REPORT ON DIVERSITY TO THE PENNSYLVANIA … ON DIVERSITY TO THE PENNSYLVANIA PUBLIC UTILITY...

REPORT ON DIVERSITY TO THE PENNSYLVANIA

PUBLIC UTILITY COMMISSION

March 1, 2016



Human Resources Section

March 1, 2016

HUMAN RESOURCES SECTION

TABLE OF CONTENTS Part I - Narrative on Affirmative Action Efforts Page 3-10 Recruiting Page 3-5 Advertising Page 6 Training Page 7 Promotion Page 8-9 Retention Page 10 Part II - Workforce/Service Territory Comparison Page 11 - 12 Description of Service Territory Page 11 Definition of Relevant Labor Force Page 12 Comparison of Internal Work Force/Relevant Labor Force Part III – Diversity Procurement Report Page 13

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RECRUITING

It is the policy of Columbia Gas of Pennsylvania, Inc., in accordance with all applicable laws, to recruit in all job titles without regard to race, color, religion, sex, age, disability or national origin or any other basis prohibited by applicable law. Recruitment efforts in all areas are made on the basis of furthering the objective of equal employment. Specific examples include:

In conformity with applicable law, the recruitment and hiring of all personnel will continue to be without discrimination against any individual with regard to race, color, religion, sex, age, disability or national origin. All employee selection criteria used by the Corporation conforms to the Uniform Guidelines on Employee Selection Procedures 41 C.F.R. Part 60-3 (1978).

The Corporation on an as needed basis will continue to inform recruitment sources, both verbally and in writing of its commitment to EEO and affirmative action. In doing so, the Corporation makes clear that all applicants will be treated without regard to race, color, religion, sex, age, disability or national origin. Furthermore, these recruitment sources are informed that the Corporation actively seeks qualified women and minorities for employment.

When the Corporation advertises for prospective employees, the advertisement includes an EEO and Inclusion and Diversity statement.

When the Corporation posts internal job postings electronically, the posting will also include a statement confirming our commitment to workforce diversity.

When employees are pictured in consumer or help-wanted advertising, both minority and non-minority men and women are illustrated.

The Corporation will continue to incorporate the equal opportunity clause, 41 C.F.R. Section 60-1.4 in all purchase orders.

Minority, female and disabled employees have and will continue to be encouraged to refer applicants for employment.

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Where underutilization exists as defined by the OFCCP in the job groups within the EEO-1 Categories of Officials and Managers, Professionals, and Sales, we will continue to contact universities and two and four year local colleges which attract minority and female students when appropriate opportunities arise. We will advise these institutions of our desire to fill job openings in these classifications with minority and female employees.

Where underutilization exists as defined by the OFCCP in the job groups within the EEO-1 categories of Technicians, Administrative Support Workers, Operatives or Service Workers, we will continue to contact local community colleges, vocational technical schools, high schools, local business schools and state and community organizations which attract minority and female students when appropriate opportunities arise. During periods of external recruitment, we will continue to participate in job fair and career day activities and we will consider relevant work experience programs.

The company actively encourages employee involvement in programs offered by the organizations we support. Through our involvement and support, the company has provided the opportunity for employees to actively interact with minority, female and/or disabled persons who could be considered for future potential employment. Additionally, our company’s communications and community relations department is active in supporting a number of organizations committed to furthering the advancement of minorities. Over the last few years, the company has supported numerous minority-focused initiatives and organizations including Student Conservation Association’s urban/diversity outreach program, Prime Stage Theatre’s programs to increase minority participation in the arts, Aliquippa Alliance for Unity and Development, Urban League of Pittsburgh, York Spanish-American Center, Tickets for Kids program providing arts tickets to minority students, Pittsburgh Pride, a lesbian and gay community festival, Poise Foundation educational programs for minority students, Sickle Cell Society, Inc. of Pittsburgh’s recognition dinner, NEED (Negro Educational Emergency Drive) educational program, Hill House Foundation, Renaissance Publication’s Black Extravaganza, African American Chamber of Commerce of Western PA, Filipino American Association of Pittsburgh, Martin Luther King Celebration Committee, NAACP (Allegheny County and Washington County) and Trailblazer Awards and Sweetwater Center for the Arts Marona Festival of African culture.

