April 8, 1999

NIPSCO TO PARTICIPATE IN YEAR 2000 PREPAREDNESS EXERCISES

MERRILLVILLE, Ind. – Over the next few days, Northern Indiana Public Service Company (NIPSCO) will participate in two exercises designed to simulate potential communications and utility operations scenarios that may result during the transition to the Year 2000.

The first will occur on Friday, April 9 when NIPSCO’s electrical systems personnel will participate in a drill sponsored by the North American Electrical Reliability Council (NERC). NERC, a non-profit group based in New Jersey, is tasked with setting the electrical transmission reliability standards for all North American utilities.

The NERC drill is designed to test the ability of transmission system operators, such as NIPSCO, to maintain critical voice and data communications should a partial loss of communications capabilities occur.

A second internal company exercise, occurring on Monday, April 12, will focus on NIPSCO’s ability to maintain critical utility operations following possible Y2K scenarios, such as the loss of voice and data communications between key departments.

Management and key personnel from each of NIPSCO’s critical operational departments will be participating in the exercise.

The implementation and evaluation of the tabletop exercise is designed to test NIPSCO’s critical systems contingency plans and identify areas in need of improvement.

Northern Indiana Public Service Company (NIPSCO), a subsidiary of NIPSCO Industries, Inc. (NI), is a regulated utility that provides natural gas service to nearly 700,000 customers and electrical service to 416,000 customers across the northern third of Indiana. NIPSCO is the largest natural gas distribution company and the second largest electric distribution company in the state of Indiana. Information about NIPSCO Industries Inc., and its subsidiaries is available via the Internet at www.nipsco.com.

# # #