Edgar Filing: NISOURCE INC/DE

uv13v60

Form U-13-60

Mutual and Subsidiary Service Companies

Revised February 7, 1980

ANNUAL REPORT

For the Period

Beginning January 1, 2004 and Ending December 31, 2004

To The

U.S. SECURITIES AND EXCHANGE COMMISSION

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

SUSANNE M. TAYLOR, 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 Amortization of Service Company Property	Schedule III	9
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 Nonassociate Companies	Schedule XVI	27
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.
2004

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)		80,101	71,844
107	Construction work in progress (Schedule II)		—	—

	Total Property		80,101	71,844

108	Less accumulated provision for depreciation and amortization of service company property (Schedule III)		38,447	31,312

	Net Service Company Property		41,654	40,532


	INVESTMENTS
123	Investments in associate companies (Schedule IV)		—	—
124	Other investments (Schedule IV)		—	—

	Total Investments		—	—


	CURRENT AND ACCRUED ASSETS
131	Cash		1,023	1,460
134	Special deposits		171	171
135	Working funds		972	755
136	Temporary cash investments (Schedule IV)		—	—
141	Notes receivable		—	—
143	Accounts receivable		3,626	5,372
144	Accumulated provision for uncollectible accounts		—	—
146	Accounts receivable from associate companies (Schedule V)		34,296	43,024
152	Fuel stock expenses undistributed (Schedule VI)		—	—
154	Materials and supplies		—	—
163	Stores expense undistributed (Schedule VII)		—	—
165	Prepayments		1,464	1,178
174	Miscellaneous current and accrued assets		—	1,387
	(Schedule VIII)		—	—

	Total Current and Accrued Assets		41,552	53,347


	DEFERRED DEBITS
181	Unamortized debt expense		—	—
184	Clearing accounts		2,141	1,172
186	Miscellaneous deferred debits (Schedule IX)		54,693	45,126
188	Research, development, or demonstration expenditures (Schedule X)		—	—
190	Accumulated deferred income taxes		32,615	30,458

	Total Deferred Debits		89,449	76,756


	TOTAL ASSETS AND OTHER DEBITS		172,655	170,635

Page 5

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
2004

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		(11,710	)		(10,319	)

	Total Proprietary Capital		(11,310	)		(9,919	)


	LONG-TERM DEBT
223	Advances from associate companies (Schedule XII)		21,684			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		21,684			23,930


	CURRENT AND ACCRUED LIABILITIES
231	Notes payable		—			—
232	Accounts payable		7,001			8,560
233	Notes payable to associate companies (Schedule XIII)		2,246			—
234	Accounts payable to associate companies (Schedule XIII)		52,789			47,664
236	Taxes accrued		(6,329	)		(949	)
237	Interest accrued		945			945
238	Dividends declared		—			—
241	Tax collections payable		410			577
242	Miscellaneous current and accrued liabilities (Schedule XIII)		57,867			60,866

	Total Current and Accrued Liabilities		114,929			117,663


	DEFERRED CREDITS
253	Other deferred credits		42,053			34,893
255	Accumulated deferred investment tax credits		—			—

	Total Deferred Credits		42,053			34,893


282	ACCUMULATED DEFERRED INCOME TAXES		5,299			4,068


	TOTAL LIABILITIES AND PROPRIETARY CAPITAL		172,655			170,635

Page 6

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		23,921		—		—		—			23,921

306	LEASEHOLD IMPROVEMENTS		—		—		—		—			—

307	EQUIPMENT (1)		31,443		8,376		—		(180	)		39,639

308	OFFICE FURNITURE AND EQUIPMENT		2,665		90		—		—			2,755

309	AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT		403		—		29		—			374

310	AIRCRAFT AND AIRPORT EQUIPMENT		13,207		—		—		—			13,207

311	OTHER SERVICE COMPANY PROPERTY (3)		143		—		—		—			143


	SUB-TOTAL		71,844		8,466		29		(180	)		80,101


107	CONSTRUCTION WORK IN PROGRESS (4)		—		—		—		—			—


	TOTAL		71,844		8,466		29		(180	)		80,101

(1)	PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

307 — Costs incurred in the development of Information Technology infrastructure.

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		452		7,371

307-7	EDP Equipment — 4 years		6,941		21,093

307-8	EDP Equipment — 10 years		—		5

307-9	Personal Computer and Peripheral Equipment		983		7,696

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		8,376		39,639

(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, 2004

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		8,000		478		—		—		8,478

306	LEASEHOLD IMPROVEMENTS		—		—		—		—		—

307	EQUIPMENT (1)		19,689		6,007		—		—		25,696

308	OFFICE FURNITURE AND
	FIXTURES (1)		1,695		150		—		—		1,845

309	AUTOMOBILES, OTHER
	VEHICLES AND RELATED
	GARAGE EQUIPMENT		376		23		29		—		370

310	AIRCRAFT AND AIRPORT
	EQUIPMENT		1,409		506		—		—		1,915

311	OTHER SERVICE COMPANY
	PROPERTY		143		—		—		—		143


	TOTAL		31,312		7,164		29		—		38,447

(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, 2004

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, 2004

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		3,566			2,936
Columbia Atlantic Trading Corporation		2			—
Columbia Deepwater Services		3			2
Columbia Energy Group		2,143			913
Columbia Energy Services Corporation		64			36
Columbia Finance Corporation		5			—
Columbia Gas of Kentucky, Inc.		965			911
Columbia Gas of Maryland, Inc.		285			275
Columbia Gas of Ohio, Inc.		7,680			5,848
Columbia Gas of Pennsylvania, Inc.		3,227			2,673
Columbia Gas of Virginia, Inc.		1,968			1,352
Columbia Gas Transmission Corporation		6,467			5,391
Columbia Gulf Transmission Company		1,015			1,359
Columbia Network Services Corporation		20			58
Columbia Remainder Corporation		74			36
Energy USA, Inc.		444			422
Granite State Gas		36			41
Kokomo Gas and Fuel Company		142			83
NiSource Capital Markets		3			3
NiSource Crossroads Pipeline		42			177
NiSource Development Company, Inc.		(281	)		440
NiSource Energy Services, Inc.		116			41
NiSource Energy Technology		52			57
NiSource Finance Company		70			126
NiSource Insurance Corporation, Ltd.		6			1,279
NiSource Retail Services		—			136
NiSource, Inc.		3,860			1,307
Northern Indiana Fuel and Light Company		395			66
Northern Indiana Public Service Company		9,657			7,563
Northern Utilities Maine		293			285
Northern Utilities New Hampshire		354			328
Primary Energy, Inc.		351			152

TOTAL		43,024			34,296

ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:


	TOTAL
	PAYMENTS
	$000

See Schedule V-A, page 12

TOTAL PAYMENT		513,913

Page 11

SCHEDULE V-A

NISOURCE CORPORATE SERVICES COMPANY, INC.