When appropriate, we will post open entry-level positions with the Pennsylvania Department of Labor and Industry. When necessary, the State will be advised of any needs under the Affirmative Action Plan to specifically seek minorities and/or women for job openings.

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Applications for open positions are accepted by the State and persons interested in obtaining entry-level employment are advised to apply. Applications and complete records of applicant flow have been kept to ensure goals of equal employment opportunity are being applied to this process.

As necessary, local organizations will continue to be contacted for referrals of potential minority and female employees in underutilized job groups.

The Corporation will continue to recruit employees of both sexes for all positions as openings become available.

The Corporation takes affirmative action to recruit minorities and women having requisite skills not currently in the work force.

The Corporation places help-wanted advertisements in newspapers, which are likely to reach households, which there are minorities and females who are not currently in the work force.

Columbia Gas of Pennsylvania, Inc. reviews physical and mental job qualification requirements to ensure that qualification requirements do not screen out qualified disabled individuals, disabled veterans, and veterans of the Vietnam ERA for reasons that are not job related, consistent with business necessity and the safe performance of the essential functions of the job.

Columbia Gas of Pennsylvania, Inc. has made and intends to continue to make reasonable accommodations, which do not impose undue hardships on its business, to the physical and mental limitations of employees and job applicants.

Should reasonable accommodations be necessary to facilitate access to work areas by qualified disabled applicants, the Corporation will take reasonable steps to provide such accommodations.

Special disabled parking is available at all Columbia Gas of Pennsylvania, Inc. offices and service centers.

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ADVERTISING The Corporation will continue to advertise without discrimination against any individual with regard to race, color, religion, sex, age, disability or national origin. Decisions on all aspects of advertising are made on the basis of furthering the objective of equal employment. Specific examples include:

When advertising in the newspapers or other media for job openings, the Corporation will not express any sex preference or place advertisements in columns headed “Male” or “Female.” Additionally, when employment advertisements are published, they include the statement, “We Value Workforce Diversity,” to promote awareness of the Corporation’s strong affirmative action commitment. When the Corporation posts internal job openings electronically, the posting will include a statement confirming our commitment to Work Force Diversity.

The Corporation will continue to publicize the achievements of minority and non-minority and female and male employees in local news media.

The Corporation will continue to incorporate the equal opportunity clause, 41 C.F.R. Section 60-1.4 in all purchase orders.

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TRAINING It will be the policy of Columbia Gas of Pennsylvania, Inc., in accordance with all applicable laws, to train persons in all job titles without regard to race, color, religion, sex, age, disability, or national origin, or any other basis prohibited by applicable law. Particular efforts rendered in the area of training are as follows:

Training and development programs are provided as necessary to ensure the achievement of our goals. Programs such as employee training, management training, and career development programs are offered to eligible Columbia Gas of Pennsylvania, Inc. employees without regard to race, sex, disability, or other prohibited reason.

Our analysis of Corporation training and development programs reveals that this is not a problem area for minorities or women in any job group or organizational unit. Columbia Gas of Pennsylvania, Inc. offers training and development programs that help employees to increase qualifications and skills, which might lead to advancement. In addition, on-the-job training is offered where applicable to the incumbent’s position. On-the-job training and development are administered without regard to minority group status or sex, taking into consideration only the amount of skill and/or familiarity that is already possessed.

The Corporation’s Equal Employment Opportunity Policy is accessible to all employees on MySource, the company’s intranet site. It is also prominently displayed on the bulletin boards of all of our facilities.

