities New Hampshire 723 17
Primary Energy, Inc 829 19
------ ------
Total 78,551 1,801
====== ======
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 thirty-three individual statements (see page 49).
--------------------------------------------------------------------------------
Page 46
NISOURCE CORPORATE SERVICES COMPANY, INC.
COMPENSATION FOR USE OF CAPITAL
------------------------------------------------------------
BILLED TO
COLUMBIA GULF TRANSMISSION COMPANY
DURING 2003
------------------------------------------------------------
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 150,028.07 0.00 150,028.07 6,231,703.29 0.02407 235,724.65 5,675.06
FEBRUARY 150,028.04 0.00 150,028.04 7,259,585.51 0.02067 284,819.15 5,886.13
MARCH 150,028.04 0.00 150,028.04 6,382,853.98 0.02350 255,917.36 6,015.30
APRIL 150,028.07 0.00 150,028.07 6,702,143.45 0.02239 265,700.57 5,947.73
MAY 150,028.04 0.00 150,028.04 6,335,460.65 0.02368 252,146.77 5,971.01
JUNE 150,028.04 0.00 150,028.04 6,776,301.24 0.02214 262,610.77 5,814.23
JULY 150,028.07 0.00 150,028.07 6,543,332.70 0.02293 270,870.93 6,210.63
AUGUST 150,028.04 0.00 150,028.04 6,329,755.51 0.02370 288,127.67 6,829.21
SEPTEMBER 150,028.04 0.00 150,028.04 6,581,920.62 0.02279 260,606.46 5,940.25
OCTOBER 150,028.07 0.00 150,028.07 6,393,122.89 0.02347 239,425.75 5,618.63
NOVEMBER 150,028.04 0.00 150,028.04 7,027,671.57 0.02135 264,168.46 5,639.52
DECEMBER 150,028.04 0.00 150,028.04 5,987,082.56 0.02506 234,149.04 5,867.45
------------- ---------- ------------- -------------- ----------- ------------- ------------
1,800,336.60 0.00 1,800,336.60 78,550,933.97 0.27575 3,114,267.58 71,415.16
============= ========== ============= ============== =========== ============= ============
--------------------------------------------------------------------------------
Page 47
OFFICER AUTHORIZATION
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: /s/ Vincent DeVito
-----------------------------------------
Vincent DeVito
Controller
Date: April 30, 2004
--------------------------------------------------------------------------------
Page 48