Convenience & Accommodation Payments
For the Year Ended December 31, 2004


											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		437		3,128			10,479		423			194		1,569		1,044		17,274
Columbia Atlantic Trading Corporation		1		1			—		—			—		—		7,384		7,386
Columbia Deepwater Services		1		1			—		—			—		—		—		2
Columbia Energy Group		69		1,573			2,961		(216	)		—		—		113,904		118,291
Columbia Energy Services Corporation		14		(182	)		40		—			—		7		153		32
Columbia Gas of Kentucky, Inc.		136		908			3,950		552			542		357		1,459		7,904
Columbia Gas of Maryland, Inc.		48		247			1,116		195			122		77		122		1,927
Columbia Gas of Ohio, Inc.		987		7,875			33,754		3,316			5,298		2,425		57,048		110,703
Columbia Gas of Pennsylvania, Inc.		395		3,875			13,743		1,470			1,562		1,283		3,533		25,861
Columbia Gas of Virginia, Inc.		276		1,264			5,184		979			813		636		1,638		10,790
Columbia Gas Transmission Corporation		812		5,869			37,385		3,418			20		4,245		3,277		55,026
Columbia Gulf Transmission Company		185		2,947			6,066		467			25		601		343		10,634
Columbia Network Services Corporation		1		3			65		—			—		—		31		100
Columbia Remainder Corporation		—		(97	)		13		—			—		—		—		(84	)
Energy USA, Inc.		159		142			669		5			—		27		273		1,275
Granite State Gas		7		74			106		—			—		1		18		206
Kokomo Gas and Fuel Company		11		158			850		1			—		—		323		1,343
NiSource Capital Markets		1		1			—		—			—		—		2,544		2,546
NiSource Crossroads Pipeline		6		30			—		—			—		7		158		201
NiSource Development Company, Inc.		29		73			—		—			—		—		660		762
NiSource Energy Services, Inc.		43		51			—		—			—		—		3,125		3,219
NiSource Energy Technology		6		20			169		2			—		12		23		232
NiSource Finance Company		55		5			—		—			—		—		345		405
NiSource Insurance Corporation, Ltd.		1		1,281			—		—			—		—		10		1,292
NiSource Retail Services		—		21			16		3			4		1		111		156
NiSource, Inc.		469		553			—		—			—		—		2,577		3,599
Northern Indiana Fuel and Light Company		18		188			1,233		—			—		—		208		1,647
Northern Indiana Public Service Company		1,041		18,649			60,389		2,076			—		2,767		41,826		126,748
Northern Utilities Maine		43		382			964		61			28		167		99		1,744
Northern Utilities New Hampshire		45		299			751		2			30		154		179		1,460
Primary Energy, Inc.		86		949			111		—			—		24		62		1,232


Grand Total		5,382		50,288			180,014		12,754			8,638		14,360		242,477		513,913

Page 12

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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

Account 152 - Fuel Stock Expenses Undistributed

NONE

TOTAL

NONE

SUMMARY:

Not Applicable

Page 13

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES

For the Year Ended December 31, 2004

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

Account 163 - Stores Expenses Undistributed

NONE

TOTAL

NONE

Page 14

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		1,387		—
Non-Compete Deferred Debit


TOTAL		1,387		—

Page 15

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		13,054		18,356

Deferred Insurance Receivables		1,456		2,796

Intangible Asset — Pension Restoration Plan		16,824		16,487

Miscellaneous Deferred Property		13,792		17,054


TOTAL		45,126		54,693

Page 16

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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

ACCOUNT 188 - Research, Development or Demonstration Expenditures		NONE



TOTAL		NONE

Page 17

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		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

BEGINNING

NET INCOME

DIVIDENDS

DESCRIPTION

OF YEAR

OR (LOSS)

PAID

OF YEAR

$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, 2004

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			DEDUC-	BALANCE AT
	CLASS & SERIES	OF	INTEREST		AMOUNT		BEGINNING		ADDI-	TIONS	CLOSE
NAME OF CREDITOR	OF OBLIGATION	MATURITY	RATE		AUTHORIZED		OF YEAR		TIONS	(1)	OF YEAR
			%		$000		$000		$000	$000	$000

ACCOUNT 223 - ADVANCES FROM ASSOCIATE COMPANIES:


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						21,684		21,684	—	—		21,684

Page 19

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2004

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
Columbia Energy Group		—		2,246

TOTAL		—		2,246


ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Bay State Massachusetts		202		—
Columbia Energy Group		4,476		4,476
Columbia Gas of Kentucky, Inc.		13		—
Columbia Gas of Maryland, Inc.		14		—
Columbia Gas of Ohio, Inc.		887		692
Columbia Gas of Pennsylvania, Inc.		105		—
Columbia Gas of Virginia, Inc.		207		6
Columbia Gas Transmission Corporation		98		147
Columbia Gulf Transmission Company		7		49
Energy USA, Inc.		229		—
NiSource Development Company, Inc.		208		208
NiSource Energy Services, Inc.		—		158
NiSource Energy Technology		186		—
NiSource, Inc.		4,543		(625	)
Northern Indiana Public Service Company		712		—
Northern Utilities Maine		15		—
Primary Energy, Inc.		449		—
System Money Pool Interest		67		92
System Money Pool Principal		35,246		47,586