Columbia Gas of Pennsylvania, Inc. provides an orientation program for all new employees to inform new employees of the following: their functions, promotional opportunities, Corporation rules, dispute resolution, etc. Also included in this orientation is an explanation of the Corporation’s commitment to equal opportunity.

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PROMOTION It will be the policy of Columbia Gas of Pennsylvania, Inc., in accordance with all applicable laws, to promote persons in all job titles without regard to race, color, religion, sex, age, disability or national origin or any other basis prohibited by applicable law. Individuals will continue to be upgraded and promoted on the basis of their abilities, skills, education and experience. The Corporation ensures that minority and women employees who are qualified, as well as those who are qualified through training, are considered for promotion. In making promotion decisions, the Human Resources department, the supervisor directly involved and other appropriate personnel ensure that promotions are based on valid occupational qualifications. Particular efforts rendered in the area of promotion are as follows:

The Corporation’s electronic company-wide job posting system is readily available to all employees. Internal promotional opportunities are publicized for all employees on this system. Additionally, these postings are hard copied and posted at all of our operating centers. This posting includes a statement confirming our commitment to Work Force Diversity.

We will continue to make opportunities for advancement into more stimulating positions widely known through our career development process and by encouraging minorities and females to take advantage of said opportunities.

Special training programs are provided as necessary to ensure the achievement of company goals. Programs such as employee training and management training are offered to eligible Columbia Gas of Pennsylvania, Inc. employees without regard to race, sex, disability or other prohibited reason.

Internal hiring decisions are made on the basis of the employee’s experience, education and abilities, and where all other factors are equal; length of service with the Corporation is considered. All hiring decisions are made subject to the Corporation’s affirmative action obligations.

Our employees are encouraged to contact their supervisor and/or the Human Resources Department, at any time, should they desire information relative to another position within their own or some other department.

Management initiated promotions are based solely on performance without discrimination on account of sex, age, national origin or disability, but with an appreciation of the Corporation’s affirmative action obligations.

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Significantly, for the majority of personnel actions, minorities and females have achieved success within the Corporation in percentages, which are consistent with their employment representation, both internally and demographically. (See Schedule F to A2)

The Corporation has and will continue to analyze all positions and prepare written descriptions to accurately reflect position functions. Due to the use of a position description format, they are and will continue to be consistent for the same position from one organizational unit to another.

Worker specifications have been and will continue to be reviewed to determine what academic, experience and skill requirements are necessary for the adequate performance of every job. Specifications will continue to be consistent for the same job title in all organizational units and will contain no requirements that would result in bias as regards race, color, religion, sex, age, disability or national origin.

Position descriptions are available to all applicants and all members of management involved in the recruiting, screening, selection and promotion process. This includes the Personnel Interviewer and the head of the organizational unit involved. Job descriptions are also made available to employees and recruiting sources as appropriate.

Neither minority nor female employees are required to possess higher qualifications than those of the lowest qualified incumbent in the job for which they apply.

The Corporation makes every effort to avoid the concentration of members of one sex in any job classification. The Corporation makes jobs available to all qualified employees in all classifications without regard to sex and does not discriminate in regard to any job classification as to members of one sex.

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RETENTION

The Utility Industry as a whole has benefited from a history of employee retention. Columbia Gas of Pennsylvania, Inc. is confident that their lack of employee turnover relevant to market is directly attributable to market rate wages/benefits and the numerous efforts described in the Training and Promotion narratives contained elsewhere in this report. As noted, these efforts, and all personnel actions such as compensation, benefits, transfer and promotions are administered to all employees without regard to race, color, religion, sex, age, disability or national origin, or any other bans prohibited by applicable law. Particular efforts rendered in the area of retention are as follows:

The Corporation will continue to administer personnel actions affecting employees in areas such as compensation, benefits, transfers, layoffs, returns from layoff, Corporation sponsored training, education, tuition assistance and social and recreational programs without regard to race, color, religion, sex, disability, or national origin. The Corporation periodically reviews personnel actions and collects data on a continuing basis for the purpose of monitoring such actions.

