MERRILLVILLE, Ind. – Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., announced today, with regulatory approval from the Indiana Utility Regulatory Commission (IURC), an increase per therm of $.0951 (9.51 cents) in the company’s monthly Gas Cost Adjustment (GCA) for residential customers effective September 1 through September 30, 1999.

This adjustment represents a 5 percent increase in a typical residential customer's bill from September of last year and a 17 percent increase from August 1999. Business customers will see a similar impact on their bills.

This increase is due mainly to rising market prices for the natural gas supply based on seasonal supply and demand patterns.

NIPSCO, under an agreement reached with the Indiana Office of Utility Consumer Counselor (OUCC) and approved by the IURC, will be adjusting its GCA on a monthly basis beginning September 1, 1999. Previously, the adjustments were made every three months.

The GCA is an allowed adjustment to the gas supply charge portion of NIPSCO’s natural gas service rates, which reflects fluctuations in the price NIPSCO pays for natural gas in the market place. A monthly gas supply charge adjustment will provide more timely and accurate pricing information to NIPSCO customers and allows NIPSCO the flexibility to respond to market fluctuations more effectively.

NIPSCO will be including additional information with its September and October utility bills in an effort to inform its customers about the changes in its gas supply adjustment procedures.

For natural gas customers that are more comfortable with price stability, NIPSCO continues to offer its Budget Plan and Price Protection Service (PPS) options as a means of stabilizing their monthly gas bill.

Customers may also inquire about similar service and pricing options with qualified suppliers participating in the NIPSCO Choice program. Under the NIPSCO Choice program, customers have the opportunity to choose an alternative natural gas supplier.

For additional information or questions about NIPSCO’s new monthly adjustments to its gas supply charge or the NIPSCO Choice program, call (800) 4-NIPSCO.

Customers may also contact the Indiana Office of the Utility Consumer Counselor toll-free at (888) 441-2494, or visit their web page at www.state.in.us/oucc. The OUCC is the state agency that represents the interests of Indiana consumers in matters related to the provision of utility services.

The Indiana Utility Regulatory Commission (IURC) may be contacted toll-free at (800) 851-4268, or visit the their website at www.state.in.us/iurc. An advocate of neither the public nor the utilities, the IURC is required by state statute to make decisions that balances the interests of all parties to ensure that utilities provide adequate and reliable service at reasonable prices.

Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., is a regulated utility that provides natural gas to nearly 700,000 customers and electricity 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 NiSource Inc. and its subsidiaries is available via the Internet at www.nisource.com.

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