TOTAL		47,664		52,789

ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Accrued Vacation		8,670		10,908
Change in Control		600		—
Comprehensive Medical Expense Plan Accrual		803		703
Contingent Stock Dividend		470		—
Deferred Compensation		5,153		—
Dental Assistance Plan Accrual		20		174
Employee Thrift Plan		1,337		—
Flexible Spending		2,651		4,167
Incentive/Bonus Accrual		7,787		9,209
LTIP Dividend Credit		195		—
Pension Restoration Plan		7,677		12,174
Pension Retirement Benefits		2,250		2,180
Phantom Stock Liability		7,856		—
Post Employment Benefit Obligation		52		194
Prescription Drug Liability		—		85
Retirement Income Plan		10,410		14,364
Severance		1,032		—
Thrift Plan — Company		60		60
Thrift Restoration Plan		2,243		1,811
Unclaimed Funds		94		85
Workers Compensation		—		73
Miscellaneous		1,506		1,680

TOTAL		60,866		57,867

Page 20

SCHEDULE XIII-A

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

NOTES PAYABLE TO ASSOCIATE COMPANIES

Account 233


					Balance at	Balance at
					Beginning	Close
					of Year	of Year
					$000	$000
Columbia Energy Group

		7.30	%	Installment Promissory Note	—		2,246
		7.55	%	Installment Promissory Note	—		—
		7.82	%	Installment Promissory Note	—		—
		7.33	%	Installment Promissory Note	—		—
		7.92	%	Installment Promissory Note	—		—
		8.12	%	Installment Promissory Note	—		—

	Total				—		2,246

Page 21

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2004

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 $4,840,000 in 2004 and $7,992,000 in 2003.

	d. Leases

	Payments made by the Corporation in connection with operating leases are charged to expense incurred. No capitalized leases existed in 2004.

	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		(342	)

Page 22

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2004

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 $42,219,054 as of December 31, 2004, 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, 2004

SCHEDULE XV

COMPARATIVE INCOME STATEMENT


		2004			2003
ACCOUNT	DESCRIPTION	CURRENT YEAR			PRIOR YEAR
		$ 000			$ 000
	INCOME

457	Services Rendered to Associate Companies		279,799			277,807
458	Services Rendered to Nonassociate Companies		—			—
417	Interest Revenue		—			—
419	Interest Revenue — Other		7			14
421	Miscellaneous Income or Loss		—			(24	)

	Total Income		279,806			277,797

	EXPENSE

920	Salaries and Wages		123,923			118,019
921	Office Supplies and Expenses		14,136			13,180
922	Administrative Expense Transferred — Credit		(462	)		—
923	Outside Services Employed		50,536			52,443
924	Property Insurance		83			2
925	Injuries and Damages		2,059			1,472
926	Employee Pensions and Benefits		29,904			30,189
928	Regulatory Commission Expense		—			568
930.1	General Advertising Expenses		276			531
930.2	Miscellaneous General Expenses		3,051			3,948
931	Rents		22,740			21,162
932	Maintenance of Structures and Equipment		14,492			15,621
403	Depreciation and Amortization Expense		7,163			7,064
408	Taxes Other Than Income Taxes		9,214			9,111
409	Income Taxes		(563	)		7,083
410	Provision for Deferred Income Taxes		1,086			1,543
411	Provision for Deferred Income Taxes — Credit		(1,298	)		(7,741	)
426.1	Donations		68			370
426.5	Other Deductions		6			49
430	Interest on Debt to Associate Companies		2,813			2,737
431	Other Interest Expense		579			446

	Total Expense		279,806			277,797


	Net Income or (Loss)		—			—

Page 24

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC,

For the Year ended December 31, 2004

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		15,082		9,880			179		25,141
Columbia Atlantic Trading Corporation		5		2			—		7
Columbia Deepwater Services		12		10			—		22
Columbia Energy Group		5,378		436			8		5,822
Columbia Energy Services Corporation		304		119			2		425
Columbia Finance Corporation		16		19			—		35
Columbia Gas of Kentucky, Inc.		4,603		3,151			55		7,809
Columbia Gas of Maryland, Inc.		1,573		1,078			19		2,670
Columbia Gas of Ohio, Inc.		31,671		20,991			363		53,025
Columbia Gas of Pennsylvania, Inc.		13,434		8,469			152		22,055
Columbia Gas of Virginia, Inc.		7,433		5,073			90		12,596
Columbia Gas Transmission Corporation		30,352		17,114			320		47,786
Columbia Gulf Transmission Company		6,266		4,122			75		10,463
Columbia Network Services Corporation		57		32			1		90
Columbia Remainder Corporation		466		76			2		544
Energy USA, Inc.		2,003		1,270			23		3,296
Granite State Gas		219		197			3		419
Kokomo Gas and Fuel Company		362		179			3		544
Nisource Capital Markets		25		10			—		35
NiSource Crossroads Pipeline		198		158			3		359
Nisource Development Company, Inc.		1,677		343			6		2,026
Nisource Energy Services, Inc.		424		186			3		613
Nisource Energy Technology		206		141			3		350
Nisource Finance Company		175		35			1		211
NiSource Insurance Corporation, Ltd.		37		24			—		61
NiSource Retail Services		762		368			6		1,136
NiSource, Inc.		15,304		2,728			50		18,082
Northern Indiana Fuel and Light Company		395		199			4		598
Northern Indiana Public Service Company		40,083		20,518			383		60,984
Northern Utilities Maine		1,315		913			16		2,244
Northern Utilities New Hampshire		1,674		1,073			19		2,766
Primary Energy, Inc.		1,499		573			11		2,083


Total Amount Billed in 2004		183,010		99,487			1,800		284,297

Reconciliation to Total Revenues:

Difference between Amount of Unbilled Revenue December 2003 and December 2004		2,930		(7,428	)		—		(4,498	)