If reductions in the Corporation’s work force become necessary, they will be based on non-discriminatory policies. The Corporation will review those persons scheduled to be affected to assure compliance with this policy, and make every good faith effort to ensure that minorities and women are treated in a non-discriminatory manner with respect to layoff and/or recall.

Of particular significance is that despite its downsizing over the past 10 years, Columbia has been able to maintain its percentage of female employment representation. Its female employee representation continues to reflect minority population levels in the communities we serve.

When possible, the Corporation will redesign jobs to meet the needs of disabled employees.

The Corporation accommodates disabled employees by allowing a reasonable amount of time off for physician’s visits.

Special disabled parking is available at Columbia Gas of Pennsylvania, Inc.

The Corporation will arrange suitable work hours for employees returning from sick leave, leave of absence and long-term disability where that arrangement is possible.

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DESCRIPTION OF SERVICE TERRITORY

Columbia Gas of Pennsylvania delivers clean, affordable and efficient natural gas to approximately 421,000 customers. With headquarters in Canonsburg, Pennsylvania, it is one of NiSource’s seven regulated utility companies. NiSource (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers through its local Columbia Gas and NIPSCO brands. More information about Columbia Gas of Pennsylvania and NiSource is available at www.ColumbiaGasPA.com and www.nisource.com.

http://www.columbiagaspa.com/

http://www.nisource.com/

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RELEVANT LABOR FORCE Please find the following Schedules F to A2. This comparison of the Company’s internal work force is shown for each of its operating locations. Labor force statistics data is provided by the Pennsylvania Department of Labor and Industry Occupations. The data used in the schedule represents the Experienced Civilian Labor Force for the EEO-1 Job Categories for each of the corresponding Pennsylvania counties. This work force composition by location and county compares favorably with the latest census data. The company has no minority representation in locations such as Emlenton, New Bethlehem, Somerset and Warren where the work force complements are less than eleven (11) employees, and minority populations are comparatively small. The Company is continuing to research affirmative action sources that might be utilized in recruiting for hires in these locations. In larger locations, the Company recognizes a minority deficiency in the Operatives category in York. The Company is optimistic that the higher minority representation in job groups that normally feed these positions will help this under-representation. Although Columbia will actively address this deficiency, it could still be challenging, as these are union positions normally bid and filled through seniority. However, in total, the minority representation approximates or exceeds population percentages. Columbia is pleased with its efforts and initiatives in regard to work force diversity. When compared with the female labor force availability, the Company’s female representation is less favorable. The Company has deficiencies in the Technicians category in York, as well as the Operatives category in Rochester, Washington, and Bethel Park. The Company is optimistic that the higher female representation in job groups that normally feed these positions will help these under-representations. However, this too could be a challenge as these are union positions normally bid and filled through seniority. Regardless, the Company is aware of this deficiency and will address it through the recruitment and promotion actions previously mentioned. A more appropriate comparison of CPA’s female work force would be with the availability of women seeking employment in the labor area - the standard used by OFCCP. Statewide, CPA’s female work force is 15% compared with 35.9% availability of women seeking work.

Columbia Gas of Pennsylvania, Inc.

Workforce/Relevant Labor Force Comparison

December 31, 2015

Bradford, PA – McKean County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Craft Workers 4 0 0 0% 5.7% 0% 0.6%

Operatives 1 0 0 0% 28.6% 0% 1.8%

Laborers 1 1 0 100% 19.5% 0% 2.6%



December 31, 2015

Bridgeville, PA– Pittsburgh MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 7 2 2 28.57% 37.5% 28.57% 6.4%

Professionals 14 4 1 28.57% 52.9% 7.14% 9.3%

Technicians 3 1 0 33.3% 55.1% 0% 8.5%

Administrative

Support 7 5 0 71.43% 75.6% 0% 10.2%

Craft Workers 32 0 6 0% 4.5% 18.75% 4.3%

Operatives 11 1 1 9.09% 20.5% 9.09% 8.6%

Laborers 1 0 0 0% 13.3% 0% 9.2%



December 31, 2015

Canonsburg, PA/State Staff– Pittsburgh MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 16 8 0 50% 37.5% 0% 6.4%

