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Northern Indiana Public Service Company Gas Rate NORTHERN INDIANA PUBLIC SERVICE COMPANY GAS RATE CASE Forward Looking Test Year: Twelve months ending December 31, 2018 Base Year: Twelve months ending December 31, 2016 MINIMUM STANDARD FILING REQUIREMENTS (MSFR) TABLE OF CONTENTS 170 IAC Description Part Working Papers and data; rate of return and capital 1-5-13 10 structure 1-5-13(a) An electing utility shall submit the following: 10 Capitalization and capitalization ratios at the end 10 of the test year and at the end of the year beginning 1-5-13(a)(1) twelve (12) months prior to the test year, respectively, including the following information: (A) Year-end interest coverage ratios for the test 10 year and the year ended twelve (12) months prior to 1-5-13(a)(1)(A) the end of the test year, and a pro forma interest coverage under the rates proposed by the utility (B) Year-end preferred stock dividend coverage 10 1-5-13(a)(1)(B) ratios for the test year and the year ended twelve (12) months prior to the end of the test year (C) The supporting calculations for the 1-5-13(a)(1)(C) 10 information described in clauses (A) and (B) The following financial data relating to the utility 1-5-13(a)(2) 10 as of the end of the most recent five (5) fiscal years: 1-5-13(a)(2)(A) (A) Annual price earnings ratio 10 (B) Earnings-book value ratio on a per share basis, 1-5-13(a)(2)(B) 10 using average book value 1-5-13(a)(2)(C) (C) Annual dividend yield 10 1-5-13(a)(2)(D) (D) Annual earnings per share in dollars 10 1-5-13(a)(2)(E) (E) Annual dividends per share in dollars 10 1-5-13(a)(2)(F) (F) A book value per share yearly 10 (G) Average annual market price per share 10 1-5-13(a)(2)(G) calculated using monthly high and low share market prices -18- NORTHERN INDIANA PUBLIC SERVICE COMPANY GAS RATE CASE Forward Looking Test Year: Twelve months ending December 31, 2018 Base Year: Twelve months ending December 31, 2016 MINIMUM STANDARD FILING REQUIREMENTS (MSFR) TABLE OF CONTENTS 170 IAC Description Part 1-5-13(a)(2)(H) (H) Pretax interest coverage ratio 10 1-5-13(a)(2)(I) (I) Post tax interest coverage ratio 10 1-5-13(a)(2)(J) (J) Market price-book value ratio average 10 (K) The supporting calculations for the 1-5-13(a)(2)(K) 10 information described in this subdivision The utility's capital structure and weighted average 10 1-5-13(a)(3) cost of capital as of the test year end, including the following information: 1-5-13(a)(3)(A) (A) Common equity 10 (B) Long term debt, including that maturing with 1-5-13(a)(3)(B) 10 one (1) year 1-5-13(a)(3)(C) (C) Other debt, with specificity 10 1-5-13(a)(3)(D) (D) Preferred or preference stock 10 1-5-13(a)(3)(E) (E) Customer deposits 10 (F) Sources of cost free capital, including the 10 following: (i) pre-1971 investment tax credit, (ii) 1-5-13(a)(3)(F) deferred taxes for ratemaking, and (iii) FAS 106 nonexternally funded liabilities (G) Post-1970 investment tax credit and other 1-5-13(a)(3)(G) 10 components as appropriate If an electing utility is asking for special treatment 10 because of the provisions of any of the following documents of the utility or its parent company, or 1-5-13(a)(4) both, then copies of the document or documents with the affecting provision or provisions must also -19- NORTHERN INDIANA PUBLIC SERVICE COMPANY GAS RATE CASE Forward Looking Test Year: Twelve months ending December 31, 2018 Base Year: Twelve months ending December 31, 2016 MINIMUM STANDARD FILING REQUIREMENTS (MSFR) TABLE OF CONTENTS 170 IAC Description Part (A) Articles of Incorporation or a similar 1-5-13(a)(4)(A) 10 document 1-5-13(a)(4)(B) (B) Indentures 10 1-5-13(a)(4)(C) (C) Other loan documents 10 (D) Other documents that describe the following: 10 (i) coverage requirements, (ii) limits on proportions 1-5-13(a)(4)(D) of types of capital outstanding, and (iii) restrictions on dividend payouts A schedule of preferred stock outstanding by 10 1-5-13(a)(5) series, including current maturities, for the end of the test year and the latest date reasonably available A schedule of long term debt outstanding by 10 1-5-13(a)(6) series, including current maturities, for the end of the test year and the latest date reasonably available A schedule of the following information for the 10 utility as of the end of the test year and as of the 1-5-13(a)(7) latest date reasonably available prior to the post- filing date respectively: (A) A computation of the embedded cost rate of 10 1-5-13(a)(7)(A) long term debt, including the amount maturing within twelve (12) months (B) Computation of the embedded cost rates of 1-5-13(a)(7)(B) 10 other debt (C) Computation of the embedded cost rates of 10 1-5-13(a)(7)(C) preferred or preference stock, including amounts maturing within twelve (12) months Schedules required by this subsection should 10 