		185,940		92,059			1,800		279,799

Page 25

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC,

For the Year Ended December 31, 2004

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, 2004

Schedule XVI

ANALYSIS OF CHARGES FOR SERVICE

ASSOCIATE AND NONASSOCIATE COMPANIES


		ASSOCIATE COMPANY								NONASSOCIATE COMPANY						TOTAL CHARGES FOR
		CHARGES								CHARGES						SERVICE
		DIRECT		INDIRECT						DIRECT		INDIRECT				DIRECT		INDIRECT
DESCRIPTION OF ITEMS		COST		COST			TOTAL			COST		COST		TOTAL		COST		COST			TOTAL
		$000		$ 000			$ 000			$000		$000		$000		$000		$ 000			$ 000
920	Salaries and Wages		90,082		33,841			123,923			—		—		—		90,082		33,841			123,923
921	Office Supplies and Expenses		11,292		2,844			14,136			—		—		—		11,292		2,844			14,136
922	Administrative Expenses Transferred — Credit		251		(713	)		(462	)		—		—		—		251		(713	)		(462	)
923	Outside Services Employed		49,248		1,288			50,536			—		—		—		49,248		1,288			50,536
924	Property Insurance		—		83			83			—		—		—		—		83			83
925	Injuries and Damages		1,850		209			2,059			—		—		—		1,850		209			2,059
926	Employee Pensions and Benefits		949		28,955			29,904			—		—		—		949		28,955			29,904
928	Regulatory Commission Expense		—		—			—			—		—		—		—		—			—
930.1	General Advertising Expenses		250		26			276			—		—		—		250		26			276
930.2	Miscellaneous General Expense		2,782		269			3,051			—		—		—		2,782		269			3,051
931	Rents		9,693		13,047			22,740			—		—		—		9,693		13,047			22,740
932	Maintenance of Structure and Equipment		12,709		1,783			14,492			—		—		—		12,709		1,783			14,492
403	Depreciation and Amortization Expense		6,663		500			7,163			—		—		—		6,663		500			7,163
408	Taxes Other Than Income Taxes		83		9,131			9,214			—		—		—		83		9,131			9,214
409	Income Taxes		—		(563	)		(563	)		—		—		—		—		(563	)		(563	)
410	Provision for Deferred Income Taxes		—		1,086			1,086			—		—		—		—		1,086			1,086
411	Provision for Deferred Income Taxes — Credit		—		(1,298	)		(1,298	)		—		—		—		—		(1,298	)		(1,298	)
419	Other Interest		—		(7	)		(7	)		—		—		—		—		(7	)		(7	)
421	Gain/Loss on Sale of Property		—		—			—			—		—		—		—		—			—
426.1	Donations		68		—			68			—		—		—		68		—			68
426.5	Other Deductions		2		4			6			—		—		—		2		4			6
427	Interest on Long-Term Debt		—		—			—			—		—		—		—		—			—
431	Other Interest Expense		18		561			579			—		—		—		18		561			579

Instructions: Total cost of service will equal the amount billed to associate and nonassociate companies under their separate analysis of billing schedules.


	Total Expenses		185,940		91,046			276,986			—		—		—		185,940		91,046			276,986

430	Interest on Short-Term Debt							1,013														1,013



	Compensation for Use of Capital- Associated Companies



430	Intercompany Interest on Indebtedness							1,800														1,800

	Compensation for Use of Equity Capital							—														—

	Total Cost of Service							279,799														279,799

Page 27

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2004

Schedule XVII

SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION


								DEPARTMENT OR SERVICE FUNCTION
														Company General				Corporate
DESCRIPTION OF ITEMS		TOTAL AMOUNT			OVERHEAD			Accounting		Auditing		Chairman and CEO		Managers		Company Presidents		Communications		Corporate Insurance		Corporate Secretary
		$ 000			$ 000			$000		$000		$ 000		$000		$000		$ 000		$000		$000
920	Salaries and Wages		123,923			33,841			6,551		1,452		1,089		562		514		1,356		443		288
921	Office Supplies and Expenses		14,136			2,844			143		150		54		58		52		243		6		67
922	Administrative Expenses Transferred — Credit		(462	)		(713	)		—		—		—		—		—		—		—		—
923	Outside Services Employed		50,536			1,288			518		53		1,293		28		208		813		—		1,711
924	Property Insurance		83			83			—		—		—		—		—		—		—		—
925	Injuries and Damages		2,059			209			—		—		—		—		—		—		1,850		—
926	Employee Pensions and Benefits		29,904			28,955			6		—		7		12		—		—		—		—
928	Regulatory Commission Expense		—			—			—		—		—		—		—		—		—		—
930.1	General Advertising Expense		276			26			3		—		—		—		—		3		—		—
930.2	Miscellaneous General Expense		3,051			269			105		73		79		12		557		128		—		149
931	Rents		22,740			13,047			17		—		17		3		7		31		—		—
932	Maintenance of Structures and Equipment		14,492			1,783			—		—		7		1		5		—		—		1
403	Depreciation and Amortization Expense		7,163			500			—		—		—		—		—		—		—		—
408	Taxes Other Than Income Taxes		9,214			9,131			—		—		—		—		—		—		—		—
409	Income Taxes		(563	)		(563	)		—		—		—		—		—		—		—		—
410	Provision for Deferred Income Taxes		1,086			1,086			—		—		—		—		—		—		—		—
411	Administrative Expenses Transferred — Credit		(1,298	)		(1,298	)		—		—		—		—		—		—		—		—
411.5	Investment Tax Credit		—			—			—		—		—		—		—		—		—		—
419	Other Interest		(7	)		(7	)		—		—		—		—		—		—		—		—
421	Miscellaneous Income or Loss		—			—			—		—		—		—		—		—		—		—
426.1	Donations		68			—			—		—		9		—		—		58		—		—
426.5	Other Deductions		6			4			—		—		—		—		—		—		—		—
427	Interest on Long-Term Debt		—			—			—		—		—		—		—		—		—		—
430	Interest on Debt to Associate Companies		2,813			2,813			—		—		—		—		—		—		—		—
431	Other Interest Expense		579			561			—		—		—		—		—		—		—		—

Instruction:	Indicate each department or service function. (See Instruction 01-3 General Structure of Accounting System: Uniform System Account)

	Total Expenses		279,799			93,859			7,343		1,728		2,555		676		1,343		2,632		2,299		2,216