Professionals 8 3 0 37.5% 52.9% 0% 9.3%

Administrative

Support 14 11 0 78.57% 75.6% 0% 10.2%



December 31, 2015

Charleroi, PA– Pittsburgh MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 2 0 0 0% 37.5% 0% 6.4%

Craft Workers 12 0 1 0% 4.5% 8.33% 4.3%

Operatives 5 0 1 0% 20.5% 20% 8.6%



December 31, 2015

Connellsville, PA– Fayette County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 2 0 0 0% 38.5% 0% 3.7%

Technicians 11 1 0 9.09% 56.6% 9.1% 5%



December 31, 2015

Cranberry Township, PA– Pittsburgh MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 2 0 0 0% 37.5% 0% 6.4%

Technicians 18 0 3 0% 55.1% 16.6% 8.5%

Administrative

Support 4 0 0 0% 75.6% 0% 10.2%



December 31, 2015

Emlenton, PA– Venango County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 1 0 0 0% 38.4% 0% 2.2%

Craft Workers 8 0 0 0% 3.6% 0% 0.9%



December 31, 2015

Greencastle, PA– Pittsburgh MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Craft Workers 4 0 0 0% 4.5% 0% 4.3%



December 31, 2015

Greensburg/Jeannette, PA– Pittsburgh MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 1 0 0 0% 37.5% 0% 6.4%

Craft Workers 12 0 1 0% 4.5% 8.33% 4.3%

Operatives 5 0 0 0% 20.5% 0% 8.6%



December 31, 2015

Hanover, PA– York County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Technicians 1 1 0 100% 0%

Craft Workers 8 0 0 0% 0%

Operatives 1 1 0 100% 0%



December 31, 2015

Harrisburg, PA/State Staff– Harrisburg-Lebanon-Carlisle MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 1 0 0 0% 39.4% 0% 7.4%

Administrative

Support 1 1 0 100% 75.1% 0% 11.6%



December 31, 2015

New Castle, PA– Lawrence County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 2 0 1 0% 36.4% 50% 2.1%

Professionals 6 0 1 0% 57.9% 16.6% 3.1%

Technicians 1 1 0 100% 64.3% 0% 3.7%

Administrative

Support 3 1 0 33.3% 78.8% 0% 4.7%

Craft Workers 18 0 1 0% 4% 5.5% 1.1%

Operatives 4 0 1 0% 20.5% 25% 3.8%

Laborers 1 0 0 0% 13.3% 0% 7.5%



December 31, 2015

Neville Island, PA– Pittsburgh MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 4 1 0 25% 37.5% 0% 6.4%

Professionals 5 3 0 60% 52.9% 0% 9.3%

Craft Workers 21 2 2 9.52% 4.5% 9.52% 4.3%

Operatives 6 0 1 0% 20.5% 16.6% 8.6%

Laborers 1 0 0 0% 13.3% 0% 9.2%



December 31, 2015

New Bethlehem, PA– Armstrong County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Technicians 2 0 0 0% 66.9% 0% 1.2%

Craft Workers 6 0 0 0% 2.7% 0% 1.1%

Laborers 1 0 0 0% 18.1% 0% 2.2%



December 31, 2015

PA Customer Service Center, PA– Fayette County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Administrative

Support 4 4 1 100% 79.2% 25% 3.7%



December 31, 2015

Rochester, PA– Beaver County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 5 1 0 20% 40.9% 0% 4.1%

