WASHINGTON and HOUSTON, Sept. 4, 2012 /PRNewswire/ -- NiSource Gas Transmission & Storage's (NGT&S) Columbia Gas Transmission (Columbia) today announced the company reached a customer settlement that provides for Columbia to modernize its natural gas pipeline infrastructure under a program that will initially span the next five years, with provisions for potential extensions thereafter.

The settlement filed today with the Federal Energy Regulatory Commission (FERC) includes a base rate reduction for customers and an investment recovery agreement. Columbia has asked that the settlement be approved prior to the end of 2012.

"Heeding the President's Executive Order and efforts by the Department of Transportation, we have developed a comprehensive and long-term infrastructure investment plan that ensures safe and reliable transportation of natural gas for decades to come," said Jimmy Staton, NGT&S chief executive officer. "We've worked with our customers over the last several months to develop a mechanism for cost recovery associated with these investments. This collaboration put into place a year-by-year infrastructure investment strategy, while providing customers with predictable, affordable rates."

Columbia projects that its entire modernization program could reach approximately $4 billion over an extended period. Under the settlement, Columbia will invest $300 million per year on system improvements, which include:

Replacing Aging Infrastructure– replacing approximately 1,000 miles of existing interstate transmission pipelines, primarily bare steel (400 miles in the first five years);
Upgrading Natural Gas Compression Systems– replacing and modernizing more than 50 critical compressor units along the pipeline system that will enhance system efficiency and improve environmental performance;
Increasing Pipeline System Reliability– uprating pressures and looping systems where needed to ensure gas is reliably delivered to critical markets; and
Expanding In-Line Inspection Capabilities– facilitating Columbia's ability to perform state-of-the-art maintenance and inspections without interrupting services

Infrastructure investment work will take place across Columbia's footprint, including Kentucky, Maryland, Ohio, Pennsylvania, Virginia and West Virginia.

"In addition to improving the pipeline system and increasing customer reliability, our modernization program also will be a catalyst for the economy —spurring job creation and supporting economic opportunity in many of the communities where we operate," added Staton. "We estimate that more than 7,000 direct jobs will be created as a result of the program."

Working with FERC and other federal, state and local agencies, Columbia will continue to engage key stakeholders, landowners and customers throughout the planning and construction process. More information about our projects can be found on [ www.ngts.com ].

About Columbia Gas Transmission, LLC

Columbia Gas Transmission, LLC is a unit of NiSource Inc. Other NiSource Gas Transmission & Storage companies include Columbia Gulf Transmission, Crossroads Pipeline, Hardy Storage, Millennium Pipeline and NiSource Energy Ventures. Combined, the companies operate approximately 15,000 miles of interstate natural gas pipeline and 37 storage fields, delivering over 1 trillion cubic feet of natural gas per year. For more information about Columbia Gas Transmission or the other NiSource Gas Transmission & Storage companies, please visit [ www.ngts.com ].

About NiSource

NiSource Inc. (NYSE: [ NI ]), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to more than 3.8 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at [ www.nisource.com ].

Caution Regarding Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current expectations of NGT&S and its management. Although NGT&S believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Readers are cautioned that the forward-looking statements in this release are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, the following: weather; fluctuations in supply and demand for energy commodities; growth opportunities for NGT&S' businesses; the success of regulatory and commercial initiatives; dealings with third parties over whom NGT&S has no control; actual operating experience of NGT&S' assets; the regulatory process; regulatory and legislative changes; the impact of potential new environmental laws or regulations; the results of material litigation; changes in general economic, capital and commodity market conditions; and counterparty credit risk and the matters set forth in the "Risk Factors" Section in NiSource Inc.'s 2011 Form 10-K and 2012 Forms 10-Q, many of which are risks beyond the control of NGT&S. NGT&S expressly disclaims a duty to update any of the forward-looking statements contained in this release.

SOURCE NiSource Inc.; Columbia Gas Transmission

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NiSource's Columbia Gas Transmission Advances Infrastructure Investment Plans

NiSource's Columbia Gas Transmission Advances Infrastructure Investment Plans

Collaborative effort ensures pipeline and system upgrades; Improves public safety, customer reliability and service; Provides economic benefits