Page 28

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2004

Schedule XVII

SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION


DEPARTMENT OR SERVICE FUNCTION
			Customer Contact		Energy Supply		Environmental						Facilities
Account Number	Corporate Treasury		Centers		Services		Affairs		Executive VP and CFO		Executive VP and COO		Management		Financial Planning		Fleet Management		Governmental Affairs
	$000		$000		$000		$000		$000		$000		$000		$000		$000		$000
920		825		1,573		1,906		4,914		392		748		783		4,000		1,002		243
921		317		58		306		672		26		50		802		241		81		56
922		—		—		—		—		—		—		713		—		—		—
923		1,654		4		107		420		315		4,093		56		446		16		265
924		—		—		—		—		—		—		—		—		—		—
925		—		—		—		—		—		—		—		—		—		—
926		—		—		5		53		—		3		164		63		—		—
928		—		—		—		—		—		—		—		—		—		—
930.1		—		—		113		1		—		—		—		—		—		—
930.2		135		31		34		216		6		11		4		15		2		17
931		485		6		14		130		21		14		3		50		5		99
932		123		77		—		79		2		2		3,289		—		—		—
403		506		—		—		—		—		—		240		—		—		—
408		2		—		—		—		—		—		—		—		—		—
409		—		—		—		—		—		—		—		—		—		—
410		—		—		—		—		—		—		—		—		—		—
411		—		—		—		—		—		—		—		—		—		—
411.5		—		—		—		—		—		—		—		—		—		—
419		—		—		—		—		—		—		—		—		—		—
421		—		—		—		—		—		—		—		—		—		—
426.1		—		—		—		—		—		—		—		—		—		—
426.5		—		—		—		—		—		—		—		—		—		—
427		—		—		—		—		—		—		—		—		—		—
430		—		—		—		—		—		—		—		—		—		—
431		—		—		—		—		—		—		—		—		—		—

Total Expenses		4,047		1,749		2,485		6,485		762		4,921		6,054		4,815		1,106		680

Page 29

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2004

Schedule XVII

SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION


DEPARTMENT OR SERVICE FUNCTION
							Large Customer
	Human		Information				Relationships and								New Business		NiSource Retail		Operations
Account Number	Resources/Benefits		Technology		Investor Relations		Transportation		Legal		Materials & Supplies		Meter-to-Cash		Processes		Services		Integration
	$ 000		$000		$000		$000		$000		$000		$000		$000		$000		$000
920		5,055		27,720		301		4,699		3,893		2,041		1,362		—		945		267
921		494		2,784		79		225		1,429		101		1,759		3		91		68
922		—		—		—		—		—		—		—		—		—		—
923		1,750		7,043		102		362		23,849		79		426		1		1,137		362
924		—		—		—		—		—		—		—		—		—		—
925		—		—		—		—		—		—		—		—		—		—
926		175		—		—		18		153		—		—		—		208		—
928		—		—		—		—		—		—		—		—		—		—
930.1		41		6		—		—		24		—		—		—		59		—
930.2		321		1,119		6		13		87		5		14		—		8		3
931		33		8,579		—		29		34		8		8		—		2		4
932		1		8,953		—		31		—		3		26		—		5		—
403		—		5,917		—		—		—		—		—		—		—		—
408		—		81		—		—		—		—		—		—		—		—
409		—		—		—		—		—		—		—		—		—		—
410		—		—		—		—		—		—		—		—		—		—
411		—		—		—		—		—		—		—		—		—		—
411.5		—		—		—		—		—		—		—		—		—		—
419		—		—		—		—		—		—		—		—		—		—
421		—		—		—		—		—		—		—		—		—		—
426.1		1		—		—		—		—		—		—		—		—		—
426.5		—		—		—		—		—		—		—		—		—		—
427		—		—		—		—		—		—		—		—		—		—
430		—		—		—		—		—		—		—		—		—		—
431		—		—		—		—		—		—		—		—		—		—


Total Expenses		7,871		62,202		488		5,377		29,469		2,237		3,595		4		2,455		704

Page 30

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.
For the Year Ended December 31, 2004

Schedule XVII

SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION


DEPARTMENT OR SERVICE FUNCTION
			Regulatory &
Account Number	President NiSource		Government		Security		Supply Chain		Support Operations		Tax		Technical Operations		TPC/NET		Other
	$000		$000		$000		$000		$000		$000		$000		$000		$000

920		505		2,113		325		1,254		1,096		1,556		1,889		305		6,115
921		80		114		30		73		145		110		322		3		—
922		—		—		—		—		—		—		—		—		(462	)
923		60		863		—		208		14		650		342		—		—
924		—		—		—		—		—		—		—		—		—
925		—		—		—		—		—		—		—		—		—
926		5		73		—		—		—		—		4		—		—
928		—		—		—		—		—		—		—		—		—
930.1		—		—		—		—		—		—		—		—		—
930.2		12		68		2		87		14		10		39		—		(600	)
931		5		27		—		2		19		5		36		—		—
932		—		—		2		—		4		91		7		—		—
403		—		—		—		—		—		—		—		—		—
408		—		—		—		—		—		—		—		—		—
409		—		—		—		—		—		—		—		—		—
410		—		—		—		—		—		—		—		—		—
411		—		—		—		—		—		—		—		—		—
411.5		—		—		—		—		—		—		—		—		—
419		—		—		—		—		—		—		—		—		—
421		—		—		—		—		—		—		—		—		—
426.1		—		—		—		—		—		—		—		—		—
426.5		—		—		—		2		—		—		—		—		—
427		—		—		—		—		—		—		—		—		—
430		—		—		—		—		—		—		—		—		—
431		—		—		—		—		—		—		—		—		18

Total Expenses		667		3,258		359		1,626		1,292		2,422		2,639		308		5,071

Page 31

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

DEPARTMENTAL ANALYSIS OF SALARIES

ACCOUNT 920



	DEPARTMENTAL SALARY EXPENSE								NUMBER
NAME OF DEPARTMENT	INCLUDED IN AMOUNTS BILLED TO								PERSONNEL
Indicate each department or	TOTAL		PARENT		OTHER		NON		END OF
service function	AMOUNT		COMPANY		ASSOCIATES		ASSOCIATES		YEAR
	$000		$000		$000		$000

