NIPSCO GAS COSTS TO CHANGE IN JUNE DIVIDENDS

MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., announced today an increase in its gas cost adjustment (GCA) for June 2000.

This adjustment, which was approved subject to refund by the Indiana Utility Regulatory Commission (IURC), represents an 11.40 percent increase in a typical residential customer's bill from May 2000 and a 40.16 percent increase when compared with June 1999. NIPSCO's business and commercial gas customers will see similar impacts on their June billing statements.

For example, a typical NIPSCO residential customer using 50 therms of natural gas during June should expect a $3.95 increase in their June billing statement when compared to last month and an $11.06 increase when compared to June last year.

The gas price increase in June reflects a decline in U.S. natural gas production levels while demand remains strong beyond the traditional heating season period. On a national level, increased use of natural gas in electric production, coupled with the need to replenish gas storage facilities currently below normal seasonal levels, are two factors driving the recent increases in natural gas prices. In addition, the production of natural gas, which had declined due to falling gas prices at the wholesale level since 1997, has just recently begun to recover in response to current market price increases. Summer weather forecasts predicting warmer than normal temperatures across much of the U.S. would put even further demands on natural gas supplies as gas turbines are increasingly used to meet peak electricity demands.

NIPSCO'S GAS COSTS TO INCREASE

NIPSCO is committed to providing its customers with reliable natural gas supplies at the lowest possible cost. To do this, NIPSCO continuously seeks to improve its purchase contracts and its storage and transmission costs in an effort to ensure the most competitive price for its customers as well as ease the effect of market price fluctuations on their monthly billing statements.

The GCA is an allowed monthly adjustment to the gas supply charge portion of NIPSCO's natural gas service rates. The adjustment, which must be approved by the IURC, reflects the fluctuations in the price NIPSCO pays in the marketplace for natural gas. The company passes on the costs of the natural gas directly to the customer without any markup.

Aside from the gas supply charge, the other components of NIPSCO's monthly gas statements include service costs for gas delivery, and state and local taxes. These service costs, which are also regulated by the IURC, vary with monthly gas use.

For natural gas customers who are more comfortable with price stability, NIPSCO continues to offer its Budget Plan as an option to stabilize their monthly gas bill.

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

For additional information or questions about NIPSCO's adjustment to its gas supply charge, the NIPSCO Choice program, or any of NIPSCO's products or services, call (800) 4-NIPSCO, 24 hours-a-day, to speak with a NIPSCO customer service representative.

Customers may also contact the Indiana Office of the Utility Consumer Counselor toll-free at (888) 441-2494, or visit their website 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 Indiana. Information about NiSource Inc. and its subsidiaries is available via the Internet at www.nisource.com.