NISOURCE COGENERATION SUBSIDIARY PREPARES FOR GROWING CUSTOMER BASE

MERRILLVILLE, Ind. - NiSource Inc. (NYSE: NI) subsidiary Primary Energy Inc. is taking steps to support its growing number of large industrial energy projects. Kenneth P. Foley Jr. has been elected vice president, Production and Maintenance at Primary Energy. In his new role, Foley is in charge of all production and operations and maintenance at existing Primary Energy industrial cogeneration facilities, as well as announced projects under construction at BP Amoco's Whiting, Ind., plant and LTV Steel Co.'s Indiana Harbor Works in East Chicago, Ind.

"Ken brings a rich and valuable portfolio of experiences to this important position," said Primary Energy President Joseph L. Turner. "He has almost 30 years of knowledge as it relates to the energy needs of heavy industry. The relationships he has established over the years will continue to serve our business as Primary Energy maintains its leadership on large 'inside-the-fence' industrial cogeneration activities."

Foley most recently served as director, Production & Maintenance at Primary Energy. He previously held positions of increasing responsibility at Northern Indiana Public Service Company (NIPSCO), also a NiSource subsidiary, including director, Engineering and Operations support; and manager, Gas Control & Storage. He also served as manager, Gas Engineering and has held various project management, operations and engineering positions in the electric and gas utilities at NIPSCO since he joined the company in 1972.

Foley has a bachelor's degree in electrical engineering technology and a master's in management from Purdue University. A Registered Professional Engineer, he is past president and past state director of the Calumet Chapter of the Indiana Society of Professional Engineers. Foley also is a senior member of the Institute of Electrical and Electronics Engineers.

Primary Energy Inc., a wholly owned subsidiary of NiSource Inc., invests in and manages projects that optimize energy productivity, while reducing operating costs for large, energy-intensive industrial and commercial complexes. Primary Energy specializes in on-site electric and steam-generating facilities, and acts with a strong customer focus to assure its customers' objectives are being met. Target markets include the steel, refining, chemical, food products, and pulp and paper industries in North America. Information about Primary Energy is available via the Internet at www.primaryenergy.com.

NiSource Cogeneration Subsidiary Prepares for Growing Customer Base

NiSource Inc. is a holding company whose primary business is the distribution of electricity, natural gas and water in the Midwest and Northeast United States. The company also markets utility services and customer-focused resource solutions along a corridor stretching from Texas to Maine. Further information may be accessed on the Internet at www.nisource.com.