Accounting		6,551		164		6,387		—		153

Auditing		1,452		134		1,318		—		24

Chairman and CEO		1,089		403		686		—		4

Company General Managers		562		—		562		—		4

Company Presidents		514		—		514		—		2

Corporate Communications		1,356		33		1,323		—		20

Corporate Insurance		443		—		443		—		9

Corporate Secretary		288		177		111		—		5

Corporate Treasury		825		89		736		—		13

Customer Contact Centers		1,573		6		1,567		—		37

Energy Supply Services		1,906		—		1,906		—		34

Environmental Affairs		4,914		133		4,781		—		79

Executive VP and CFO		392		97		295		—		2

Executive VP and COO		748		118		630		—		5

Facilities Management		783		23		760		—		19

Financial Planning		4,000		73		3,927		—		60

Fleet Management		1,002		—		1,002		—		8

Governmental Affairs		243		28		215		—		3

Human Resources/Benefits		5,055		30		5,025		—		79

Information Technology		27,720		372		27,348		—		540

Investor Relations		301		35		266		—		3

Large Customer Relationships and Transportation		4,699		3		4,696		—		75

Continued on page 33

Page 32

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

DEPARTMENTAL ANALYSIS OF SALARIES

ACCOUNT 920



	DEPARTMENTAL SALARY EXPENSE										NUMBER
NAME OF DEPARTMENT	INCLUDED IN AMOUNTS BILLED TO										PERSONNEL
Indicate each department or	TOTAL		PARENT			OTHER			NON		END OF
service function	AMOUNT		COMPANY			ASSOCIATES			ASSOCIATES		YEAR
	$000		$000			$000			$000

Legal		3,893		—			3,893			—		49

Materials & Supplies		2,041		2			2,039			—		34

Meter-to-Cash		1,362		—			1,362			—		29

New Business Processes		—		7			(7	)		—		2

NiSource Retail Services		945		(33	)		978			—		25

Operations Integration		267		118			149			—		3

President NiSource		505		41			464			—		3

Regulatory & Government		2,113		1			2,112			—		35

Security		325		38			287			—		4

Supply Chain		1,254		32			1,222			—		15

Support Operations		1,096		—			1,096			—		14

Tax		1,556		96			1,460			—		25

Technical Operations		1,889		—			1,889			—		26

TPC/NET		305		—			305			—		3

Other		6,115		4,438			1,677			—		0



Total		90,082		6,658			83,424			—		1,445

Page 33

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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				50,536

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

1-Special Services — Audit

4 Organizations

136

Total Special Services — Audit

136

2-Special Services — Legal

BAKER & DANIELS

P.O. BOX 664091, INDIANAPOLIS IN 46266-4091

978

BARNES & THORNBURG

11 S MERIDIAN ST, INDIANAPOLIS IN 46204-3556

280

BRICKER & ECKLER LLP

100 S THIRD ST, COLUMBUS OH 43215-4236

922

BRICKLEY, SEARS & SORETT, P.A.

75 FEDERAL ST, BOSTON MA 02110-2699

258

CRANE, GREENE & PARENTE

90 STATE ST, ALBANY NY 12207

239

DOERNER, SAUNDERS, DANIELS & ANDER

320 S BOSTON AVE STE 500, TULSA OK 74103-3725

151

EICHHORN & EICHHORN

200 RUSSELL ST, HAMMOND IN 46325

939

HOLLAND & HART LLP

SPECIAL MASTER FUND GRYNBERG, CHEYENNE WY 82003-1347

106

JONES, DAY, REAVIS & POGUE

P.O. BOX 165017, COLUMBUS OH 43216-5017

277

LEBOEUF, LAMB, GREENE & MACRAE

99 WASHINGTON AVENUE, ALBANY NY 12210-2820

145

LECLAIR RYAN

707 EAST MAIN STREET, RICHMOND VA 23219

104

MCGUIRE WOODS

ONE JAMES CENTER-ACCOUNTING, RICHMOND VA 23219-4030

145

MORGAN LEWIS AND BOCKIUS

P.O. BOX 8500 S-6050, PHILADELPHIA PA 19178-6050

488

PAUL HASTINGS, JANOFSKY & WALKER

1299 PENNSYLVANIA AVE NW, WASHINGTON DC 20004

291

PORTER, WRIGHT, MORRIS & WRIGHT

41 SOUTH HIGH STREET, COLUMBUS OH 43215-6194

141

REED SMITH LLP

P.O. BOX 360074M, PITTSBURGH PA 15251-6074

1,020

ROBERT G KERN ESQ

1200 CRA-MER LN, CHAPEL HILL NC 27516-8382

177

ROBIN M NUSCHLER ESQ

3886 UNIVERSITY DRIVE, FAIRFAX VA 22030

202

ROBINSON & MCELWEE LLP

P.O. BOX 1791, CHARLESTON WV 25326

2,637

SCHIFF HARDIN LLP

6600 SEARS TOWER, CHICAGO IL 60606-6473

10,923

SIDLEY AUSTIN BROWN & WOOD LLP

P.O. BOX 0642, CHICAGO IL 60690

271

SIMON PERAGINE SMITH

REDFEARN LLP, NEW ORLEANS LA 701633000

160

STEPTOE & JOHNSON

CLARKSBURG WV 26302-1732

1,224

THELEN REID & PRIEST LLP

875 THIRD AVENUE, NEW YORK NY 10022

304

WOLF BLOCK SCHORR AND SOLIS CO.

