21.

Business Segment Information

Operating segments are components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The NiSource Chief Executive Officer is the chief operating decision maker.

At June 30, 2011, NiSource's operations are divided into three primary business segments. The Gas Distribution Operations segment provides natural gas service and transportation for residential, commercial and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana and Massachusetts. The Gas Transmission and Storage Operations segment offers gas transportation and storage services for LDCs, marketers and industrial and commercial customers located in northeastern, mid-Atlantic, midwestern and southern states. The Electric Operations segment provides electric service in 20 counties in the northern part of Indiana.

The following table provides information about business segments. NiSource uses operating income as its primary measurement for each of the reported segments and makes decisions on finance, dividends and taxes at the corporate level on a consolidated basis. Segment revenues include intersegment sales to affiliated subsidiaries, which are eliminated in consolidation. Affiliated sales are recognized on the basis of prevailing market, regulated prices or at levels provided for under contractual agreements. Operating income is derived from revenues and expenses directly associated with each segment.


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2011			2010			2011			2010
REVENUES
Gas Distribution Operations
Unaffiliated	$	629.7		$	552.0		$	2,214.5		$	2,097.4
Intersegment		0.2			2.7			0.9			8.5

Total		629.9			554.7			2,215.4			2,105.9

Gas Transmission and Storage Operations
Unaffiliated		200.5			185.6			413.9			380.1
Intersegment		33.0			31.7			75.0			93.8

Total		233.5			217.3			488.9			473.9

Electric Operations
Unaffiliated		350.8			342.3			699.6			662.1
Intersegment		0.2			0.2			0.4			0.4

Total		351.0			342.5			700.0			662.5

Corporate and Other
Unaffiliated		47.3			91.2			132.5			390.2
Intersegment		122.2			103.1			232.7			209.9

Total		169.5			194.3			365.2			600.1

Eliminations		(155.6	)		(137.7	)		(309.0	)		(312.6	)

Consolidated Revenues	$	1,228.3		$	1,171.1		$	3,460.5		$	3,529.8


Operating Income (Loss)
Gas Distribution Operations	$	46.4		$	18.5		$	288.0		$	253.6
Gas Transmission and Storage Operations		84.7			74.9			203.2			200.8
Electric Operations		39.8			49.6			83.0			94.7
Corporate and Other		(7.6	)		(3.8	)		(11.7	)		(6.5	)

Consolidated Operating Income	$	163.3		$	139.2		$	562.5		$	542.6