Professionals 4 1 0 25% 56.3% 0% 5.7%

Technicians 2 0 0 0% 55.1% 0% 5.3%

Administrative

Support 6 4 1 66% 73.9% 16.6% 7%

Craft Workers 25 2 4 8% 4.0% 16% 2.7%

Operatives 10 0 4 0% 21.4% 40% 6%

Laborers 5 4 1 80% 15.3% 20% 6.8%



December 31, 2015

State College, PA– State College MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 1 0 0 0% 39.8% 0% 3.8%

Technicians 2 1 0 50% 46.7% 0% 9.1%

Craft Workers 11 0 0 0% 5.4% 0% 1.8%



December 31, 2015

Somerset, PA– Johnstown MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Craft Workers 2 0 0 0% 2.8% 0% 1.3%

Operatives 1 0 0 0% 23.1% 0% 1.6%



December 31, 2015

Uniontown, PA– Fayette County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 5 1 0 20% 38.5% 0% 3.7%

Professionals 8 0 0 0% 59% 0% 4.6%

Technicians 1 0 0 0% 56.6% 0% 5%

Administrative

Support 4 3 0 75% 79.2% 0% 3.7%

Craft Workers 19 1 0 5.26% 4.3% 0% 1.3%

Operatives 8 0 0 0% 21.0% 0% 3.8%



December 31, 2015

Warren, PA– Warren County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 1 0 0 0% 37.1% 0% 0.8%

Technicians 2 0 0 0% 28% 0% 1.3%

Craft Workers 4 0 0 0% 4.6% 0% 1.5%



December 31, 2015

Washington, PA– Pittsburgh MSA

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 4 1 1 25% 37.5% 25% 6.4%

Professionals 1 0 0 0% 52.9% 0% 9.3%

Technicians 1 0 0 0% 55.1% 0% 8.5%

Administrative

Support 3 1 0 25% 75.6% 0% 10.2%

Craft Workers 26 1 2 3.85% 4.5% 7.69% 4.3%

Operatives 16 0 1 0% 20.5% 6.25% 8.6%



December 31, 2015

York, PA– York County

Female Minority

EEO Category

Total Number

of Employees

Number of

Female

Employees

Number of

Minority

Employees

Percent of

Workforce

Percent of

Available Labor

Force

Percent of

Workforce

Percent of

Available Labor

Force

Officials and

Managers 12 1 1 8.3% 35.8% 8.3% 3.9%

Professionals 15 7 0 46.6% 53.3% 0% 5.1%

Technicians 14 3 0 21.42% 58.2% 0% 5.2%

Administrative

Support 18 10 2 55.5% 78.4% 11.11% 5.1%

Craft Workers 40 1 5 2.5% 5.1% 12.5% 4%

Operatives 22 3 0 15.78% 30.0% 0% 9.5%

Laborers 2 0 0 0% 21.3% 0% 13.2%



Procurement Section

March 1, 2016

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Columbia Gas of Pennsylvania Supplier Diversity Report 2015

Columbia Gas of Pennsylvania, Inc. (“Columbia” or “Company”), hereby submits its

“Annual Report” for Calendar Year 2015.

Columbia advanced its strategic direction to build economic inclusion with diverse

suppliers throughout 2015. Investing in minority, women, veteran, disabled-owned

businesses and historically underutilized business zones not only reflects our core

values, but positions us to respond to the growing diversity in the communities we

serve.

Using the “gold standard” of best practices in supplier development from the National

Minority Supplier Development Council and leveraging practical applications of best

practices from fellow utilities, Columbia presents its 2015 report of activities and

achievements.

This report provides insight to the dedicated work toward building and strengthening

Columbia’s Supplier Diversity Program.

