January 19, 2000

MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., and the U.S. Department of Energy (DOE) announced today the formation of a multi-year research project designed to enhance the reliability and efficiency of electric systems that serve large industrial loads.

Beginning today, NIPSCO and the DOE will team with researchers from Purdue University and the Colorado School of Mines to develop new methods to coordinate highly varying industrial loads in an effort to improve the reliability and efficiency of the nation's electric system. Currently, large industrial facilities utilize a significant portion of the total electric energy produced and distributed nationally.

"This research project will help develop new methods to reduce the overall effect highly varying industrial loads can have on the nation's electric system," said Dr. Robert Kramer, NIPSCO Manager of Technical Support. "Increasing the reliability and efficiency of the nation's electric system has economic benefits for everyone."

Applicable portions of this project will also be used to develop advanced control systems for Combined Heat and Power (CHP) applications. CHP applications generate electricity locally, by using natural gas or other fuel sources and then capture the exhaust heat for heating, cooling or other applications.

Research efforts will occur at NIPSCO, Purdue University and the Colorado School of Mines. Researchers for this project include: Dr. Robert Kramer, NIPSCO, Manager, Technical Support; Dr. Thomas Sparrow, Purdue University, School of Industrial Engineering; Dr. Douglas Gotham, Purdue University, School of Electrical Engineering Group; Dr. Chee-Mun Ong, Purdue University, School of Electrical Engineering; Dr. Thomas Brady, Purdue University North Central, Industrial Engineering; and Dr. Rahmat Shoureshi, Colorado School of Mines, Mechanical Engineering.

NIPSCO and the Department of Energy (DOE) are funding this project for approximately three years. During this period, the project will undergo five phases: concept definition and program planning, development, field-tests, results, and CHP issues.

Summary reports describing efforts from the project will be made available periodically to the DOE for public release. The DOE will make a database of selected information regarding the project available for release to the general public.

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 Indiana. Information about NiSource Inc. and its subsidiaries is available via the Internet at www.nisource.com.