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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;The accompanying unaudited condensed consolidated financial statements for NiSource reflect all
   normal recurring adjustments that are necessary, in the opinion of management, to present fairly
   the results of operations in accordance with GAAP in the United States of America.
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;The accompanying financial statements should be read in conjunction with the consolidated financial
   statements and notes thereto included in NiSource&amp;#8217;s Annual Report on Form 10-K for the fiscal year
   ended December&amp;#160;31, 2009. Income for interim periods may not be indicative of results for the
   calendar year due to weather variations and other factors.
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;The unaudited condensed consolidated financial statements have been prepared pursuant to the rules
   and regulations of the SEC. Certain information and note disclosures normally included in annual
   financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to
   those rules and regulations, although NiSource believes that the disclosures made are adequate to
   make the information not misleading.
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;At December&amp;#160;31, 2009, certain assets totaling $61.5&amp;#160;million were recorded in &amp;#8220;Other property at
   cost less accumulated depreciation.&amp;#8221;
   NiSource has corrected the classification of these assets as
   &amp;#8220;Utility Plant&amp;#8221; in the Condensed Consolidated Balance
   Sheets as of June 30, 2010 (unaudited) and December 31, 2009.
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