NiSource (NI) 8-K Entry into a Material Definitive Agreement

Exhibit 99.2

10-Year Projection of
Estimated Costs
And Potential Savings¹

$ expressed in MM

Projected NiSource Base Costs (w/o Outsourcing)

	10-Year
	Projection
NiSource Base Case O&M Cost		3,125.7
NiSource IT Capital Spend		275.0
Total Cost to Deliver Services		3,400.7

		Total
Future Cost to Deliver Services (w/ Outsourcing)
IBM Core Fees2			1,572.0
NiSource Projected Retained Costs
Salary & Related			907.5
Outside Services			104.8
Employee Expenses			29.6
Facilities, Telecom & Other			182.4
NiSource Additional Retained Costs (Salary & Related)			71.6
Subtotal Projected Retained O&M Expenses			1,295.9
NiSource Additional Retained Costs (Capital)			0.0
Subtotal Projected Future Cost to Deliver Services			2,867.9
Core Savings	532.8
NiSource Projected Costs To Achieve
IBM Transition Fees			35.7
Estimated Severance Costs			35.3
Estimated Governance Costs			50.0
Estimated Sales Taxes			11.4
Estimated Project Costs			4.5
Total Future Cost to Deliver Services			3,004.9
Net Core Savings	395.8

1	The figures set forth in this chart are projections for a ten-year period. Therefore, the figures are subject to a material risk of variation.
2	IBM’s fees are only partially fixed and could vary materially over the term depending on NiSource’s actual usage of the proposed services.