SUPPLY CHAIN TEAM

Derrick Hamilton Supplier Diversity Manager Jacquelyn Lange Director, Supply Chain Services Scott Kelly VP Supply Chain

Vision

NiSource aspires to continuously grow supplier diversity by embracing and supporting the communities and customers we serve

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PROGRAM OVERVIEW

Columbia Gas of Pennsylvania is committed to the growth and development of diverse suppliers to foster an inclusive environment that benefits our customers and communities we serve. Our diverse suppliers help spark innovation, strengthen engagement, and drive continuous improvement across the enterprise. Columbia Gas of Pennsylvania is one of seven energy distribution companies under the NiSource family of companies solely focused on providing reliable and affordable energy to its communities and customers. Supplier diversity is a key component in the success of the companies’ mission. Columbia and NiSource both recognize that supplier diversity is critical to build a strong supplier base, but also a viable way to foster economic growth for its communities. The company achieves its supplier diversity efforts through education, advocacy, and outreach. NiSource aspires to be best in class and regarded for supplier diversity and community economic inclusion. In 2015 NiSource achieved 5.7% spend with diverse suppliers. This equates to $98 million in total spend represented by $83.5 million in direct Tier 1 spend and $14.5 million in Tier 2 spend. NiSource was also able to increase the number of diverse suppliers it spends over a million dollars with by 3.3%. In approximately 6 years NiSource has contracted in excess of $500 million with diverse suppliers.

NiSource continues to enjoy success by building a strong foundation for achieving results through execution of the program’s objectives outlined in this report.

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PROGRAM OBJECTIVES

1. Grow pool of proven diverse suppliers

Promote a schedule of outreach, opportunity fairs and workshops to Company decision makers who are involved in identifying, reviewing and selecting suppliers.

Provide transparency to supplier vetting by incorporating technology and a standard process to gather supplier information, track vetting and report status to company decision makers

Provide education opportunities to potential diverse suppliers on the procurement process, practices, and pre-qualifications required to do business in the utility industry

Partner with NiSource decision makers and supply chain to identify opportunities for diverse suppliers

2. Strengthen subcontracting opportunities with key non-diverse suppliers

Educate non-diverse prime suppliers on resources available to assist in growing their pool of diverse subcontractors

Partner with strategic suppliers that make up majority of spend to build a tier 2 program

Encourage peer utility companies to share diverse supplier lists to increase the pool of suppliers.

3. Onboard and prequalify diverse suppliers with capacity to execute contract in excess of $1 million

Identify Columbia Gas opportunities with large dollar spend for new supplier

Facilitate monthly meetings with procurement teams to review high potential suppliers as candidates for large dollar opportunities

Identify existing diverse suppliers that provide corporate wide services to decision makers for consolidation of direct contract to Columbia Gas.

Hold supplier presentations and lunch-and-learn meetings with diverse suppliers and stakeholders to expand and enhance relationships with existing and potential suppliers

4. Improve access and quality of information

Use technology to bridge gaps of communication and increase quality of supplier data and quantity of suppliers moving through the prequalification process

Provide learning and sharing opportunities for procurement, diverse businesses and organizations that advocate for diverse suppliers

Make supplier profiles available and accessible to a wider audience of decision makers

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2015 ACCOMPLISHMENTS

1. Grow pool of proven diverse suppliers • NiSource invested in a database, to improve the access and visibility of

diverse suppliers, for the supply chain team to utilize

• Presented in various workshops and panels to discuss what is required to do business with Columbia Gas

• 80% of Columbia Gas of Pennsylvania bid events included diverse suppliers

2. Strengthen subcontracting opportunities with key non-diverse suppliers • Partnered with a prime non-diverse suppliers at a supplier diversity

matchmaker event to explore subcontracting opportunities with that supplier

• Formalized the requirements and guidelines of our tier 2 program to improve overall compliance and continued grow of the program

• Added supplier diversity metric to our Supplier Relations Management (SRM)

to record and discuss performance at quarterly business reviews (QBR) • Identified diverse suppliers to add to our SRM program, which is used to

engage NiSource’s strategic suppliers

3. Onboard and prequalify diverse suppliers • Increase the number of diverse suppliers with spend over $1 million by 3%

• Outlined and communicated to potential suppliers the basic requirements

necessary to conduct business with NiSource based on risk levels of the work to be preformed