1650 ARCH STREET, PHILADELPHIA PA 19103-2097

321

WOODEN AND MCLAUGHLIN LLP

ONE INDIANA SQ, INDIANAPOLIS IN 46204-4208

148

128 Organizations

2,190

Total Special Services — Legal

25,041

Page 35

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

3- Special Services — Consulting

ACCENTURE LLP

P.O. BOX 70629, CHICAGO IL 60673-0629

2,347

ACLOCHE LLC

P.O. BOX 632997, CINCINNATI OH 45263-2997

468

ADDECO EMPLOYMENT

P.O. BOX 371084, PITTSBURGH PA 15250-7084

273

AEROTEK DATA SERVICES GROUP

P.O. BOX 198531, ATLANTA GA 30384-8531

111

CANDLE CORPORATION

P.O. BOX 99974, CHICAGO IL 60696-7774

162

CDI CORPORATION

P.O. BOX 532428, ATLANTA GA 30353-2428

244

CLARITAS, INC

P.O. BOX 533028, ATLANTA GA 30353-2028

173

DELOITTE & TOUCHE LLP

BANK OF AMERICA, CHICAGO IL 60693-0042

117

ENERGY RESOURCES LLC

39 WINDEMERE DRIVE, GROSSE POINTE FARMS MI 48236

595

EQUATERRA, INC

2614 ARTIE ST STE 37-462, HUNTSVILLE AL 35805

179

F1, INC

140 CONCORD CIR, VALPARAISO IN 46385-8070

1,462

HMB

191 W NATIONWIDE BLVD STE 650, COLUMBUS OH 43215

112

IBM CORPORATION

P.O. BOX 643600, PITTSBURGH PA 15264-3600

218

INFORMATION CONTROL CORPORATION

2500 CORPORATE EXCHANGE DR, COLUMBUS OH 43231

117

INFORMATION INTEGRATORS, INC

2540 FOSSIL STONE RD, DYER IN 46311-1956

263

IPSE CONSULTING, INC

HAWTHORN WOODS IL 60047

307

KEMA CONSULTING, INC

P.O. BOX 350020, BOSTON MA 02241-0520

354

KENNETH P. FOLEY, JR.

219 CYPRESS DR, SCHERERVILLE IN 46375

152

LUKENS ENERGY GROUP, INC

2905 SACKETT SUITE 200, HOUSTON TX 77098

841

MILES INFORMATION SERVICES, INC

7500 WEST 125 NORTH, LAPORTE IN 46350

165

PATRICK J. MULCHAY

801 E86TH AVE, MERRILLVILLE IN 46410

366

PEOPLESOFT, USA, INC

DEPT CH 10699, PALATINE IL 60055-0699

182

RUSSELL REYNOLDS ASSOCIATES

CHURCH STREET STATION, NEW YORK NY 102496427

226

SAPPHIRE TECHNOLOGIES

P.O. BOX 30727, HARTFORD CT 06150-0727

241

SCOTT A STEINER

361 SOUTH COLLEGE AVENUE, VALPARAISO IN 46383

214

STAT TECHNICAL SERVICES, INC

235 SAWYER AVE., GLEN ELLYN IL 60137

124

TECHNOLOGY CONSULTING ASSOC.

5887 GLENRIDGE DRIVE, ATLANTA GA 30328

231

TRANSTECH, INC

P.O. BOX 95169, PALATINE IL 60095-0169

130

VAN SCOYOC ASSOCIATES

101 CONSTITUTION AVENUE NW, WASHINGTON DC 20001-2133

112

WILKERSON & ASSOCIATES

3339 TAYLORSVILLE ROAD, LOUISVILLE KY 40205-3103

474

171 Organizations

2,979

Total Special Services — Consulting

13,939

Page 36

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

4-Special Services — Other

ADDECO EMPLOYMENT

P.O. BOX 371084, PITTSBURGH PA 15250-7084

1,434

ADP PROXY SERVICES

P.O. BOX 23487, NEWARK NJ 07189

178

AT&T

7872 COLLECTION CENTER DR, CHICAGO IL 60693

231

AYCO COMPANY LP

ACCOUNTING DEPT, BUFFALO NY 14240-3171

110

COMMUNITY RESOURCE SERVICE

33501 L LAKE RD, AVON LAKE OH 44012

136

CREDIT SUISSE FIRST BOSTON

ATTN: ACCTS REC IBD, NEW YORK NY 10010

190

FITCH, INC

GPO P.O. BOX 26858, NEW YORK NY 10087-6858

190

GARTNER GROUP, INC

P.O. BOX 911319, DALLAS TX 75391-1319

126

IBM CORPORATION

5591 CHAMBLEE DUNWOODY RD, ATLANTA GA 30338

101

JAMES W TROST, CONSULTING

35 STATEN DR, HOCKESSIN DE 19707

153

KEVIN M. CONSIDINE, P C

1BOSTON PL 28TH FL, BOSTON MA 02108

108

LANIER WORLDWIDE INC

P.O. BOX 101960, ATLANTA GA 30392-1960

211

LOUIS SPISAK & ASSOCIATES INC

2448 SOUTHWAY DRIVE, UPPER ARLINGTON OH 43221

106

MARKETING SERVICES BY VECTRA

3990 BUSINESS PARK DRIVE, COLUMBUS OH 43204

296

MELLON INVESTOR SERVICES, LLC

P.O. BOX 3317, SOUTH HACKENSACK NJ 07608

885

MOODY’S INVESTORS SERVICE

P.O. BOX 102597, ATLANTA GA 30368-0597

155

MOSSBERG & COMPANY INC

P.O. BOX 210, SOUTH BEND IN 46624-0210

165

NEW YORK STOCK EXCHANGE, INC

P.O. BOX 4695, NEW YORK NY 10163

305

NORTHERN INDIANA PUBLIC SERVICE CO.

5201 INDUSTRIAL HIGHWAY, GARY IN 46406-1125

791

POMEROY COMPUTER RESOURCES

4013 WASHINGTON STREET WEST, CHARLESTON WV 25313

253

PROXY SERVICES CORPORATION

P.O. BOX 18878, NEWARK NJ 07191-8878

128

ROBERT HALF TECHNOLOGY

12400 COLLECTION CENTER DR, CHICAGO IL 60693-0124

110

SUNGARD AVAILABILITY SERVICES

P.O. BOX 91233, CHICAGO IL 60693

126

394 ORGANIZATIONS

4,932

Total Special Services — Other

11,420

Total All Special Services

50,536

Page 37

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		1,270

Educational Assistance		216

Employee Assistance Plan		118

Employee Cafeteria Subsidy		328

Employee Relocation Expense		1,580

Employee Retirement Expense		4,840

Group Life Insurance		375

Long-Term Disability Insurance		595

Medical Expense Plan		11,086

Other Post Employment Benefits		1,211

Pension Restoration Plan		4,628

Thrift Plan		3,666

Miscellaneous		(9	)