1-5-13(a)(8) contain all relevant information, including, but not limited to, the following: -20- NORTHERN INDIANA PUBLIC SERVICE COMPANY GAS RATE CASE Forward Looking Test Year: Twelve months ending December 31, 2018 Base Year: Twelve months ending December 31, 2016 MINIMUM STANDARD FILING REQUIREMENTS (MSFR) TABLE OF CONTENTS 170 IAC Description Part 1-5-13(a)(8)(A) (A) Date of issue 10 1-5-13(a)(8)(B) (B) Maturity date 10 1-5-13(a)(8)(C) (C) Dollar amount 10 1-5-13(a)(8)(D) (D) Coupon or dividend rate 10 (E) Net proceeds, including discounts and 1-5-13(a)(8)(E) 10 premiums (F) Annual interest or dividend paid and balance 1-5-13(a)(8)(F) 10 of principal; and 1-5-13(a)(8)(G) (G) The calculations in this section 10 The following information regarding the utility's 10 1-5-13(a)(9) plans regarding debt, common stock, and preferred stock during the year following the test year end: 1-5-13(a)(9)(A) (A) Issues that are to be retired or refinanced 10 (B) If a refinancing is planned, the following: (i) 10 the manner in which the refinancing will proceed, 1-5-13(a)(9)(B) that is, sinking fund or refinancing, (ii) the source of the capital to be used to implement the refinancing, and (iii) the estimated cost rate of new ca All relevant reports in the utility's possession by 10 rating agencies on the utility and its parent 1-5-13(a)(10) company for the test year, and thereafter up to the date of the final hearing. The reports should be based on the debt: (A) used in calculations in the electing utility's 1-5-13(a)(10)(A) 10 filing; or (B) of a parent company or proxy company whose 1-5-13(a)(10)(B) 10 debt is rated -21- NORTHERN INDIANA PUBLIC SERVICE COMPANY GAS RATE CASE Forward Looking Test Year: Twelve months ending December 31, 2018 Base Year: Twelve months ending December 31, 2016 MINIMUM STANDARD FILING REQUIREMENTS (MSFR) TABLE OF CONTENTS 170 IAC Description Part Average monthly balance of short-term debt for 10 the test year and the most recently available twelve 1-5-13(a)(11) (12) month period, and the utility's current cost for short term debt With respect to the electing utility's proposed cost 10 1-5-13(b) of equity and proposed fair rate of return, an electing utility shall provide the following: (1) If an electing utility used a risk premium 10 1-5-13(b)(1) model to establish its cost of equity, all documents the electing utility used to estimate the risk premium (2) If an electing utility used any other cost of 10 1-5-13(b)(2) equity models, all documents used by the utility to derive its estimate (3) If an electing utility used a comp earnings 10 model and the proxy group has more than 20 comps, an electronic copy of the analysis used by the uty in 1-5-13(b)(3) a format or program that was used to derive the electing utility's estimated cost of equity or fair rate of return The requested information is provided on the 10 attached CD-Rom. We have also included a printout of the contents of the CD-Rom. To the extent the electing utility is prohibited from 10 producing copies of the doc listed in subs (b)(1) 1-5-13(c) through (b)(3) due to the documentation being licensed or proprietary material by agreement or by copyright law, the electing utility shall provide: (1) A list of which documents may not be copied 1-5-13(c)(1) 10 and the reasons therefore -22- NORTHERN INDIANA PUBLIC SERVICE COMPANY GAS RATE CASE Forward Looking Test Year: Twelve months ending December 31, 2018 Base Year: Twelve months ending December 31, 2016 MINIMUM STANDARD FILING REQUIREMENTS (MSFR) TABLE OF CONTENTS 170 IAC Description Part (2) Access to the documents listed in subdivision 10 1-5-13(c)(2) (1) to all parties to the proceeding under this rule at a mutually convenient time and place -23- NORTHERN INDIANA PUBLIC SERVICE COMPANY GAS RATE CASE Forward Looking Test Year: Twelve months ending December 31, 2018 Base Year: Twelve months ending December 31, 2016 170 IAC Description 1-5-13(a)(1)(A) An electing utility shall submit the following: Capitalization and capitalization ratios at the end of the test year and at the end of the year beginning twelve (12) months prior to the test year, respectively, including the following information: (A) Year-end interest coverage ratios for the test year and the year ended twelve (12) months prior to the end of the test year, and a pro forma interest coverage under the rates proposed by the utility MSFR 1825 170 IAC 1-5-13(a)(1)(A) NIPSCO Gas Rate Case Pre-Tax Interest Coverage Ratio Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Year 2018 Pro forma 2018 2017 2016 2015 Income Before Income Taxes $ 547,900,000 $ 410,800,000 $ 362,700,000 $ 273,300,000 $ 283,500,000 Total Interest 105,200,000 105,200,000 95,700,000 86,900,000 83,400,000 Pre-Tax Interest Coverage Ratio 5.21 3.90 3.79 3.14 3.40 Fiscal Year Fiscal Year
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