4. Improve access and quality of information • NiSource invested in a database, to improve the access and visibility of

diverse suppliers, for the supply chain team to utilize

• NiSource utilized a supplier to enrich it’s supplier diversity data to help verify current diverse suppliers and identify existing unknown diverse suppliers

• Conducted supplier diversity training for the supply chain team to improve their knowledge base and improve supplier diversity performance

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Columbia Gas is also providing the following metrics in accordance with the accomplishments for 2015. Columbia Gas experienced some challenges growing it’s spend with diverse suppliers in 2015. The majority of change in performance can be attributed to activity of three diverse suppliers. The following factors, listed below, are associated with this decline in spend: One of our suppliers was working through a recovery plan to improve performance and quality in 2015.The supplier has addressed performance concerns and we expect spend to rebound as a result. We have major pipeline replacement initiatives across our service territory. Each year, based on risk factors, pipeline replacement projects are prioritized. The spend in areas where we utilize diverse suppliers for pipeline replacement was down in 2015. The contributing factors outlined above have all been addressed and Columbia Gas expects to improve on its 2015 performance.

Dollars Paid by Columbia Gas of Pennsylvania to Diverse Suppliers

Classification 2014 2015

Woman-owned $22,895,000 $13,028,621

Veteran-owned $5,565,000 $4,442,343

HUBZone $12,286,000 $8,810,766

Minority-owned $89,000 $0

Tier 2 0 2,008,344

Total Diverse Spend $40,835,000 $28,290,074

Percent of Spend Diverse 21.0% 16.2%

Dollars Paid by Columbia Gas of Pennsylvania to Suppliers Located in Pennsylvania

$99,985,000 $78,746,702

Dollars Paid by NiSource and Affiliates to Suppliers Located in Pennsylvania

$528,827,000 $242,380,222

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CONCLUSION

Columbia Gas of Pennsylvania, Inc. submits the “Annual Report” in an effort to increase and improve the overall mix of diverse businesses that contract and subcontract for materials and services. We encourage our contractors, subcontractors and suppliers to abide by the spirit and intent of the policy and support its drive toward long-term performance and position as a valued community partner.

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Diverse Supplier Classification Definitions

Woman-Owned Business (WBE) A woman-owned business is a business concern (a) which is at least 51 percent owned by one or more women, or in the case of a publicly owned business, at least 51 percent of that business' stock is owned by one or more women; and (b) whose management and daily business operations are controlled by one or more women. Historically Underutilized Business Zone (HUBZone) Small Business Concern This program is based on the geographical area where your business is located and where 35 percent of your employees reside. The company must be small, located in a HUBZone, owned and controlled by one or more U.S. citizen(s), at least 35 percent of its employees reside in a HUBZone, and certified by the Small Business Administration. Veteran-Owned Business (VBE) A veteran-owned business is a business concern (a) which is at least 51 percent owned by one or more veterans or, in the case of any publicly owned business, at least 51 percent of the stock is owned by one or more veterans; and (b) the management and daily business operations are controlled by one or more veterans. Disabled-Owned Business A disabled-owned business is a business (a) which is at least 51 percent owned by one or more persons with a disability as defined by the Americans with Disabilities Act or, in the case of any publicly owned business, at least 51 percent of the stock of is owned by one or more persons with disabilities; and (b) the management and daily business operations are controlled by one or more persons with disabilities. Minority Business Enterprise (MBE) A minority business enterprise is a U.S.-based business concern (a) which is at least 51 percent owned by minorities, or in the case of any publicly owned business, at least 51 percent of that business' stock is owned by one or more minorities; and (b) whose management and daily business operations are controlled by one or more of the minority individuals who own it. Minority persons include African-Americans, Hispanic-Americans, Asian-Pacific Americans, Asian-Indian Americans and Native Americans. Workshops for Americans with Disabilities This organization provides greater access for people with disabilities to training services, vocational rehabilitation services, and other support services they need to obtain, regain, or maintain employment.

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