Total		29,904

Page 38

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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	Kinkos, Inc.		4
Employee Recruiting/Advertising	Nationwide Advertising Service		7
Employee Recruiting/Advertising	Service Web Offset Corporation		54
Employee Recruiting/Advertising	Shaw Print and Promotion		108
Employee Recruiting/Advertising	The Austin Group Energy LP		16
Employee Recruiting/Advertising	The David Group		34
Employee Recruiting/Advertising	Think, Inc.		17
Employee Recruiting/Advertising	TMP Worldwide		28
Employee Recruiting/Advertising	All Others		8


TOTAL			276

Page 39

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		21

Dues and Memberships — Corporate		1,024

Employee Recruiting		220

Employee Training		1,519

Other		267


TOTAL		3,051

Page 40

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		432

Auto and General Tools		495

Communications		939

Data Processing		4,578

Office Space		12,770

Miscellaneous		3,526


TOTAL		22,740

Page 41

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		780

Unemployment		375

License or Franchise		6


Total — other		1,161

(2) U.S. Government Taxes:

Federal Insurance Contribution		7,956

Unemployment		89

Miscellaneous		8


Total — Federal		8,053


TOTAL		9,214

Page 42

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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

Indiana Society of Washington	Community Welfare		8
Fitz Gerald & Robbins Inc.	Community Welfare		7
First Night Columbus	Community Welfare		6

Miscellaneous (78)			47


TOTAL			68

Page 43

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		6




TOTAL		6

Page 44

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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 $5.9 million higher in 2004 when compared to 2003. $3.2 million of this increase was due to bonuses increasing from $7.7 to $10.9 million in 2003 and 2004 respectively. $2.8 million of the increase was due to higher wages in 2004. Salary and wage expense also increased due to severance related costs increasing approximately $3.9 million in 2004 when compared to 2003. The increase in severance related costs is primarily due the reversal of accrued severance in 2003. The above increases in salary and wage expense were offset by a decrease in stock based compensation of approximately $5.5 million.

Income Taxes and Provision for Deferred Income Taxes decreased approximately $1.7 million from 2003 to 2004. This decrease is primarily due to adjustments made under FAS 109 for Deferred Income Taxes and a reduction in non-deductible expenses.

Outside Services decreased approximately $1.9 million from 2003 to 2004. This decrease is primarily due to lower legal expenses of $3.5 million in 2004 when compared to 2003 offset by an increase in consulting expenses of $1.7 million.

Page 45

(ORGANIZATION CHART)

Page 46

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 47

ANNUAL REPORT OF NISOURCE CORPORATE SERVICES COMPANY, INC.

For the Year Ended December 31, 2004

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		7,910		179
Columbia Atlantic Trading Corporation		2		—
Columbia Deepwater Services		8		—
Columbia Energy Group		352		8
Columbia Energy Services Corporation		99		2
Columbia Finance Corporation		13		—
Columbia Gas of Kentucky, Inc.		2,446		55
Columbia Gas of Maryland, Inc.		837		19
Columbia Gas of Ohio, Inc.		16,056		363
Columbia Gas of Pennsylvania, Inc.		6,719		152
Columbia Gas of Virginia, Inc.		3,985		90
Columbia Gas Transmission Corporation		14,157		320
Columbia Gulf Transmission Company		3,307		75
Columbia Network Services Corporation		25		1
Columbia Remainder Corporation		69		2
Energy USA, Inc.		1,026		23
Granite State Gas		151		3
Kokomo Gas and Fuel Company		151		3
NiSource Capital Markets		8		—
NiSource Crossroads Pipeline		120		3
NiSource Development Company, Inc.		268		6
NiSource Energy Services, Inc.		146		3
NiSource Energy Technology		130		3
NiSource Finance Company		27		1
NiSource Insurance Corporation, Ltd.		19		—
NiSource Retail Services		269		6
NiSource, Inc.		2,216		50
Northern Indiana Fuel and Light Company		166		4
Northern Indiana Public Service Company		16,961		383
Northern Utilities Maine		715		16
Northern Utilities New Hampshire		851		19
Primary Energy, Inc.		486		11


Total		79,695		1,800

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-two individual statements (see page 49).

Page 48

NISOURCE CORPORATE SERVICES COMPANY, INC.

COMPENSATION FOR USE OF CAPITAL

BILLED TO

COLUMBIA GAS TRANSMISSION CORPORATION

DURING 2004


							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		TCO		COL. 5 x COL. 6
	(1)		(2)		(3)		(4)		(5)		(6)		(7)
JANUARY		150,028.07		0.00		150,028.07		6,348,180.17		0.02363		1,035,686.63		24,476.63
FEBRUARY		150,028.04		0.00		150,028.04		6,607,177.00		0.02271		1,165,272.84		26,459.65
MARCH		150,028.04		0.00		150,028.04		6,784,370.35		0.02211		1,217,745.98		26,928.96
APRIL		150,028.07		0.00		150,028.07		6,825,145.72		0.02198		1,247,771.41		27,428.09
MAY		150,028.07		0.00		150,028.07		7,034,963.84		0.02133		1,272,970.82		27,147.45
JUNE		150,028.04		0.00		150,028.04		6,587,785.22		0.02277		1,181,053.58		26,896.92
JULY		150,028.07		0.00		150,028.07		6,732,419.42		0.02228		1,169,153.45		26,053.91
AUGUST		150,028.04		0.00		150,028.04		6,378,733.55		0.02352		1,134,614.22		26,686.17
SEPTEMBER		150,028.04		0.00		150,028.04		6,641,756.71		0.02259		1,212,594.58		27,390.82
OCTOBER		150,028.07		0.00		150,028.07		6,783,894.35		0.02212		1,201,464.22		26,570.78
NOVEMBER		150,028.04		0.00		150,028.04		6,900,761.47		0.02174		1,235,108.32		26,852.24
DECEMBER		150,028.04		0.00		150,028.04		6,069,542.83		0.02472		1,083,336.77		26,778.11

		1,800,336.63		0.00		1,800,336.63		79,694,730.63		0.27150		14,156,772.82		319,669.74

Page 49

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/ Susanne M. Taylor


				Susanne M. Taylor
				Controller

				Date: April 30, 2005

Page 50